Report: Romania's business services industry has room to grow but at slower pace
<p>The local business services industry has potential for growth, even if it will see a slower pace because the market is a mature one and given the high regional and global competitiveness, according to a report carried out by the Association of Business Service Leaders in Romania (ABSL) in partnership with Deloitte Romania. Still, the elimination of tax incentives and the lack of a national education and training strategy may affect Romania's long-term attractiveness, ABSL said.</p>

<p>A series of factors could underpin the growth in the coming future. Currently, employees in the local business services industry make up 2.5% of the total active population, compared to 3.5% in the Czech Republic and Bulgaria. At the same time, Romania has a high number of students, taking up the second place in the CEE, after Poland, in this respect. It also has 24 cities with more than 100,000 inhabitants, attractive for companies in the field, it said.</p>

<p>Another advantage is the high percentage of French, Spanish, and Italian speakers.</p>

<p>Furthermore, Romania ranks third/ fourth in the region on total employment costs, the highest costs being reported in the Czech Republic, Poland, Slovakia, and, for some services, Hungary. Still, this aspect is mainly influenced by the situation in Bucharest, where most of the jobs in the sector are, and the salaries are 38% higher compared to the national industry average.</p>

<p>"In a dynamic global context, Romania risks losing its competitiveness in this industry, although ABSL estimates still show growth potential. Technology and digitalization are transforming all economies, and in many countries, there are national programs that support education, research, and vocational training. Companies in our industry, but also other fields, are making efforts to compensate for the lack of a national strategy, but this aspect is not viable in the long term," Ciprian Dan, the ABSL president, said.</p>

<p>While Romania no longer offers incentives for the industry, other countries in Central and Eastern Europe (Bulgaria, the Czech Republic, Hungary, Poland, and Slovakia) have attractive support programs consisting of grants, tax breaks, and facilities for vocational training. In addition, the proximity of the war in Ukraine may have a negative impact on potential investors in certain cases.</p>

<p>The study, conducted by ABSL and Deloitte between October 2024 and March 2025, analyzed data from Eurostat, the European Commission, partners (IO Partners and Randstad), information available from the national statistical institutes, and various Deloitte analyses.</p>

<p>In 2023, the contribution of the business services sector to GDP was the largest in the region, at 10.5%, if IT services are included, ABSL explained.&nbsp;</p>

<p>"In the long term, the business services sector has recorded a higher increase in the number of employees compared to the dynamics of the economy as a whole. In the last 10 years, the industry had an average growth rate of 14% per year, the highest in the region. These achievements have significantly strengthened the national economy, created well-paid jobs, and contributed to increasing the standard of living. However, there is a correlation between the sustained pace of growth and the tax facilities that the sector benefited from until the end of 2023. After this date, Romania remained the only country in the region without specific government measures to stimulate this sector, and the negative effects are already visible in the decrease in the number of IT employees and potential investors," Cătălin Iorgulescu, ABSL Vice President, explained.</p>

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<p><em>simona@romania-insider.com</em></p>