How to expand to the Romanian market or to the Emerging European region? Are you a BPO company looking to expand to Eastern Europe? What are the market expansion opportunities in the BPO Sector in Romania and Emerging Europe?
The Romanian BPO sector continues to attract numerous foreign investment, both greenfield and crossborder M&A. Here are some recent examples, identified by the market entry consulting firm FRD Center: https://market-entry-romania.blogspot.com/2021/06/expansion-opportunities-in-bpo-sector.html
Romania is one of the most preferred near-shore locations, capitalizing on the solid education system, with a strong focus on IT, finance and accounting and, therefore, providing a steady, relatively inexpensive and qualitative flow of skilled resources to meet the growing demand of SSC / BPO entities.
According to the Market Research and Market Entry Consulting firm, FRD Center, there are expansion opportunities in the BPO Sector in Romania and Emerging Europe.
Here is a recent demo study on the Romanian BPO Sector and others in the region: Poland, Czechia, Ukraine and Hungary: https://www.frdcenter.ro/bpo-sector-in-romania-h1-2021-a-demo-sector-overview-by-frd-center/
For in-depth analysis of the BPO players and call-centers in Romania and other markets in Eastern Europe, tailored to your specific needs and requirements, as well as for target origination and M&A assistance, contact the FRD Center team at email: europa@frdcenter.ro
More than 120,000 university graduates per year form the talent pool in Romania. Cultural compatibility and a large scale of foreign language skills, covering English, French, Spanish, Italian, German, Dutch, Portuguese, Hungarian, Czech, Slovak, Bulgarian and Russian, provide a competitive edge to the Romanian work force. FRD Center has been assisting foreign companies looking for BPO market expansion and acquisitions in the business process outsourcing sector and has been closely monitoring the activity in the Romanian BPO sector. Here are some facts on Romania that might be of interest to a foreign investor or BPO provider looking to acquire a local player and set up operations in Romania, thus accessing the EU market and other key markets overseas.
For more details consult and download the FRD Center demo report available at this link: https://www.frdcenter.ro/bpo-sector-in-romania-h1-2021-a-demo-sector-overview-by-frd-center/
The Romanian BPO market includes approximately 280 companies that activate in the business services sector, with over 131,000 employees. According to the Association of Business Service Leaders in Romania (ABSL), the revenues generated by the business services industry in Romania are estimated at 4.5 billion EUR in 2020. The business services industry contributes with around 2 – 2.5% to the GDP in Romania. The attrition rate in the business services sector in Romania was 12% by July 2020, with an average of 22% in the past three years. The main cities for the business services industry in Romania are Bucharest, Timisoara, Cluj Napoca, Iasi, Brasov and Sibiu.
The outsourcing sector in Romania is characterised by: – strong IT infrastructure – growing level of automation – relatively good availability of qualified resources – very good language proficiency of both Latin and Germanic tongues – competitive labour costs For more details visit the FRD Center presentation available at this link: http://www.frdcenter.ro/assets/BPO-Sector-Romania-FRD-Center-analysis.pdf
According to the Market Research and Market Entry Consulting firm, FRD Center, there are expansion opportunities in the BPO Sector in Romania and Emerging Europe.
Computer Generated Solutions (CGS) maintained in 2020 its recruitment pace in Romania despite the pandemic. The BPO player increased its team in Romania with 500 new employees in 2020. CGS signed contracts with new clients or extended projects with the existing ones in 2020, which translated into a significant employment volume. The company invested in a remote network for the entire company to allow its employees to work safely from home.
For more details visit the FRD Center demo report available at this link: https://www.frdcenter.ro/bpo-sector-in-romania-h1-2021-a-demo-sector-overview-by-frd-center/
Wipro leased 11,000 sqm of office space in Globalworth Square, a new office project in northern Bucharest, expected to be finalised in T2 2021. Teleperformance Romania plans to hire 400 – 500 persons who speak foreign languages in 2021. Accenture will continue in 2021 the educational programmes in the IT field, developed and implemented in 2020 for pupils and students across Romania.
According to the FRD Center analysis, some of the most active BPO players operating on the Romanian market are Genpact Romania, Accenture Services, Computer Generated Solutions Romania, Wipro Technologies, Sykes Enterprises Eastern Europe and Comdata Service.
For in-depth analysis of the BPO players and call-centers in Romania and other markets in Eastern Europe, as well as for target origination and M&A assistance, contact the FRD Center team at email: europa@frdcenter.ro
According to an ABSL survey, in mid-March 2020, 98% of the companies in the business services industry in Romania choose the working from home option in order to protect their employees and to ensure the business continuity. 48% of companies that responded to ABSL study will consider a hybrid work system in 2021, 13% of them will continue in the telework system, while 39% of companies believe that in the medium term exclusive telework is not a viable alternative. Although the BPO players in Romania adapted to the new situation, their customers all around the world were affected by the COVID-19 crisis and a lot of projects were put on hold or canceled. Out of the 59 business services companies in Romania which participated at an ABSL survey in 2020, 72% declared a decrease in external or internal demand, due to the global economic crisis. Another important impact of the pandemic is the increase in employees’ retention rate over the past year. The average rate of leavings from companies was 22% for the period 2017 – 2019 and decreased to only 12% between January and July 2020, according to the annual ABSL study.
According to the Market Research and Market Entry Consulting firm, FRD Center, there are expansion opportunities in the BPO Sector in Romania and Emerging Europe.
Central Eastern Europe, South Eastern Europe and Eastern European countries are globally recognised as strong players in business processes and IT services outsourcing. Numerous multinational companies operating in these sectors choose to expand to the region through the acquisition of local BPO firms. One such example is the FRD Center project briefly described at the link: https://www.frdcenter.ro/portfolio/case-study-three-market-expansion-support-in-bpo-sector/
There are over 1,500 BPO, SSC /GBS, IT and R&D business services centres in Poland, out of which 66% are owned by foreign investors. 95 Fortune Global 500 investors have business services centres in Poland. The value of exports of business services in 2019 from Poland recorded 19.8 billion USD. The share of the business services sector in the GDP in Poland is 3 – 3.5% and growing. The total number of jobs at business services centres in Poland reached 338,000 in Q1 2020, accelerating at a compound annual growth rate of 12.1% during 2016 – 2020. The number is expected to reach 363,000 in Q1 2021.
For more details consult the FRD Center demo study available at this link: https://www.frdcenter.ro/bpo-sector-in-romania-h1-2021-a-demo-sector-overview-by-frd-center/
The total number of employees in the business services sector in Czechia was of 120,000 in 2020 and is expected to grow to 130,000 in 2021. The employment growth was of 5% in 2020, proving the sector adaptability, flexibility and resilience during the pandemic crisis. The employment growth is expected to be of 5% in 2021. Currently there are 330 business services centres in Czechia. The business services centres in Czechia are increasingly becoming hubs of innovation and excellence, 73% of all processes being delivered in the advanced or partner stage in 2020, compared to 68% in 2018.
In spite of being affected by the vicininty with a conflict zone, Ukraine is known as a preferred destination for business service centers, especially for IT outsourcing in Eastern Europe. Some of its competitive advantages include: – low operating costs – large skilled labor force of more than 14 million people – advanced level of education – favorable tax regime, especially for the IT sector It is estimated that 185,000 people are employed in the BPO and outsourcing industry in Ukraine, with an expected growth up to 220,000 by 2022.
For more details download the FRD Center demo study available at this link: https://www.frdcenter.ro/bpo-sector-in-romania-h1-2021-a-demo-sector-overview-by-frd-center/
Hungary is one of the leading international hubs for business services in CEE, due to highly educated workforce, investor friendly business environment and developed infrastructure. There were 131 business services centres in Hungary in 2020 employing 63,892 people. They have the following operational model: – 54% captive – 27% hybrid – 19% BPO Unlike other countries in the region which are focused on IT, Hungarian centers mainly deliver finance and accounting (80%) and HR (40%) processes.
FRD Center assists international companies with overseas expansion, market research, targets origination and market entry to the Emerging Markets in Eastern Europe, CE and SE Europe. Are you a foreign company looking to expand, acquire local players, build strategic partnerships or to find new Clients in Eastern Europe? As one of the pioneer privately owned market entry advisory firms in Romania, operating for 20 years, FRD Center has high competencies in market entry advisory and is quite well placed to assist foreign companies with a multitude of aspects related to new vendor identification & selection, market opportunity assessment, B2B matchmaking with local Decision Makers and M&A in Romania and the region.
For in-depth analysis of the BPO players and call-centers in Romania and other markets in Eastern Europe, as well as for target origination and M&A assistance, contact the FRD Center team at email: europa@frdcenter.ro
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