Romania and Bulgaria increasingly attractive outsourcing locations

Romania and Bulgaria continue to be attractive locations for outsourcing according to a recent study of consultancy A.T.Kearney. The low expenses of the companies and the improvement of the quality of the work force appear to be the most important factors when it comes to business outsourcing.


Bulgaria on 13th place

Bulgaria holds the 13th place in the ranking. The new EU members in which the business expenses are less, are the new “stars” in the outsourcing.
Bulgaria, however, has a serious competition in the face of the Baltic republics. Lithuania marks a serious growth in this year’s ranking and holds the 21st place. In the country service centers have been opened offering services in English, Russian, Polish, German and Scandinavian languages. Already over 3 thousand Lithuanians work in this field.

 

Romania catches up

Romania ranks 19 worldwide Romania, climbing 14 spots in the most sought after locations top, and 3 in Europe, after Bulgaria and Estonia, Business Standard daily informs.
This is a good spot, given that there are more than one hundred countries in the world which are considered relevant for the outsourcing activity, said Daniel Catana, A.T.Kearney consultant. “Our position this year and latest evolution entitle us to believe that the local outsourcing industry has a good growth potential in the near future, as well”, he added.

 

According to Daniel Catana, Romania’s evolution has been determined by two significant factors: first of all, other states have lost competitiveness ground as reported to Romania and, secondly, even though Romania registered a slight attractiveness decline, due to salary raise and of some other costs, this was offset by an improvement of the business milieu and of human resources quality and availability.

 

Catana estimates that the positive evolution in this classification will continue in the near future.
“If we look into the macro-economic indicators outlook, we could assess that both the Gross Domestic Product, and public and private demand will show a more accentuated drop in Romania compared to states such as Poland or the Czech Republic. In Romania, the return to a significant economic growth will be a slow one, and it will take two-three years at least”, said Catana.

So that salary expectations in Romania will be better correlated to labor productivity as against the past years, and the labor force will be found more easily on a rising jobless background. Companies will raise more slowly the outsourcing services prices for partners from abroad. Moreover, leu’s (national currency) depreciation in the past six-nine months contributed to the strengthening of Romanian exports competitiveness.