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Gartner: Romania moved into the first tier of SSC countries in 2015

Romania is in Tier 1 of the emerging markets locations for service centers placement in 2015, says Oldrich Priklenk, CEO, KPC-Group, Gartner Representative for Czech Republic, Slovakia and Romania.

2015-10-26 17:09:03 - by Bogdan Tudorache

“With the beginning of 2015, Romania got into the first tier of SSC locations or destinations, together with Poland, Czech Republic and South Africa, based upon 10 different criteria,” says Priklenk.

“It is a prestige position amongst 30 countries. We reviewed more than 1,500 questions from clients thinking about where to place their SSCs, all over Europe, which was a bit overheated, but is still the leader and many companies consider coming back to Europe,” says he.

“Romania has the strength, is multilingual, has educated labor resources, cost efectiveness, govenrment support-for example for the tax exemption for IT employees- and quite good technical universities. Also it has geopolitical opportunities, as it can take benefit from Ukraine-Russia situation.”

Also, in Romania, the salaries are still very competitive. “Romania is still at half price as opposed to Austria, in tech consulting, while in customer development stands at 60%,” he added.

Among the most known generations of services, the first generation (SS1) include Services delivering “Run the business “value. Those include basic functions for Finance, IT, Customer management and SCM. The second generation of services (SSO2) includes more complex competencies “Grow the business” value ones. While a third layer SSO3 comprises “Transform the business” values.

While Romania keeps SSCs concentrated on the first and second range of complexity of services, Poland is keeping the trend to outsource mostly the third level of services. So there’s room for local development.

In 2014, 80% of the high performance companies were deploying shared services (captive or outsourced).

“Enterprises which deployed shared services achieved within 18 month reductions in the error rates of 54%, within one or more business processes,” says Priklenk.

“Also, there is an improvement in customer satisfaction, productivity and quality due to consistency, standardization and multitenancy offered by shared services access,” says Priklenk.

But while SSCs have proven a track record for delivering value, “the journey is long and politically charged”


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