Wipro: 15-20% wage hikes will make Romania an expensive destination
Wipro, a leader in the global IT industry and India's biggest software firm, with annual sales of 5bn dollars, is just present in Romania with the BPO unit, which currently employs 150 Romanians. In the coming months, Premji plans to bring the IT development unit to Romania.
Premji decided to bring the BPO unit of Wipro to Romania in the wake of a market survey that eventually whittled down to two finalists – Bucharest and Budapest.
The lower costs and language skills weighed the most in the decision to choose Bucharest. "At present, we're looking at other cities to open the second BPO centre," specifies Premji.
"… Even though Romania's wage base is much lower, these wage increases (by 15-20% i.e.) will shortly turn you into an expensive location," says Premji, adding Bucharest is three times more expensive at present than India as regards costs per employee.
"Things have gone well so far. I think we'll have around 300-400 people in Romania in the following year".
More than that, Romania could lose ground to some cheaper and bigger markets.