Moldova's Business Services Sector (BSS) has grown significantly, becoming a key contributor to the national economy. It has recently drawn attention from local and international investors looking to leverage Moldova's advantages in outsourcing and business services.
Moldova's total exports in 2023 reached $6.488 billion, with $4.0486 billion coming from goods and $2.44 billion from services. Notably, $0.16 billion was generated by two key sectors—IT and BSS—representing five times the value of Moldova's traditional wine exports.
In 2022, service exports from this sector reached $180 million, doubling compared to previous years. In 2023, BSS exports saw an unprecedented increase of $65 million, or 36%, bringing the total to $245 million. The sector, along with its exports, will continue to grow steadily in 2024.
(Source: Veaceslav Ioniță, IDIS Viitorul, Think Tank)
"We have been present on the Moldovan market for the past 25 years, providing quality services to various private and public sector clients in Moldova. In 2019, we launched a pilot project in Chisinau, creating a Competency Center for Romanian and Moldovan audit departments, with colleagues providing the necessary support by fully undertaking the responsibility for executing specific tasks as part of the audit methodology. Since then, the pilot project turned into a business unit, reaching a headcount comparable to other lines of services combined, with a total headcount exceeding 70 people in PwC Moldova. Indeed, the quality of human resources in the Republic of Moldova offers us the opportunity to explore opportunities for optimization and efficiency of our activities, for the benefit of our clients." Alexandru Gozun, Director Advisory Services, PwC Moldova
By the end of 2024, service exports are expected to exceed goods exports, largely due to the rapid growth of the BSS sector. Moldova is now a strong competitor in this market, providing unique advantages for investors, including favorable tax conditions and specialized IT and BSS parks. Recently, the Moldovan government has made notable progress by introducing laws that allow BSS companies to operate under the IT framework and benefit from a flat 7% turnover tax. A crucial success factor for the BSS sector in Moldova is its flexibility and ability to deliver competitively priced services that are highly sought after in international markets.
ABSL (Association of Business Service Leaders in Moldova) an international business association was established in Moldova in 2021. It actively promotes the Business Service Sector (BSS) on the global stage. Since its inception, the Association has attracted over 20 major foreign BSS companies to Moldova and has an ambitious plan to promote the country's BSS sector across Europe, Asia, and North America.
Olga Levitscaia, Executive Director of ABSL, highlights the sector's potential: “The expansion of the BSS sector offers numerous benefits for Moldova on multiple levels. It has a crucial role in reducing brain drain and provides an opportunity for the Moldovan diaspora to reintegrate into the national economy. Furthermore, it offers our citizens an alternative to low-skilled jobs abroad, allowing them to stay in Moldova and raise their families. Currently, salaries in this sector are 3-4 times higher than the national average.”
The first companies chose Moldova as an outsourcing hub two decades ago. Today, this sector offers various services, including call centers, survey centers, accounting, engineering, graphic design, logistics management, and tourism package sales. Veaceslav Ioniță, an economic policy expert at IDIS Viitorul, suggests that alongside current services, new and innovative offerings are expected to emerge in the coming years, some of which are hard to predict today.
According to Olivier Prado, former President of the ABSL, Orange alone employs over 400 staff members dedicated to the group’s Business Process Outsourcing (BPO) operations. As an interesting example, he highlighted that one of Moldova's call centers manages operations for Yellow Cab, a well-known New York taxi company. This is just one of many similar success stories, with dozens of such examples already established.
"We are Moldova’s leading telecom company, and we have a thriving nearshoring business. Our services are valuable to our partners, helping them streamline their operations and enhance efficiency. Our commitment to excellence is reflected in our teams consistently achieving a 99% customer satisfaction rate. Code Factory has collaborated with IT specialists from Moldova for over 10 years, valuing their professionalism and dedication. Choosing to open our first delivery center outside Romania in Chisinau in 2013 was a great decision that boosted our growth and attracted top-tier international clients." Julien Ducarroz, Former CEO of Orange Moldova, CEO of Orange Poland
Moldova has traditionally fostered a multilingual workforce, setting it apart from many other countries in the region. The country can offer services in a variety of European languages, including French, Italian, German, and English, making it an attractive outsourcing destination for Western European companies.
The growth of the BSS sector has had a notable impact on Moldova's labour market. The sector employs approximately 16,200 people, accounting for 2.5% of the country's workforce. The average salary in the BSS sector is around $800, which is 20% higher than the national average, while in the IT sector, the average salary has reached $2,000 - 2.5 times higher than in BSS.
However, as Evghenia Danu, the new president of ABSL Moldova, points out, “unlike IT specialists who require specific knowledge and training, young people can easily acquire the necessary skills for the BSS sector. Employers primarily focus on language proficiency and the candidate's openness and willingness to learn. As a result, much of the training is done on the job”
To further solidify Moldova's position in the global BSS market, the government is focusing on attracting investors in IT and Business Process Outsourcing (BPO) sectors. A key initiative is the Moldova IT Park (MITP), which provides a simplified tax regime with a 7% flat tax on company turnover, making it highly attractive for IT and BPO companies. BPO is also central to Moldova's national investment attraction strategies, with a focus on promoting the country as an ideal outsourcing hub for global companies.
Moldova is actively working to strengthen its investment climate by fostering partnerships with international businesses and creating an enabling environment for the outsourcing industry. In 2024, Moldova aims to boost its service exports to $1 billion, marking a significant step toward becoming a leading outsourcing hub in Eastern Europe.
"The Call Center started its activity in 2008. We provided our services for the Italian market first. Once we analyzed the market, we understood that the activity could cover multiple languages as well. Now we offer mostly all European languages, we have around 50 fixed operators who can scale easily when necessary, and we are part of an international network that allows us to provide BPO services in all languages worldwide. Working in Moldova empowers us to offer our clients skilled operators at advantageous operational costs. We choose Moldova because of development opportunities and the country is well organized in terms of infrastructure and IT. "Marco Buti,
Director, Primo Contatto
"As a company, we have been operating in Moldova for 2 years now, having by this time 105 employees. Our decision to do business in Moldova was strongly influenced by the specific skill set offered by Moldovan labor, in addition to the excellent language skills. We were also able to find a very pleasant and modern workspace (Digital Park building) which could compete with many offices in Manhattan. Moldova in particular has offered us an educated and skilled, multilingual workforce with an eager and reliable work ethic. It is for these reasons that Moldova has proved to be a very attractive business environment. "Brian Crist, CEO, Business Class