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Why Outsourcing Software Development in Romania in 2020?


Since February 2020, when all the major technology events scheduled for Q1/Q2 in Europe begun to cancel, we have been answering questions and surveys on why outsourcing software development in Romania is a pertinent solution, and why especially to do it this year. Even if we cannot answer each particular question in an online article, we have summed up our current view on why outsourcing software development in Romania is a safe anchor.

#1 Romania is constantly growing its reputation as an ITC destination

According to ANIS (The National Professional Association of Software Services) the latest number of employed software developers was of 110000 and it was estimated to grow 4 times in the next years, due to the intense efforts to prepare new generation of IT graduates and IT specialists. In 2018, the IT sector contributed with 5,5% of the national GDP, generated by only 2.2% of the total recorded employees. This shows an incredible effectiveness of the sector, overpassing other EU countries. To this result, we count also the specific contribution of the operation involving outsourcing software development in Romania.

In 2020, this state of facts did not change. On the contrary a more intense appetence to work with Romanian software development teams has been observed, duet o the proximity to western Europe, the quality of the services compared to other locations and the sensitive financial advantages.

#2 There is a solid tradition to learn science, technology, engineering and mathematics in Romania

In Romania, having a degree in any STEM field is still considered of great importance. The educational system has inherited many methods from the Asian style of learning and young graduates were often encyclopedic, making easily connections from one field to another.

As a reminiscence from the times when Romanian scientists were making major break-through in the development of computational systems, the current active mature professionals in IT are exactly the generation who was the most preoccupied with learning computer science, software engineering, telecommunications. In parallel, the new generation of STEM graduates is already tech savvy and has literally grown up with an agile approach on doing things.

Over more, Romania has the third-highest percentage of IT women professionals in Europe, due to a weight of 29% of women in the total sector workforce.

#3 The local culture is part of European culture

When doing outsourcing of software development in Romania you will discover that there are both a nice local folklore and culture but also an important absorption of foreign cultures. This is due to the fact the geographically, Romania has always been at the crossroads of very different cultures, therefore they are easy to adapt to any culture.  One should also take into consideration that the presence of Hungarian, German and Slavic communities made the locals perceptive to differences and sensitive to others values. On top of this, the educational system has emphasized learning of multiple foreign languages from childhood, therefore fluency in English, German, French, Hungarian, Italian, Spanish is part of the normal.

#4 The economic and financial advantages that Romania brings to the table

As of 2019, Romania is part of the emerging developing countries with an upper-middle income economy. The IT specialists and software developers are not the cheapest, but due to a lower income economy provide the advantage of lower overall wages. The hourly hours for software development vary between 25 to 50 euro/hour, depending on the seniority and skills set.

The office space, the infrastructure and administrative services are cheaper than in Western Europe or the US, but the quality and living conditions compete pretty well with those regions. Not to mention that rising cities like Cluj-Napoca are enjoyable to live in from all point of views.

Costs of travel are significantly lower than in the rest of Europe and flight connections are at hand.

#5 Working models are well known by Romanian software development outsourcing companies

When discussing your future software development outsourcing in Romania, you can ask and investigate what would be the most suitable way for your project.

  • Dedicated Team Model – when the customer will start collaborating with a core project team that will be able to grow further inside the outsourcing company. It worth’s for long-term development agreements, complex software solutions and scaling projects.
  • Extended Team Model – when the specialized customer company contracts an outsourcing team to literally extend its own development team for new skills, new people, new teams.
  • Project Based or Turn Key Model – a case in which the outsourcing company controls the entire development process and delivers the project as agreed, at a fix price.
  • Flexible Model – when the cooperation may shift from one model to another, or combine them in a customized manner, depending on the situation.
  • On-Site Model – when the presence of the software developers is necessary at the customer’s site for an agreed period of time.

Even though there are plenty of others aspects to discuss and discover about working with Romanian software development outsourcing companies, we hope this article gave you some answers. Should you be willing to find out more, you are welcome to write us directly.

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