Latest News  

Oracle reaches 4,200 employees and plans further expansion - Exclusive OT print issue

While Sorin Mindrutescu, Oracle's general manager for Romania, added to his functions the leadership of its central and eastern Europe Cloud division, the company grows solidly to about 4,200 employees, about a third more than last year's

2016-09-12 22:28:33

HR offices are burning hot in Oracle's Northern Bucharest offices, as the company has hundreds of positions opened at any given time. Soon the company will expand from Floreasca Park to Oregon Towers, a new building under construction whose design was initiated by Portland Trust.
The building has 3,400 square meters per story, and Oracle leased a total of 20,104 sqm – an entire building. (Oracle took building A, and there are still available - to our knowledge - buildings B and C, of 24,600 sqm each).
"We're growing steadily, but we cannot reveal the rate…Most of our employees are involved in outsourcing processes for worldwide clients. We have several divisions, from software to cloud and hardware," Mindrutescu tells Outsourcing Today.
As the global environment is more and more Cloud, Internet of Things and Big Data-oriented, Oracle's latest moves have focused around this trend. And it has grown locally to become the second largest centre in the entire EMEA region (Europe, Middle East and Africa), after the one in the United Kingdom.
Besides Bucharest, the company also selected Iasi for a second centre, and there are 50 employees there just in the Product Development division. The Bucharest SSC has by itself close to 1,000 employees, more than 30 services lines and a 27-language skillset.
Although Mindrutescu has not revealed the pace of the Romanian expansion, our estimates set it at around 35 per cent a year.
And the Romanian centres focus more on innovation than we might think, says Mindrutescu.
"Ever since this industry started some 15 years ago, many put an emphasis on back-office activities. But although this is an important segment, I think the development, innovation, technical support and high-added value segments and business lines should be mentioned more."

Romania, the new IT El Dorado


New IT and non-IT firms relocate their shared services and IT support centres to Romania, and Tier II cities move up a notch, says Mindrutescu.
"We heard of Miercurea Ciuc, Bacau and Craiova, many cities that previously were not chosen by investors. We are glad that the cities and towns that were not the first choice are becoming more developed."
Oracle started developing local operations about 20 years ago, and Romanians inside Oracle now combine 27 foreign languages with technology capabilities.
"During the past six years we have been among the top employers in the market, cross-industry, not just in IT."
Romania's more than 120,000 IT specialists (according to Oracle-consulted statistics; according to OT estimates the level of IT professionals exceeds now 200,000) means that per capita the engineer number is larger than in other countries.
Oracle's local remote capabilities include a plethora of functions, not only call-centre related lines. Romania is the second largest European entity and the fifth global one, with Oracle local centres in Bucharest offering more than 30 functions. "There are functions ranging from Fusion Cloud applications to Open standard, from Java to testing engineering - we have deep core departments."
About 12 per cent of the overall Oracle global software support is in Bucharest and Iasi. "The few months that have seen us function in Iasi brought us about 50 engineers, in a 24/7 support technical assistance model." During the past three years, Oracle's local 24/7 support total assistance team grew from a 250 to about 1,000 personnel figure countrywide.
Besides local clients, the support team serves all kind of clients in all global areas.
"We have now reached an overall Romanian employee figure of more than 4,200," says Mindrutescu, meaning an about doubled figure over June 2011.

Global companies to undergo major changes


An S&P 500 companies survey started with the 1950s showed that each company within the index used to maintain the index criteria for an average of 61 years, while nowadays the average is just seven years, says Mindrutescu.
The 2008 financial turmoil reshaped the index, and while companies were still affected by the crisis, they are more deeply reshaped by the new technologies.
"According to Professor Richard Foster's analysis, 75 percent of the companies comprising the S&P 500 index will be out of the index by 2027. This offers us a perspective about the way that companies are burnt out in an ever-changing economy," he adds.
At the same time, IT expenditure dropped significantly during the past years, with a 5.1 per cent decline in 2015 alone. "It is all about a fundamental change in the way that the companies are spending money. The 500 companies in the S&P index used 54 per cent of their capital to buy back their shares, instead of investing it, and 37 per cent were offered as dividends to shareholders. Little money left, then, for IT investments."
The markets are changing, the capital expenditures are dropping and changing purpose.
"This shows we enter an entirely new economic cycle. We have seen significant changes in the company's business models due to technology. We have seen the economy's UBER-isation, how to be one of the largest taxi operators worldwide but not own any car; we have also seen how to be largest hotel operator worldwide but not own a hotel thanks to Air B&B.

Change of the traditional business concepts


Applications change the fundamentals of industries: Uber does not own cars, does not have licenses and does not cash via drivers. It has just 4,000 employees, and uses 160,000 drivers, all due to technology.
"Entire business models have changed. We had internet, social media, Cloud, Big data, and now 3D printing – Internet of Things…there are many things to come."
Also, millennials have become consumers, and coming of age they move to the concept of share mobility. In the US, many millennials re-write the economy and the consumption rules.
"All of these changes of the business models raise questions regarding the development patterns of the IT industry. Currently it is based on legacy systems, and 80 per cent of the money goes to maintenance. Cyber security is more and more needed…the traditional systems are more and more under stress and the answer is moving all the instances to the Cloud," he explained.
The infrastructure, platform and software as a service (IaaS, PaaS, SaaS) capital expenditures are estimated to reach about 550 billion USD by 2025.
"By 2025, the very few SaaS providers will have the possibility to resist in the market, especially since an entire variety of applications will have to be in the public Cloud, and not many will be able to provide it."
Also, the utility industry is under a lot of stress; technologies such as those needed by smart metering or the financial system will need new investments – and the Cloud development will come naturally, as the supplier will make the investment instead of the investor itself. Storage will also undergo this pattern.
Cyber security is also important, and Cloud services will also count in this feature when taking into account the supplier.
"There's a new shift in the industry, and all will change, including business models. Costs and complexity will go down, and for example on-premises database increments when setting will simplify from 700 to 30 steps."
The first Oracle office was established in Romania more than 20 years ago (1995); with this, Oracle was the first major software company to have a direct presence in Romania.


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
Colliers International, designated to obtain WELL certification for Skanska's Campus 6 buildings

Pioneering in the field, Skanska is the first developer to introduce in Romania the WELL Building standard for the newest company's project developed in Bucharest, Campus 6 and its 2 and 3 office buildings, bei

 Read Full article »
Atos signs cybersecurity industry partnership with NATO

Atos, global leader in digital transformation and the NATO (North Atlantic Treaty Organization) Communications and Information Agency today sign an industry agreement to commit to a rigorous and continuous exch

 Read Full article »
Co-working segment: CBRE advises Spaces in the opening of its biggest center in Romania

CBRE, the world and local market leader in real estate consultancy, advised on the leasing transaction of 4,100 sqm office space for the largest center to be opened by Spaces in Romania.

 Read Full article »
Francesca Postolache, Partner PwC joins People in Shared Services & Outsourcing Forum on October 18, at Bucharest

Francesca Postolache, Partner PwC, joins us next Thursday to take forward major subjects such as Digital Transformation and Next-Generation Talent Development.

 Read Full article »
Telekom Romania opens in Brăila its sixth BPO center

Telekom Romania announces the opening in Braila of BPO (Business Process Outsourcing) centre dedicated to companies that need such services and which prefer to rely on a professional and experienced provider

 Read Full article »
Delphi Technologies inaugurates global IT center in Bucharest

Delphi Technologies, a leading provider of advanced propulsion solutions to automotive manufacturers has opened its first multidisciplinary global IT center in Bucharest. This new site will provide information

 Read Full article »
London Stock Exchange Group appoints Andreea Stanescu as General Manager for Romania

London Stock Exchange Group (LSEG) announced that Andreea Stanescu has been appointed General Manager, Romania. Andreea will be reporting to Dee Liyanwela, Head of Business Services Ltd (BSL) Sri Lanka and Roma

 Read Full article »
Google to offer free courses for young programmers and business incubators

Google announced the launch of the "Digital Workshop for Programmers", aimed at offering free courses to students who want to learn to program and young people who want to become technology entrepreneurs. These

 Read Full article »
ANIS scholarships gathered 35 innovative projects since launch

Employers' Association of the Software and Services Industry (ANIS) announced it registered 35 innovative projects within the first edition of its program called "ANIS' Scholarships".

 Read Full article »
Matthieu Pasquier is the new CEO of Societe Generale European Business Services

The Board of Societe Generale named Matthieu Pasquier as the new CEO of Societe Generale European Business Services, effective July 16, the company announced.

 Read Full article »
 
 
MOST READ ARTICLES
» Andrei Romanescu, Managing Director of...
» ROMANIAN OUTSOURCING AWARDS FOR EXCELL...
» Delphi Technologies inaugurates global...
» Exclusive OT print issue: Ericsson - ...
» Opinion: Why Canada, Asia and Australi...
» Oracle reaches 4,200 employees and pla...
» Isarescu: Economy will grow above pote...
» Ready for People in Shared Services & ...
» Genpact's COO: Staying ahead of the cu...
» Colin Lovering to moderate the talks o...
 
EDITOR CHOICE
People in Shared Services and Outsourcing Forum, 2018: What kind of future, tomorrow will bring?

We have just concluded the fourth edition of our annual event People in Shared Services and Outsourcing Forum, the get-together of the Who's Who in the industry of business shared services in Romania.

 Read Full article »
Olga Botusan, Stefanini, keynote speaker at People in Shared Services & Outsourcing Forum on October 18, at Bucharest

This Thursday, at People in Shared Services & Outsourcing Forum 2018, Olga Botusan EMEA HR Director at Stefanini joins us to talk about Digital Transformation and Next-Generation Talent Development.

 Read Full article »
Colin Lovering to moderate the talks of People in Shared Services & Outsourcing Forum on October 18, at Bucharest

The moderator of the 4th edition of the annual event dedicated to the human resources in shared services & outsourcing industry, COLIN C. LOVERING ISM, Chairman of BRCC and Senior VP, Avison Young Real Estate i

 Read Full article »
Andrei Mihai Crăciun joins the speakers of People in Shared Services & Outsourcing Forum on October 18, at Bucharest

Andrei Mihai Crăciun the Head of office for Innovation, Technological Transfer and Intellectual Property Office from West University of Timisoara will be joining us to discuss whether the private-state actors

 Read Full article »
Sergiu Negut, on the stage of People in Shared Services & Outsourcing Forum on October 18, at Bucharest

On October 18th, Sergiu Negut joins People in Shared Services and Outsourcing Forum to share with us his ideas of ways to support the industry's human capital necessities and create a more efficient cooperation

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