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.
Validation Code
Deloitte: Executives are optimistic about Industry 4.0 but lack confidence in their organizations' influence and preparedness

Senior business executives and government agency leaders from around the world lack confidence in their organizations' readiness to influence and harness the opportunities offered by the Fourth Industrial Revol

 Read Full article »
Deloitte study reveals Romania's young talents look for organizations in which they matter

Only 15.6 per cent of Romanian millennials think that university graduates in the country are well prepared for professional work. However, 75 per cent of the Romanian students wish to continue their education

 Read Full article »
DB Global Technology kicks off the third edition of DB Tech School

DB Global Technology, the technology center of Deutsche Bank in Bucharest, is preparing for the third edition of DB Tech School, a training program for Java specialists, the company announced.

 Read Full article »
Atos joins global cybersecurity initiative Charter of Trust

Atos, along Enel and AES Corporation joined Charter of Trust, a global cybersecurity initiative. The announcement has been made during this year's 2018 CERAWeek conference in Houston.

 Read Full article »
Luxoft appoints Bogdan Pelinescu as Managing Director for Central Europe

Luxoft Holding, global IT service provider, today announced that starting from March 1, 2018 Bogdan Pelinescu will become its Managing Director for Central Europe.

 Read Full article »
NTT Data Romania leases 2.800 sqm in the third building of Openville Timisoara

The Iulius Company and NTT Data Romania, one of the top providers of software solutions and in Romania, signed a lease agreement for premises in the third class A office building currently pending development i

 Read Full article »
CTP operates five of the Top 10 industrial buildings with BREEAM in-Use certification

The company CTP is continuing its efforts to support permanent, sustainable development and is continuously building top-of-the-line spaces, which are presented with various noteworthy awards. It currently owns

 Read Full article »
The Romanian Unicorn: UiPath raises around 120 mln dollars investment for software robots for internal business tasks

TechCrunch has learned that Romanian RPA developer UiPath, a startup that builds ‘software robots' for enterprises to help automate legacy and back-office functions, has raised a Series B round of funding th

 Read Full article »
ABSL Cluj-Napoca Business Mixer 2018: Transformations, innovations and continuous improvements in the BPO space

ABSL organized the 3rd edition of Cluj-Napoca Business Mixer on February 27. More than 70 people coming from over 30 companies were present at the event, eager to learn more about the transformations, innova

 Read Full article »
National Statistics Institute: The weight of innovative enterprises scaled down 2.6 per cent between 2014 and 2016

Innovation in Romanian enterprises dropped in the period 2014-2016 compared to the period 2012-2014, according to the provisional results of the statistical survey on innovation in industry and services. Large

 Read Full article »
» Molson Coors started to grow its busin...
» Romania, Europe's third and world's 13...
» Saxo Bank analysis: Romania, the ideal...
» Committed to growth
» New customer contact centre opens at B...
» Why AFI Tech Park is the best value fo...
» Genpact's COO: Staying ahead of the cu...
» Oracle reaches 4,200 employees and pla...
» LeasePlan to open service center in Bu...
SAP's ten prediction for HR in 2018

The beginning of each year comes with the leaders' prediction in different interest fields. When it comes to human capital management (HCM), most predictions tend to be variations of the same things, accordin

 Read Full article »
Accenture: Company culture is key to unlocking gender equality and narrowing pay gap

New research from Accenture has identified 40 workplace factors that create a culture of equality – including 14 factors that matter the most. The research, published today in the company's "Getting to Equal

 Read Full article »
Romanian Outsourcing & Shared Services Summit at its fourth edition on March 22

OUTSOURCING TODAY, the integrated communication platform of the business services sector, presents the Fourth Edition of Romanian Outsourcing & Shared Services Summit on March 22nd at Hilton Hotel, Bucharest. T

 Read Full article »
Romanian employers forecast the most subdued hiring pace since Q1 of 2016

The Q2 of 2018 hiring perspectives are positive, but trend moderately weaker both quarter-over-quarter and year-over-year

 Read Full article »
IT&C companies are the first for renting new office space

The IT&C sector ranks first in the top of fields renting new office space in 2017, study of ESOP I Corfac International consulting company says.

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