Press Release
March 3rd, 2025
Iasi
ABSL Event: Adapting to the New Global Context – The Biggest Challenge for Business Services Companies in Iasi
The Association of Business Service Leaders in Romania (ABSL) is organizing the Business Mixer “Disruption, Optimization, Transformation: What’s Coming Next in the Business Services Industry?” in Iasi bringing together over 60 industry specialists from the local market. Discussions focus on key topics such as recent fiscal and legal changes, recruitment challenges, HR policies, and the impact of geopolitical shifts and technological advancements on the industry.
Iași is a significant hub for the business services sector, with approximately 10% of the industry’s workforce in Romania located here. The sector has developed dynamically, benefiting from a talented graduate pool. However, current challenges, such as the proximity to the war in Ukraine, the rise of AI-driven solutions, and global corporate restructuring strategies, are shaping the industry’s trajectory in Romania.
“In recent years, the local business services and technology industry has witnessed significant changes that directly impact our operations. The rapid evolution of technology and and the accelerated shift towards digitalization have redefined market demands, pushing us to continuously improve our solutions. We recognize and leverage the potential of new generations, their linguistic capabilities, and adaptability to digital transformations, ensuring that Romania remains a key player on the global outsourcing map for business and technology services,” says Diana Delca, Managing Director, Concentrix Romania, a company with a branch in Iași.
From a labour cost perspective, Romania remains more attractive compared to Poland, the Czech Republic, and Slovakia. However, Bulgaria and, more recently, Hungary remain more competitive due to their lower costs.
According to ABSL data, all companies reported salary increases last year, with an estimated growth of approximately 6.7% for 2025. Over the past five years, industry salaries have increased by 48% to 71%. The ABSL report indicates that in 2024, the average gross monthly salary for an industry employee in Moldova region was RON 8,300.
The benefits provided by companies continue to be significant for employees in the industry, but fiscal measures in 2024 have shifted employees’ preferences. The most commonly used benefits now include additional vacation days, flexible working hours, health insurance, and flexible benefits platforms.
“Romania can no longer be seen solely as a cost-optimization location, in terms of salary expenses, which have increased significantly in recent years. Additionally, our advantage of having relatively small cultural differences compared to Western Europe, as well as strong linguistic skills compared to Asian outsourcing location, is diminishing with technological advancements and the changing mindset of younger generations entering the job market,” explains Silvia Calistru, Head of People, SCC Services Romania.
The business services sector in Iași appears to have reached a plateau. A notable development is the expansion of companies already present in Bucharest and Cluj, which have opened offices in Iasi to be closer to employees recruited remotely during the pandemic. Furthermore, voluntary attrition rate have decreased nationwide, while hiring rates are no longer as high as in previous years. There is also a shift in market demand from IT-related roles toward other business services positions.
“Iași continues to be the most attractive secondary city in Romania in terms of cost and resource availability. The biggest challenge is finding experienced professionals, especially for complex, niche roles with high exposure both internally (within the organization) and externally (with clients). For such roles, recruitment efforts must extend beyond Iași to other cities, particularly Bucharest. In 2025, we expect an increase in open positions in business support services (procurement, accounts payable/accounts receivable, HR), service delivery, and project management,” adds Silvia Calistru.
The economic and geopolitical context has reduced individual mobility in the industry, leading to a normalization of labour market dynamics, which had been extremely challenging for employers in recent years. According to ABSL reports, the average turnover rate last year was 16%, with employees having an average age of 33 and spending approximately three years in a job.
“In an era defined by artificial intelligence and digital transformation, Romania’s business services industry has the opportunity to become a regional hub for technology and innovation. To capitalize on this potential, organizations must invest in digitalization, automation, and continuous professional development. The sustainable growth of the industry, including in Iași, depends on our ability to adopt new technologies and train professionals for the future. Specialization in specific fields, combined with expertise in digital areas (automation, RPA, artificial intelligence), will offer industry professionals significant career advantages and long-term security,” says Catalin Iorgulescu, ABSL Vice President.
The business services industry in Romania ranks 5th in terms of contribution to GDP, with over 200,000 employees. The main cities where this sector is developing are Bucharest, Cluj, and Iasi, followed by Timisoara, Sibiu, and Brasov. The main services provided, based on the number of employees, are customer operations, IT, and finance accounting.