Loading ...Cheap workforce turned Romania into an outsourcing destination, and now the country is also growing into a hotbed for outsourcing services: the time has come for domestic companies to focus on their main activity and let others see to secondary tasks.
ALD Automotive director general Philippe Valigny explained the benefits of outsourcing at the seminar "Outsourcing: costs and benefits," organized the previous week by Ziarul Financiar, ALD Automotive and Class IT.
A member of international group ALD, ALD Automotive entered the Romanian market in 2004 and has 114 clients, more than 90 percent of which are international companies; ALD Automotive supplies a full array of automotive outsourcing services. "Our fleet counts almost 2,500 vehicles and we have orders placed for another 200 cars until year-end," said Philippe Valigny.
The auto outsourcing market is estimated at some 10,000 vehicles, which is just 4 percent of the commercial vehicles total. For 2008 ALD Automotive expects its portfolio to expand to 4,000 vehicles.
Most Romanian companies prefer to hire staff for all non-core activities, the most frequent situation being that of one person handling several such activities.
According to a study by PricewaterhouseCoopers, Romania's growth potential is highest for the outsourcing of services related to IT, logistics, distribution and human resources, after a period when financial-accounting services have held the lead. IT outsourcing currently accounts for just 3 percent of the market and estimations show a possible share of 15 percent.
European companies are seen as the major growth generators for Romania as a destination for outsourcing services.
"Linguistic compatibility, cultural closeness and the time zone are Romania's advantages in attracting clients from Europe. The current trend in outsourcing gives preference to destinations as close as possible, avoiding remote areas like India," said the manager of the PricewaterhouseCoopers Department Advisory Performance Improvement Radu Andrei.
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