BPO&SSC
Moldova’s BPO & SSC sector has a high potential, given the advantages offered by the country both in terms of talented human resources and competitive costs.
Currently, the BPO segment accounts for approximately 12% of the outsourcing market. An IDC * report estimates that it will increase significantly, reaching $ 30.42 million by 2024, compared to $ 17.66 million in 2019.
Although the local BPO & SSC market is still small and has high potential, existing companies have already covered a wide segment of industries. There already exist a number of provided services, from basic (e.g., customer service agent) to more sophisticated (e.g., data analyst, engineering). Moldova is particularly suitable for companies interested in small and medium-sized operations with high value services, rather than traditional service centers with thousands of employees.
The current workforce capacity of the BPO and SSC industry in Moldova is estimated to be over 3,000 people (excluding IT outsourcing), serving mainly European and American markets. The services are focused on several industries, especially in the Logistics, Travel and Telecommunications sectors. In recent years, there has been a continuous growth of high value services in the BPO sector in Moldova, by adding sophisticated services, including legal outsourcing, human resources outsourcing, financial analysis, engineering, business intelligence, etc.
BPO intends to register a CAGR of 11.21% by 2024.
Research and development engineering is another sub-segment with high potential, reaching an estimated CAGR of 12.24%
The other segments (UX, Quality Assurance, Product Management) have the greatest potential and are the closest to IT services and intend to register a CAGR of 11.92%. *
International companies can reduce costs by choosing to set up contact and document processing centers in Moldova. Companies can grow very fast and are able to supply the EU and CIS markets at the same time. Once automation emerges as a key trend in BPO.
TRENDS
OPPORTUNITIES
Continuous emphasis of international companies on cost reduction
Lack of domestic skills in some areas of BPO in Europe
Increased demand for web-based BPO services
Some of the most competitive operating costs in Europe - HR and other operating costs
The skilled workforce is expanding by almost 16,000 new graduates
Competitive network infrastructure - one of the fastest internet speeds in the world
About 80% of companies use English as a working language. While most companies that outsource their operations to Moldova come from the US and Western Europe, in most cases, the projects come from their subsidiaries in Moscow, Bucharest or Kyiv. Given this situation, the Republic of Moldova has a unique advantage, with a very high performance in both Russian and Romanian, entire teams can be easily moved to work on a project basis either in Romania or in the Russian speaking countries.
Chisinau, the capital of Moldova, is proud to have won the "Emerging City of the Year in the EEA" award, ahead of cities such as Tbilisi and Sofia, in one of the most important conferences in the field of Business Process Outsourcing & Shared Service Center - "Summit and EEC Awards for Commercial Services 2020 ”, held in Warsaw, Poland.
