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
Logicom launched Cloud Marketplace platform in Romania

Logicom, one of the leading distributors of IT solutions and services and Microsoft Cloud Solution provider, announced the launch of Cloud Marketplace platform in Romania.

 Read Full article »
Excelian Luxoft Financial Services strengthens Its APAC presence with the acquisition of derivIT

Luxoft Holding, leading provider of software development services and innovative IT solutions to a global client base, announced that it has entered into a Share Purchase Agreement to acquire derivIT, a Singapo

 Read Full article »
SAP: Only four percent of companies offer customer experience based on contextual data to clients

According to latest findings of business and technology software solutions provider SAP conducted together with CMO Council, only four percent of companies offer real time customer experience based on contextua

 Read Full article »
Manpower: One out of three Romanian companies will hire people in second quarter, 2017

About a third of employers in Romania anticipate an increase of the number of employees in the second quarter of 2017, while only 7 per cent of company representatives foresee a drop of personnel, according to

 Read Full article »
Luxoft depicts top five global trends in software in 2017

According to the latest findings of software and It solutions provider Luxoft, transforming industries and business models within the context of accelerated innovation and strengthened disruptive technologies p

 Read Full article »
Oracle surpasses 9 billion US dollars worth revenues globally

Oracle Corporation announced fiscal 2017 Q3 results with total revenues up to 9.2 billion US dollars, a 2 per cent increase in US dollars and up 3 per cent increase in constant currency, the financial report st

 Read Full article »
Accenture Research: Three critical accelerators to closing the gender pay gap for class of 2020

Women graduating from university in developed markets in 2020 could be the first generation to close the gender pay gap in their professional lifetimes, according to new research from Accenture

 Read Full article »
CA Technologies positioned a leader for identity governance and administration

CA Technologies (NASDAQ:CA) has been positioned by Gartner, Inc., in the Leaders quadrant of the 2017 Gartner Magic Quadrant for Identity Governance and Administration (IGA).

 Read Full article »
SAP and Google announce co-innovation strategic partnership for global enterprises

During the Google Cloud Next '17 conference in San Francisco, the two companies announced the signing of a strategic co-innovation partnership between our two companies to help global enterprises run their busi

 Read Full article »
Voxpro opens office in Bucharest and hires 150 people

Multilingual business process outsourcing services provider Voxpro based in Cork, Ireland announced it would expand operations with a new office located in Bucharest where it plans to hire 150 people.

 Read Full article »
 
MOST RECENT VIDEO
 
 
MOST READ ARTICLES
» ROMANIAN OUTSOURCING AWARDS FOR EXCELL...
» Luxoft surged 40 per cent in 2015 – ...
» Exclusive OT print issue: Genpact may ...
» Manpower:Romania has world's third hig...
» SocGen's EBS division to grow 60%, exp...
» Bombardier: from Bucharest subway to t...
» People in Shared Services and Outsourc...
» Omnichannel: 4 pillars of a purposeful...
» Companies such as Endava and Fortech d...
» DB Global Technology: 40 per cent of t...
 
EDITOR CHOICE
TELUS International Europe: More proactive, personalized customer experience, thanks to the Internet of Things (IoT)

Industry research is apt to say we're on the cusp of a future full of "smart" devices — that is, billions of everyday items embedded with wireless internet connectivity

 Read Full article »
Romanian Outsourcing Summit: Focus on the added-value of business shared services in Romania

This year's edition of Romanian Outsourcing Summit joined representatives of the government and top representatives of leading companies operating in the sector of business shared services and related industrie

 Read Full article »
Romanian Outsourcing Summit reaches its third edition

OUTSOURCING TODAY, the integrated communication platform of the business services sector, powered by The Diplomat Bucharest, presents the Third Edition of the ROMANIAN OUTSOURCING SUMMIT on March 23rd 2017, at

 Read Full article »
The most critical Key Performance Indicator (KPI) in social media customer service

Measuring the impact that your social media interactions are having on your business — and your bottom line — can be a tricky endeavor. How can you really identify and quantify whether a particular social m

 Read Full article »
SAP employees to teach programming to scholars in Cluj-Napoca

Ten volunteers working for SAP company together with Cartea Daliei association will organize a Scratch programming teaching club to function at Emil Isac school based in Cluj-Napoca, the company announced.

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