ASSOCIATION OF BUSINESS SERVICES LEADERS

INVESTMENT IN EDUCATION

A GUARANTEE FOR

LONG TERM GROWTH

Catalin IorgulescuFCCA, CISA

VP for PR and Governmental Relationship - ABSLManaging Director WNS Romania

AGENDA

ABSL - WHO ARE WE?

HOW IS EDUCATION CORRELATED TO GDP GROWTH?

WHAT ARE THE RISKS WE ARE FACING?

WHY DO WE NEED TO ACT NOW?

CONCLUSION

Association of Business Services Leaders

Association of Business Service Leaders in Romania is the leading association representing the business services sector, gathering high profile companies which conduct business in the area of Shared Services Center (SSC), Business Process Outsourcing (BPO), Information Technology Outsourcing (ITO), Research and Development (R&D).

ABSL Priorities & Activities

Enhance industry dialogue and collaboration

Develop and deepen

cooperation with authorities and the education

system

Strengthen the image of countryand stimulate further investments

ABSL Membership

Associate members

Supporting members

Core members*

* Founding

Members

The Business Services Sector in Romania

Companies+190 multinational

and local organizations

Employment> 80.000 employees

and contractors

Contribution to Gross Domestic

Product> 1.8%

Growth

+15% in 2015+17% in 2016+19% in 2017

Level of Education

• The majority of employees hold at

least a bachelor’s degree;

• Project management, foreign

languages, business analysis,

finance and IT certifications are

the most frequent among the

companies subject to the survey.

Language Capabilities

• A total of 27 languages, except Romanian, are currently

reported as being used by the pool of participants;

WHY is education important and how it affects us as a business community in Romania?

Because we have more than 80% chances to experience

lower GDP growth in the next 40 years compared to other

Countries – statistically proven…

WHY ???

Why 80% ?

MATH 20121 Shanghai-China 36 United States2 Singapore 37 Lithuania3 Hong Kong - China 38 Sweden

4 Chinese - Taipei … ……………..5 Korea 40 Croatia

6 Macao-China 41 Israel7 Japan 42 Greece8 Liechtenstein 43 Serbia

9 Switzerland 44 Turkey

10 Netherlands 45 Romania11 Estonia 46 Cyprus*

12 Finland 47 Bulgaria13 Canada … ……….

14 Poland 63 Qatar15 Belgium 64 Indonesia

… ……………. 65 Peru

READING 20121 Shanghai-China 36 Iceland

2 Hong Kong - China 37 Sweden3 Singapore 38 Slovenia4 Japan … …….

5 Korea 43 Slovak Republic6 Finland 44 Cyprus*

7 Chinese - Taipei 45 Serbia

8 Canada 46 United Arab Emirates9 Ireland 47 Thailand

10 Poland 48 Chile11 Liechtenstein 49 Costa Rica

… ……… 50 Romania

24 United States … ……..25 Denmark 63 Kazakhstan

26 Czech Republic 64 Qatar… ……… 65 Peru

Because 80% of the world is ahead of us at OECD TEST RESULT IN 2012

Why is this

important?

Correlation between test results (1960) and GDP growth 1960 - 2000

MATH 20121 Shanghai-China 36 United States2 Singapore 37 Lithuania3 Hong Kong - China 38 Sweden4 Chinese - Taipei … ……………..5 Korea 40 Croatia6 Macao-China 41 Israel

7 Japan 42 Greece

8 Liechtenstein 43 Serbia9 Switzerland 44 Turkey

10 Netherlands 45 Romania11 Estonia 46 Cyprus*

12 Finland 47 Bulgaria13 Canada … ……….

14 Poland 63 Qatar15 Belgium 64 Indonesia… ……………. 65 Peru

McCann Worldgroup 12

SO WE NEED TO TAKE

A CLOSER LOOK

A high percentage 12th graders failed or scored below proficient

74% 62%

MATH READING

SOURCE: U.S. DEPARTMENT OF EDUCATION, 2013

ROMANIA

37%

SOURCE: MINISTRY OF EDUCATION, ROMANIA, 2014

BACCALAUREATE

USAPercentage of students at or above

the Proficient level in 2013

Because these are the results of RECENT National Tests for 12th grade

One interesting aspect to note is that:

While we score better than America at National Test

We score lower at OECD Tests

This can only mean 2 things:

1. Our National Tests are easier than the one in USA, or2. If they are equally difficult, we have a larger percentage of unfair tests

IF THE STATISTICS ARE TRUE, THIS IS HOW OUR FUTURE MAY LOOK LIKE IN THE NEXT YEARS

And it is only getting more important, because

1973 1992

37%

2007 2018*

45%42%

PERCENTAGE OF JOBS REQUIRING A COLLEGE

DEGREE IS INCREASING

SOURCE: GEORGETOWN UNIVERSITY CENTER ON EDUCATION AND THE WORKFORCE, JUNE 2010

Historically the present education system was designed

AND PRODUCED HUGE GROWTH AND SCIENTIFIC DEVELOPMENT WORLDWIDE

ROMANIA WAS NO EXCEPTION

Most of the worldwide famous

Romanians appeared in the first

mass educated generation.

Many of them were

born in villages.

McCann Worldgroup

WHAT HAVE WE DONE?

McCann Worldgroup

ASE & ABSL

BUSINESS SERVICES MASTER

Covering Shared Services, ITO and BPO

CONCLUSION

It takes one generation to significantly upgrade/downgrade an educational system and see results.

We had few significant initiatives in the last 25 years.

We have 5-10 years to do it.

Would you have this future…

Or this …

“If you think education

is expensive,

try ignorance”

Derek Curtis Bok President, Harvard University (1971-1991)