Latest News  

Romania, a shining star of business services?

A shining star or not, Romanian outsourced services industry starts to grip in the developed cities: there’s no more talent to hire.

2015-10-23 15:20:21

“The move is towards uncharted territories such as Iasi. But the buzz word is Bulgaria,” tells me one of the leaders in the HR for outsourcing industry at the ABSL conference in Bucharest.

Talking outsourcing with a macroec twist, the ABSL (Association of Romanian Business Services Leaders) forum presents to a packed audience of 500 the views of some of the most prominent analysts in this field, CEOs of large multinationals with a worldwide presence and dominance in the Central and Eastern Europe under the title of „Romania, a shining star of business services.”

Romania became an outsourcing destination about 10 years ago. Previous to that, we have outsourced only for the textile industry in lohn and in IT specialized programs and code writing.
Yet the days of the lohn are long gone, whilst the IT outsourcing grew like no other industry. Small firms managing key accounts for clients residing in US, Japan, Australia and Western Europe led the outsourcing revolution starting with the end of 90’s. Now you can hardly find a true professional in this field to hire, the salaries rocketing sky-high and the companies fighting really hard (within the budget and management culture limits) to keep their employees satisfied.

Romania saw an advance of the business services industry to more than 60,000 employees and this year will rise to 70,000 and almost 1.6% of the GDP in revenue. The industry is set to grow, but Romania has simply not enough resources to fulfill a large scale demand. Managers in the ITO field already complain about the brain drain, and it is only the attrition rate of 20-30% that liberates some talent for others.

Bucharest, Timisoara and Cluj are nearly depleted of really talented personnel, and companies are striving to find educated, multilingual employees in these areas. The move towards the east, to Iasi and surrounding areas will, probably, deplete the local talent in just a couple of years.

But truth is that even if the investors are a bit reluctant to come to Romania, especially in the more sophisticated domains, there are a lot of new companies coming to town.

Without naming any names, a simple walk to Bucharest northern area at noon reveals a huge inflow of young workers, with the average of 30 and under, rushing in to get lunch. It is the biggest wave of people I have ever seen, and I’m just visiting an office park of just 10 buildings.

From automotive to accounting services, outsourced services are multiplying exponentially. Salaries grow, employment reaches unbelievable rates for Romania as a whole, consumption rises, services abound, prices keep up and central bankers may breathe a sigh of relief: no more deflation in these areas.

As attractive this scenario might be, it is, unfortunately, limited to a certain part of demographics: young people with multilingual skills, IT trained and under 30. Yet there is hope. The search for German language professionals is so tough, one employer tells me it pays up to 1,000 euros in salaries and has employees of up to 50 years of age.

Concluding, there is a boom in the outsourced services sector. It marginally affects the entire economy, and it may be responsible for a lot of the foreign direct investment flow - which reached in the first eight months of this year the entire volume of 2014, of about 2.4 billion euros (that is, if the central bank doesn’t come yet with another correction).

Comparing it to Poland, Romania doesn’t seem to earn the “star” nomination. Compare it to the CEE region, it does.

Bogdan Tudorache is the editor in chief of Outsourcing Today


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
FintechOS announces results beyond expectations in 2018

FintechOS announces revenues of 6 million Eur from selling FintechOS technology in just one year from inception. This amount combines 1 million Eur from annual recurring revenue for licenses and 5 million Eur

 Read Full article »
Tremend joins Mellanox in powering the majority of Top 500 supercomputers

Tremend - one of the fastest growing software companies in Romania - has signed an agreement with Mellanox Technologies, a leading supplier of end-to-end connectivity solutions for servers and storage, with hea

 Read Full article »
Almost 19,000 entrepreneurs have already applied for Start-up Nation

The Start-up Nation 2018-2019 program has been accepting business projects for almost a month now, even though the state budget for this year has not yet been passed.

 Read Full article »
Webhelp Romania aiming for EUR 10 million turnover growth, 500 new employees in 2019

Romania's outsourcing market, which recorded two-figure growth in a year, will attract new investments and generate new jobs in 2019, a year full of challenges. After a 2018 that repositioned Romania on the map

 Read Full article »
Manpower: Robots will be your colleagues not your replacement

Fears that robots will eliminate your job are unfounded with a growing number of employers planning to increase or maintain headcount as a result of automation, staffing company ManpowerGroup said in a survey

 Read Full article »
Study: Five out of 10 employers eye lay-offs

Almost 5 out of 10 employers would proceed to lay-offs, according to a survey conducted by the National Council for Small and Medium Sized Companies (CNIPMMR).

 Read Full article »
US company Visteon looks for software developers at Timisoara

Visteon, automotive supplier focused exclusively on cockpit electronics, it is setting up a new product development center in Timisoara, Romania. The company plans to build a team of 400 employees in Romania,

 Read Full article »
Gabriela Mechea takes over the helm of ANIS

The Software and Services Industry Employers Association ANIS appointed Gabriela Mechea as the organizations' executive director, replacing Valerica Dragomir who left the association after 17 years.

 Read Full article »
Poll: 2018 was hard for recruiting – 29 Interviews to one hire

Nearly nine out of ten companies had a tougher time finding suitable employees in 2018 compared with previous years, interviewing an average 29 candidates before hiring one person, a poll by HappyRecruiter show

 Read Full article »
CBRE maintains its market leader ranking with 24 per cent market share on the Bucharest-based office segment

In 2018, CBRE, the real estate consultant managed 24 per cent of the Bucharest-based office market, according to a release of the company.

 Read Full article »
 
 
MOST READ ARTICLES
» The most appreciated companies from th...
» Webhelp Romania aiming for EUR 10 mill...
» The Outsourcing industry announces its...
» Deloitte's Tech Trends 2019 report: B...
» Tremend joins Mellanox in powering the...
» Manpower: Romania's labor market, more...
» Bucharest, in the top of cities in Eur...
» Genpact's COO: Staying ahead of the cu...
» SocGen's EBS division to grow 60%, exp...
» Oracle reaches 4,200 employees and pla...
 
EDITOR CHOICE
Nomination are now open for Romanian Business Services Forum and Awards

Nominations have opened for the prestigious Romanian Business Services Forum & Awards. The 2019 awards will continue to recognize and reinforce the important contribution made by business services professionals

 Read Full article »
Study: 89 per cent of finance teams yet to embrace Artificial Intelligence

Report by Association of International Certified Professional Accountants and Oracle shows that almost 90 per cent of finance teams do not have the skills to support digital transformation.

 Read Full article »
Bucharest, in the top of cities in Europe with the largest number of experts in high-tech industry

Bucharest is among the top cities boasting the most experts in the high-tech innovative industry, with over 70,000 current employees, next to London, Dublin, Madrid or Budapest, reads a study conducted by CBRE

 Read Full article »
CBRE study: Post-millennials, the happiest about their offices

During 2018, real estate consultancy company CBRE conducted the first study dedicated to work environment in office buildings in Bucharest. The respondents have been structured in four age segments, such as Z g

 Read Full article »
Deloitte's Tech Trends 2019 report: Beyond the digital frontier

The recently released Deloitte's Tech Trends 2019: Beyond the digital frontier, as each Tech Trends report in the series conducted by the consultancy company, lobbies for embracing the increasing, often mind-b

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