Romania’s outsourcing industry: 125,000 employees generating EUR 4 billion every year

Aurel Dragan 09/10/2018 | 15:51

About 1.5 percent of the active population in Romania is working in outsourcing, according to Business Service Leaders in Romania (ABSL) data, a total of 125,000 employees that generates an income of EUR 4 billion.

The data is comprised in the annual report that ABSL published at the annual conference “Romania at the Forefront of Innovation”. According to the ABSL estimates, the most important organization, representing the business services sector and bringing together the most important companies in the industry, the sector offers jobs for some 125,000 employees, representing approx. 1.5% of Romania’s active population.

Also, based on the study conducted by the association, along with KPMG, it is estimated that the outsourcing industry generated revenue of about 4 billion euros in 2017.

Romania – 1st place in mature outsourcing markets

Romania ranks 1st in the mature outsourcing market, with more than 265 companies, a motivated, well-trained workforce, very good foreign language speaker, competitive at a cost and cultural level close to European values. These are the reasons why the industry’s potential would be 300,000 employees.

Most companies operating on the local market are from France, Germany, Romania and the USA, the most attractive cities being Bucharest, Cluj Napoca, Iasi and Timisoara.

Clients of outsourcing companies come mainly from the following sectors: banking, insurance and financial services, technology and telecommunication, professional business services and industrial and consumer goods.

The report also shows that the most ambitious development plans are found in companies with more than 500 employees. They aim to expand both through diversification of services and attracting new customers.

Most customers come from Europe, and the industry’s most common services are: Finance and Accounting, IT, Customer Operations, Human Resources, and Acquisitions. For Finance-Accounting services, the most common activities are related to supplier and customer management, and for IT – User Support and Dedicated Servicing. In the context of customer management, the most common activities are related to Helpdesk and Sales & Account Management Support, for Human Resources, Manage, Report and Payroll, and for Procurement – Operational Procurement.

In the next five years, the industry can exceed 220 thousand employees

In 2018, 33 percent of employees provide Customer Service, 25 percent IT Services, and 23 percent Accounting and Finance. According to the same study, the average age of the workforce is between 26 and 35 years, with women accounting for 61 percent of the industry’s employees.

According to the survey, on average, an employee stays in the company between 1 and 5 years. Most people working in the industry have at least one university degree and 24 percent are graduates of Master or Doctorate.

At this time, the most sought after are people who combine skills with foreign language knowledge, German is one of them, and other activities demanded by industry.

37 of the responding companies have accumulated more than 1,200 foreign employees. They were employed on language criteria (68 percent), implementation of new processes (35 percent), technical skills or complex experience (24 percent).

Romania – a suitable destination for outsourcing investors

96 percent of the study participants consider that Romania is a place to invest and would recommend it to other potential investors.

At the same time, 70 percent of survey respondents consider that the political changes make difficult the activity of companies in this field. In the assessment that companies have made to their main locations, criteria such as the availability of modern office space, the city’s infrastructure, and its image have earned high scores. Instead, the lowest marks were granted to cooperation with local authorities.

The competition in the outsourcing market has been assessed by the participants as a very strong one; on a scale of 1 to 10, the average being 9.1.

The study was conducted on a sample of 50 member companies and non-ABSL members in August.

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