Romania, on the list of top offshoring destinations

Romania is the 19th most attractive offshoring destination in the world, climbing 14 positions from 2007, according to the latest edition of management consulting firm A.T Kearney’s Global Service Location Index, a ranking that analyzes 50 countries worldwide for locating outsourcing activities. In Europe, Romania ranks third, topped only by Bulgaria (13) and Estonia (18).

“Bulgaria and Romania are the winners of Europe, keeping the two comfortable positions in the index. Members of European Union leveraged by lower costs compared to other EU members, Romania and Bulgaria are the new stars of Europe”, A.T Kearney said.

On top of most attractive offshoring destinations in Europe are Estonia, Bulgaria and Romania, followed by Lithuania (21), Latvia (22), UK (31), Czech (32), Russia (33), Germany (34) and Hungary (37).

Romania had the best performance in the ranking of all the 50 states analyzed by the consulting firm, while the other European states, once among the premier offshoring destinations for companies, have fallen significantly. Czech ranked fourth in 2004, and now it took a mere 32 spot, while Poland is now on 38 compared to 18th position it held two years ago.

A.T Kearney’s Global Services Location Index establishes each country’s score by taking into account the weighted combination of relative scores on 43 measurements, which are grouped into three categories: financial attractiveness, people and skills availability and business environment.

Romania has significantly improved its position in the index, largely due to the increase in business and economic environment indicator. In contrast, Poland marked a decrease in the same category, but remained above Romania in the respective class.

Even if financial attractiveness indicator advanced at a roughly same pace in Poland and Romania, the costs are much lower in Romania because Poland started from a higher level. Romania and Bulgaria however recorded the lowest performance in terms of people and skills availability indicator, with Lithuania and Latvia registering even a weaker score.

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