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WHY ROMANIA

Why is Romania on the radar of ITO multinational companies?  Romania is emerging as a preferred IT shoring location in Central and Eastern Europe due to its geographical proximity to Western Europe, its qualified IT&C workforce, foreign language skills, academic readiness to back high demand in talent pool continuity, the right price-quality ratio and its good connectivity by air to Europe. Moreover, increased availability of state aid schemes pushes the seventh largest country in the European Union high up in the preference list of ITO companies. Romania is home to ITO, KPO, BPO and SSC companies. Romania has aligned its real estate infrastructure to the standards of proven shoring locations and its straightforward legal framework points to high probability of state aid schemes beyond 2014. Local and multinational companies from Romania are witnessing a fierce competition in attracting ITO investments both between Bucharest, the capital city and the largest regional cities and between Romania and neighboring countries: Poland, Ukraine, Czech Republic and Hungary.

In October 2012 Jones Lang LaSalle ranked Romania 9th globally among outsourcing destinations by the number of jobs created. Data from the report points out that between 2008 and 2012 a number of 40 outsourcing projects created 11,438 jobs in Romania. Poland is placed only two positions higher on the global outsourcing map, producing 13,476 jobs under the framework of 46 projects. From the direct comparison results that Romania’s job performance in the outsourcing industry is only with 2,000 less than the one shown by Poland, a country that is almost twice as large in terms of population.

In 2012 Romania has maintained its pole position for the second year in a row in Deloitte’s Central Europe Technology Fast 50. The Romanian company occupying the no. 1 position in the list performed the second highest growth rate in the history of Deloitte Central European Program, and the fastest five year growth observed since 2005. Six internet and software companies from Romania are among the award winners of Deloitte’s 2012 Central Europe Technology Fast 50 program.

Romania. Facts.

EU member: Yes, Since 1st of January, 2007
Location: Central and Central Europe (CEE)
Population: 19,942,642.00
Time zone: EET (UTC +2)
Capital: Bucharest
Main Cities: Cluj-Napoca, Timișoara, Iași, Constanța, Craiova, Galați, Brașov
Demographics: 7th largest in EU by population
GDP growth rate:(European Commission estimates)
2013 2014
+1.6% +2.0%
GDP per capita: $12,800 – 98th in the world (2012 CIA est.)
IT&C contribution to GDP: 5.2%
IT&C labor/total national labor: 1.95%
IT&C turnover structure 2014:
Hardware Software IT services
70.3% 14.8% 14.9%
IT&C export 2014: EUR 4.2 bill.
IT&C FDI rate / total FDI: 7.3%
Corporate profit tax: 16%
Tax on programmer salaries: 0%
HDI (human development index): High
Inflation: (European Commission estimates 2013) 4.6%
Unemployment rate: (European Commission estimates)
2013 2014
6.8% 6.7%
COUNTRY RANKINGS
Deloitte’s CEE TechnologyTop 50 2012 4th place
Jones Lang LaSelle Top 10 Outsourcing Destinations Globally 9th place
A.T.Kearney Global Services Location Index 2011 18th place
Fitch Sovereign Rating 2012 BBB-, stable
Moody’s Credit Rating 2012 Baa3, Stable
Standard & Poor’s Foreign Rating BBB-
International Olympiad in Info 2012 1st place in the EU
International Math Olympiad 2012 1st in Europe,10th worldwide
Moodys “Exports have stabilized, and domestic liquidity has eased over the past few months, which should support economic recovery later this year,” Moody’s posted in a January 2010 report.