Romania has become a preferred software outsourcing destination in Eastern Europe. Global businesses come to Romanian shores for lucrative benefits such as an affordable and skilled workforce, brilliant tech infrastructure, etc.
So how exactly does software outsourcing to Romania contribute to your business? And where can you start?
Let’s find out.
In this article, we’ll share six reasons to outsource your software processes to Romania and four top IT companies in the country. We’ll also help you estimate the expenditure on a Romanian workforce.
Table of Contents
- 6 key benefits of software outsourcing to Romania
- Top 4 IT outsourcing companies in Romania
- Average salaries for software-related jobs in Romania
Let’s get started.
6 key benefits of software outsourcing to Romania
Before we explore the benefits, let’s briefly discuss what software outsourcing means and some of its popular approaches:
What is software outsourcing?
Modern-day businesses need software solutions to streamline their internal operations, have an online presence, and expand their customer reach. However, not every company is keen on having an in-house team of software developers.
In comes software outsourcing.
It means delegating all or part of your software projects to a third-party IT services company, a small team, or a freelance developer. You can choose these external providers from your home country or a foreign location (also known as offshore outsourcing).
Outsourcing typically costs less than doing everything in-house and also ensures high-quality work. Some of the most commonly outsourced software jobs include design, development, testing, and maintenance.
For more information, check out this detailed guide on software development outsourcing.
Now let’s check out why you should outsource software and other IT-related operations to Romania:
1. Thriving IT industry
Romania has a flourishing IT sector that’s primarily built around the outsourcing business model. It means that software companies in the country typically offer services to other businesses.
The Romanian IT industry is also one of the pillars of the country’s economic growth.
Here are some statistics that reconfirm the prominence of Romania’s dynamic IT sector:
- The Romanian IT market is one of the biggest in Central and Eastern Europe. Its value is estimated at USD 6.4 billion, of which the IT outsourcing sector alone accounts for roughly USD 5.5 billion.
- The Employers’ Association of the Software and Services Industry (ANIS) estimates the sector’s contribution to Romanian GDP at 6.2%.
- As per a Cushman & Wakefield Echinox research, the turnover and staff size of the top 50 tech companies in Romania have quadrupled between 2009-2019.
- According to a KeysFin study, IT is the most profitable sector for American companies in Romania.
- Romania accounts for nearly 20% of the total ITC workforce in East and Central Europe.
It’s clear from these impressive figures why major tech global brands like Microsoft, Amazon, Google, and Oracle have extensively invested in the country’s IT sector.
2. Vast English-speaking IT talent pool
Romania has a skilled and sizable IT talent pool, one of the largest in Eastern Europe, alongside Poland and Ukraine.
Moreover, the country has an excellent education system that focuses on cultivating computer skills and building a strong foundation in STEM (Science, technology, engineering, mathematics) subjects. This ensures that Romania continues to retain and reinforce this human capital advantage.
There are 41 technical universities in Romania that help add 7000 IT graduates to the job market annually. And seven of these universities rank among the best computer science institutions in the world.
The country’s largest university, Babeș – Bolyai University, is located in Cluj-Napoca. The city is also home to the Technical University of Cluj, another premier institute.
Here are some impressive facts and figures about Romania’s IT workforce:
- Romania has more programmers per capita than the US, Russia, and India.
- Romania is the top European country for the number of certified software specialists and 6th worldwide.
- The country ranks 23rd and 18th on the programmer rankings by SkillValue and TopCoder, respectively.
- Bitpanda, an Australian unicorn startup, announced an initial investment of 10 million euros (in 2020) to open a talent hub in Bucharest.
However, the advantages of a Romanian workforce aren’t limited to technical expertise.
A majority of Romanian software engineers and other IT professionals can comfortably communicate with international clients in English. This increases their demand globally and enables Romanian software companies to provide excellent technical support services.
3. Ideal price to quality ratio
A big draw for companies outsourcing to Romania is the high-quality services offered at affordable rates.
The average hourly rate for software development in the country ranges between USD 10 to USD 15. This is significantly lower than the United States (USD 52) and most western European countries like the UK (USD 36), France (USD 35), etc.
These rates are lower than typically cheaper East Europe locations like Poland (USD 18) and the Czech Republic (USD 19).
Even the cost of business resources is relatively cheaper in Romania than in many advanced economies, as well as popular outsourcing hubs.
According to the worldwide 2022 Cost of Living Index, Romania is more affordable than Bulgaria, South Africa, and the Philippines.
4. Geographical and cultural proximity to Western Europe
The leading IT centers in Romania are closely connected to top European business centers like London, Munich, Paris, etc.
For example, Cluj-Napoca is just a two-hour flight away from Munich and Rome. This proximity makes day trips possible between these centers, enabling companies to stay connected with their software team in Romania.
Moreover, there’s a negligible time zone difference between Eastern and Western Europe. Bucharest is two hours ahead of London and just an hour ahead of Madrid. This allows your onshore team to collaborate with your offshore team in real-time.
Another major reason Romania is a preferred offshore software development location for Western European firms is their cultural similarity.
Romanians share the same values and beliefs on education, work ethics, independence, and creativity as their European Union (EU) neighbors. This facilitates better teamwork between the onshore and offshore staff.
5. Robust tech infrastructure
Software projects are driven by cutting-edge hardware and software technology.
Companies may fail to deliver the expected results without the right components – computing hardware, network, data centers, and software.
Romanian tech hubs have excellent infrastructure that can power software development projects of any scale and size.
Bucharest is the center of the Romanian software development industry and accounts for 63% of total IT revenues. Other IT hubs in Romania include Cluj-Napoca, Iasi, Timișoara, Brasov, Sibiu, and Craiova.
According to a CBRE analysis, Bucharest is the 8th fastest growing tech hub in Europe, ahead of Milan, Amsterdam, and Moscow. It ranks 10 in the 2021 fDi x TNW Top 25 Tech Cities of the Future (overall) list.
Similarly, Cluj-Napoca, the second largest tech hub in Romania, has close to 1200 IT companies and hosts major IT conferences and events like the Cluj Innovation Days, DevTalks, Techsylvania, etc.
The city emerged as the winner of the ‘Smart City’ category on the 2021 Business-Friendly City Perception Index by Emerging Europe.
Cluj also has a flourishing startup scene with several communities working together to make the city a leading business hub in Europe. Some of the top startup hubs and communities in the city include Cluj Startups, Cluj IT Cluster, Transilvania IT Cluster, Cluj Hub, etc.
Since 2014, Romania has recorded a steady rise in startups in advanced technologies like Artificial Intelligence (AI), neural networks, Machine Learning (ML), and virtual and augmented reality.
A majority of these companies are based in the town of Măgurele, a research and development hub in Ilfov County in Southern Romania.
The region is also home to an ongoing project to build the country’s largest science and technology park. The park will have innovative research facilities and a startup incubator to promote entrepreneurship.
6. Strong data security laws
Data security is a primary concern for firms outsourcing their operations to an external service provider, especially in foreign countries.
A loss or breach of sensitive data could compromise the success of your software project and result in hefty fines or lawsuits.
GDPR is the standard followed across the European Union nations and by firms elsewhere handling data related to people in the EU.
Clearly, Romanian IT companies are smart choices for global businesses looking to outsource their software development work. But with so many options available, it could be challenging to choose the right outsourcing partner.
Top 4 IT outsourcing companies in Romania
Here are four software service providers that you can consider:
1. ASSIST Software
ASSIST Software is an IT company based in Suceava, Romania. Founded in 1992, the company specializes in outsourcing software development projects.
The software outsourcing company has partnerships with global tech providers like Adobe, Microsoft, Drupal, OpenStack, etc., to deliver innovative software solutions to its clients. The company boasts a comprehensive portfolio of projects, skills, and customers, both in the EU and outside.
Software products and services offered by ASSIST Software include:
- Software development with expertise in programming languages like Java, C#, PHP, Python, etc.
- Mobile app development for iOS and Android platforms with expertise in SwiftUI, Kotlin, Unity 3D, etc.
- 3D modeling and animation.
- Quality management and assurance services.
- Internet of Things (IoT) services.
2. Berg Software
Established in 1991, Berg Software is an IT outsourcing company headquartered in Timișoara, Romania.
The firm follows strict security and non-disclosure standards and has a proven track record of 2700 successful software projects for 760 clients across 24 countries.
Its clientele includes companies in varied domains like IT, retail, banking, manufacturing, etc.
In 2021, Berg Software was acquired by AROBS Transilvania Software, a leading Romanian IT company with headquarters in Cluj-Napoca.
Here are some of the services offered by the software development company:
- Custom software development with expertise in enterprise web applications.
- Digitalization services to help clients move from paper-based systems to an integrated digital ecosystem.
- Cloud installation and migration services.
- Process automation and integration services.
- AI, ML, and IoT services.
3. Tremend Software Consulting
Tremend is a software development outsourcing firm headquartered in Bucharest. The company has 16+ years of experience in software development and delivered 800+ projects for clients across 20 countries.
The software development services firm has worked on 20 internationally awarded projects and has featured on Deloitte’s Technology Fast 50 EMEA list in 2016.
Let’s check out some key services that Tremend offers:
- Custom software development using Java, PHP, Ruby, etc.
- Agile enterprise transformation services.
- Quality assurance and software testing services.
- Cloud and DevOps services.
- Data science, Big Data, and analytics services by leveraging technologies like Artificial Intelligence and Machine Learning.
Accesa is a leading IT company with its headquarters in Cluj-Napoca and offices in Oradea and Munich. It has a team of 600+ software tech specialists serving clients in domains like retail, automotive, manufacturing, financial, etc.
Accesa can help its clients with:
- Custom software development.
- Custom cloud development through Microsoft Azure, Amazon Web Services, and Google Cloud.
- IT talent solutions, including autonomous development teams for nearshore outsourcing.
- 24/7 monitoring and incident management services.
- Process automation services by employing AI, RPA, and ServiceNow.
Now that you have a handy list of software development outsourcing companies, you’d want to know the cost of hiring a team of Romanian IT specialists. It can help you create an outsourcing budget estimate and do a thorough cost-benefit analysis.
Average salaries for software-related jobs in Romania
The table below lists the average salary rates for popular software-related job titles in Romania. The USD figures are based on the exchange rate in April 2022.
|Job Title||Average Monthly Salary in Romanian leu|
|Software Developer||8,000 RON (USD 1,700)|
|Software Development Manager||10,900 RON (USD 2,315)|
|Java Developer||9,430 RON (USD 2,003)|
|Information Technology Project Manager||12,800 RON (USD 2,719)|
|Help Desk Support||6,120 RON (USD 1,300)|
|Web Development Specialist||7,640 RON (USD 1,623)|
Source: Salary Explorer, Glassdoor
Check out this article for a detailed analysis of the average salaries in Romania.
Romania is a hotbed for companies outsourcing software development, ITES (Information Technology Enabled Services), and research and development.
This eastern European country will give you access to world-class software services without investing in a full-fledged IT team.
Use the information in the article to find how Romanian outsourcing can contribute to your business growth. Also, check out our curated list of software service providers and save yourself from the hassle of going through hundreds of company portfolios.
Andy is a technology & marketing leader who has delivered award-winning and world-first experiences.