Press Release
April 2nd, 2025
Bucharest
ABSL: The removal of tax incentives and the lack of a national strategy for education and training may affect Romania’s long-term attractiveness
- Romania is a key hub for the business services industry due to its well-trained workforce, high rate of technology adoption, and competitive costs.
- The sector registers one of the highest growth rates in the region.
The latest ABSL Romania report, conducted in collaboration with Deloitte, highlights the current advantages of the business services industry and why its development should be a national priority.
Over the past decade, the business services sector has been one of the pillars of Romania’s economy. In 2023, this sector’s contribution to GDP was the highest in the region, reaching 10.5% when including IT services. For the past 10 years, it has consistently held the largest share in the region. Furthermore, the growth rate of Romania’s business services sector has continuously outpaced overall economic growth, emphasizing its crucial role in the national economy.
“In the long term, the business services sector has seen a higher growth in the number of employees compared to the dynamics of the economy as a whole. Over the last 10 years, the industry has maintained an average annual growth rate of 14% — the highest in the region. These achievements have significantly strengthened the national economy, created well-paid jobs, and contributed to a higher standard of living.
However, there is a strong correlation between this sustained growth and the tax incentives the sector benefited from until the end of 2023. After this period, Romania became the only country in the region without specific governmental measures to stimulate this sector, and the negative effects are already visible, including a decline in IT employment and potential investors,” said Catalin Iorgulescu, ABSL Vice President.
According to the report, the industry still has potential for growth, although at a slower pace due to market maturity and increasing competition at both global and regional levels.
ABSL has identified several factors that may support continued growth in the near future. Currently, employees in the local business services industry account 2.5% of the active workforce, compared to 3.5% in the Czech Republic and Bulgaria. Romania also has a large number of students, ranking second in Central and Eastern Europe after Poland, and has 24 cities with more than 100,000 residents — attractive locations for companies in this sector.
Another competitive advantage is Romania’s leading position in the region for French, Spanish, and Italian language speakers.
Salaries in Romania’s business services sector remain competitive. The country ranks third to fourth in terms of total employment costs, with the highest costs recorded in the Czech Republic, Poland, Slovakia, and, for some services, Hungary. However, this is mainly influenced by Bucharest, which concentrates most sector jobs, where salaries are 38% higher than the national industry average.
“In a dynamic global context, Romania risks losing its competitiveness in this industry, although ABSL’s forecasts still show growth potential. Technology and digitalization are transforming economies, and many countries have national programs to support education, research, and professional training. While companies in our industry, but also in other fields, are making efforts to compensate for Romania’s lack of a national strategy, this is not a viable long-term solution,” stated Ciprian Dan, ABSL President.
While Romania no longer offers incentives for the industry, other Central and Eastern European countries (Bulgaria, Czech Republic, Hungary, Poland and Slovakia) have attractive support programs, including grants, tax exemptions, and professional training facilities. Additionally, proximity to the war in Ukraine may negatively impact potential investors in some cases.
The study was conducted by ABSL and Deloitte between October 2024 and March 2025, analyzing data from Eurostat, the European Commission, partners (IO Partners and Randstad), as well as information available from national statistical institutes and Deloitte analyses.