Latest News  

SCC to open a third service center, turnover up 40 % - Exclusive from OT print issue

SCC Services Romania started activity in 2006, with a team of just 24 people. Now it has about 1,000 and by 2018 about 30 per cent more will join its team. "By the end of 2015 we've reached close to 1,000 employees and we plan to increase our headcount to over 1,200 by the end of 2016," tells Outsourcing Today the company's general manager for Romania, Adina Tapalaga.

2016-06-03 10:36:05 - by Bogdan Tudorache


SCC intends to open a third service center in Romania

"For the moment we have two service centers, in Iasi and Bacau, which we will continue to expand further, but we are also considering opening an office in another city. We have multiple options to choose from, but we haven't yet decided upon a location yet," Tapalaga says.
Romania represents a key function in the group strategy, by providing IT support for nearly all of SCC's customers.
"We have started by delivering service desk and basic it support, and over the years we have continued to add specialized functions such as: server & network infrastructure support services, database and application support."
The plan for the following years is to move further into services with high added value, such as software development and cloud delivered managed services.

"In Romania, the business has grown significantly in recent years and we'll continue to increase headcount to more than 1,200 in the coming fiscal year."
During the fiscal year 2015, the turnover output from Romania increased by 40 per cent to 11 million euro. The net profit EBITDA (earnings before taxation) grew 90 per cent to 1.5 million euro. "We plan to increase the headcount by 30 per cent year on year by the financial year 2018".

With approximately 200,000 active specialists, the IT&C sector has been dubbed "the sector with zero unemployment."

"While we have witnessed a rapid expansion in the larger cities - renowned as traditional IT&C hubs – and with it, an increased difficulty in finding top talent, the workforce in the smaller cities remains largely untapped. This is mainly due to poor infrastructure and high relocation costs. One solution available is to expand in these area by creating new offices and facilitating knowledge transfer from the main centers."
In the North- East area alone, the number of IT specialists is projected to rise from approximately 10,000 in 2016 to close to 30,000 by 2030, she explains.

"Therefore, Romania represents a key function in the group strategy by providing IT support for nearly all of SCC's customers."

SCC is present in UK, France, Spain & Romania – serving European customers across the globe.
"We provide services for more than 2,500 customers in 75 countries, 24 by 7, in English, French and Spanish, and during business hours in six other languages: German, Italian, Portuguese, Dutch, Russian and Romanian. The predominant languages in use are English and French."

She also estimates that the main IT&C hubs such as Bucharest, Cluj and Timisoara will continue to be the premier destinations for new BPS services, by continuing to attract resources from smaller cities and even from abroad, because of their developed educational systems. "Other cities becoming attractive for foreign companies could be: Galati, Targu Mures, Brasov, Craiova and Pitesti."
While following the Polish growth example, Romania still lacks a critical element to attract as many investors: infrastructure.

"Poland owes its success in becoming the premier European destination for the SSC/BPO market to three factors: the retention of highly skilled and multilingual workforce, low employment costs and investments in infrastructure."

Even if Romania can emulate the Polish success story, however, special attention must be given to the "low cost" factor, she explains.
"As the economy and standard of living evolves continuously, it will be increasingly hard to maintain this balance of skilled and inexpensive resources. Instead, we must focus on education and research, expanding the range of specializations available from high-school and university level, in order to obtain top IT specialists," Tapalaga adds.

Employee motivation

"Investing in employee motivation is fundamental to the success of the company, and the two principal ways of achieving this is by implementing personal development programs and rewarding performance. We believe that growing employees' skills and capabilities works really well in retaining talented people within the company as well as offering bonuses based on performance and in relation to KPIs."
Other ways to increase satisfaction include organizing team buildings and events for the employees, promoting comfort at the workplace (relaxation areas, massages, fresh fruit available in the cafeteria) and a healthy atmosphere and life-style (organizing internal contests between employees, participating in sports competitions, promoting social responsibility).
"In a market as competitive as IT&C, the attrition rate is a factor that we pay constant attention to. For us it's been on the same level as with the rest of the industry. The attrition rate is mostly linked to the local competing companies who will sometimes overbid for positions that are really sought after. A part of the workforce will also choose to leave the country in search of better opportunities or, for those who don't a have a university degree in IT, to pursue a career matching their specialization," she explains.

In order to minimize attrition, employers can and should devise new incentives, invest in talent management programs and adhere to a clearly defined organization culture in order to differentiate from the competition.

Also, "companies may communicate closely with local government entities and lobby for improvements to the infrastructure and transportation system," says Tapalaga.
While young personnel are preferred by many companies mostly because they are easier to integrate into the teams, they have better availability for working outside business hours and on extended schedules and they are also more eager to learn and acquire new skills.

"However, when speaking about more complex technologies and diverse business environments, experience and high level certifications are invaluable assets. We are actively promoting both senior level positions as well as junior level positions," Tapalaga adds on.

But luring in talented personnel has been a challenge all over the industry.

"Attracting top talent has been our main issue in the last few years. With most of the IT workforce centered in Bucharest, Moldova region is sometimes lacking in top level skills, especially when we talk about infrastructure systems engineers. Couple that with the need for more exotic languages - French, Spanish, and the available resource pool diminishes drastically."

Meanwhile, the government and local authorities alike should do more for the industry.
"We would like to see more support from local authorities and central government as well. The industry needs foundations to develop, and these can only be provided by local authorities in terms of developing infrastructure, in terms of taxes. We need to motivate more people to stay in the industry sector, but also get more employees in the industry. This starts from education, not only in universities but also in high schools," Tapalaga believes.

Automation will change the industry

Automated processes have raised job cuts concerns all over the industrialized countries. In Romania, nobody sees it as a threat. Perhaps companies will not adopt too much of it into the near future.
"Automation will certainly play an increasing role in our company's business processes, and we aim to integrate new software and extend the capabilities of current systems in order to standardize the services delivered to customers, while also minimizing costs that arise from manual errors and inefficiency," Tapalaga says.
"In terms of adopting automated robots however, we do not see this happening in the near term. The services we provide are tailored to suit our customers' organizational culture and this implies a heavy component of soft skills and interpersonal communication, aspects that cannot be provided using automated robots," she explains.

While internet of things and big data are drastically changing the western organizations' chart, Romania will adopt new technologies with a small lag.

"In regard to IoT and big data, we are not expecting them to deliver any meaningful change or improvements in the next 12 to 24 months. The main challenge is to understand and mitigate the risks associated with internet enabled devices that find their way into organizations," she says.
"This is similar to the situation that occurred with BYOD (bring your own device to work) when tablets first started appearing in offices and connecting to networks and corporate applications, however there are now many effective solutions to help us gain visibility and control over what is connecting to our networks.

"We expect IoT to improve our business, through creating some interesting discussions with customers about what IoT means for them and how we can help them understand the risks and develop strategies and solutions to control and mitigate these risks," she concludes.
In the financial year 2015, SCC's Europe, Middle East and Africa (EMEA) core revenue grew 16 per cent, excluding the effects of currency, with 97 per cent of total EBITDA generated in the UK and France. Substantial growth across all territories enabled a consolidated EBITDA of GBP 32 million, while turnover for the year was unchanged at Euro 2 billion, though the sterling equivalent declined by 11 per cent to GBP 1.5 million due to currency movements.


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
CBRE report: Romania, among the main destinations for outsourcing investments in Europe

Romania is among the main destinations for the Business Services Sector, which looks for well qualified staff, employment cost savings and good quality office space, according to CBRE's Business Services Destin

 Read Full article »
Vodafone Romania and ASE Bucharest opened new IT laboratory in University's building

Vodafone Romania and the Bucharest University of Economic Studies inaugurate the new IT laboratory located in "Virgil Madgearu" building on Calea Dorobanti, finalized through a renovation and modernization proj

 Read Full article »
CTP is launching a project for the workforce market in the areas near its parks in Western Bucharest

CTP, the leading premium industrial parks developer and long-term manager in Romania and Central and Eastern Europe, is starting a social responsibility program that aims to facilitate a series of meetings betw

 Read Full article »
AI, the "performance engine" in Romania's business service industry

ABSL (the Association of Business Service Leaders in Romania) debated during its annual conference the future of the business service industry in our country and AI's influence in this sector's performances.

 Read Full article »
JLL Bucharest City Report: Industrial, logistics and offices were the drivers of the Romanian real estate development market

The industrial, logistics and office sectors in Bucharest were the drivers of the real estate development market in the first nine months of the year, while the retail sector recorded the lowest growth rate in

 Read Full article »
Microsoft extends partnership with Romania's Bitdefender to global level

Microsoft has extended its partnership with Romanian cybersecurity and anti-virus software company Bitdefender to a global level, Gabriela Matei, General Manager, Microsoft Romania announced at the 2017 Microso

 Read Full article »
Certent opens new office in Bucharest

Certent, Inc., a leading provider of software-as-a-service (SaaS) solutions for equity compensation and financial disclosure management today announced the opening of a new office in Bucharest, Romania.

 Read Full article »
Companies leased 45,000 sqm of office space in Q3 IT and outsourcing players – the main drivers of demand

The Bucharest office market saw a net take-up of close to 45,000 sqm in this year's third quarter. According to data from the real estate consultancy company Colliers International, the demand came mostly from

 Read Full article »
ABSL: The negative Impact of EO draft will lead to decrease of FDI and employment rate

ABSL Romania examined the emergency ordinance draft to amend the law no. 227/2015 regarding the Fiscal Code and concluded that the implementation of these measures will have a negative impact on Romania's inter

 Read Full article »
Farlei Kothe becomes EMEA vice president at Stefanini

In two years, he built a team of 200 people from scratch and made us 20 million US dollars revenues.. For the last nine years, he's been with us – first as the manager for our application development centre a

 Read Full article »
 
MOST RECENT VIDEO
 
 
MOST READ ARTICLES
» ROMANIAN OUTSOURCING AWARDS FOR EXCELL...
» ABSL: BRD First Tech challenge in Roma...
» Gartner: Romania moved into the first ...
» Molson Coors started to grow its busin...
» Roxana Tesiu appointed as the new Vice...
» Vastint Romania celebrated the opening...
» Healthcare IT outsourcing market is ex...
» Exclusive OT print issue: Genpact may ...
» Manpower:Romania has world's third hig...
» ManpowerGroup launches ManpowerGroup S...
 
EDITOR CHOICE
Telus International Europe: Discover how successful smart-home providers deliver exceptional customer service

Key Takeaways

• Internet of Things (IoT) connected home devices are making the contact center and customer service more important than ever. • A friendly approach and positive attitude are import

 Read Full article »
Societe Generale European Business Services support the IT education in Romania through a partnership with ACADEMY+PLUS

Societe Generale European Business Services (SG EBS), part of Societe Generale Group announces a partnership with ACADEMY+PLUS, a revolutionary coding school, tuition free, opened this year in Bucharest.

 Read Full article »
TELUS International Europe: The convergence of customer service and digital marketing/NewGen technologies: What does it mean for businesses?

Technology shapes the way we educate, communicate, conduct business and advance science, all while maintaining significant influence on the global economy. But the way we engage with technology is changing

 Read Full article »
Stay updated on People in Shared Services and Outsourcing Forum, October 19

Outsourcing Today organizes the third edition of People in Shared Services and Outsourcing Forum, on October 19, 2017 in Bucharest at Caro Hotel.

 Read Full article »
Preparing for the new future

Business shared services in Romania is by nature a flexible, mobile and diverse community and in this context, local markets develop their own particularities to address the global changes, to adjust to new dem

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