Latest News  

Hunte, Everest: Romania takes a slice of 8% from the CEE services ratio

The share of services offered by CEE (dubbed by Everest “nearshore Europe”) in the outsourced services segment is “definitely increasing” says Rupert Hunte, client director, Everest Group.

2015-10-26 17:04:48 - by Bogdan Tudorache

With a global sourcing market size expected to reach 160-165 billion USD this year, up 9% over 2013 levels, more investors more to the CEE region, leaving riskier areas. Today Romania takes 8% of the region’s IT and BPO market, less than Poland (27% share), Hungary, Ukraine, Slovakia and Czech Republic (all have 10-11% shares) and Ireland (14%).

But while in 2011-2013 period investors setting up new shops preferred Poland (27%), Ireland (25%) and Romania was getting 16% of that interest, now Poland has dropped its growth rate to 13%, Ireland to 20% and Romania kept the same growth pace of 16% in 2014-2015.
Also, as Bucharest, Cluj and Timisoara activities saturate, investors move towards Iasi and Bacau, according to the Everest survey consulted by Outsourcing Today.

The share of nearshore Europe in global services delivery is increasing from 8% in 2013 to 10% in 2014, while Asia Pacific (APAC) dropped from 80% to 74% during the same period, in terms of headcount and full-time equivalent positions (FTEs).

“Europe has taken Asia for the first time in new center set-ups and expansion, with the investors preferring nearshore Europe in quite significant numbers, of 42% in the first half of 2015,”Hunte adds.

Recent activities in Europe focused on engineering services and R&D, analytics and cloud services. Players have set up centers in both tier 1 and tier 2 cities of CEE, the Everest study reveals.

In comparison to the 42% preferences for CEE, investors also concentrate on APAC (40%) and less in Latin America, which saw a decrease to 14% from the previous half (H2, 2014) of 27% - demand ratio that unsurprisingly moved to CEE’s account.

“A significant demand comes from the investors moving from Northern Africa – from countries such as Morocco, Algeria and even Egypt,” Hunte said.
Many investors move to CEE countries, and companies tend to simplify and to reduce costs, says Hunte.

Everything is moving towards more simple ways of doing business rather than making it compact, from sophistication point of view. A lot of companies look to add value to their services rather than reducing costs, and Romania fits in this scenario, says Hunte.

“The recent study in banking and financial services in CEE reveals out of the 20 respondents, all consider that cost reduction is crucial, however, the flexibility, understanding the business aspects and what they need to do has a major impact in taking decision,” says Hunte.

“Also, standardization and harmonizing what they have to what they want and the influences the digitization and automation are having in the banking and financial sector are crucial, also in Romania,” says Hunte, explaining that clients in this field form Romania and CEE would rather look at that problems addressed when choosing a BPS (business process services) provider.

“However, besides the banking and financial sector, there are also investors in other areas looking significantly towards the region,” says Hunte.


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
Recruitment, retention and professional development of employees in the context of major changes in outsourcing

The Business Service Leaders Association (ABSL) organizes on May 24, 2018, at Ramada Hotel in Iasi, the conference "How HR Practices evolve in a period of major changes in outsourcing Industry". The third editi

 Read Full article »
Comdata acquires CCA International, deal should be finalized in June

After the acquisition, mid-2017, and the successful integration of B2S (now Comdata France), the Comdata group signed, yesterday, an agreement on the acquisition of CCA International, the company says.

 Read Full article »
ABSL Romania is offering 30 scholarships every year for postgraduate studies

Business Service Leaders Association Romania (ABSL) annually offers 30 scholarships in the Business Services Master program for young people wishing to pursue a career in the outsourcing industry. As a result o

 Read Full article »
Portland Trust and Ares Management LP have sold the suburban office park, Oregon Park, to Lion's Head Investments

Lion's Head Investments makes its first steps into the Romanian real-estate market and announces the acquisition of Portland Trust's and Ares Management's Oregon Park project, which consists of three class A Of

 Read Full article »
Amazon creates more than 650 new permanent jobs in Bucharest

Amazon and Amazon Web Services (AWS) today officially opened a new Corporate Office and Technology Development Centre in Bucharest and announced the creation of more than 650 permanent, technology-focused and c

 Read Full article »
Portland Trust's Oregon Park in Bucharest wins CEEQA's "Overall Building of the Year SEE"

Portland Trust, a commercial real estate developer and asset manager headquartered in Prague, announcesd that Building B at its Oregon Park office complex in the Romanian capital of Bucharest won the 2018 CEEQA

 Read Full article »
US Kellogg's opens new division at Bucharest

The US-based multinational food producer company, Kellogg's announced that it will create 50 jobs at its Bucharest centre by the end of 2018, by opening a new division at the Bucharest centre. The new positions

 Read Full article »
Techsylvania 2018 lines up powerful tech specialists at Cluj-Napoca between June 9-12

Techsylvania is the leading technology event in Eastern Europe, built to revitalize the local tech community through high-quality information delivered by worldwide experts in the IT&C industry. Engineers, deve

 Read Full article »
Accenture names Gianrodolfo Tonielli in the position of Country Managing Director in Romania

Starting May 2018, Gianrodolfo Tonielli takes over the position Country Managing Director of Accenture Romania, the company announced.

 Read Full article »
Atos and Google Cloud form a global partnership to deliver secure hybrid Cloud, machine learning and collaboration solutions to the enterprise

Atos, a global leader in digital transformation, has entered into a global agreement with Google Cloud to address the digital transformation needs of enterprise customers. This agreement will see the creation o

 Read Full article »
 
 
MOST READ ARTICLES
» The most appreciated companies from th...
» ROMANIAN OUTSOURCING AWARDS FOR EXCELL...
» DTZ: Office demand outside Bucharest t...
» Capgemini to open new office at Suceav...
» Molson Coors started to grow its busin...
» Romania, Europe's third and world's 13...
» Committed to growth
» Romanian software group expands to Bul...
» EXCLUSIVE: ABSL Timisoara - BPO and SS...
» Genpact's COO: Staying ahead of the cu...
 
EDITOR CHOICE
We meet again at OT Learning & Development on June 7th

The Second Edition of OT Learning & Development roundtable will be held on June 7, 2018 at InterContinental Hotel Bucharest. The event brings together the business services professionals to discuss and discover

 Read Full article »
The Outsourcing industry announces its winners at Romanian Outsourcing and Shared Services Awards, 2018 edition

Last night, Outsourcing Today and the Diplomat-Bucharest awarded the performance and excellence in business at the 4th edition of Romanian Outsourcing and Shared Services Awards ceremony, organized at Radisson

 Read Full article »
Ciprian Dan, Wipro BPS: The industry needs to take a more sophisticated turn

According to Ciprian Dan, Location Head at Wipro BPS, the language skills have not ceased to remain one of the competitive advantages for our market but to relate to this advantage as the sole plus is risky on

 Read Full article »
Olga Botusan, Stefanini: There is a huge need to develop particular skills for specific areas

Stefanini is a company strongly involved in the business shared industry not only for creating the demand for workforce and hiring but also for the programs developed in order to specialize the needed professio

 Read Full article »
Romanian Outsourcing & Shared Services Summit: In the search of the best strategy to stay relevant

Currently, according to companies operating in outsourcing and business shared services in Romania, there is an intense discussion regarding the availability of prepared workforce in the industry. Even if the c

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