Software, BPO and contract manufacturing centre

Romania has become a highly attractive sourcing destination for companies looking for business process outsourcing, offshore software engineering and contract manufacturing services, according to market reports.

Telecommunications supplier Ericsson is reportedly considering developing its business in Romania, and is said to be looking at locating a 200-job development centre in the country.

Romania’s Communications and Information Society minister also claims to have had discussions with Nokia and Hewlett-Packard about possible development projects in Romania. 

That news follows an assessment reported by Computer Business Review last month which revealed that advisors at KPMG had named Cluj-Napoca as a future hot-spot for business process outsourcers.

The second largest city in Romania, Cluj-Napoca is home to Babeş-Bolyai University, the largest student base in the country.

Large labour pools, proximity to the major client bases of Europe and multiple language skills qualified Cluj-Napoca for inclusion in a 31 city listing compiled by KPMG, as potential alternatives to currently favoured destinations in India and China.

And according to analysis from Frost & Sullivan released today, Romania is also poised to emerge as one of the largest players in the electronics outsourcing industry.

Its research found the country earned revenues in excess of $1.6 billion in 2008 and estimates this will reach $3.38 billion by 2014.

Romania’s strategic proximity to Western Europe combined with its low corporate taxation policies and low-cost labour force has made manufacturers realise that it is an ideal location for electronics manufacturing, the market watchers said.