Why Romania?

Oct 27, 2015

Let’s begin the journey!

The question that you may ask is this: why should you choose to work with a Romanian outsourcing provider? Well, during the last decade, Romania (and Eastern Europe in general) has been emerging as an attractive software outsourcing destination for companies from Western Europe, USA, Australia etc., succeeding to outclass many Asian destinations in terms of services, efficiency and price-performance ratio.

So let's stop for a while and see what Romania has to offer.

Outsourcing in Romania

In terms of outsourcing, the Outsourcing Journal states that Romania attracts Western and Eastern customers alike, due to the high level of technical and language skills of IT workers, its well-developed IT industry, and availability of a vast IT labor pool.

So it's no surprise that Romania has become one of the hottest software outsourcing destinations out there.

But what makes Romania so attractive in regard to outsourcing?

The people

The contribution for the vast IT labor pool can be attributed to over 100 universities, Romania producing annually 30,000 engineering graduates of which 8,000 earn various degrees in IT and STEM disciplines (science, technology, engineering, and mathematics). Even more, starting this academic year, about a quarter of the students attending Oxford University - the Computer-Science Department - are Romanian students.

If quantity does not impress, one should also take into account the fact that Romanians have a tradition for participating in various programming competitions and Olympiads, and bringing home numerous medals. For example, in 2013, the Romanian team was very successful at the International Olympiad in Informatics (from Brisbane, Australia), winning 2 gold medals, 1 silver medal and 1 bronze medal.

Also, at the International Exhibition of Inventions of Geneva 2013, the Romanian participants obtained: 27 gold medals, 12 silver medals, 1 bronze medal and 21 special prizes. Finally, this year, at the International Mathematical Olympiad (IMO) in Thailand, Romania received the 1st place among European Union countries, and the 13th place worldwide, with 1 gold medal, 4 silver medals and 1 bronze medal.

The language

Speaking further about traits, the Romanian language belongs to the Latin language group, making it easy for Romanians to pick up French, Italian, or Spanish.

The Romanians are not too bad at English either. Recent Cambridge results (the Cambridge yearly grade statistics per country, considering the "A" grade) have shown that, in 2013, Romania was in the top 10 countries in Cambridge English: Business Higher (BEC Higher), Cambridge English: Proficiency (CPE) exams.

Moreover, according to the same statistics, in 2014, Romania was again among the top 10 countries, considering the number of "A" grades received by the Romanian candidates in the Cambridge English: Proficiency (CPE), Cambridge English: Business Vantage (BEC Vantage) examinations. These grades are equivalent to the C1 and C2 proficient levels, according to the Common European Framework.

The economy

In October 2012 Jones Lang LaSalle ranked Romania 9th globally among outsourcing destinations by the number of jobs created due to foreign direct investment. We can attribute such performance to a series of factors, one of them being the growth of the IT segment.

As far as the economy is concerned: the Romanian GDP grew by 2.7% in 2014, and by 3.5% in 2015, the IT market being one of the top contributors to this growth. Not only that the IT sector has been the fastest growing industry in Romania, for the past few years, but also the country has a great potential when it comes to software development and IT offshore outsourcing.

A notable fact about Romania's economy is its quick recovery from the global financial crisis which begun in 2008. According to the World Bank, "Romania made a quick recovery thanks to prudent macroeconomic management. The crisis prompted long-needed reforms, with support from the international financial institutions, in health, education, the financial sector, public financial management, public administration, social insurance, and social assistance. Some of these reforms address short-term responses to the crisis, while others are anchored in a coherent longer-term strategy."

Another advantage of the IT market in Romania is the fact that the Romanian IT project managers, software engineers, database administrators, engineers / IT system designers, programmers and analysts are exempted from paying a series of taxes - which greatly contributes to the growth of the IT industry.

We asked Mr. Florin Vrejoiu (Programme Manager at ATIC - IT&C Association of Romania) for his take on the recent evolution of the Romanian IT&C industry:

"After being the only sector with a positive growth trend during the economic crisis (2008-2011), now ICT continues to be the fastest growth sector in the Romanian economy.

According to INS (National Statistics Institute), throughout 2014 ICT has experienced a tremendous growth of 13.8%, the exports increased by 31% and the value-added by 20%.

I think this evolution can be attributed mainly to the creative abilities of young Romanian specialists and to the fact that Romanian companies now understand that they should focus their efforts towards research and development of new products and high value-added services."

Romania has become a popular software development outsourcing destination thanks to the good reputation of its IT specialists, affordable rates, and excellent language skills. Also, as part of the European Union, Romania is able to provide a stable political and economic climate and to encourage IT investments. Major IT companies that have invested in Romania (such as IBM, Intel, Siemens, HP, Oracle, Dell, Nokia, Xerox and Wipro) have found here a modern ecosystem that encourages growth and development.

Also read:

What is outsourcing?
Reasons for outsourcing
Comparison between software outsourcing destinations
Outsourcing the right way: How can software outsourcing help you reduce your risks during the financial crisis?
Communication: a key element for reaching success when doing software outsourcing