Romania Is the New El Dorado of Outsourcing

Romania is getting a new name as the El Dorado of outsourcing. More and more brand-name companies relocate their production facilities here or start greenfield operations here. The advantages are obvious and were also mapped by a recent article in Le Figaro, written on the occasion of the French PM’s visit to Bucharest.

First of all, the work force is highly affordable, as the maximum salaries range in the hundreds of euros, when compared to the thousands of euros in the West. Then, the training of personnel is high, both in low-tech high pollutant industries which hardly may be traced in the West, and in the hi-tech industries.
Last but not least, the Romanian government is aggressively targeting major foreign investors, with the most recent example of Saint Gobain, which will get its company in Calarasi connected for free by Electrica energy supplier to the Romanian national power grid. And the facilities granted to Saint Gobain are matched by similar ones awarded to other foreign companies.

Other major companies will certainly be lured by the vast infrastructure works deemed necessary for a successful European Integration - like highways construction, which are a major attraction for investors all over the world.
The EU integration itself will soon bring about new jobs since Western companies will prefer to have one foot in the door ahead of the planned opening of the market, and the EU as a whole will pump money in the new accession country.
The government, no matter which party it will originate from in this fall’s elections, should take though into account the following:
First, while chasing major foreign investors the Executive should not forget about the local investors, and provide incentives for them too.
Second, the Executive should also pay attention to the low-level bureaucrats who could spoil with their attitude the reforms conducted at high level.