What makes a city attractive for business services centers? Cluj-Napoca case study

Abstract

As proven in the case of Cluj-Napoca, Cluj for short, business services centers, either in-house or outsourced, can expand phenomenally in a city or an area, and become one of the major employers; their evolution being limited only by the local conditions. This paper analyzes the business services sector, both from the perspective of available statistics and data as well as from the perception of the major companies in the market. Companies which setup shared services centers (SSC) and business process outsourcing (BPO) companies have been surveyed to understand what has drawn them to Cluj and what the challenges they are confronted with are.

Looking forward, the theoretical and practical strengths and weaknesses, as well as the opportunities and threats are used to build potential strategic directions for the development of the city, as they result from a Quantitative Strategic Planning Matrix (QSPM) application. While the contents of the article are based on Cluj, the framework for analysis and the method of eliciting feedback from the major participants in the market can be applied on any other area or city which has or wishes for a similar development.