CGS Romania: The Romanian outsourcing market, stronger than ever

In a period marked by global economic challenges, the Romanian Business Process Outsourcing (BPO) market continues to grow from year to year, offering companies essential solutions to reduce costs and optimize operations. Computer Generated Solutions (CGS) Romania, a leader in this sector, emphasizes the importance of outsourcing as a strategic response to current uncertainties.

With an estimated value of $375 million* in 2024, the local BPO market is poised to grow by more than 30% over the next five years. Romania thus asserts itself as a strategic hub for investments, especially thanks to a well-trained workforce. Thus, according to Statista* estimates, the local business process outsourcing market could reach almost 500 million dollars in the next five years. Globally, the US dominates this segment with a market value of over $146 billion this year.

“With a constantly growing economy, supported by consumption and exports, to which is added the favorable tax regime and a low cost of living, Romania is a strategic location, increasingly present on the investors’ radar. The offer of a well-educated workforce, with a high level of specialization in fields of interest such as IT or engineering, has encouraged the constant development of support services, and Romania has all the prerequisites to become a key player on the global profile market”, said Vladimir Sterescu, Country Manager CGS Romania.

Eastern European countries: Key markets for the outsourcing industry Romania and Eastern European countries such as Bulgaria and Poland are key markets for the BPO industry in the region.

These countries have attracted investment due to their low costs and well-trained workforce. More recently, investments in automation and artificial intelligence technologies continue to increase to improve efficiency and reduce costs.

“There is also a growing trend towards nearshoring, with companies preferring geographically closer suppliers to improve communication and reduce cultural barriers. BPO providers specialize in specific industries, such as finance and health, to offer personalized and high-quality services”, Vladimir Sterescu also stated.

The Influence of Inflation on the Outsourcing Industry

In recent years, inflation has become a central topic in the economic landscape in Europe, influenced by a number of significant factors, an aspect that has had an impact in various industries, including the outsourcing sector. Inflation has reached record levels in Europe, and the general rise in costs has had the cumulative effect of reducing the profitability of many companies, prompting them to seek cost-cutting solutions, including outsourcing non-core activities.

Outsourcing companies can help clients cope with inflation by reducing operational costs and increasing efficiency. By outsourcing non-essential activities such as technical support, customer care services and data management, companies can allocate their resources to core activities. BPO provides access to modern technologies and efficient management practices that can improve service quality and reduce response times seeking to increase efficiency. In Romania and in the region, CGS has built one of the most important support center presences, thus ensuring access to a significant number of talented people.

Advantages of the Eastern European outsourcing market

The Eastern European outsourcing market offers excellent conditions for clients, combining competitive costs with high-quality services. Unlike regions in Asia, where prices can be lower, Romania stands out for its professionalism, quality and the use of advanced technologies. Moreover, the niche market in this region benefits from an educated and multilingual workforce, enabling the provision of customized and efficient solutions for clients worldwide.

“Eastern European BPOs are an attractive option due to the balance between cost and quality. Although outsourcing to these firms can be more expensive than in other regions (eg Asia or South America), the value offered is superior due to the increased level of education, which leads to a high standard of quality. Thus, customers benefit from outsourcing services that not only reduce costs, but also improve operational efficiency and final customer satisfaction”, emphasizes Vladimir Sterescu.

Global challenges are accelerating the outsourcing of business processes

In recent years, the global economy has been under significant pressures, from the COVID-19 pandemic to the outbreak of trade and military conflicts, which have created uncertainty and forced companies of all sizes to find solutions to adapt from to the new socio-economic and geopolitical realities.

“The economic disruptions of recent years have led many organizations to outsource critical processes to trusted suppliers, aiming not only to reduce costs but also to increase efficiency. Overall, this has driven a paradigm shift across the industry, accelerating the shift to more flexible, digital and results-oriented BPO models,” the company representative said.

The stable countries of Central and Eastern Europe, including Romania, have benefited from an influx of new business, which has generated increased interest in this type of service.

Globally, the conflict highlighted the importance of geographic diversification, prompting companies to expand their BPO operations to multiple locations to mitigate risk. “All these transformations make the Romanian outsourcing market witness constant growth driven by significant opportunities in a challenging global economic context. With a well-trained and adaptable workforce, continuous investments in technology and a strategic position in Eastern Europe, Romania is well positioned to become a key player in the global outsourcing market”, concluded Vladimir Sterescu.

Resources: * https://www.statista.com/outlook/tmo/it-services/business-process-outsourcing/romania

The American company CGS (Computer Generated Solutions) is one of the most important providers of business process outsourcing solutions in the world, present since 2006, on the Romanian market. The company provides, locally, services in 18 foreign languages, having 7 support centers in Bucharest, Brașov, Sibiu, Târgu-Jiu, Miercurea-Ciuc, Constanța and Galați. The approx. 4,000 employees of CGS Romania interact daily with customers from Romania, Germany, Great Britain, Spain and other European countries, as well as from the United States of America or Canada. The main services offered by CGS Romania are customer care, technical support, help desk, telesales and other outsourced services for companies operating in the field of telecommunications, IT, banks, insurance and retail.