The business services sector has been growing at an average of 6% globally over the past two years. After Asia, where about 45% of the companies are concentrated, Central and Eastern Europe is the second most developed region in the world for this industry, accounting for about 31% of the companies. Romania ranks sixth in the world in the list of countries developing this industry and second in Europe after Poland. Currently, the number of employees in our industry accounts for more than 2% of the active population of the country.
“Romania still offers many advantages to investors in the business services industry. Among them is the advantageous cost of doing business and human resources in the IT field, with a difference of 20% compared to Poland. Most foreign languages from all CEE countries are spoken in Romania, which is considered one of the most important advantages for service diversification in business services (ABSL Romania's latest research According to Expertise is also a big advantage,” said Nicoleta Apetrei, Vice President of ABSL.
The centers of excellence developed over the past two years bring strong expertise in areas such as IT, financial accounting and procurement, and Romania remains a preferred destination for high-value-added services.
However, Romania is in direct competition with countries in the region (particularly Poland and Hungary) in terms of available subsidies, financial incentives and support for the business services industry. ABSL is preparing a study presenting Romania's position in relation to regional countries in this regard.
While Romania is providing support through financial incentives and workforce policies, Poland and Hungary are providing support through financial incentives and workforce policies, while Poland and Hungary are providing support, including support for equipment acquisition and higher total grants (€100 million in Poland and €45 million in Poland). It offers a more comprehensive set of measures that may seem broader. Romania).
In Poland, funds that do not need to be repaid from the state range from 30% to 50% depending on the region, while in Romania it is much lower, varying between 30% and 60% and reaching 70% in some regions. creating an attractive framework (if these regions are not always favorable to business services industries). The difference is that Poland has seven hot industries on the list, and business services ranks high on this list. Romania provides financial incentives for production, research and development, and IT.
“Romania's competitiveness in the business services market is influenced by many factors, including the performance of the educational system, the large number of foreign language speakers, IT knowledge, fiscal policy, daily living costs, labor costs, etc. All these factors all converge on one point: human resources. Without this resource, this sector cannot develop. The growth of professionals in this industry and their retention in Romania represents the security of our future. This For these reasons, I believe that these are a priority both for companies in this sector, as well as those that influence economic policy,” said Catalin Iorgulescu, Vice President of ABSL. I am.
According to ABSL, 70% of companies expect their sales to increase in 2023, and 94% of companies believe that Romania offers many investment opportunities in this sector.
According to the latest data, the revenue generated by the business services industry amounts to 9 billion euros. Moreover, the contribution of this sector to Romania's GDP has been higher than the European average in recent years.
“The fact that we still have a significant proportion of students in engineering and mathematics universities helps to outline the future of this industry more clearly. By 2025, the number of employees will increase by 10-15%; We predict that small cities will become more important,” explains ABSL President Cyprian Dunn.
