- 33% of CFOs find it increasingly difficult to comply with internal company and Romanian authority reporting standards (compared to 26% the previous year).
- High talent shortage in the industry, services and trade sectors is a key reason why companies turn to outsourcing.
Released today, the research Insight Into Multi-Country Outsourced Services Trends seeks to identify trends in outsourcing services in the Romanian, Polish and Hungarian markets specifically related to global companies with operations in the three countries.
Commissioned by TMF Group - a global provider of business services operating in over 80 countries, and conducted in late 2016 by professional research company Gfk, the survey canvassed the views of 30 HR managers and 31 Finance managers across a broad spectrum of industries. The survey is in its third consecutive year.
Key survey results include:
- 33% of CFOs face difficulties complying with group and local authority reporting standards. This is an increase from the 26% who indicated the same difficulties in 2015. 30% cited the lack of a proper communication interface with local authorities.
- Over 80% of CHOs struggle due to a talent shortage – finding and hiring the right professionals, particularly in the industry, services and trade sectors. Consequently this becomes a key trigger for outsourcing.
Commenting on the results Camelia Nita, Managing Director at TMF Romania said: "Automation and standardisation of different business processes has increased tremendously within global companies operating in Romania, allowing them to partner with external service providers such as ourselves. This in turn can speed up productivity and solve the talent shortage gap, particularly in HR, financial and legal administrative functions."
Reasons for outsourcing
Both the HR and Finance managers surveyed said they looked to use outsourced business services to support departments including HR, payroll and accounting to:
- Increase their adaptability to legislative changes (doubled in comparison to 2015 results, reaching 60%)
- Improve tax compliance (over 60%) and
- Mitigate their risk of penalties for non-compliance with VAT and social contributions regulations (59%).
63% of survey respondents have outsourced at least one business function, and 75% reported an increase in revenue in 2016.
31% placed accounting and financial reporting in their top preferences for outsourced services, an increase of 11% compared to 2015.
Corporate secretarial services rank second for outsourcing preferences (28%), followed by HR and payroll (25%) which registered 15% lower with survey respondents compared to 2015.
The survey results also indicate that 44% of CHOs and CFOs have additional outsourcing needs. 18% would approach management to seek external support for the corporate secretarial functions of the business.
Benefits of outsourcing
In terms of the perceived benefits of outsourcing, both the CHOs and CFOs surveyed believed that more time to focus on core business activities (71%) and more comfort through a reduced administrative burden (69%) is gained.
Ms Nita added: "Companies are, naturally, wanting to minimise any risks associated with local legislative instability, and they want to meet their fiscal reporting compliance requirements.
"Legislative changes and fiscal complexity in 2016 saw both local and global companies present in Romania seek out relevant experts, such as those at TMF Group for support. Our HR and payroll, accounting and corporate secretarial administrative solutions provide clients with peace of mind and allow them to remain competitive in the market."
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