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
Colliers International, designated to obtain WELL certification for Skanska's Campus 6 buildings

Pioneering in the field, Skanska is the first developer to introduce in Romania the WELL Building standard for the newest company's project developed in Bucharest, Campus 6 and its 2 and 3 office buildings, bei

 Read Full article »
Atos signs cybersecurity industry partnership with NATO

Atos, global leader in digital transformation and the NATO (North Atlantic Treaty Organization) Communications and Information Agency today sign an industry agreement to commit to a rigorous and continuous exch

 Read Full article »
Co-working segment: CBRE advises Spaces in the opening of its biggest center in Romania

CBRE, the world and local market leader in real estate consultancy, advised on the leasing transaction of 4,100 sqm office space for the largest center to be opened by Spaces in Romania.

 Read Full article »
Francesca Postolache, Partner PwC joins People in Shared Services & Outsourcing Forum on October 18, at Bucharest

Francesca Postolache, Partner PwC, joins us next Thursday to take forward major subjects such as Digital Transformation and Next-Generation Talent Development.

 Read Full article »
Telekom Romania opens in Brăila its sixth BPO center

Telekom Romania announces the opening in Braila of BPO (Business Process Outsourcing) centre dedicated to companies that need such services and which prefer to rely on a professional and experienced provider

 Read Full article »
Delphi Technologies inaugurates global IT center in Bucharest

Delphi Technologies, a leading provider of advanced propulsion solutions to automotive manufacturers has opened its first multidisciplinary global IT center in Bucharest. This new site will provide information

 Read Full article »
London Stock Exchange Group appoints Andreea Stanescu as General Manager for Romania

London Stock Exchange Group (LSEG) announced that Andreea Stanescu has been appointed General Manager, Romania. Andreea will be reporting to Dee Liyanwela, Head of Business Services Ltd (BSL) Sri Lanka and Roma

 Read Full article »
Google to offer free courses for young programmers and business incubators

Google announced the launch of the "Digital Workshop for Programmers", aimed at offering free courses to students who want to learn to program and young people who want to become technology entrepreneurs. These

 Read Full article »
ANIS scholarships gathered 35 innovative projects since launch

Employers' Association of the Software and Services Industry (ANIS) announced it registered 35 innovative projects within the first edition of its program called "ANIS' Scholarships".

 Read Full article »
Matthieu Pasquier is the new CEO of Societe Generale European Business Services

The Board of Societe Generale named Matthieu Pasquier as the new CEO of Societe Generale European Business Services, effective July 16, the company announced.

 Read Full article »
 
 
MOST READ ARTICLES
» Andrei Romanescu, Managing Director of...
» ROMANIAN OUTSOURCING AWARDS FOR EXCELL...
» Delphi Technologies inaugurates global...
» Genpact's COO: Staying ahead of the cu...
» French energy operator Total opened su...
» Ready for People in Shared Services & ...
» Grégoire Vigroux appointed the new Vi...
» Oracle reaches 4,200 employees and pla...
» Colin Lovering to moderate the talks o...
» Synergy of skills
 
EDITOR CHOICE
People in Shared Services and Outsourcing Forum, 2018: What kind of future, tomorrow will bring?

We have just concluded the fourth edition of our annual event People in Shared Services and Outsourcing Forum, the get-together of the Who's Who in the industry of business shared services in Romania.

 Read Full article »
Olga Botusan, Stefanini, keynote speaker at People in Shared Services & Outsourcing Forum on October 18, at Bucharest

This Thursday, at People in Shared Services & Outsourcing Forum 2018, Olga Botusan EMEA HR Director at Stefanini joins us to talk about Digital Transformation and Next-Generation Talent Development.

 Read Full article »
Colin Lovering to moderate the talks of People in Shared Services & Outsourcing Forum on October 18, at Bucharest

The moderator of the 4th edition of the annual event dedicated to the human resources in shared services & outsourcing industry, COLIN C. LOVERING ISM, Chairman of BRCC and Senior VP, Avison Young Real Estate i

 Read Full article »
Andrei Mihai Crăciun joins the speakers of People in Shared Services & Outsourcing Forum on October 18, at Bucharest

Andrei Mihai Crăciun the Head of office for Innovation, Technological Transfer and Intellectual Property Office from West University of Timisoara will be joining us to discuss whether the private-state actors

 Read Full article »
Sergiu Negut, on the stage of People in Shared Services & Outsourcing Forum on October 18, at Bucharest

On October 18th, Sergiu Negut joins People in Shared Services and Outsourcing Forum to share with us his ideas of ways to support the industry's human capital necessities and create a more efficient cooperation

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