Romania’s BPO market set for 30% growth by 2029
BUCHAREST, ROMANIA — Despite global economic challenges, Romania‘s business process outsourcing (BPO) market is demonstrating remarkable resilience and growth.
According to recent estimates, Romania’s BPO industry, valued at $375 million in 2024, is poised to grow by more than 30% over the next five years, potentially reaching nearly $500 million by 2029.
This growth underscores the country’s strategic importance as a hub for outsourcing investments, driven by a well-trained and multilingual workforce.
Key drivers of Romania’s BPO growth
Vladimir Sterescu, Country Manager of CGS Romania, highlights several factors contributing to this growth. CGS is currently ranked #73 in the OA500 2024 index, which lists the top 500 outsourcing companies in the world.
“With a constantly growing economy, supported by consumption and exports, a favorable tax regime, and a low cost of living, Romania is increasingly present on the investors’ radar,” Sterescu stated.
He emphasized the country’s well-educated workforce, particularly in IT and engineering, as a significant draw for international companies.
Eastern Europe as a competitive outsourcing region
Romania, along with other Eastern European countries like Bulgaria and Poland, has become a key market for the BPO industry.
These countries attract investments due to their competitive costs and skilled labor force.
Additionally, there is a growing trend towards nearshoring, where companies prefer geographically closer suppliers to improve communication and reduce cultural barriers.
Economic challenges driving outsourcing growth
Inflation has significantly impacted various industries in Europe, including outsourcing. The rising costs have prompted many companies to seek cost-cutting solutions, such as outsourcing non-core activities.
“The economic disruptions of recent years have led many organizations to outsource critical processes to trusted suppliers, aiming not only to reduce costs but also to increase efficiency,” Sterescu noted.
Advantages of Romania’s BPO market
Romania’s BPO market offers a unique combination of competitive costs and high-quality services.
The country benefits from an educated and multilingual workforce, enabling the provision of customized and efficient solutions for clients worldwide.
“Eastern European BPOs are an attractive option due to the balance between cost and quality,” Sterescu emphasized.
Future prospects and growth projections
The global economic landscape, marked by the COVID-19 pandemic and geopolitical conflicts, has accelerated the outsourcing of business processes. Companies are increasingly looking to diversify their geographic locations to mitigate risks.
“All these transformations make the Romanian outsourcing market witness constant growth driven by significant opportunities in a challenging global economic context,” Sterescu concluded.
Romania’s strategic position in Eastern Europe, combined with its skilled workforce and continuous investments in technology, positions it well to become a key player in the global outsourcing market.
