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Romania – still in top 50 outsourcing destinations of the world!

Author: Amalia Sterescu – Outsourcing Consultant

 

Recently the Services Globalization and Investment Advisory firm – Tholons, published their annual Top 100 Outsourcing Destinations – Report. 

The good news is that Romania is still in top 50 with Bucharest (place no. 40)  , the better news is that Bucharest gained 4 points vs. last year report as desirable outsourcing destination in top 100.

This reflects the latest investments in Bucharest , in outsourcing,  especially in Shared Service Centers (mainly HR and Finance). 

Unfortunately it seems that the other towns present as outsourcing locations on Romanian map as Cluj, Iasi, Brasov, Sibiu –  do not have the scale yet to be taken into consideration for this top or there is not enough lobby for them in this point!

The expansion of some in- sourced service centers in Bucharest, the continuous growth of existing BPO operators (20% growth estimated for 2014 for outsourcing industry in Romania) will put more pressure on recruitment departments (internal or third parties)  who will need to find the right talents, with the right technical, finance, language or management skills. And the battle on resources may re-create the scenario of 2006 when the significant increase in outsourcing  market offer-  generated an increase in staff attrition or forced salary increases especially on rare skills.

As a result, as founder of the first Outsourcing Community and portal  and also as leader with 8 years experience in this industry – I strongly believe that:

1) There is a need for a stronger partnership between Ministry of Education and Outsourcing players in Romania for a dedicated curriculum and future creation of large resource pools in order to cover the future industry needs;

2) There is a significant lack of centralized information about Romanian Outsourcing industry/statistics which currently is covered partially by different forums or private organizations including Outsourcing Advisors. You cannot attract investors on ongoing basis an you cannot put Romania on the map with more outsourcing locations if there is not such transparency in terms of basic investors info /Outsourcing package.

3) The current players on Romanian outsourcing market need to action as a stronger community and to involve Government and Ministry of Foreign Affairs in lobby in order to  promote Romania as stronger outsourcing destination  – using Poland model if possible. Poland is currently number 9 outsourcing destination in Top 100.

Regarding Tholons annual report, the supremacy belongs to India, Philippines , Poland, Ireland and China. The locations with the fastest growth in 2013 are Poland (Wroclaw) +10, Ukraine (Kiev) +5, Peru (Lima) + 6, Cape Town (+8), Nicaragua (Managua) +8, Bucharest +4.

The cities which lost more points vs. previous top are: Cairo -18 obviously due to political instability (many companies reduced significantly their outsourcing volumes there) , Halifax – Canada -12, San Juan – Puerto Rico -12. 

Outsourcing Advisors will continue its mission to promote Romania as top outsourcing destination and to put more Romanian towns on the world outsourcing map but obviously this shouldn’t be a singular effort and this is why partnerships will add more strength to our community! Let’s see what we will manage to do TOGETHER until the next top will be published!

 

 

 

 

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