Latest News  

KPMG: Business Services industry may grow to about 70,000 employees in 2015

Employment in the business services sector will rise by 15% at the end of 2015, possibly exceeding a general revenue to GDP ratio of 1.6% and reaching to an overall employment to active population ratio of about 2,2%, according to an Outsourcing Today estimation based on a KPMG study.

2015-10-23 16:12:21

An additional growth of about 17% in 2016 and a further 19% for 2017 are the average figures forwarded by 29 companies surveyed by KPMG. Expanding the growth figure to the entire industry, the employment may rise to about 70,000 people, from 60.000 last year.

In 2014 about 1.9% of the active working population was employed in the industry, while the business represented 1.4% of the GDP.

While this year the industry is expected to grow some 15%, a resulted grow is rather provided mainly for the Bucharest area, where most of the respondents (81%) reside.

„The forecasted development of the employment workforce for the next three years is positive, with growth in the number of employees expected for each year. The total pool of human resources is expected to increase by 15% in 2015, by another 17% in 2016 and by another 19% in 2017,” says Adela Ciucioi, Director of KPMG’s outsourced services division.

KPMG has started its shared services center in 2011 and has now more than 110 people providing services throughout five different countries. Meanwhile, the outsourced services industry is expected to see an expansion in activities and customers (21% of the respondents) over the next two years, or simply expand just their activities (20%) or just the customer base (18%), especially in IT&Telecom, banking and industrial sectors, where most of the respondents are active.

“In terms of plans for the future, at least two thirds of the respondents plan to continue to develop, considering the significant growth that we’re still forecasting, we have probably all of the scientific arguments needed to consider the industry as a rising star,” Ciucioi said.

„Employment growth in companies organized as internal units / captive centers is supported mainly by global restructuring plans (as mentioned by 40% of the respondents), an increase in external demand (by 30% of them) and development of new business areas (by 25% of them),” the study says.

Employment growth in companies organized as commercial providers / outsourcing centers is to a large extent determined by the increase in external demand (as mentioned by 50% of the respondents), followed by the development of new business areas (by 36% of them) and acquisitions (by 14% of them).

Companies organized as hybrid models mentioned all the above growth drivers, the most frequently encountered being the development of new business areas (in the case of 37% of respondents) and acquisitions (for 27% of them), followed by global restructuring plans and external demand increase (each for 18% of the respondents).

Participants in the survey comprised 29 companies operating in the outsourcing market in Romania, most of which located in Bucharest. They are organized as either internal units / captive centers, commercial providers / outsourcing centers or hybrid models. Most of the companies are located in Bucharest, but also have offices in other cities within Romania. The total turnover for all respondents was at least 675 million euro in 2014. Respondents’ parent companies are mainly based in Europe or North America and are active in a wide range of sectors, the most frequently encountered being Technology & Telecom, Business and Professional Services and Industrial & Consumer goods.

The services provided by the surveyed companies are diverse, ranging from customer operations, IT, finance and accounting, business transformation, human resources and others. Most of the companies surveyed provide more than one type of service, with a maximum number of services offered of twenty two.

Except for one company not disclosing its plans, all the other respondents expressed their intention to expand the activities within the following one to two years, either through new activities being offered to new or existing clients, or by offering existing activities to new clients. Eight companies are focused on the stabilization and optimization of their current activities, combined with the already mentioned expansion activities. One company is focusing on increasing the automation, besides expansion of activities and stabilization of current ones.

The total number of answers exceeds the number of respondents, as most of the companies plan to use more than one of the alternatives.

The total turnover of the respondents to the survey for the FY2014 is at least EUR 675 million (the exact amount could not be calculated as two companies stated that their turnover exceeds EUR 20 million, without providing the precise amount and another six companies refrained from disclosing this information). A rough estimation of the turnover generated per employee ranges between EUR 8 thousand and EUR 114 thousand, with an average turnover of EUR 39 thousand per year. However, given the data obtained through questionnaires, the figures might not be sufficiently accurate in this respect.

The size of surveyed companies varies from less than one hundred employees to more than three thousand employees.

The average attrition rate, which significates the employment fleeing for other jobs, is of 21%. Eighteen companies have reported an attrition rate lower than the average and only five companies have reported values above it.

Out of the total pool of human resources, most are concentrated in rendering IT, customer operations and finance & accounting services.

The majority of respondents have indicated an average age of the workforce of between 25 and 35. In most cases, female employees are in a clear majority, the overall gender distribution being 64% female employees to 36% male employees.

Key drivers for employment growth vary depending on the type of organization. While employment growth is generated by global restructuring plans for captive centers with a direct impact on the increase in external demand, employment growth in outsourcing centers is generated by both an increase in external demand and the development of new business areas. Hybrid models combine all the above mentioned growth criteria.

Fringe benefits represent an important part of employees’ compensation. Although a wide range of such benefits is offered by companies, the most frequently provided ones are medical packages and language courses. In their effort to increase the technical competences of the human resources pool, the companies have developed a wide range of cooperation projects with universities, such as joint educational projects and joint conferences and courses.

The majority of active employees within the companies subject to the survey have at least a bachelor’s degree, while about a quarter of them also have a Master or PhD degree.
Participants in the survey have indicated language proficiency as the most needed skill, with a focus especially on German language, followed by IT skills, the KPMG study made for ABSL concludes.

B.T.


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
Societe Generale European Business Services invests in innovative solutions made by Romanian start-ups

Societe Generale European Business Services, part of the international group Societe Generale, had ended its first corporate accelerator program dedicated to start-ups in Romania – Catalyst 2.0.

 Read Full article »
SAP launches free online courses for teens passionate about technology

SAP announced it has prepared several free online technology courses to be launched this fall for young and teens passionate about technology such as: Teens Get Coding! And Teaching Programming to Young Learner

 Read Full article »
Oracle gains cloud revenues up 51 per cent to 1.5 billion US dollars in new fiscal year's Q1

Oracle Corporation announced fiscal 2018 Q1 results, with total revenues up 7 per cent from the prior year to 9.2 billion US dollars. Cloud plus On-Premise Software Revenues were up 9 per cent to 7.4 billion US

 Read Full article »
Stefanini names Farlei Kothe as vice-president for EMEA

IT solutions developer Stefanini announced the naming of Farlei Kothe as vice-president for EMEA region. The new manager will coordinate the company's software development division from Bucharest.

 Read Full article »
Endava marks 10-year presence in Iasi and plans growth countrywide

British company Endava marks ten-year presence at Iasi, in North-Eastern Romania and also announces the opening of a new office in United Business Center of Palas Iasi compound.

 Read Full article »
Portland Trust celebrates 20-year anniversary with start of last phase of Oregon Park, Bucharest

The central European property developer Portland Trust and US based Ares Management are embarking on the final phase of Oregon Park, their new office park in Bucharest. This event coincides with the company 20

 Read Full article »
WBE: Which EU country is most at risk of cybercrime?

Computer users in South Eastern Europe may want to review their digital security after new research revealed they are the most vulnerable to cyber crime, a press release of Website Builder Expert (WBE) states.

 Read Full article »
GE opens new software center in Bucharest, looks for highly skilled IT specialists

GE announced that it speeds up growth for its software and digital resources in Romania and kicks off the recruitment campaign for GE Power's Grid Software Solutions (SWS) center in Bucharest.

 Read Full article »
DB Global Technology creates new technology hub, digital workplace floor and event venue

DB Global Technology S.R.L. (DBGT), Deutsche Bank's technology centre in Bucharest, has inau-gurated a new research and development hub, a digital workplace floor and a state-of-the-art event venue, according t

 Read Full article »
HIpark, a new office project of 21.000 sqm of 39 million Euro launches in Iasi

Ropharma announces the launch of a new mixed use project of offices and residential, with a full range of services and retail space, the estimated investment being amount to approximate-ly 39 million Euro.

 Read Full article »
 
MOST RECENT VIDEO
 
 
MOST READ ARTICLES
» GE opens new software center in Buchar...
» ROMANIAN OUTSOURCING AWARDS FOR EXCELL...
» HIpark, a new office project of 21.000...
» DB Global Technology creates new techn...
» Stay updated on People in Shared Serv...
» Molson Coors started to grow its busin...
» Endava opens fintech hub and doubles n...
» Genpact's COO: Staying ahead of the cu...
» Capgemini to develop, deploy, and main...
» TELUS International Europe: The conver...
 
EDITOR CHOICE
TELUS International Europe: How big banks and fintechs are working together to innovate the customer experience

Comparing financial technology (fintech) companies to legacy financial institutions can invoke an image of David and Goliath. Fintech firms may be small, particularly when compared to the established titans of

 Read Full article »
Wipro launches automotive center of excellence in Romania

Wipro Limited, global information technology, consulting and business process services company, announced the launch of an Automotive Center of Excellence (CoE) in Timisoara, Romania. This CoE will help Wipro d

 Read Full article »
TELUS International Europe: The convergence of customer service and digital marketing/NewGen technologies: What does it mean for businesses?

Technology shapes the way we educate, communicate, conduct business and advance science, all while maintaining significant influence on the global economy. But the way we engage with technology is changing

 Read Full article »
Stay updated on People in Shared Services and Outsourcing Forum, October 19

Outsourcing Today organizes the third edition of People in Shared Services and Outsourcing Forum, on October 19, 2017 in Bucharest at Caro Hotel.

 Read Full article »
Preparing for the new future

Business shared services in Romania is by nature a flexible, mobile and diverse community and in this context, local markets develop their own particularities to address the global changes, to adjust to new dem

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