High labour costs and the growth of the RON against the euro and dollar are turning Bucharest into a risky location for outsourcing businesses, while the creation of support centres in Brasov, Iasi and the Republic of Moldova is providing a safer alternative.
"Off-shoring in Bucharest today is difficult as the costs are too high to remain competitive. In Bucharest, a policy that is 100% oriented towards the offshore market seems risky, to me, on the short and medium terms because many salaries in the IT sector no longer allow entrance onto the European markets such as Spain, Italy and Portugal.
"Also, the increase in recent months of the RON against the euro, and particularly against the dollar, does not make the situation any easier," stated Monica Jiman, sales manager of Pentalog Romania, the domestic unit of the French-based provider of software consulting and development services, told ZF.
