Human capital, innovation and digital transformation are Romania's strongest competitive advantages in the business services industry, according to a study released on Thursday.The 2025 Industry Report, conducted by the Association of Business Service Leaders in Romania (ABSL) in partnership with PwC Romania, shows that the country is strengthening its competitive position in the global business services sector, supported by more than 280,000 professionals active in the field and a considerable number of potential employees, the report said.According to the findings, the main reasons companies chose to invest in Romania include the availability and quality of human resources, well-developed infrastructure, and a combination of digital and language skills - all reaffirming Romania's attractiveness. Productivity and labour costs also play an important role, the authors noted.Skilled labour remains the main driver of an industry in which the top five global services provided are: finance and accounting (69% of participating companies), IT services (69%), HR (61%), customer support (57%), and procurement (53%)."Artificial intelligence has accelerated the transformation of Romania's sector, which has evolved from delivering basic services to developing high-value-added solutions such as process engineering, risk management and fraud prevention. Romania has moved from cost-arbitrage service centres to regional hubs of excellence focused on value creation and niche expertise. With AI integration, companies are developing specialised human capital for complex activities like process engineering, high-risk operations management and fraud prevention. Increasingly, global organisations are choosing Romania as a benchmark location for regional centres of excellence," the study said.According to the ABSL report, key competencies for the coming period include technical expertise in finance, accounting and operational support, along with digital skills, foreign language proficiency and adaptability - all essential in a context defined by AI and rapid change."Although many investors are turning to Asia, particularly India or the Philippines, in light of the global geopolitical context, Romania continues to be among the preferred destinations thanks to its high productivity, combination of technical and linguistic skills, professional certifications and membership in Euro-Atlantic structures," said Catalin Iorgulescu, Vice President of ABSL, in the release.Romania maintains a relatively competitive cost advantage in the region, even though wages in the business services industry increased by an average of 5.8% in 2025, with a similar rise projected for 2026."The sector has reached maturity, employee mobility has declined, and the average tenure within a company is now four years, according to the ABSL report. Recruitment has become more cautious due to the economic environment and the implementation of new technologies - a trend expected to continue next year. The number of employees in the sector has grown at a slower pace than in previous years, averaging 5%, while the average gross salary stands at 13,060 lei - still competitive compared with other European countries. Romania has at least ten cities with over 200,000 inhabitants that are attractive to the sector, meaning there is further development potential," said Francesca Postolache, Partner at PwC Romania.The report also noted that the global economic and geopolitical context has led employees to value stability and job security more highly.In a hybrid work environment, companies are employing various methods to boost employee motivation and engagement, such as facilitating communication and team meetings (51%), offering access to training and professional development programmes (36%), and implementing wellbeing initiatives (30%).Nevertheless, an increasing number of companies (85% of respondents) are introducing in-office work schedules of between two and five days per week."In the coming years, the services provided and the structure of our industry will change significantly. Companies plan to innovate and develop new services, especially in areas involving artificial intelligence and process automation (29%), industry-specific solutions (24%), consulting (13%), operations and customer support (10%), as well as services related to risk, compliance and security (3%), according to this year's report," said Adrian Baron, President of ABSL.The report was conducted by ABSL and PwC Romania between July and November 2025, based on a sample of 70 companies.The Association of Business Service Leaders in Romania (ABSL) is an organisation representing the business services sector, comprising more than 80 member companies.