Latest News  

Colliers: The availability of workforce influences the outsourcing companies' demand for office spaces

The demand for office space for the BPO / SSC sector in four major CEE cities - Wroclaw, Lodz, Krakow and Sofia - accounted for 60 per cent of the total demand in the first semester, while in Bucharest this was one-quarter of the total.

2017-12-18 10:39:52

According to the latest Colliers International report, the whole phenomenon is the result of the influence of labor availability and good technological knowledge of employees.

The ECE region has strengthened its global competitive position in terms of attracting BPO / SSC (business process outsourcing / business services outsourced) businesses thanks to its favorable business environment. At the same time, the expertise and skills of employees are more developed than a few years ago.

However, the number of candidates properly prepared for this sector is deficient. Currently, the largest proportion of IT specialists, according to ABSL statistics, are in Brno, Budapest (both 13%), Bratislava (12%) and Kosice (10%). Also, in cities like Bucharest or Worclaw, BPO / SSC companies recruit approximately 20% of the total number of students, this being the highest percentage of the area.
"Taking into account that the office stock in Bucharest will increase by 300,000 sqm in the next period, multinationals will have the advantage of choosing between many options of the best spaces but will also need employees to occupy them. Although in Romania the graduates are mainly oriented towards the services segment, the educational institutions do not produce enough candidates for this sector and sometimes they do not produce the right qualifications. At the same time, the unemployment rate for people with higher education is at the lowest level in the last 10 years, at about 2%. All these aspects will prove critical for attracting new players and expanding existing ones, "said George Didoiu, Associate Director of Office of Colliers International Romania.

The appetite of BPO / SSC companies for Romania is, however, still maintained by the low costs and the complexity of the services offered to customers.

"We have employees who deliver the highest degree of complexity in BPO / SSC. A recent Milken Institute report indicates that the Northwest region is the first in the EU as a growth rate in hi-tech services over the period 2009-2014. Bucharest is also seen as having the highest concentration of such services in direct comparison with other major cities in the area. Increasing the complexity of these services led to an average hourly wage costs of 4 euros, 45% below Poland (6.2 euros) and 80% under Slovakia (7.2 euros). Together with the boomerang effect of Romanians working abroad in similar and returning roles, all these factors could lead to filling the gap created by the lack of labor availability, "George Didoiu explained.

In the CEE region, the BPO / SSC sector enjoys a strong presence despite the increasing location costs in recent years. A report by ABSL Poland shows that wages in the banking sector have increased about 40% in Warsaw and double-digit growth in other areas, especially for specialist positions.


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
CrowdStrike opens a new center of innovation in Bucharest

CrowdStrike Inc., the leader in cloud-delivered endpoint protection, announced the official opening of its new Center of Innovation in the Pipera Technology District, Bucharest, Romania.

 Read Full article »
Romania leads in top of countries with highest number of cybersecurity incidents

Romania is leader in the top of jurisdictions recording the highest number of cybersecurity incidents with 14 attacks, followed by the Czech republic (11) and Hungary (8), according to the study "The Cybersecur

 Read Full article »
Oracle and KPMG study shows data security as priority for business leaders

In August 2018, Oracle applied a questionnaire with a number of questions about transformation technologies to a total of 4,000 respondents in 21 markets. Respondents were top managers in the following markets:

 Read Full article »
Colt Technology Services expands fibre network in four CEE cities

UK-headquartered Colt Technology Services said that it is expanding its IQ fibre network in Bucharest, Zagreb, Belgrade and Sofia as part of its plan for expansion in Central and Eastern Europe (CEE).

 Read Full article »
SAP Romania brings the cloud procurement solution SAP Ariba on local market

SAP Romania, the local subsidiary of the world's largest business software maker, has launched the SAP Ariba Snap program for the domestic market to support the digitization of specific procurement activities.

 Read Full article »
The software industry's input in Romanian economy was 5.4 billion Euro in 2018

According to the latest analysis of KeysFin, 17,000 companies operating in the Romanian software industry generate EUR 5.4 billion in turnover and employ 106,000 people generates 5.4 billion Euro in 2018 in Rom

 Read Full article »
Atos launches construction of global R&D Lab to drive innovation in Quantum Computing

Atos, global leader in digital transformation, officially launches the start of the construction of its new global Research & Development Lab dedicated to research in quantum computing.

 Read Full article »
Softelligence launches its own Academy to form specialists in insurance and banking

Specialized in business software development, Romanian company Softelligence announced it plans to increase its team by 50 per cent in the next two years, by hiring 100 to 150 new colleagues, the company announ

 Read Full article »
Romanian IT group Bittnet issued new bonds were traded on BSE

A new series of corporate bonds issued by Romanian IT group Bittnet Systems was admitted to trading on the main market of the Bucharest Stock Exchange (BVB).

 Read Full article »
Deloitte report: Two billion youth risk of being left behind in the Fourth Industrial Revolution workforce

Almost two billion youth worldwide risk of being left behind in the Fourth Industrial Revolution (Industry 4.0) workforce, which is changing at an increasingly rapid pace as a result of the emerging technologie

 Read Full article »
 
 
MOST READ ARTICLES
» Endava expands its IT team in Republic...
» The most appreciated companies from th...
» Workplaces, keeping up with the times
» CrowdStrike opens a new center of inno...
» Softelligence launches its own Academy...
» Oracle and KPMG study shows data secur...
» ROMANIAN OUTSOURCING AWARDS FOR EXCELL...
» Romania leads in top of countries with...
» Oracle goes to Oregon Park, the buildi...
» Atos and Transilvania University launc...
 
EDITOR CHOICE
How Tech-ready are companies?

Technology has made it easier and faster than ever to prepare, anticipate, implement, and get the job done for everyone, from the simple technology home user to all levels and departments of a corporation. Howe

 Read Full article »
Workplaces, keeping up with the times

For a company, being people-centric is a way of doing business and engaging employees in the company's operations and strategies in a way that provides a positive employment experience before and after the sell

 Read Full article »
Creating a valuable customer experience driven by core values of a company

As HR becomes more and more integrated within the company's long-term strategic business strategies, the digitalization and high-technologies impacting the processes also have to be mirrored at the level of HR

 Read Full article »
Ergonomics in practice - 5 tips for better health at work

Ergonomics is so much more than standing up during the day and sitting correctly. There are so many factors in our environment which also have an effect on our health, and influence our wellbeing at work. The

 Read Full article »
Technology, Mobility and Wellness make for the perfect workplace

The technology binge is pushing ahead the communities, businesses and all aspects related to work and workplaces in such a fast manner that we haven't noticed since the very booming of the office market. And as

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