7 Reasons to Outsource Your Software Services to Romania
Why does it make complete sense to outsource your software services with a Romanian software company? Let’s look at some data, and 7 big reasons why:
- According to Eurostat [link], Romania is the 4th biggest EU country when it comes to the value added by its ICT sector – 9% of total, with 4% coming from computer programming only.
- In terms of actual value, in 2019 Romania’s software industry reached € 6.2 billion, a 10.4% increase compared to 2018. [Source: Forbes.ro]
- This high level of attractiveness is partially due to great technological infrastructure, but also to taxation incentives (e.g. zero income tax for software developers).
- The Romanian sofware development companies are not evenly spread across the country, but rather concentrated in few geographies: Bucharest metropolitan area (~50% of total), Cluj (~20%), Timisoara (~5%). [Source: Economica.net]
- In all these hubs, there has been a consolidation of large international companies (either by direct investment or through acquisition). However, the competitive landscape is still “almost equally split between local and foreign players”. [Source: Business-Review.eu]
- The most competitive Romanian-owned software development companies are those incorporated between 1991-1997. [Source: Economica.net]
Now on to why outsource software development to Romanian companies:
2. Price-quality ratio of software development
Back in the 1990s, when software outsourcing was an attractive solution mainly because of lower costs, the price difference of Romanian software versus EU Big-Five (GER, FRA, UK, ESP, ITA) was *very* significant.
However, as access to talented software developers became the main limitation, the costs have partially leveled-up. The costs of Romanian software development are now on par with the other EU Digital-Challengers (POL, CZ-SK, HU), but with the second-largest pool of software developers in the region (after POL).
3. Accesible location & geographical proximityAlthough it is the easternmost country of the EU, Romania’s main tech centers are very near, and closely connected, to Europe. Take Timisoara, for example: it is 2h-flight away from Munich, less than 3h from London or Barcelona, 5h drive from Vienna. This makes one-day trips possible, so you can stay permanently in direct touch with the software outsourcing team.
4. Compatible time-zonesThe bonus for geographical proximity is time-zone proximity. Romania is at GMT+2, i.e. +1h versus most of the European countries (+2h versus Portugal and UK). This makes it very natural to be in permanent contact, pretty much similar to your own team working from home. Even working with US- or Asian-based clients is simple, with very few schedule adjustments on either side (e.g. a meeting scheduled for US EST 10:00 will happen at 16:00 CET / 17:00 RO).
5. Universities and software / tech hubsEvery year, at least 5.000 engineers and computer scientists graduate from Romania’s 41 technical universities, adding to the already existing 120.000+ software developers. They then join the very dynamic landscape of IT hubs in Bucharest, Cluj, Timisoara, and a few other cities – a strong drive for technical development and innovation.
6. Multilingual software developersRomanian software developers are also very skilled when it comes to foreign languages. English is -of course- the norm, but very frequently it pairs with at least one other (e.g. German, Spanish, Italian or French). If you’re looking to build strong work relationships and flawless customer support, multilingual developers are one of the best ways to do it.
7. Cultural variety and proximity
Romania’s three main regions have their own bits of cultural quirk (as they have once been parts of three different empires) – but they are, by all standards, completely European. Although Romania seems remote (the German saying “irgendwo in Wallachei” literally means “at the end of the world“), Romanians share similar values to their EU neighbors – such as education, hard work, independence, friendliness, and creativity.