Latest News  

PwC: The competitive advantages of Romania are language, soft and technical skills

The Romanian SSC & BPO market is mature, offering a high range of capabilities and a large pool of skilled employees, says Francesca Postolache, partner, Audit Services, PwC Romania.

2015-10-23 13:06:12

Romania SSC/BPO market started to develop in the early 2000s, covering the traditional functions for IT, F&A and call centres. Bucharest and Timisoara, benefitting from large university centres and strategic locations, were the first preferred options for SSC/ BPO. After 2006, other locations started to be targeted as well, to leverage the first-mover advantage and lower labour costs. The SSC-BPO market employs between 20-30,000 staff and is expected to grow with 20-30 per cent over the next three years, shifting from transactional processes to value-added activities (e.g. R&D, talent management, engineering).

According to Francesca Postolache, partner, Audit Services at PwC, Romania is the second largest talent pool in the CEE, with over 120,000 graduates per year, main university centres of the country being the SSC/ BPO hubs, providing a qualified labour pool.

„Romania has over 100 universities with more than 450,000 students mainly in the IT and Engineering (approx.140,000 students) and Economic fields (approx. 90,000 students),” said Postolache.

„All university graduates are required to master at least one foreign language. For business degrees two languages are needed. The Romanian workforce is highly receptive to typical Western corporate values and possesses a high degree of cultural understanding. Current salary levels and future salary trends are highly competitive compared to neighbouring countries.”

The language skills available on the Romanian market have been one of the first attraction points for investments in SSC-BPO. Around 90 per cent of educated Romanians speak at least one foreign language, 25 per cent of Romanians speak at least two foreign languages and four per cent of Romanians speak more than three foreign languages.

„Romanians are internationally known for their high aptitude in speaking European languages: primarily English, followed by French, Italian, Spanish and German English is now spoken by eight million Romanians; French by 4.5 million; German, Italian and Spanish, 1.5-2.5 million,” said Postolache. „In the eastern part of Romania there is a high density of Russian speakers, but there is also significant availability of Russian in Bucharest, through the Moldavian students coming for studies here. However, there is limited availability of more exotic languages, like Czech, Slovak and Nordic languages, which can be found only in small areas in the western part of the country, and usually not at business proficiency levels,” she added.

Regarding taxes, besides the VAT return, which is sometimes a difficult objective to achieve due to the higher than 45-day interval of reimbursement, another fiscal law specifies that the salaries generated from activities of software development and sales are exempt from taxes, up to the level of 10,000 USD. „Another significant cost within the P&L indicator are the costs with the rents, which, for the companies in the BOP and SSC fields represent a large share due to the large spaces these companies are renting,” said Postolache.

„Also, the Government introduced a new state-aid scheme starting 1 July 2014, which could bring a significant financial incentive for setting up the SSC in Romania. The new state-aid scheme provides for co-financing of salary costs incurred by the employer for the new jobs created if certain conditions are met. The application should be supported by a business plan which will also demonstrate the incentive effect of the state aid, an investment plan, a hiring plan and a number of administrative documents (the qualitative and quantitative indicators required for qualification),” Postolache concluded.


0 COMMENTS ^ Go back to Top
WRITE A COMMENT ^ Go back to Top
 
Your email address will not be published.
Nickname
Email
Comment
Validation Code
   
 
 
NEWS
Atos ranked in Top Five for Managed Security Services, Worldwide by Gartner

Atos, a global leader in digital transformation today announces that it has been ranked amongst the top 5 global players in Managed Security Services (MSS) in terms of 2017 market share revenue, according to th

 Read Full article »
Endava has been selected as an official AWS Well-Architected partner

Further strengthening its partnership with Amazon Web Services, Endava reinforces its Cloud services expertise and capabilities becoming an AWS Well-Architected Partner, the company announced.

 Read Full article »
Smartree Romania has a new operational director

Smartree Romania, providing HR services on the Romanian market names Anamaria Borza as the new operational director of the company, effective July, 1 this year. The new manager of Smartree team occupied the pos

 Read Full article »
ABSL Romania: Sibiu, a continuously evolving market, with great potential

Sibiu is a market with huge potential and constantly expanding, is one of the conclusions from "Outsourcing in 2018. Best Practices in Technology Adoption" conference, which was dedicated to the local business

 Read Full article »
Accenture assigns 200 mln. US dollars to digital age-focused education, training and skills initiatives in the next 3 years

Supporting its vision to improve the way the world works and lives, Accenture (NYSE: ACN) is committing more than 200 million US dollars over the next three years to help equip people around the world with job

 Read Full article »
Oracle: Customer connection missing as manufacturers yet to produce rewards from industry 4.0

Research of global manufacturers developed by Oracle with research company Coleman Parkes shows initial Industry 4.0 focus has been on internal changes rather than removing supplier, distributor and customer si

 Read Full article »
Nine solutions for smart cities delivered at Code4Cluj hackathon of Endava

The Code4Cluj hackathon organized by Endava at Cluj-Napoca between 18-20th of May generated 9 innovative projects meant to solve the problems faced by the community and citizens of Cluj.

 Read Full article »
Zitec's digital marketing division registered an increase of over 40 per cent last year

Zitec, a major provider of business solutions, digital services and personalized technology products in Romania, announced it registered an increase of over 40 per cent in the digital marketing segment in 2017,

 Read Full article »
Fab Lab Iasi issues the Report on Coworking in Central and Eastern Europe

This report was conducted by the PIN Maps teams (Iasi's modern office map, an impact initiative for the IT & Outsourcing industry) and Fab Lab Iasi (a 700 sqm coworking space, opened in 2017).

 Read Full article »
CBRE: the first two buildings in Timpuri Noi Square are leased over 90 per cent

CBRE announced three new tenants in TN Offices 1 and TN Offices 2 of Timpuri Noi Square, reaching over 90 percent take-up of the first two buildings in this office project.

 Read Full article »
 
 
MOST READ ARTICLES
» Committed to growth
» The Outsourcing industry announces its...
» ROMANIAN OUTSOURCING AWARDS FOR EXCELL...
» Zitec's digital marketing division reg...
» PwC: The competitive advantages of Rom...
» Olga Botusan, Stefanini: There is a hu...
» EXCLUSIVE: ABSL Timisoara - BPO and SS...
» How giving back pays dividends for com...
» Luxoft expands Asia Pacific presence w...
» Societe Generale-European Business Ser...
 
EDITOR CHOICE
Andrei Romanescu CEO, VEEAM, on the importance of people skills and leadership forming

Within the recently ended OT Learning & Development roundtable edition, Andrei Romanescu CEO, VEEAM stated that he trends of the current and following years underline the importance of people skills and leaders

 Read Full article »
OT Learning & Development: About capitalizing on self-willingness to reach performance

How to succeed in reaching the young and the valuable employees and wining their hearts and minds, so they will forever be committed to gain knowledge, evolve in profession and build a strong career inside the

 Read Full article »
OT Learning & Development now, about digital transformation, facilitating a culture of change and innovation

Some trends are here to stay, while some other may not. How about gamification, chatbots, microlearning, data analytics, mobile learning, augmented reality and others? Today's edition of OT Learning & Developme

 Read Full article »
The need of the industry to stay effective and relevant

In the current context of machinery and AI helping on operational processes of a company, with extended applicability in terms of capabilities, the digital context in which professionals, organizations and busi

 Read Full article »
We meet again at OT Learning & Development on June 7th

The Second Edition of OT Learning & Development roundtable will be held on June 7, 2018 at InterContinental Hotel Bucharest. The event brings together the business services professionals to discuss and discover

 Read Full article »
Latest News  
 
about us | newsletter | contact | members area | GDPR policy
Copyright © 2015 by Diplomat Media Events Design by Diplomat Media Events