Generally the outsourcing
processes that are out-
sourced are the supporting activities
and not of extremely high strategi...
Let us start with the freshest news
concerning Bulgaria as an outsource
destination: According to A.T.
Kearny, Bulgaria is...
OUTSOURCE - THE SOURCE OF SUCCESS AND STEADY GROWTH Nov 2010
Various environmental influences and market
forces may contri...
OUTSOURCE - THE SOURCE OF SUCCESS AND STEADY GROWTH Nov 2010
4
ANTAL INTERNATIONAL:
THE RIGHT PARTNER
FOR GETTING THE RIGH...
If you turn down the TV and the radio for long enough you may
hear a faint, but distinct, whistling sound somewhere in the...
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2 In 1 Sectorshot & Snapshot Results

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Optimistic Antal snapshot results and Outsourcing overview

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2 In 1 Sectorshot & Snapshot Results

  1. 1. Generally the outsourcing processes that are out- sourced are the supporting activities and not of extremely high strategic importance. The key and the strategic benefit of Outsourcing is that the Outsourc- ing Company can focus on Core Competency of its businesses by giving the supporting activities to e x p e r ie n c e d p r o f e s s i o n a ls (Outsourcing Service Providers) in relevant area. Bulgarian pharmaceutical mar- ket /production, distribution and re- tail/ is characterized with multiple foreign and domestic manufacturers that operate at one hand in highly competitive environment, and on the other hand in a sector strictly ob- served and regulated by the Gov- ernment. However, the pharmaceutical sec- tor was one of the few that didn’t Outsourcing is when a firm or an organization enters into a contract with another firm or an organization to operate and manage one or more of its business processes. Edition of Antal International Bulgaria Nov 2010 OUTSOURCING A-B’s & WHY OUTSOURCE TO BULGARIA OUTSOURCE: THE SOURCE OF SUCCESS & STEADY GROWTH FIND Outsourcing A-B‟s & Why Outsource to Bulgaria 1 Why outsource to Bulgaria? 2 Outsourcing in the Pharmaceutical Industry 3 Antal International—The Right Partner for Getting the Right Executive 4 Antal Global Snapshot Results—A Cautious Recovery 5 Sector Shot NEED MORE INFORMATION T: +359 (2) 952 3660 E: bulgaria@antal.com ANTAL INTERNATIONAL BULGARIA Fig. 1: Outsource Benefits CASE STUDY: US company Pharmaceutical Product Development (PPD), Inc. opened pharmacoviligance and medical communications center in Sofia, Bulgaria. The center will deliver PPD’s full range of drug safety, medical information and medical writing services to meet growing client demand. The PPD statement emphasizes the fact that with multiple medical and pharmacy schools in the area, Sofia offers a large pool of highly trained health care professionals with extensive language capabilities. 1 get sick by the crisis. 8 of top 10 companies in the industry report higher sales income. The turnover has risen with 10% in average. The financial reports of the biggest play- ers are near the average indicator for the market as a whole: 8.1% in- crease of sales for 2009. The 2 biggest drugs manufactur- ers: Actavis and Sopharma re- leased altogether 20 new products on the market /11 for Actavis and 9 for Sopharma/. In 2009 both of them worked on full capacity. The output that top manufacturers produce can- not be consumed by the local mar- ket and the firms mainly export to European markets, Ukraine Russia, and the ex-Soviet Union Republics, Turkey and Serbia. The prognosis of IMS Health is that the market will keep its growth and the business will become more concentrated, thus ensuring pros- perity only to the most stable and flexible companies. Additionally, “Frost and Sullivan” predicts that between 2009 and 2012 the aver- age growth of pharmaceutical in- dustry in CEE region will be be- tween 6.9 and 7.4%. Bulgaria and Romania are pointed to be the fastest growing markets in this segment. 7TH ANTAL GLOBAL SNAPSHOT RESULTS ARE HERE!!!
  2. 2. Let us start with the freshest news concerning Bulgaria as an outsource destination: According to A.T. Kearny, Bulgaria is 1st in Europe and 13th worldwide among top 50 outsourcing destinations. The country is also one of the European leaders in terms of financial attrac- tiveness with low: compensation costs tax costs FIRST IN EUROPE AS AN OUTSOURCE DESTINATION OUTSOURCE - THE SOURCE OF SUCCESS AND STEADY GROWTH Nov 2010 EU membership guaranteeing: stable business environment; eco- nomic and financial discipline; free movement of resources EU’s most favourable taxes as: 1/ 10% corporate income tax rate 2/ 10% flat rate on personal income EU’s most favourable opera- tional costs as: 1/ one of the lowest CEE labour costs 2/ up to 1 year reimbursement of social/health security for employing young people and disadvantaged people through Employment Agency 3/opportunity for R&D expenditure write-off 4/ one of the lowest CEE rents levels of offices and areas class “A” Government policy for improvement of infrastructure in the country which links Europe and Asia by road Well-educated and highly-skilled labour force Excellent foreign language training for various European and interna- tional languages Cultural tolerance THE REASONS BEHIND THE FACT The Bulgarian outsource market trends expected market rise from 30 to 50% till the end of 2010. All functions that could be out- sourced are already in Bulgarian companies‟ portfolio: Application Development / Main- tenance BPO / Business Process Outsourcing Call Centers / Customer Service HR / Human Resources Quality Assurance / Testing Supply Chain / Logistics Contract Manufacturing Finance & Accounting IT / Information Technology Research & Development Telecom / VoIP KPO / Knowledge Process Out- sourcing Why outsource to Bulgaria? 2 The first outsourcing companies in Bulgaria started their operations 5 years ago. Together with international giants like IBM and HP many do- mestic companies successfully made their way into the new market. In comparison with countries like Poland and Hungary the outsourcing is less developed but with greater development potential mainly because foreign investors already start to see Bulgaria as destination number. Together with the increase of the foreign interest to BG outsourcing, vari- ous domestic companies started to think over cost optimization during the financial and economic crisis and the number of Bulgarian firms con- tracting outsource partner is getting bigger and bigger. Thus will lead to rise in the sector from 30 to 50% and till the end of the year 7000 specialists are expected to work for the outsource industry. Bulgaria could have even better image as an outsource destination if the following incentives are fulfilled: more active advertising of Bulgaria as an outsource destination participation of Bulgarian outsource companies in international events introduction of outsource specialties in Universities getting big foreign outsource companies to open their affiliates in Bul- garia Government overall strategy on the outsource sector
  3. 3. OUTSOURCE - THE SOURCE OF SUCCESS AND STEADY GROWTH Nov 2010 Various environmental influences and market forces may contribute to outsourcing being considered as an option: Financial and Cost-Control /reduce labour costs; avoid the cost of purchasing and maintaining phar- macy equipment, etc./ Organizational /enable the organization to acquire additional resources and expertise to carry out other changes; provide educational programs, etc./ Competitive /allow the organization to gain an edge on competitors through improvement in ser- vice, quality, or price, etc./ The most common pharmaceutical operations that an outsource company could provide are: For financial and cost-control improvement: 1. Billing; 2. Inventory control; 3. Internal Audit ser- vices, etc. For organizational improvement: 1. Development of pharmacy policies, proce- dures, processes; 2. Development of pharmacy record-keeping system; 3. Investigational drug programs; 4. Drug information services; etc Nowadays, more than ever, almost every aspect of the business is challenged by changes in the struc- ture and financing in order to reduce costs and improve performance. The pharmaceutical industry is not an exception. One option being used to achieve these goals is outsourcing. CONTRACT MANUFACTURING Outsourcing in the Pharmaceutical Industry A form of outsourcing used by pharmaceutical sector is the contract manufacturing organization. It is a firm that manufactures components or products for another “hiring” company. The practice of utilizing contract manufacturing relies on the manufacturer's ability to drive down the cost of production through economies of scale. It also allows the hiring company to obtain the needed components or products without needing to own and operate a factory. In an international context, establishing a foreign subsidiary as a contract manufacturer can have favorable tax benefits for the parent company, allowing them to reduce overall tax liabilities and increase profits, de- pending upon the activities of the contract manufacturer. The Bulgarian Example of Contract Manufacturing In 2008 one of Actavis’ Bulgarian production facilities was bought out by the management, in order to provide contract manufacturing services to the generic maker and other companies.The buy out created a new company, Antibiotic-Razgrad AD, that was set up by representatives of the existing management who believed that they can improve the use of existing capacity. Antibiotics in formulations including tablets, powder injections, sterile liquid forms, creams and unguents are manufactured at the site in Razgrad in north east Bulgaria. Antibiotic-Razgrad is contract manufacturers for Actavis in order to improve cost and competitiveness. The activities remain closely linked to Actavis and continue to follow Actavis' best practices and high quality standards. 3
  4. 4. OUTSOURCE - THE SOURCE OF SUCCESS AND STEADY GROWTH Nov 2010 4 ANTAL INTERNATIONAL: THE RIGHT PARTNER FOR GETTING THE RIGHT EXECUTIVE Why outsource executive search activities? Most of the employers want the top candidates in terms of abilities, personal qualities, intelligence, interpersonal skills, background and education, motivation, etc. This creates a tremendously competitive demand for high quality candidates. Yet these are not generally the candidates who are searching the job ads. These people are almost always employed and tend to be well-treated and well-compensated. When they do make a change it tends to happen in one of two ways--either they choose to look for a new opportunity through networking, word of mouth and direct application or they are proactively recruited. In either case, they tend to be very selective and want to know a great deal about any new opportunity. Generally, their case is not finding a position, but choosing the right one and generally that is the case of the employer: not finding just a proven professional, but finding the right one! TOP 5 REASONS CHOOSING ANTAL: We expand your options /we are able to find candi- dates who might have been otherwise never reached or overlooked/ We have sixth sense about people /we recognizes the fact that a resume doesn't tell the whole story and through the interviewing process, we can become famil- iar with a particular individual's strengths and weak- nesses/ We save you time and resources /finding someone who can work at the highest levels can be very difficult since the pool of available candidates can be small/ We have insider industry knowledge and a relevant network of contacts We constantly keep an ear out for any high level professionals who might be looking for work BENEFITS OF EXECUTIVE SEARCH OUTSOURCE: Saving time in pre-screening candidates Providing access to unique candidates who otherwise might not have contacted or applied to you Promoting your company to prospective candidates and defusing any incorrect or negative information about your company which might be circulating Serve as a mediator during the interview and negotiation process In the end, a cheaper choice is up to the employer CONTACT US ON: T: +359 (2) 952 3660 E: bulgaria@antal.com Antal International Bulgaria CANIDATE A: R&D Experience: 6 years as an R&D Department Manager in a leading pharmaceutical company 6 years in chemical research & analysis Education: PhD in the field of Strategic Management & Master in Chemical Engineering from the Chemical & Metallurgical University of Sofia Languages: English, Russian CANIDATE B: General Management & Trade Experience: 7 years as a Managing Director of a Medical / Pharma- ceutical company 6 years as a Trade & Marketing Specialist in a pharma- ceutical company Education: Master & Bachelor in Trade Management from the Univer- sity of National and World Economy, Sofia Languages: English, German and Russian
  5. 5. If you turn down the TV and the radio for long enough you may hear a faint, but distinct, whistling sound somewhere in the back- ground. Don‟t worry, it‟s nothing sinister. It‟s just the world emitting a communal sigh of relief… A cautious recovery OUTSOURCE - THE SOURCE OF SUCCESS AND STEADY GROWTH Nov 2010 LINKEDIN FACEBOOK www.antal.com www.news.antal.com www.antalfranchising.com www.antalventures.com www.antalglobalsnapshot.com www.antalcharitablefoundation.org T: +359 (2) 952 3660 E: bulgaria@antal.com ANTAL INTERNATIONAL JOIN OUR GROUPS VISIT US ON: 5 CLICK HERE The „Global Snapshot‟ project from the international recruitment firm, Antal, asked 9117 companies in major markets whether they were cur- rently hiring at professional and managerial level. As predicted, profes- sional and managerial hiring levels have dipped slightly from a 47% high registered in June. However employers seem optimistic about the future with 52% expecting to hire over the next three months. The per- centage of businesses letting people go has remained stable but looks set to fall over the coming quarter to a figure well below the regional average of 30%. “No-one is likely to be brave, or foolish, enough to say that our economic troubles are over, particularly if they are based in Greece, Ireland, Hungary or any of the other nations bearing the brunt of painful budget- ary cuts at the moment,” says Antal‟s CEO, Tony Goodwin.” But it does seem as if we have avoided the financial Armageddon that seemed all too real a prospect from late 2008 to the early months of 2009. For chief executives and HR directors around the globe, the key business challenge is already shifting away from headcount reduction or containment to how to source the talent they will need in improving markets. The war for talent, which had dwindled to little more than an insignificant skirmish, has already broken out once again.” For detailed information on research results, please, visit: www.snapshot.antal.com CONTACT US ON:

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