Optimistic Antal snapshot results and Outsourcing overview

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. 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. 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. 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. 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: