Latest News  

Hunte, Everest: Romania takes a slice of 8% from the CEE services ratio

The share of services offered by CEE (dubbed by Everest “nearshore Europe”) in the outsourced services segment is “definitely increasing” says Rupert Hunte, client director, Everest Group.

2015-10-26 17:04:48 - by Bogdan Tudorache

With a global sourcing market size expected to reach 160-165 billion USD this year, up 9% over 2013 levels, more investors more to the CEE region, leaving riskier areas. Today Romania takes 8% of the region’s IT and BPO market, less than Poland (27% share), Hungary, Ukraine, Slovakia and Czech Republic (all have 10-11% shares) and Ireland (14%).

But while in 2011-2013 period investors setting up new shops preferred Poland (27%), Ireland (25%) and Romania was getting 16% of that interest, now Poland has dropped its growth rate to 13%, Ireland to 20% and Romania kept the same growth pace of 16% in 2014-2015.
Also, as Bucharest, Cluj and Timisoara activities saturate, investors move towards Iasi and Bacau, according to the Everest survey consulted by Outsourcing Today.

The share of nearshore Europe in global services delivery is increasing from 8% in 2013 to 10% in 2014, while Asia Pacific (APAC) dropped from 80% to 74% during the same period, in terms of headcount and full-time equivalent positions (FTEs).

“Europe has taken Asia for the first time in new center set-ups and expansion, with the investors preferring nearshore Europe in quite significant numbers, of 42% in the first half of 2015,”Hunte adds.

Recent activities in Europe focused on engineering services and R&D, analytics and cloud services. Players have set up centers in both tier 1 and tier 2 cities of CEE, the Everest study reveals.

In comparison to the 42% preferences for CEE, investors also concentrate on APAC (40%) and less in Latin America, which saw a decrease to 14% from the previous half (H2, 2014) of 27% - demand ratio that unsurprisingly moved to CEE’s account.

“A significant demand comes from the investors moving from Northern Africa – from countries such as Morocco, Algeria and even Egypt,” Hunte said.
Many investors move to CEE countries, and companies tend to simplify and to reduce costs, says Hunte.

Everything is moving towards more simple ways of doing business rather than making it compact, from sophistication point of view. A lot of companies look to add value to their services rather than reducing costs, and Romania fits in this scenario, says Hunte.

“The recent study in banking and financial services in CEE reveals out of the 20 respondents, all consider that cost reduction is crucial, however, the flexibility, understanding the business aspects and what they need to do has a major impact in taking decision,” says Hunte.

“Also, standardization and harmonizing what they have to what they want and the influences the digitization and automation are having in the banking and financial sector are crucial, also in Romania,” says Hunte, explaining that clients in this field form Romania and CEE would rather look at that problems addressed when choosing a BPS (business process services) provider.

“However, besides the banking and financial sector, there are also investors in other areas looking significantly towards the region,” says Hunte.


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...
» The Outsourcing industry announces its...
» Webhelp Romania aiming for EUR 10 mill...
» 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...
» Molson Coors started to grow its busin...
» SocGen's EBS division to grow 60%, exp...
 
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