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Romania’s Business Service Sector IT&C, SSC & BPO 2018, Bucharest
Romania’s Business Service Sector
IT&C, SSC & BPO
2018, Bucharest
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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
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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
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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
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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
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Romanian major players in IT&C and services sector
Source: ANIS / ARIES
Blue Chips Startups
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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
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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
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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
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New projects opened in Bucharest in 2017
Source: Association of Business Service Leaders
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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
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• 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
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• 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
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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
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• 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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