With a young, well trained and educated workforce, important logistical advantages and one of the largest markets in CEE, Romania has emerged as an engineering hotspot for many global technology companies thanks to its tech hubs, multilingual skilled software engineers and attractive costs.
The IT industry is one of the key components in the country’s economy, with long-term incentive programs supported by the Romanian government. Focused on mathematics and computer science, the academic environment enables the continuous growth of the IT talent pool, making Romania as a result one of the top 20 software development countries in the world.
Romania has been labelled as an “outsourcing valley” by foreign investors, ranking 28th in the 2019 Global Services Location Index (GSLI). This is an index developed by A. T. Kearney that ranks the top 50 most attractive outsourcing destinations across four major criteria: financial attractiveness, people skills and availability, business environment, and digital resonance.
While not as big as Ukraine’s, Poland’s or the Czech Republic’s outsourcing volumes, but outranking these traditional outsourcing destinations by the value-for-money and better English language skills, Romania is seen among the top European software outsourcing destinations by most West European countries and the USA. As a result, the top three regions that are choosing Romania for nearshore outsourcing services are Germany, UK and Netherlands.
With its 19.5 million inhabitants, Romania is the 7th largest EU member by population. According to the annual report of the Romanian Business Service Leaders’ Association (ABSL), Romania’s outsourcing sector currently employs 1.5% of the country’s population and generates EUR 4 billion in yearly revenue.
Additionally, the 5% year over year increase in local investments makes Romania not only a regional tech hub for nearshore outsourcing but also for successful IT startups. There are 501 startups, 12 accelerators, and 52 startup events every year.
Benefits in opening a Center in Romania
Experienced IT professionals. When it comes to IT, Romania is first in Europe and sixth in the world, in terms of the number of certified IT specialists. One can find virtually any technology skill in Romania, from the web, cloud and mobile technologies, to embedded and even legacy technologies.
Multilingual skills. Romanians are known internationally for their ability to learn and speak foreign languages, and IT specialists make no exception to this rule. 90% of the IT specialists speaks English, and 1 in 5 Romanians can speak multiple languages, primarily English, followed by French, Spanish, Italian, and German, for instance.
Ideal geographical location, safe and easy access. Since joining the EU in 2007, travelling to Romania from any other EU country is very easy and straightforward as it does not require any visa. Several international airports and the growing number of flights to and from Romania enable access to the country. Any West European destination is only 1-2 hours away, whereas a flight to the US will take up to 8 hours.
Romania’s broadband internet ranks third in the world in terms of average download speed (august 2020)
Market size and political stability. In terms of size, Romania is the 9th largest EU member and 41st in the world. Its 22nd position in the 2020 Global Peace Index makes Romania one of the safest countries to invest in. Moreover, as a NATO member, it is politically and economically stable. Its RON currency is tightly coupled with the EURO. Therefore, in 2019 the World Economic Forum ranked Romania as the 51st most competitive country in the world.
Timezones compatibility. Romania is ideally located in the GMT+2 time zone. This enables easy collaboration and communication with all European companies in real-time, as well as with Israel. It is easy to ensure a minimum of 2-3 hours of overlap with USA timezones.
Legally friendly. As an EU member since 2007, the Romanian business environment is regulated by EU laws, making legal compliance an easy process, including GDPR. Over the past years, to stimulate the growth of the IT industry, the Romanian government has been offering fixed, low corporate and income tax exemption for the software professionals, for instance.
ASAP will help you understand the local market by providing you complete and updated information for all topics of interest that will help you make a documented decision. SWOT analysis for each location and city comparison, connectivity, companies ecosystem, candidate market, salary survey for each targeted role, Computer Science related Universities - students number & graduates pipeline, office market (stock, new supply, rent, vacancy rate, under construction projects). Company opening upon request & professional recruitment services.
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