BPO Potential in Romania / Market Entry, Investment, M&A
Romania is a recognized hub for BPO and SSCs in Europe, competing with global destinations such as India. Numerous foreign players are setting up their European operations in Romania which presents certain advantages compared to other locations. They are acquiring local independent players or setting up greenfield operations.
The M&A option is becoming the preferred option mainly due to avoiding delays in starting the actual operations due to recruitment and setting up. Examples include Telus International acquiring CallPoint New Europe, NTT Data Corporation acquiring EBS Romania, CGS Inc. acquiring EasyCall.
Several local independent BPO and call centres currently operate quite successfully on the Romanian market, reaching turnovers of between 2.5 and 15 mil EUR. FRD Center has been monitoring their progress and has direct access at owner-level.
The Romanian market of outsourcing and support services, estimated at over EUR 1.5 bn., employs over 109,000 people. According to ABSL, the average attrition rate in the business services sector in Romania is 17-23 %. The jobs created in the business services sector in Romania have recorded a Compound Annual Growth Rate of 33 % during 2013 – 2016.
The Romanian outsourcing market has recorded a significant growth in the recent years and currently is consolidating its position as one of the leading outsourcing sectors in Europe. The outsourcing sector in Romania is characterised by:
- availability of qualified resources
- language proficiency
- relatively low labour costs
- strong IT infrastructure
Since 2000, FRD Center offers tailor-made market research and intelligence, target / deal origination, B2B matchmaking, background checks on players, M&A consulting services, competitive analysis to foreign companies interested to enter Romania and the emerging markets in Europe as investors or joint-ventures, to acquire a local player, to relocate their operations in CE, SE and Eastern Europe.
*) article issued February 10th, 2017 by Jackie Bojor, FRD Center Market Entry Services
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