Republic of Moldova – an outsourcing perspective
Located in the Eastern Europe, in the contact zone between different cultural and historic trends – Carpathian-Balkan, Central-European and Eurasian, the Republic of Moldova has gained its independency as a country in 1991 and since then this small state constantly showed its efforts to become a stronger tourist destination for those looking to experience an interesting culture, wonderful people and rich history.
With 3.5 mil inhabitants and an area of 13k square miles, the Republic of Moldova Aspires to join EU and, to this end, has implemented an initial three-year action plan within the framework of the European Neighbourhood Policy. The state is a member state of the United Nations and the Council of Europe.
In terms of business environment and economy, Moldova is the lowest cost near shoring location in Central and Eastern Europe. If we were to see this country from an investor’s perspective, many things would draw our attention and might make us think about relocating parts of our business here and open a shared service or outsourcing center in order to benefit from the advantages, not only in terms of cost saving, but also in terms of human resources.
As the constant battle for gaining the best professionals currently unravels, more and more IT and BPO companies have turned their attention towards Moldova. Some of them have already taken the first step in opening branches in Chisinau, the country’s capital (and we can mention here several BPO/Outsourcing companies such as AROBS or Endava).
Western European countries have not remained immune to the potential offered by Moldova and studies have shown that between 1994 and 2009 Holland had highest financial investment in the area, followed by Cyprus, Italy and Russia. The main areas of investment include agriculture, wine and food industry, outsourcing and IT, assembly and production.
Clients doing business in Moldova are currently benefiting from services in finance, banking, billing&accounting, QA, testing and BPO. Moldova has as advantage the geographic proximity and the cultural similarity towards Western Europe. Professionals working here are proficient in at least 2 foreign languages (Russian and English), are dedicated and well trained. The Moldavian IT industry offers high quality services and hold international certifications.
At the same time, Romanian companies, located in Iasi or Bucharest have started to show a vivid interest in the human resources potential offered by Moldova and began to focus on attracting talented and business oriented professionals towards their Romanian branches. The process itself does not lack obstacles, as the legislation is rather severe from this point of view. Discussions have been carried between regional leaders in IT and outsourcing and several areas such as waiting time, diploma processing /recognition and documentation optimization will be accessed with more ease in the future, to allow the workforce from Moldova to penetrate the Romanian market in a faster pace than in the past.
With the IT market growing in a fast pace, we have all the confidence that the BPO / Outsourcing domain will continue to rise in the Republic of Moldova as well and perhaps, in the future, we will witness a full competitive country from this point of view, a desired outsourcing destination for foreign investors worldwide!