CBRE: Romanian outsourcing industry has 310 offices and 0.5 mln. sqm
Business Processes Outsourcing (BPO) and Information Techology Outsourcing (ITO) sectors are the most lucrative segments within the outsourcing business in Romania, each with around 22 – 23,000 employees, throughout the country, states a recent survey by CBRE.
The outsourcing industry offers employment to over 67,000 people within 215 companies, that have over 310 offices covering an office space of half million sq m spread throughout the country.
"In our calculation around 67,000 people are working within BPO, SSC and ITO in Romania, with at least another 5,000 new jobs in planning to be occupied within the next 12 months," states the study.
A relatively new branch, Shared Service Center, or SSC, is starting to gain momentum and has under employment around 15,000 employees.
Research & Development, due to its high-skill level of operation is a relatively small sector, has around 5,000 employees.
"On average, an outsourcing centre in Romania has 320 employees, with BPOs having almost 500, while ITOs around 270. More than half (47%) of the analysed companies are focused on Application Development & Maintenance, followed by companies dealing with a multitude of processes, including Human Resources, Finance & Accounting, Support Services."
Pure contact centres (call centres) account for 12% of the companies analysed. Still, as the nature of the business entails large operations, these companies employ over 10,000 people (15% of total).
The presence of so many ITOs is not random – two factors are in stake: the high number of graduates with programming / IT skills, in all major regional cities – over 20,000 graduates with technical skills on a yearly basis, and the number and value of state incentives awarded by the Romanian Government to the IT industry.
This includes 100% exemption on income tax for IT employees and public financing for development of IT innovation parks.
Software and outsourcing companies alike can benefit from state aids for regional development, job creation and investment support for new technologies creation, as well as 50% tax deduction for R&D related cost of operations, according to ANIS (the Employers Association of the Software Industry).
While the last couple of years the exposure and size of outsourcing companies has increased substantially, these companies were very much present since as early as 1991.
Indeed, in the last four years, the number of SSCs has almost tripled in size, while a majority of other outsourcing companies expanded their presence.