Romania’s Business Service Sector

IT&C, SSC & BPO

2018, Bucharest

2

Talent pool: more than 64.000 university graduates

Companies are now looking to outsource their services due to a competitive quality/costratio

Main locations: Bucharest, Cluj-Napoca, Timisoara

Other cities: Constanta, Brasov, Sibiu

Most of the companies are primarily based in Bucharest

In 2018 the city of IASI won the CEE Shared Services and Outsourcing Awards Gala, inWarsaw, Poland

Why Romania

3

Top 55 countries in the A.T.Kearney’s 2017 „Global Services Location Index”, in terms of attractive offshoring destinations: Romania ranks 18th. Criteria: Financial Attractivity, People Skills&Availability and Business Environment

The top serviced sectors: Banking, Insurance, Financial Services (BIFS), Business and Professional Services, Technology & Telecom and Industrial & Consumer Goods

Popular nearshoring location due to: great IT , finance and accounting skills, languages over 33 languages spoken

English, the most encountered language used in delivering services, followed by French, German, Italian, Spanish etc.

Why Romania

Source: Association of Business Service Leaders

4

2.42.8

3.23.6

4.14.7

5.56.3

2013 2014 2015 2016 2017 2018 2019 2020

+14.8%

Market volume (bn EUR)

CAGR

Outsourcing activities - largest marketshare

Main players: Oracle, Amazon, IBM orDeutsche Bank

Romanian software development potentialat a fraction of the cost in Western Europe

Booming startup environment due to lowliving costs, high relative salaries andnewly developed entrepreneurial skills

Romanian software developers are alsobecoming entrepreneurs, creatingproducts aimed at a global market in themain tech hubs of the country (Bucharest,Cluj-Napoca, Timisoara, Iasi)

Technology is a primary growth driver forRomania – the IT&C services sector isforecasted to reach EUR 6.3 bn. by 2020

Forecast

IT&C service sector

Source: Association of Business Service Leaders

5

Endava RomaniaRomSoftTH Junior

Avaelgo[e-spres-oh]F&F IT Services

Imprezzio GlobalQubiz

Adobe Systems RomaniaAdvantage Software FactoryAllevoAMC Pixel FactoryBeler SoftCegeka RomaniaComputaris RomaniaCornerstone TechnologiesCRIsoftDifferent Angle ClusterEEU SoftwareEndava RomaniaENEAEssensys SoftwareInnobyteKepler-RominfoPluridioQualitanceQualisoft GroupRINF TechRomanian SoftwareSII RomaniaSIVECO RomaniaSmart ID DynamicsSoftellingenceStefaniniTremendXAPT Solutions

Sibiu

Timisoara

Cluj NapocaIasi

Bucharest

Brasov

Miercurea Ciuc

ArtSoft ConsultBeck et al. Services RomaniaImprezzio GlobalMacadamian RomaniaWayfare

C-SoftROPARDO

BIT SoftwareCRIsoftPentalog

Bucharest

Oradea

Source: ANIS, Romanian Software Index, 2017

Romanian software companies

6

Romanian major players in IT&C and services sector

Source: ANIS / ARIES

Blue Chips Startups

7

Business Service Sector

key figures

120.000 working specialists

1.5% of Romania’s working population

Over 260 companies

#9th globally amongst the most attractive destinations for outsourcing of business services

sector

SSC & BPO zoom in

Source: Association of Business Service Leaders

8

Amazon Development Center RomaniaCapgeminiE.On ServiciiNess Iasi Technology Innovation CenterXerox Services EuropeXL World

Alcatel LucentBosch Communications CenterContinental AutomotiveWipro Technologies Romania

Bombardier TransportationShared Services Center RomaniaBosh R&D ClujEMERSONEndavaGenpactOffice Depot Service CenterThomsons Online Benefits

AccentureADP Centre of ExcellenceAriston Thermo Romania SRLAtalian Global ServicesCarestream – EMEA Shared Service CenterComputer Generated Solutions Inc.(CGS)ConectysDB Global Technology CenterDB SchenkerDB Schenker Global Services EuropeDeutsche Telekom Business ServicesEricsson – Global Services CentreGlobal Remote ServicesHP GeBOCIBM Global Business ServicesKelloggMellon RomaniaOMV Petrom – Petrom SolutionsOracleProcter & Gamble GBSS&T RomaniaSamsung Shared ServicesSiemens RomaniaSociete Generale European Business ServicesSoftvisionStefaniniTeleperformanceTELUS InternationalTemenos SSCTMF Group RomaniaVodafone Shared ServicesWalter ServicesWipro Technologies RomaniaWNS Global Services

Timisoara

ClujIasi

Bucharest

Shared service centers in Romania

Source: BiznesPolska, CEE Shared Services Outsourcing Directory 2017

9

Bucharest holds over 50% of the outsourcing Romanian market

ITO & BPO hold the largest shareof the overall volume (65%), followed by the SSC sector and R&D

Compared to other cities, it has the largest variety of skills and number of experienced candidates, but also the highest salaries

Market growth is expected at 10-15% by end of year

Bucharest, the largest outsourcing hub

Top players Key figures

Source: Association of Business Service Leaders

10

New projects opened in Bucharest in 2017

Source: Association of Business Service Leaders

11

In recent years, the city has registred a significant economic boom, mainly due to foreing investment, especially in hi-tech.

Numerous production companies are established in the area, which is considered one of the best developed in Romania

Languages spoken: German, Hungarian, Serbian, English, French, Italian

Top players Key figures

Timisoara, a vibrant technology environment

Source: Association of Business Service Leaders

12

• The area has been attracting large investments fromproduction companies

• The talent pool is skilled in English, German, French and Italian, providing multi-lingual services

• It is the second largest office market after Bucharest, with a vacancy rate of 7%

Cluj-Napoca, a good value for money

Key figuresTop players

Source: Association of Business Service Leaders

13

• In 2013 a local IT cluster (the second one in Romania after Cluj) was born

• Iași is home for companies which conduct business in the area ITO, SSC and SWO

• Large pool for technical Frenchspeaking candidates

• Lower workforce costs compared to Bucharest and a high rate of qualified personnel.

• CRF Health, opened in 2017

Iasi, an emerging technology hub

Key figuresTop players

Source: Association of Business Service Leaders

14

Is an emerging hub in theindustry of business services

The availability of Germanspeakers is higher than in othermajor cities

It is also preferred as locationfor opening a secondary officefor a company headquartered inBucharest or Cluj

Key figuresTop players

Brasov, strategically positioned at the heart of Romania

Source: Association of Business Service Leaders

15

• Craiova is a small hub on the Romanian map when it comes to existing service centers;

• Craiova is curently developing as a business service center;

• Has a small IT pool, whose size is limited by the low number of graduates.

• Galati is a prefered location for Customer Care Centers

• Small hubs of BPO and ITO centers present;• Technical profiles with foreign language

skills are limited

• Sibiu is an emerging service center on the Romanian map

• The availability of German skills is higher than national average

Source: Association of Business Service Leaders

Key figuresTop players in Craiova

Craiova, Galati and Sibiu, in the investors’ eyes

Top players in Galati

Top players in Sibiu

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