“Before the pandemic, the biggest challenge for companies in the outsourcing industry was finding well trained workforce and retaining talent. While the average rate of employees leaving companies was 22% for the period 2017-2019, it stood at just 12% in January-July 2020,” said Ciprian Dan, head of ABSL.
For the medium and long term, 58% of companies expect the number of employees in the industry will rise, 22% expect the number of employees will decrease, while 20% expect it will remain constant. Due to the pandemic, cost reassessment and automation, companies surveyed said employee numbers may drop by as much as 4.5% by the end of June 2021.
As regards the impact of the pandemic on 2020 turnover, 69% of respondents said their turnover will be similar to 2019, 17% estimate a drop in turnover of 5% to 30%, and 14% expect their turnover to grow by 5% to 50%.
“The current context favors Romania and its outsourcing industry. On a global level, companies are rethinking cost structures and adapting their outsourcing strategies and Romania is among the top options for relocation. On the medium term, the Romanian outsourcing industry could grow 5 – 10% annually. The Covid-19 crisis is the biggest economic challenge in 20 years and most companies hope the economy and businesses will rebound in 2021,” said Dan.
Among the effect of the pandemic on their business, respondents listed lower external demand (39%), impact on client operations (33%), seeking new business areas (33%), increased external demand (30%), global restructuring plans (27%), acquisitions (3%).
In terms of government support, 20% of respondents opted for furlough, 11% received state aid, 11% – tax exemptions, 6% – tax deferrals, and 6% accessed EU grants and funding, while 38% of companies did not benefit from any type of government support.