Roland Berger: Telecom and financial companies have to shift strategy

Managing Partner of Roland Berger Romania, Codrut Pascu, said that medium and long term planning was not a priority due to the fast growth of those companies. They will have to seek ways to increase efficiency and reduce operational costs.

“All companies are facing massive labor costs, which will have to be compensated somehow. Some companies will operate massive costs reductions and other will just make adjustments and draft efficiency programs,” Pascu says.

Regarding the telecom industry, Romania lags one-two years behind more developed countries in Eastern Europe, while in financial services, the delay is two-three years, compared to countries such as Hungary, Czech Republic and Poland.

Another obvious trend is the decrease of profit margins, more visible in telecom and less dramatic in the financial and banking segment. However, significant investments in expanding banking networks, banking salaries and higher operational costs increase pressure on profits.