Why Outsource to Romania?
ACCORDING TO LATEST STATISTICS
ROMANIA IS THE 2ND IT OUTSOURCED
SERVICES PROVIDER IN THE WORLD
Introduction
Due to the recent enthusiasm shown by business people from UK and all over the world in Romania as a potential outsourcing partner in disfavour to India - the hitherto outsourcing services crown bearer and main partner for Western companies in IT, typing and transcribing services - we, as a business process outsourcing services provider, undertook the writing of the present essay with a view of giving the interested reader some inside intelligence regarding the potential of Romania.
A gold mine?
One of the main reasons for which India was such a big attraction - at least for a while - when it comes to outsourcing, is partially due to the British influence in the Indian subcontinent during the colonial period - a lot of people over there still master English as a foreign language well enough in order to get involved successfully in this type of business. But this trend is already dying out, slowly but surely - all the while the Romanians, at least for the last 15 years, since the fall of the communist regime in December '89, have been making huge progress in this regard. One of the Romanian people's most valuable talents lies within the field of foreign languages - it is something that any attentive Westerner who has ever visited Romania could vouch for hand on heart.
Businessmen took interest for some years in the low cost services offered by India - companies were able, up until now, to offer high quality low price services to the Western firms interested in outsourcing their business over there. But that trend is also fading away. Indian companies have been increasing lately the demands regarding payment for the services they provide, whereas Romania can still do with a lot less - the prices for IT services around here are still probably the best you will get anywhere on earth.
An essential resource for Microsoft?
Microsoft bought recently a Romanian GeCad Company technology in order to include a successful Romanian solution in the field of information security: the RAV antivirus.
"We appreciate the high calibre talent existing on the Romanian market, especially when it comes to mathematics and computer technology. Microsoft purchased a technology of this type (security) from a Romanian company - GeCAD, one of the best companies in the world - really the best there is in our view, when it comes to information security." Steve Ballmer, CEO, Microsoft Corporation.
"The purchase of GeCAD technology will ensure our clients' security, helping us to provide antivirus solutions for the Microsoft products and services", stated Mike Nash, Corporate Vice President of the Security Business Unit la Microsoft.
Underlining the importance of this acquisition from the perspective of tightening the bond between the American companies and Romania further on, Michael Guest, the ambassador of the USA in România, said: "I am delighted to see an American company of primary importance resolved for this important acquisition of a technology produced right here, in Romania. This new step envisages even more clearly the potential Romania has when it comes to information technology - an area in which Romanian students, researchers and entrepreneurs excel. I honestly hope that this will be only the first from a series of numerous future partnerships between American companies and Romania, in this field of interest and others also, meant to extend and consolidate the bilateral and investing relations between our countries."
In 2002, another Romanian antivirus solution was awarded the "Most Innovative Product" Prize in the most important European competition for IT excellence and innovation, the European Information Society Technologies Awards. This was the first East-European Winner at The European IST Awards.
Dominating IT in Europe?
According to a global IT - IQ report made by Brainbench, Romanians already dominate Europe with more than 16,000 certified specialists. The research indicated that Romania ranks 6th place in the world and 2nd place in Europe in professional competence and intellectual training. The research has studied the qualification of labour force in various fields: software, general knowledge, finance, health, industry, information technology, foreign languages and communication, management and executive. Brainbench is world's most important agency dealing with on-line research on professional qualification.
A local Silicon Valley?
"Oracle aims to help push Romania into becoming the Silicon Valley of Central and Eastern Europe" according to Giacoletto, Executive Vice-president for Europe, Middle East and Africa. The firm has opened 3 Oracle Services and Technology Centres in Bucharest Financial Plaza to supply services to clients all over Europe to prop up this target. The 1st centre will be specialized in administrating resources and offering support for Oracle's partners in entire Europe. The 2nd centre, the one for technical global support, is a software developing and technical support department for Oracle users in the entire world. The 3rd centre, the one for consultancy support is intended to be a regional source for Europe, Middle East and Africa for competences in implementing Oracle's solutions for telecommunications companies. " Romania has a good tradition in mathematics, a large population and a Government motivated together to make a mini-Silicon Valley for Romania " said Giac oletto to BBW. Giacoletto has hired around 100 mostly software engineers for the new project and expects, in the next couple of years, to expand this to 3 or 4 hundred people. All aim to be Romanian".
Conquering Germany too?
Romania holds the 3rd place in number of IT specialists working in Germany. According to data from Federal Labour Agency, quoted by Deutsche Welle, 10.472 working permits have been released for IT specialists between August 2000 and June 2003, out of which 1,033 for specialists from Romania.
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