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Reasons to Outsource Software Development to Romania

Reasons to outsource software development to Romania

Romania is proving to be one of the top choices for globally-minded companies in search of software development service providers. The country boasts a reasonable price-to-quality ratio along with a growing talent pool of IT experts who possess both soft and technical skills, not to mention broad experience working in cross-functional teams. Let’s dive deeper into what makes the Romanian IT sphere so compelling.

Quick facts about Romania

  • Romania ranks 52nd on the Human Development Index (as of 2022).
  • The country is home to more than 140,000 software development experts specializing in various technologies.
  • More than 8,500 tech students graduate from Romanian universities each year, meaning that the IT talent pool is steadily growing.
  • Romanian software developers have a high level of English proficiency. The country is ranked 15th out of 35 European countries.
  • As of 2022, there are around 7,931 software development companies in Romania.
  • The software development industry in Romania is worth €3.2bn in revenue.
  • On average, companies in Romania employ more tech experts now than they did 5 years ago.
  • The largest IT companies in Romania are Bitdefender, UiPath, SoftVision, Oracle Romania, Ericsson Telecommunications, and ATOS IT Solutions and Services.
  • As of 2020, Romania is ranked 55th out of 190 in the World Bank’s Doing Business 2020 ranking.
  • The Romanian startup ecosystem raised EUR 116.9 million in 2021.
  • According to the International Trade Administration, about 24% of ICT graduates in Romania are female, which means that the country’s work environment is both inclusive and diverse.

Romanian IT ecosystem

Romania’s IT ecosystem has boundless potential thanks to its well-educated workforce. It has long been the main choice for countries looking to outsource support services, software development, and even R&D projects. Today, the country’s economic policy is aimed at developing a more entrepreneurial culture, and in this they are remarkably successful.

It is a country with a fast developing mixed economy and a median income. The authorities are taking active measures to support the IT industry, running several long-term incentive programs that support and encourage sector growth. The Romanian IT sector has been growing exponentially over the last few years and is likely to become the most vital contributor to Romania’s GDP in the long run.

According to the National Statistics Institute (INS), the added value generated by the Information and Communication sector in Romania accelerated to +12.3% year-on-year in the first half of 2020. There was also an increase of 31% to 2.09 billion euros in software development exports, corresponding to about two-thirds of the total market volume.

Biggest IT hubs in Romania

It has already been well-established how the pandemic was a turning point that accelerated digital transformation in nearly all spheres of life. Since then, digital solutions have become a central focus for many business leaders, leading to an excellent opportunity for software development outsourcing destinations like Romania. Many young entrepreneurs have also begun to realize their full creative potential in the Romanian startup sphere.

Romanian startups are a regional leader in innovation, positioned at number 39 globally. This is 2 spots up since 2021. The country is also ranked 7th for startups in Eastern Europe. Romania is positioned to become one of the most vibrant innovation hubs in the CEE region.

The number of startups has grown considerably in recent years. Taking a startup international is no longer just a dream but a distinct reality upon which the entire startup ecosystem is based. It is no wonder, then, that Romanian startup funding has tripled over the last few years.

Among the most promising Romanian startups are VOXI Kids, Frisbo, Licensware, Kinderpedia and Flowx. AI. UiPath – a software company that builds robotic process automation for business processes, and is the first Romanian unicorn startup that has managed to grow its revenue from \$1 million to \$100 million in less than 2 years.

Reasons why you should choose Romania as your software development destination

Diversity of technologies

The top most popular programming languages in Romania include SQL, JavaScript, Java, Python, PHP, C++ and Scala, meaning that whatever tech stack you’re looking for, Romanian developers have your back. Whether you need Mobile or Web development, you’ll definitely find experts to support you on your journey.

Biggest IT hubs in Romania

Many have experience in leading fields of Big Data, DevOps, Blockchain and Artificial intelligence, as well as many legacy technologies like COBOL and Teamcenter.

Price-to quality ratio

Admittedly, there isn’t a very large price difference between hiring developers from Romania and elsewhere in Europe. The advantage of going with Romanian software developers lies in the price-to-quality ratio.

According to Salary Explorer, a person working as a software engineer in Romania in 2022 typically earns around 7,990 RON (\$1,684.59) per month. Salaries range from 4,240 RON (\$893.95) to 12,100 RON (\$2,551.13), including housing, transportation, and other benefits.

Biggest IT hubs in Romania

Close proximity to other European tech hubs

Romania’s biggest IT hubs are located in close geographical proximity to other European cities. Timișoara, for example, is only a 3-hour drive from Vienna and less than a 3-hour flight from London and Barcelona. This close proximity makes it possible to have meetings with your developers in real time, improving team efficiency and building trust.

Multilingual developers

There’s no need to worry about communication issues when it comes to Romanian IT professionals. According to Fortech, over 90% of software graduates speak fluent English and over 25% of them even know French. Considering that having a solid grasp of at least one foreign language is part of the job criteria for developers in Eastern Europe, you’ll not have to worry about how your team is going to communicate with each other.

High level of technical education

Almost 8,500 software developers graduate from Romanian universities each year, adding to the existing talent pool. Upon graduation, they join software development companies all across the country, including the country’s most prominent tech hubs, such as Timișoara, Bucharest, Cluj, Iasi, and so on.

Growing talent pool

The Romanian tech talent pool comprises approximately 140,000 software development experts, with this number growing at a rate of 3,000 developers per year. Bucharest is the largest IT hub in Romania regarding tech talent and skills. The most popular technologies include Java and .Net, cloud, Big Data and Security.

Let’s sum it up

If you’re looking for ambitious developers for your next big project, Romania is one of the best places to find an abundance of people who share your vision. Rich technical experience, high English proficiency, and an optimal price-to-quality ratio make the country a perfect partner to help your business accelerate digital transformation with talented people.

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