The intersection of technology and globalization has changed the way business is done and created new business opportunities in Romania theinternational marketplace.
Business process outsourcing (BPO) has evolved with time and the rampant innovation in technology. The BPO trend is accelerating. It is a subset of outsourcing that involves the contracting of the operations and responsibilities of a specific business process to a third-party service provider. Originally, outsourcing was associated with manufacturing firms, such as Coca-Cola, that outsourced large romania segments of its supply chain.
Coresi Business Park started construction on the second phase of the project, consisting of two new office buildings, with a total area of 18,000 sq m. Tata Technologies is the first tenant to occupy 3,300 sq m in the first building, planned for delivery in Q2 2016.
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Tata Technologies entered the Romanian market in 2013 by acquiring the American group Cambric, with the local affiliate of the group (Cambric Consulting) activating on the local market since 1997. Tata Technologies operates in Romania through its engineering centres from Brasov, Iasi and Craiova, ensuring engineering and consultancy services to some of the most important companies in the world.
Tata Technologies signed a lease agreement for 3,300 sq m in the first building, scheduled for delivery in Q2 2016. The new office will provide a modern working environment for over 300 employees in Brasov. For the next year, the company plans to recruit 100 engineers for the Brasov center, which will benefit of training in different CAD/CAE platforms.
For the available surfaces in the phase II of Coresi Business Park there are on-going negotiations with some of the current tenants who plan to extend, as well as with other potential clients.
"Generous floor surfaces and flexible partitioning options allow us to provide our clients with total occupancy costs starting at 60 Euro/month/workstation within the second phase of Coresi Business Park. By reducing rent and utilities expenses, companies are able to invest in strategic aspects, which improve the employees' comfort and satisfaction, grant them competitive market advantages or convey long term cost effectiveness.
The business campus philosophy of our project is one of the main assets in attracting new tenants and strengthening our relation with the existing ones. With the office market dominated by steel and glass monoliths, Coresi Business Park provides an alternative solution. The 20,000 sq m of landscaped green spaces make Coresi Business Park a balanced and sustainable work environment."declared Silviu Savin, Partner, Ascenta Management.
Coresi Business Park is a modern office project, developed on the former Tractorul industrial platform from Brasov. The scheme is one of the major urban regeneration projects in Romania, transforming 12 hectares of the old manufacturing plant into a contemporary business environment.
The initial phase of Coresi Business Park consists of approximately 25,000 sq m GLA of unconventional office areas with industrial architectural elements. The restored former industrial buildings provide all the A class office space facilities and host international and local companies such as Raiffeisen Bank, IBM, Fresenius, Freudenberg, CGS, Waters etc.
Coresi Business Park master plan features a well-balanced mix of industrial halls to office conversions and new built offices, envisioning 100,000 sq m of office GBA within 10 years. In addition to the existing, converted office space, the project features 10 new, modern, low-rise office buildings (GF+3F/4F).
Coresi Business Park Brasov has been declared Best Office Development for Business Process Outsourcing/ Shared Service Centers Sector outside Bucharest, at the first edition of Romanian Outsourcing Awards for Excellence 2015, held in May, this year.
Ascenta Management is the developer of Coresi Business Park, one of the largest office developments outside Bucharest and a major urban regeneration initiative. The management team has been involved with the project ever since the acquisition phase, ensuring a coherent & thoroughly master planned development. In addition to further growing their key asset in Brasov, the company also targets on new acquisitions of the local market, mainly office projects.
Ascenta's business model provides a dynamic alternative to the traditional yield investors, as it relies on unparalleled responsiveness and a personal, tailored relation to each tenant. Ascenta's multidisciplinary team encompasses expertise in the fields of property & facility management, leasing, property development, finance and marketing. Its members are a mix of young technical specialists and experienced senior executives with broad international academic and business experience.
BPO is typically categorized into back office outsourcing, which includes internal business functions such as human resources or finance and accounting, and front office outsourcing, which includes customer-related services such as contact center services. In addition, other outsourcing segments within the global industry include business services, energy, technology, healthcare and pharmaceuticals, retail, travel and transport, and telecom and media.
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The revenue of the global outsourced services industry rose steadily year over year from $45 billion in 2000 to just under $100 billion in 2012.
India is a clear leader in this area, offering a highly skilled, educated, cost effective, English-speaking labor pool. Still, many organizations are understandably apprehensive about having people on the other side of the world support critical business functions. However, some of the best outsourcing providers have mitigated the risk and addresses the concerns that clients may have about placing their work offshore through their innovative project management strategies.
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WNS Holdings (WNS) operates in two segments: WNS Global BPO and WNS Auto Claims BPO. Its clients are primarily in the travel, banking, financial services, insurance, healthcare and utilities, retail and consumer product industries. WNS Global is a global business process management company headquartered in Mumbai, India. It has more than 29,000 employees working in 37 “delivery centers” across the world, including India, the U.S., United Kingdom, China, Costa Rica, Philippines, Poland, Romania, South Africa, and Sri Lanka.
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Another company that has embraced the BPO model is Accenture (ACN). One of the top multinational management consulting, technology services, and outsourcing company, ACN reported revenues of over $30.0 billion with approximately over 330,000 employees, serving clients in more than 200 cities in 56 countries. In 2012Accenture had about 80,000 employees in India, more than in any other country, about 40,000 in the US, and about 35,000 in the Philippines.romania investiments
While there has been push back from U.S. consumers regarding poor service at certain international call centers, it is clear to me that the more a company is willing to think globally, they open themselves to greater profits. The BPO model should be expected to grow for years to come.Setting up company in Oradea, Bihor Bucarest Romania
Disclosure: We are long ACN for our clients. I use my own “magnet” stock selection process to assess companies. I am not an analyst, nor do I make buy or sell recommendations. I always suggest investors do their own research.
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