November 13th was the date of the 12th edition of the ABSL (Association of Business Service Leaders Romania) annual conference, the biggest event of the business services industry.”We innovate the future. We open new roads in the business services sector” is the theme of this edition attended by over 600 specialists.  The topics covered include the implementation of the latest technologies, the launch of salary and market reports, the presentation of case studies and trends, as well as HR industry news.According to ABSL data, all companies reported wage increases this year.  The estimated growth percentage for next year is approximately 6.7%. The median gross monthly salary of a software developer is approximately 18,700 lei. A payroll specialist earns an average of 9,900 lei gross, while a procurement specialist receives 9,300 lei gross per month. Over the past 5 years, industry wages have increased between 48%-71%. The highest median gross salaries, of approximately 13,000 lei per month, are recorded in the Capital, followed by Transylvania/Banat with almost 11,000 gross lei/month, approximately 10,000 lei gross/month in Muntenia and 8,300 lei gross in Moldova.

Company benefits continue to be important to industry employees, but the 2024 tax measures have changed employee preferences. Thus, the best benefits are additional vacation days, flexible hours, medical insurance and flexible benefits platforms.

From the point of view of the total labor cost, Romania is more attractive compared to Poland, the Czech Republic or Slovakia. Bulgaria and Hungary remain more competitive in terms of low cost.
“Rising labor costs are eroding the competitive cost advantage that used to be one of the reasons why industrial investors chose Romania. Soon even foreign languages ​​will no longer represent a competitive advantage. Professional development of employees to implement and use Artificial Intelligence and automated processes could now make a difference. In general, increasing professional skills to create services with greater added value will contribute to keeping Romania at the top of investors’ preferences,” says Ciprian Dan, President of ABSL.

The economic, as well as the geo-political context reduced individual mobility in the industry.  As consequence, the labor market relationships, extremely difficult for employers over the past few years, returned to normal. According to ABSL reports, last year’s average employee turnover rate was 16%, with employees having an average age of 33 and spending around three years at the job.
“Recruitment, however, remains a challenge for the outsourcing industry. According to our statistics, this year HR departments analyzed 30% more CVs compared to the previous year to hire the same number of graduates.”



According to ABSL studies, 77% of surveyed companies confirmed an increase in turnover in 2023 compared to 2022, but only 58% of them anticipate an increase in the future.
“Poland, Hungary and Slovakia offer investors numerous advantages for creating new jobs. Romania had a relatively competitive program of grants and tax incentives that contributed to the steady growth of the business services industry in the past, but this was discontinued due to budgetary constraints. The lack of fiscal measures to support the development of the industry can have a negative impact on the growth of the sector, the creation of new jobs and the retention of specialists in the country,” says Cătălin Iorgulescu, ABSL Vice President.


The Romanian business services industry ranks 5th in terms of contribution to GDP, counting over 200,000 employees. The top cities in terms of this sector’s development are Bucharest, Cluj and Iasi, followed by Timișoara, Sibiu and Brașov. The main services provided, ranked by the number of employees, are customer operations, IT and finance accounting.

The business services center (BSC) sector has closed another record year in Hungary, achieving outstanding results at the regional level, according to the latest survey conducted in collaboration with the HIPA Hungarian Investment Promotion Agency, the findings were presented at one of the most prestigious events in the industry, the Business Services Hungary 2024 conference in Budapest.

The BSC sector's history in Hungary is a “success story” – underlined István Joó, Government Commissioner for the Implementation of Large Foreign Direct Investments and CEO of HIPA, reviewing the sectoral survey, that was conducted for the fifth time.

He noted that Hungary boasts one of the most mature BSC ecosystems in the Eastern-Central European region. 60 percent of the BSCs have been operating for more than ten years, contributing 3 percent to Hungary's GDP.
The growth remains unshakable, with over 110,000 employees and a community of 215 companies making up the Hungarian BSC sector. Furthermore, the number of positions in research and development has doubled in just one year, demonstrating the increasing focus on quality – said István Joó.
The conference was organized by HIPA, the American Chamber of Commerce in Hungary (AmCham Hungary), and ABSL Hungary, the Hungarian member of the Association of Business Service Leaders (ABSL), the international organization of BSC’s. Over a hundred industry professionals attended the event, including many company executives. Through presentations and panel discussions, they reviewed the past year’s developments and analyzed the opportunities and challenges ahead, from securing skilled labor to facing increased competition from distant regions like Latin America and Southeast Asia.
In his opening address, István Joó emphasized that HIPA has been fully supporting the BSC sector, contributing to the creation of 20,000 jobs through 106 projects.

Looking ahead to 2030, the main goal is to increase employment in the sector to 150,000, and doubling the workforce in provincial cities, especially university towns. Another key objective is to increasingly connect to the trend towards automation that leaves room for high-value-added activities, aiming to be a regional leader by the end of the decade.

He also highlighted that economic neutrality, as a fundamental principle of investment promotion, will have a more prominent role, as HIPA is set to attract more Eastern partners, alongside continued support for Western companies.
Balázs Hankó, Minister of Culture and Innovation, stressed the need for a competitiveness shift across Europe, which the Hungarian model could support. He noted that one of the core principles of this model is aligning higher education, vocational training, and research and innovation support with the needs of the economy. Over the past five years, the number of R&D professionals in the economy has doubled, and the number of PhD students has also doubled within the same timeframe.

András Kohl, Vice President of ABSL Hungary, pointed out that the BSC sector employs over 31 million people across the EU and contributes approximately 22 percent to gross added value. BSCs are the “innovation engines” of Europe, crucial for its competitiveness. However, it is vital to continuously develop skills in line with global trends.

Zoltán Szabó, President of AmCham Hungary, emphasized that despite the challenges of recent years, the sector has retained its attractiveness, providing a solid foundation for future growth. However, it is essential to ensure a skilled workforce in the long run because “investors will move on if they don't find it.” This is why it is crucial to develop the educational system, where “there is still much work to be done” – he noted.

During the conference's main panel discussion, Monika Slomska, head of the consulting firm Knowledge Pyramid, which collaborated on a sector survey series, highlighted that Hungary has become one of the most popular nearshore outsourcing destinations in Europe. This is partly due to robust government support, resulting in the establishment of numerous R&D centers and significant investments in emerging technologies like the Internet of Things (IoT) and Artificial Intelligence (AI).
Ákos Janza, Vice President of AmCham Hungary, acknowledged that the past four years in US-Hungarian relations "haven't always been easy," but he expects a return to the path of cooperation with the incoming administration, which will be a "huge opportunity" for Hungary.

Martina Almási, Director of Investment Promotion at HIPA, emphasized that while Hungary is no longer a low-cost country, it remains highly competitive in the BSC sector due to its experienced workforce and excellent business environment. She added that the next phase of sector growth will likely focus on regional.
Following the traditions of the conference, the BSC community's most outstanding performers were honored with awards, based on online voting results.
Investor of the Year: LIGHTWARE Vetítéstechnikai Zrt.
Business Excellence and Innovation: ESAB Kft.
Educational Collaboration and Talent Development: Robert Bosch Kft.

From 19-21 November, the team from European Business Services Association will be attending, and posting news updates from the SSON event in Berlin.

BioPharmaSpec, a contract research organization (CRO) specializing in biopharmaceutical analysis, has announced plans to open a new facility in Vilnius early next year. The company’s Lithuanian division will provide discovery research and preclinical characterization services for a range of biopharmaceutical products.  
Founded in 2014 by leading experts in biopharmaceutical characterization, BioPharmaSpec has built a strong reputation for providing advanced analytical services to the rapidly evolving biopharmaceutical industry. The company’s expansion to Lithuania significantly strengthens its European operations, alongside its new sites in Germany and Italy.  

"After evaluating several locations across the EU and Switzerland, Lithuania emerged as a clear choice for our expansion. The combination of a well-educated talent pool and a reasonable cost base, along with the country's growing biotech industry, aligns perfectly with our strategic goals", said Prof. Howard Morris, BioPharmaSpec founder.

The new Lithuanian facility will focus on discovery and R&D services, offering preclinical characterization services for various biopharmaceutical products. These include monoclonal antibodies, antibody-drug conjugates, gene therapy products, bioactive peptides, oligonucleotides, carbohydrates, and product and process impurities analysis.  
 In Lithuania, BioPharmaSpec will be recruiting chemists, biochemists, and biologists educated at BS and PhD levels. The new hires will join the company’s team of more than 40 employees across its locations in North America, the UK, India, and Europe.  
BioPharmaSpec also plans to explore collaborations with Lithuanian higher education institutions and other stakeholders. The company has an extensive track record of successful partnerships with academia, industry, and regulatory bodies such as the FDA, some of which have led to joint publications.  

Teleperformance in Lithuania is expanding its operations, creating 80 new jobs in the coming months.  
Since establishing its Vilnius office in 2015, Teleperformance (TP) in Lithuania, part of a global digital business services leader TP, has grown from a team of 50 to over 700 TP Experts in the customer experience management industry. The company now manages six major international programs for clients, supporting customers worldwide in more than 15 languages. 

"Our journey in Lithuania has been one of growth. Starting with just one project in 2015, we have expanded our operations significantly, even during challenging times like the pandemic. TP’s recent acquisition of Majorel has further enhanced our capabilities and allowed us to bring in new international talent, strengthening our position as a key player in the global market", said Natalia Iashchuk, Country Director at TP in Lithuania.
The company’s Lithuanian office serves as a multilingual hub, providing a wide range of business services including customer support, technical assistance, back-office processing, digital solutions, and social media management. TP’s clients supported by the operations in Lithuania span various industries including e-commerce, telecommunications, travel, technology, and financial services. 

Bulgaria's state-owned National Company Industrial Zones (NCIZ) will invest over 6 million levs ($3.3 million/3.1 million euro) in a new regional centre for digital solutions and innovation located in the western outskirts of Sofia, the economy ministry said.
The project, to be developed in the Sofia-Bozhurishte industrial park, will be funded through the Scientific Research, Innovation and Digitisation for Smart Transformation programme under a contract between NCIZ and the ministry of innovation and growth, the economy ministry said in a press release. Construction of the facility is expected to take 36 months.

The centre will establish cutting-edge digital infrastructure to support businesses operating in the park, as well as entrepreneurs, researchers, scientists and the regional administration. A virtual reality laboratory will allow 3D laser visualisation of buildings, machinery and products before their market launch for pre-investment testing.

The Sofia-Bozhurishte industrial park, spanning 3 million square metres, has already attracted 42 domestic and international investors across various sectors such as automotive, high-tech and logistics.

The IT and business services sector in the Czech Republic will employ 175,000 people in 2024, a 9% increase from last year. New investments from companies such as Asahi Group, Kenvue, Sandoz, Rapid 7 and HX Expeditions have boosted this dynamic growth. The sector is expected to reach the 200,000 employee mark by the end of next year.

IT services and data analytics in particular have seen rapid growth, increasing by a tenth year-on-year. Modern technologies, such as software robots, now perform work equivalent to the capacity of 28,000 people in Czech centres. 


Digital transformation as a growth engine:The industry is characterised in particular by the intensive adoption of modern technologies, which now makes it possible to provide services digitally and to the whole world. In addition, it relies on automation, which simplifies many processes and services. Software robots now do as much work in Czech centres as approximately 28,000 people – with an average of 74 robots per centre, a significant jump from last year’s 53.
“Technologies such as robotic process automation, artificial intelligence, OCR and data visualisation tools are key to expanding the reach and productivity of centres and are making a significant contribution to the Czech economy,”
says Jonathan Appleton, adding that the sector contributes over USD 20 billion a year. Automation and robotics projects are being developed in the centres themselves. Today, they employ an average of 14 robotics experts, and this number is expected to grow even further with robotics projects – to 19 within 3 years. These projects then have a significant impact on the growth of the centres themselves. ABSL Czech Republic data even shows that centres that have already integrated AI and automation are growing in terms of headcount at twice the industry average.
“The technological transformation in business services has a major impact on global markets. The Czech Republic is gaining a profile as a technology leader in this area and innovations from our centres are finding adoption around the world,”
says Jaromír Staroba, President of ABSL Czech Republic. According to the current ABSL survey, IT services and data analytics are among the fastest-growing areas, growing by a tenth year-on-year.

Bank payment company GoCardless has appointed Pēteris Daliņš VP of Operations and site lead of its Riga office location.
In his role, Daliņš is responsible for leading the fintech’s global shared services team which includes customer operations, risk operations, payment processing and billing. He also leads GoCardless’ second-largest office outside of London heading up the newly formed Riga ‘HQ2’ Management Committee.
Daliņš has worked in a variety of senior management and executive roles, both in technology and business functions in Australia, Asia and Europe. His career includes stints at Emergn, Asahi Beverages and most recently KPMG.

His appointment is the latest news from Riga as GoCardless continues to expand in the region following its acquisition of home-grown start-up Nordigen in 2022.
Since then, GoCardless has hired nearly 100 people in Latvia and in April this year announced the opening of its new Riga-based headquarters following a significant investment of over €1.7m. Located at Marijas iela 2, the new office supports GoCardless’ goals in the region, with the team expected to reach up to 300 employees by the end of 2024.
Ahmed Badr, Chief Operating Officer at GoCardless, said: “As a global fintech with ambitious growth plans, we need to hire the best leaders in every market. With his international experience and track record of driving operational excellence, Pēteris is the perfect fit for this role. I look forward to working with him and the Riga team to enable GoCardless to deliver on our long-term strategy.”
Pēteris Daliņš said: “I’m excited to help GoCardless establish its ‘HQ2’ in Riga, building on the talented group of open banking specialists from the initial acquisition and creating a centre of excellence for operations. We are committed to not only growing our presence in Latvia but also becoming a driving force for tech and fintech development across the country. I invite anyone who wants to work in a supportive, high-performing culture to come and join the team.”