Latest News  

PwC: The competitive advantages of Romania are language, soft and technical skills

The Romanian SSC & BPO market is mature, offering a high range of capabilities and a large pool of skilled employees, says Francesca Postolache, partner, Audit Services, PwC Romania.

2015-10-23 13:06:12

Romania SSC/BPO market started to develop in the early 2000s, covering the traditional functions for IT, F&A and call centres. Bucharest and Timisoara, benefitting from large university centres and strategic locations, were the first preferred options for SSC/ BPO. After 2006, other locations started to be targeted as well, to leverage the first-mover advantage and lower labour costs. The SSC-BPO market employs between 20-30,000 staff and is expected to grow with 20-30 per cent over the next three years, shifting from transactional processes to value-added activities (e.g. R&D, talent management, engineering).

According to Francesca Postolache, partner, Audit Services at PwC, Romania is the second largest talent pool in the CEE, with over 120,000 graduates per year, main university centres of the country being the SSC/ BPO hubs, providing a qualified labour pool.

„Romania has over 100 universities with more than 450,000 students mainly in the IT and Engineering (approx.140,000 students) and Economic fields (approx. 90,000 students),” said Postolache.

„All university graduates are required to master at least one foreign language. For business degrees two languages are needed. The Romanian workforce is highly receptive to typical Western corporate values and possesses a high degree of cultural understanding. Current salary levels and future salary trends are highly competitive compared to neighbouring countries.”

The language skills available on the Romanian market have been one of the first attraction points for investments in SSC-BPO. Around 90 per cent of educated Romanians speak at least one foreign language, 25 per cent of Romanians speak at least two foreign languages and four per cent of Romanians speak more than three foreign languages.

„Romanians are internationally known for their high aptitude in speaking European languages: primarily English, followed by French, Italian, Spanish and German English is now spoken by eight million Romanians; French by 4.5 million; German, Italian and Spanish, 1.5-2.5 million,” said Postolache. „In the eastern part of Romania there is a high density of Russian speakers, but there is also significant availability of Russian in Bucharest, through the Moldavian students coming for studies here. However, there is limited availability of more exotic languages, like Czech, Slovak and Nordic languages, which can be found only in small areas in the western part of the country, and usually not at business proficiency levels,” she added.

Regarding taxes, besides the VAT return, which is sometimes a difficult objective to achieve due to the higher than 45-day interval of reimbursement, another fiscal law specifies that the salaries generated from activities of software development and sales are exempt from taxes, up to the level of 10,000 USD. „Another significant cost within the P&L indicator are the costs with the rents, which, for the companies in the BOP and SSC fields represent a large share due to the large spaces these companies are renting,” said Postolache.

„Also, the Government introduced a new state-aid scheme starting 1 July 2014, which could bring a significant financial incentive for setting up the SSC in Romania. The new state-aid scheme provides for co-financing of salary costs incurred by the employer for the new jobs created if certain conditions are met. The application should be supported by a business plan which will also demonstrate the incentive effect of the state aid, an investment plan, a hiring plan and a number of administrative documents (the qualitative and quantitative indicators required for qualification),” Postolache concluded.


0 COMMENTS ^ Go back to Top
WRITE A COMMENT ^ Go back to Top
 
Your email address will not be published.
Nickname
Email
Comment
Validation Code
   
 
 
NEWS
Berg Software Romania: Reasons to outsource your software services to Romania in 2019

According to an opinion published by Berg Software, a company that specializes in technology consulting, software development and nearshoring/ offshoring, for both SMEs and large enterprises, with offices in Ti

 Read Full article »
Arvato CRM Solutions rebranded under the name Majorel

Bertelsmann and Saham's customer experience business, "Majorel" has been recently launched, according to a press release of the company.

 Read Full article »
Banca Transilvania launches BT Open Banking platform dedicated to fintech companies

Fintech companies and start-ups in IT can test the new BT Open Banking platform (BT Api Store), launched by Banca Transilvania, for online integration with banking services such as: display of online balances,

 Read Full article »
Techcelerator and Google Developers Launchpad sign a partnership for growing startups in Romania

Techcelerator, the acceleration program in Bucharest and Cluj and one of the relevant catalysts of the local tech ecosystem's growth and development, announced a partnership signed with Google Developers Launch

 Read Full article »
Bogdan Pelinescu, president of ABSL: At least 6.000 people to be enrolled in outsourcing industry in 2019 in Romania

Around 6.000 professionals are estimated to be hired in the outsourcing sector in Romania this year, according to a study conducted by Romanian Business Service Leaders Association (ABSL) and consultancy compan

 Read Full article »
Tremend expands its expertise in the financial area, through a new unit coordinated by Stefan Patra

Tremend, one of the fastest growing Romanian software companies, enriches its team of professionals. Stefan Patra joins the team as Vice President of the newly established unit of Financial Services and will co

 Read Full article »
Infosys officially opens new digital innovation center in Romania

Infosys a global leader in next-generation digital services and consulting, announced this week it will be opening a new Digital Innovation Center in Bucharest, Romania at an event attended by local government

 Read Full article »
Atos supports the OneWeb Constellation Program primed by Airbus OneWeb Satellites

A new era of mass producing satellites was achieved when Atos supported OneWeb in the successful launch of six satellites on February 27th. Atos' contributions included providing all of the Assembly, Integratio

 Read Full article »
Romanian Startup Barometer by EY Romania: Half of entrepreneurs says fiscal and regulatory environment deteriorated in 2018

Mentality and fear of failure rank first in the top barrier for those who want to start and develop a business in Romania, according to the Romanian Startup Barometer by EY Romania, Impact Hub Bucharest and Sta

 Read Full article »
Tower 3 of Globalworth Campus is now under construction

After delivering the first two office buildings within Globalworth Campus complex, the company announced it started the construction of Tower 3, with a total leasable area of 35,000 sqm.

 Read Full article »
 
 
 
MOST READ ARTICLES
» TELUS International Europe: Three ways...
» Deloitte's Tech Trends 2019 report: B...
» Molson Coors started to grow its busin...
» ROMANIAN OUTSOURCING AWARDS FOR EXCELL...
» Capgemini: Investing in people is the ...
» Hays: Timisoara outsourcing industry f...
» The Outsourcing industry announces its...
» Romania ranks above EU average in gend...
» DTZ: Office demand outside Bucharest t...
» Committed to growth
 
EDITOR CHOICE
The voting procedure for the BRAND OF THE YEAR 2019 IN ROMANIAN BUSINESS SERVICES is open!

This is the fifth edition of the event and the second year to select the public's favorite brand in the business services BPO, ITO and SSC in Romania.

 Read Full article »
Romania ranks above EU average in gender employment gap

In Romania, the employment rate measures the number of people who have a job as a percentage of the working age population. This page provides - Romania Employment Rate- actual values, historical data, forecast

 Read Full article »
Steven Hunt, SAP SuccessFactors: Tectonic movements in the world of work

The world of work will be shaped by five tectonic movements – or global megatrends – over the next few years. As you may guess from the geological analogy, the effects could be dramatic.

 Read Full article »
EY: European companies are divesting to future-proof growth

According to the EY Global Corporate Divestment Study, 84 per cent of European companies surveyed intending to divest within the next two years (the majority planning to do so in the coming 12 months), executiv

 Read Full article »
Knowledge-sharing presentation on latest trends the industry deals, in the program of Romanian Business Services Forum and Awards

Part of the upcoming joint half-day event, Romanian Business Services Forum and Awards to be held at JW Marriott Hotel on May 7th, the discussion agenda comprises a complex Knowledge-sharing presentation on lat

 Read Full article »
Latest News  
 
about us | newsletter | contact | members area | GDPR policy
Copyright © 2015 by Diplomat Media Events Design by Diplomat Media Events