Romania has emerged as a goldmine in the global IT outsourcing industry. Known for its highly skilled workforce, competitive pricing, and flourishing infrastructure, Romania attracts increasing numbers of IT software developers. This article explores the key factors that make outsourcing to Romania so appealing. In 2007, Romania became a member of the European Union, which contributed to attracting significant international investment, especially in the IT sector.

The overview of the IT sector in Romania

The IT sector in Romania is actively supported by the government, allowing IT companies to be easily established and expanded. According to estimates, over 20,000 IT companies in Romania contribute significantly to the national economy. Over 7,000 IT companies are flourishing in the country, with about 100,000 IT professionals involved.

In addition to local companies, many international companies have established outsourcing development centers and offices in Romania.  This presence of international corporations has contributed to the country’s reputation as a trusted outsourcing destination. Worldwide-known key IT businesses such as Amazon, IBM, Microsoft, Oracle,  and Hitachi hire developers in Romania. It is expected that by the year 2028, the IT services export in Romania will reach about  $44 billion.

Romania is also a great place for startups. The country ranks 41st in the Global Startup Ecosystem, ahead of countries like Hungary, Slovakia, and Latvia. These startups have raised billions of dollars and even opened offices in cities like New York, London, and Singapore.

Biggest hubs for IT outsourcing

1. Bucharest

There are several IT hubs in Romania, mostly spread across the country. The biggest one is the capital, Bucharest. With a population of over 2 million people, most tech universities and graduates are located there. More than 60% of the country’s annual IT sector’s revenue is contributed from Bucharest. Romania’s capital is a modern and highly developed city that earned the name of the 8th tech hub across Eastern Europe.

2. Cluj-Napoca

Cluj-Napoca, often mentioned as the “Silicon Valley of Eastern Europe,” is the second-largest IT hub in Romania. About 15% of IT startups are thriving in this city. Besides, this city is home to the R&D offices of Microsoft, Accenture, Siemens, Endava, and Emerson.

3. Iași

Iași is Romania’s second-largest city, with a highly developed infrastructure, tech parks, and modern offices. The city has attracted to the local market such big tech companies as Amazon, Oracle, and Accenture. The city is located in the northeastern part of Romania, it is home to several universities and is developing a strong tech community.

There are also emerging IT hubs in the country like Brasov, Sibiu, and Timişoara. Timişoara is located in the western part of the country and is very suitable for the western developer’s location. Brasov is located close to Bucharest and is famous for its rich history, attracting a larger number of visitors who want to stay. This city must be most appealing for the digital nomads.

These cities not only offer a thriving tech ecosystem but also provide a high quality of life. The emergence of alternative hubs means that the IT industry is growing as well as the country’s educational system. Hence, businesses have even more options because they may choose not only well-known cities but also some hidden gems and become the first outsourcing foundations in this region.

Diverse skills

The IT experts are ranked at the 6th place of the global competitions certificates awards and the 3rd place among their CEE peers.

The developers in Romania participate in international ICT competitions, taking prices and proving their dedication to professional growth. IT specialists in Romania possess exceptional skills in various programming languages. For instance, they are proficient in Java, C++, JavaScript, and Python. Moreover, developers in Romania are very good at using React, Angular, HTML, and CSS to create high-quality, modern web applications and websites. The most common areas of focus are Finance, e-Commerce, Education, Automotive, and Business. Developers in Romania also specialize in such popular technologies as Computer Vision, cybersecurity, Natural Language Processing, AI/Machine Learning, and cloud technologies.

Moreover, they rank 10th place in English proficiency, being inclined to communicate also in a second European language such as German or French.

The benefits of IT outsourcing in Romania

The Romanian government has been working hard to support the country’s IT sector. The state policy is developed to support the IT sector, establish tax exceptions for IT professionals, and help attract both local and international firms. Romanian membership in the European Union helps to maintain economic and political stability. This stability is established thanks to the NATO entrance as well. While the neighboring countries are struggling from the inversion (Moldova, Ukraine), Romania remains a safe oasis to invest in and develop businesses for affordable prices.

The country’s geographical proximity to Western Europe, combined with the same timezone, makes it suitable for the seamless communication between the headquarters and the team. Compared to other European countries, Romania offers a relatively low cost of living.

At the same time, the educational background of Romanian IT workers is highly competitive. This makes Romania a leading country in the CEE region, as there are 60% more than in Poland of talented IT graduates.

Thus, Romania has unfitting market growth and attracts outsourcing companies. It is expected that by 2028 the number of $9.8 billion annual outcomes will be doubled. All this biome is possible due to the developed strategy of the global country’s digitalization.

Romanian IT companies may also benefit from the taxation system. Usually, this process is standardized for all businesses. There are two options for the tax payment. The first is for micro-companies revenue. Those earn less than 500,000 euros per year and pay a 1% tax rate. The other one refers to the companies with a higher than 500,000 euros profit; they should pay 16%.

Conclusion

Romania has earned recognition as the most popular and promising IT hub in the CEE region. N-iX may become a perfect partner to help businesses find the team in this region. The country is contributing to the development of digital literacy among the population, and this policy leads to the rapid growth of highly skilled talent IT specialists. With the constant profits from the wide web of startups and It companies, Romania’s IT sector is extremely appealing for outsourcing.