Latest News  

Oracle reaches 4,200 employees and plans further expansion - Exclusive OT print issue

While Sorin Mindrutescu, Oracle's general manager for Romania, added to his functions the leadership of its central and eastern Europe Cloud division, the company grows solidly to about 4,200 employees, about a third more than last year's

2016-09-12 22:28:33

HR offices are burning hot in Oracle's Northern Bucharest offices, as the company has hundreds of positions opened at any given time. Soon the company will expand from Floreasca Park to Oregon Towers, a new building under construction whose design was initiated by Portland Trust.
The building has 3,400 square meters per story, and Oracle leased a total of 20,104 sqm – an entire building. (Oracle took building A, and there are still available - to our knowledge - buildings B and C, of 24,600 sqm each).
"We're growing steadily, but we cannot reveal the rate…Most of our employees are involved in outsourcing processes for worldwide clients. We have several divisions, from software to cloud and hardware," Mindrutescu tells Outsourcing Today.
As the global environment is more and more Cloud, Internet of Things and Big Data-oriented, Oracle's latest moves have focused around this trend. And it has grown locally to become the second largest centre in the entire EMEA region (Europe, Middle East and Africa), after the one in the United Kingdom.
Besides Bucharest, the company also selected Iasi for a second centre, and there are 50 employees there just in the Product Development division. The Bucharest SSC has by itself close to 1,000 employees, more than 30 services lines and a 27-language skillset.
Although Mindrutescu has not revealed the pace of the Romanian expansion, our estimates set it at around 35 per cent a year.
And the Romanian centres focus more on innovation than we might think, says Mindrutescu.
"Ever since this industry started some 15 years ago, many put an emphasis on back-office activities. But although this is an important segment, I think the development, innovation, technical support and high-added value segments and business lines should be mentioned more."

Romania, the new IT El Dorado


New IT and non-IT firms relocate their shared services and IT support centres to Romania, and Tier II cities move up a notch, says Mindrutescu.
"We heard of Miercurea Ciuc, Bacau and Craiova, many cities that previously were not chosen by investors. We are glad that the cities and towns that were not the first choice are becoming more developed."
Oracle started developing local operations about 20 years ago, and Romanians inside Oracle now combine 27 foreign languages with technology capabilities.
"During the past six years we have been among the top employers in the market, cross-industry, not just in IT."
Romania's more than 120,000 IT specialists (according to Oracle-consulted statistics; according to OT estimates the level of IT professionals exceeds now 200,000) means that per capita the engineer number is larger than in other countries.
Oracle's local remote capabilities include a plethora of functions, not only call-centre related lines. Romania is the second largest European entity and the fifth global one, with Oracle local centres in Bucharest offering more than 30 functions. "There are functions ranging from Fusion Cloud applications to Open standard, from Java to testing engineering - we have deep core departments."
About 12 per cent of the overall Oracle global software support is in Bucharest and Iasi. "The few months that have seen us function in Iasi brought us about 50 engineers, in a 24/7 support technical assistance model." During the past three years, Oracle's local 24/7 support total assistance team grew from a 250 to about 1,000 personnel figure countrywide.
Besides local clients, the support team serves all kind of clients in all global areas.
"We have now reached an overall Romanian employee figure of more than 4,200," says Mindrutescu, meaning an about doubled figure over June 2011.

Global companies to undergo major changes


An S&P 500 companies survey started with the 1950s showed that each company within the index used to maintain the index criteria for an average of 61 years, while nowadays the average is just seven years, says Mindrutescu.
The 2008 financial turmoil reshaped the index, and while companies were still affected by the crisis, they are more deeply reshaped by the new technologies.
"According to Professor Richard Foster's analysis, 75 percent of the companies comprising the S&P 500 index will be out of the index by 2027. This offers us a perspective about the way that companies are burnt out in an ever-changing economy," he adds.
At the same time, IT expenditure dropped significantly during the past years, with a 5.1 per cent decline in 2015 alone. "It is all about a fundamental change in the way that the companies are spending money. The 500 companies in the S&P index used 54 per cent of their capital to buy back their shares, instead of investing it, and 37 per cent were offered as dividends to shareholders. Little money left, then, for IT investments."
The markets are changing, the capital expenditures are dropping and changing purpose.
"This shows we enter an entirely new economic cycle. We have seen significant changes in the company's business models due to technology. We have seen the economy's UBER-isation, how to be one of the largest taxi operators worldwide but not own any car; we have also seen how to be largest hotel operator worldwide but not own a hotel thanks to Air B&B.

Change of the traditional business concepts


Applications change the fundamentals of industries: Uber does not own cars, does not have licenses and does not cash via drivers. It has just 4,000 employees, and uses 160,000 drivers, all due to technology.
"Entire business models have changed. We had internet, social media, Cloud, Big data, and now 3D printing – Internet of Things…there are many things to come."
Also, millennials have become consumers, and coming of age they move to the concept of share mobility. In the US, many millennials re-write the economy and the consumption rules.
"All of these changes of the business models raise questions regarding the development patterns of the IT industry. Currently it is based on legacy systems, and 80 per cent of the money goes to maintenance. Cyber security is more and more needed…the traditional systems are more and more under stress and the answer is moving all the instances to the Cloud," he explained.
The infrastructure, platform and software as a service (IaaS, PaaS, SaaS) capital expenditures are estimated to reach about 550 billion USD by 2025.
"By 2025, the very few SaaS providers will have the possibility to resist in the market, especially since an entire variety of applications will have to be in the public Cloud, and not many will be able to provide it."
Also, the utility industry is under a lot of stress; technologies such as those needed by smart metering or the financial system will need new investments – and the Cloud development will come naturally, as the supplier will make the investment instead of the investor itself. Storage will also undergo this pattern.
Cyber security is also important, and Cloud services will also count in this feature when taking into account the supplier.
"There's a new shift in the industry, and all will change, including business models. Costs and complexity will go down, and for example on-premises database increments when setting will simplify from 700 to 30 steps."
The first Oracle office was established in Romania more than 20 years ago (1995); with this, Oracle was the first major software company to have a direct presence in Romania.


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
Saxo Bank analysis: Romania, the ideal place for a fintech revolution

Fintech will produce a revolution and is leaving the door open to real challenges, but also with opportunities for those who embrace it, Laurentiu Nedelcu, CEE manager at Saxo Bank said in a recent analysis.

 Read Full article »
Bitdefender signs accord with American router producer Netgear

The software producer Bitdefender signed a technology licence partnership with the American equipment producer for Netgear networks, which will include in its products security solutions for smart devices, deve

 Read Full article »
Laurentiu Lazar, promoted as Managing Partner at Colliers International Romania

Laurentiu Lazar, Senior Partner, Investment and Valuation Services, will take over as the new Managing Partner of the real estate consultancy company Colliers International Romania, effective as of March

 Read Full article »
Upcoming event brings Retrospective in Labor Legislation on February 15th, at Bucharest

Outsourcing Today, together with Fine Law, organize The 2017's Retrospective in Labor Legislation event on February 15, 2018 at Caro Hotel Bucharest, a knowledge sharing event dedicated to the latest significan

 Read Full article »
A.T. Kearney: The widening impact of automation impact the business model of outsourcing

According to a recent article of A.T. Kearney and based on the findings of Global Services Location Index for 2017, the developing nations have long enjoyed the economic benefits of other countries' offshoring.

 Read Full article »
Freelancing – a solution to staff shortages for companies

According to Smartree Romania, a leading provider in Romania of outsourcing payroll services and personnel administration, freelancing has become more present among Romanians lately. Working with freelancers ca

 Read Full article »
Kaspersky Lab: Targeted attacks on radar for industrial organisations

Of the industrial companies that participated in the IT Security Risks Survey , every fourth has faced a variety of cyberattacks. Worryingly, one of the fastest growing types of threat among the multitude targe

 Read Full article »
E-commerce: Romanian companies sell online on their own, above EU average

A share of 16 percent of all enterprises located in the EU and employing at least 10 people received orders via a website or apps (web sales) in 2016, Eurostat reveals. At the same time, more than 8 in 10 enter

 Read Full article »
FAB LAB Iasi nominated at CEE Shared Services and Outsourcing Awards in Warsaw

Iasi city, in Eastern Romania, together with Conduent company and FAB LAB IASI project have been nominated at CEE Shared Services and Outsourcing Awards, to take place at Warsaw at the Hotel Intercontinental o

 Read Full article »
Endava and Velocity Partners announce merger to become truly global IT player

The merger between Velocity Partners, an innovative software development company with a strong presence in Latin America, and Endava, a global technology company with a sustained consistent growth and offices a

 Read Full article »
 
 
MOST READ ARTICLES
» ROMANIAN OUTSOURCING AWARDS FOR EXCELL...
» Romanian Outsourcing Awards for Excell...
» Molson Coors started to grow its busin...
» Romania's IT industry could grow at an...
» TELUS International: How customer serv...
» Capgemini to open new office at Suceav...
» ABB opens the first robotics training ...
» Comdata to buy four subsidiaries of Fr...
» Committed to growth
» Four companies represent Romania in De...
 
EDITOR CHOICE
TELUS International: Chatbots - The pros and cons of automated customer service

Learn what key factors to consider before introducing chatbots to your customer service strategy

 Read Full article »
Why AFI Tech Park is the best value for money office project in Bucharest(P)

Based on the insight that location is a strong criteria employees take into consideration when choosing their workplace, AFI Europe Romania is currently developing AFI Tech Park, the newest office destination i

 Read Full article »
Shifting the workplace perspective towards high-end added value

This month, OUTSOURCING TODAY organized The Workplace of the future in IT and Outsourcing at Caro Hotel Bucharest, a new concept event meant to connect fast-growing corporate tenants from IT and outsourcing ind

 Read Full article »
Andrei Romanescu, Managing Director of Veeam Romania: Outsourcing sector, a decade evolution

Since the early 2000s, this sector has grown at a significant rate (about 20-30% per year). The industry has evolved from focusing on cost and labour arbitrage to adding value – therefore the growth is not so

 Read Full article »
TELUS International Europe: Discover how successful smart-home providers deliver exceptional customer service

Key Takeaways

• Internet of Things (IoT) connected home devices are making the contact center and customer service more important than ever. • A friendly approach and positive attitude are import

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