IT outsourcing: behind the rise of  software development outsourcing to Romania

In today’s global market, IT outsourcing has become a crucial strategy for businesses seeking cost-effective software development solutions. Over the past years, Romania has emerged as a top location for offshore software development and outsourcing. With its highly skilled workforce, competitive pricing, cultural compatibility, and favorable business environment, Romania offers an attractive proposition for companies looking to leverage external expertise.

Further on, we’ll explore the boom of IT outsourcing to Eastern Europe and the reasons behind Romania’s evolution as a top location for IT and software development outsourcing.

What caused the IT industry expansion in Romania and Eastern Europe?

As companies look to diversify their outsourcing destinations beyond traditional options, Romania and Eastern Europe have emerged as attractive alternatives. Romania along with other Eastern European countries, have witnessed massive growth of vibrant technology hubs and startup ecosystems over the past years. These hubs foster innovation, attract entrepreneurial talent, and create an environment conducive to technological advancements. The presence of these technology clusters further propels the expansion of the IT industry in the region.

With numerous universities and technical institutes producing a steady stream of skilled graduates, the region provides ample qualified human resources for the IT industry. This abundance of talent ensures a sustainable growth trajectory for the sector in Romania and Eastern Europe.

These factors collectively contribute to the region’s appeal as a competitive and thriving destination for IT and offshore software development in Romania.

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What are the benefits of outsourcing software development to Romania?

If unacquainted, you might wonder what makes Romania rank amongst the go-to offshore software development destinations in 2023. Is it the fact that it has the 4th fastest broadband internet connection in the world? Is it the tasty food or the vampire tales? Maybe in relation to tourism, that works. When it comes to it business outsourcing, however, things are a bit more different.

To sum it up, here are 4 of the main benefits of software development outsourcing to Romania.

Cost-effectiveness

Romania is known for its competitive pricing in the outsourcing market, so there’s no surprise many Western European or North American countries look at the country as a golden goose in the IT industry. In other words, low-end prices and high-quality output really make up for a hard-to-beat argument when it comes to outsourcing options. This cost advantage allows businesses to get significant cost savings while still maintaining a high standard of quality. So if expanding your profit margin is one of your main company goals, choosing to outsource to Romania makes a lot of sense to us.

High-skilled IT professionals

Over the past decades, Romania has made significant investments in developing a robust IT infrastructure creating favourable conditions for IT companies to establish their operations and provide efficient services to clients worldwide. At the same time, the educational system became more robust so that it emphasises technical education and provides future developers with a solid foundation of theoretical knowledge and practical skills. Romanian developers are highly regarded in the IT industry for their growing experience, strong technical education, analytical and problem-solving skills, adaptability, fast learning abilities, attention to detail, and commitment to quality.

Cultural compatibility and language proficiency

Over the past 10 years, Romanian IT professionals have built a reputation for their high cultural compatibility with Western European and North American clients. Most IT professionals in Romanian companies have a good understanding of Western business practices. They can easily adapt to the client’s work culture, requirements, workflows and procedures. And last but not least, English proficiency among Romanian IT professionals is generally high, which facilitates effective communication and streamlines collaboration.

Overlapping schedules with Western Europe teams

The geographical location of Romania provides a significant advantage for outsourcing projects from European countries. The small time zone differences allow for better alignment of working hours, therefore providing a smooth collaboration between development teams, clients and project managers. The time zone differences can also be leveraged by North-American companies in order to provide around-the-clock services while avoiding night work complications.

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So, what does the future of IT outsourcing in Romania look like?

The continued growth of IT outsourcing in Romania is expected to continue its upward trend. The pool of talented IT professionals keeps expanding, supporting the growth of the sector. Investors worldwide are showing more interest in Romanian IT companies or intent to outsource product development in Romania.

As the Romanian government shows more and more commitment to supporting the growth of the IT sector, the industry keeps growing on all levels. Romania has already established a vibrant startup ecosystem in areas like Cluj-Napoca or Bucharest, which are also home to many technology-focused events and conferences.

Romanian IT companies have been proactive in establishing partnerships and collaborations with international firms. These partnerships allow for knowledge sharing, technology transfer, and access to new markets, building more bridges for future software outsourcing collaborations. By fostering strong relationships with global companies, Romania strengthens its position as a reliable outsourcing destination.

Overall, the future of IT outsourcing in Romania is bright. The future of IT outsourcing in Romania looks promising. Over the last few years, the country has established itself as a reputable destination for software development and IT outsourcing, and it continues to attract businesses from around the world.

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    Frequently Asked Questions (FAQ)

    Offshore Software Development to Romania

    Why should I consider software development outsourcing to Romania?

    Romania offers several advantages for outsourcing software development. It has a highly skilled workforce, competitive pricing, cultural compatibility, a favourable business environment, and a strong reputation in the IT industry. These factors make Romania an attractive destination for offshore software development.

    How can outsourcing to Romania help me reduce costs?

    Romanian companies offer competitive pricing in the outsourcing market, allowing businesses to achieve significant cost savings compared to Western European or North American countries. While the costs are lower, the quality of the output remains high, making it an attractive cost-effective option.

    What is the level of expertise and skills of Romanian IT professionals?

    Romanian IT professionals are known for their strong technical education, continuous learning with cutting-edge technologies, adaptability, attention to detail, and commitment to quality. Most Romanian IT professionals have undergone rigorous training and possess a solid foundation of theoretical knowledge and practical skills in various programming languages and technologies.

    How culturally compatible are Romanian IT professionals with Western European and North American clients?

    Romanian IT professionals have built a reputation for their high cultural compatibility with Western European and North American clients. They have a good understanding of Western business practices, making communication and collaboration seamless. Additionally, their high English proficiency facilitates effective interaction and minimises potential language barriers.

    How does the geographical proximity of Romania benefit outsourcing projects?

    Romania’s geographical location provides a significant advantage, especially for outsourcing projects from European countries. The small time zone differences allow for better alignment of working hours, resulting in smoother collaboration between development teams, clients, and project managers. North-American companies can also leverage this proximity to provide around-the-clock services while avoiding night work complications.

    How can outsourcing to Romania help me reduce costs?

    Romanian companies offer competitive pricing in the outsourcing market, allowing businesses to achieve significant cost savings compared to Western European or North American countries. While the costs are lower, the quality of the output remains high, making it an attractive cost-effective option.

    How can I ensure the success of my outsourcing project in Romania?

    To ensure the success of your outsourcing project, it is essential to establish clear communication channels, define project requirements and goals upfront, and maintain regular feedback loops. Choose a reputable Romanian IT company with a track record of successful projects and ensure proper project management and quality assurance processes are in place.

    What industries can benefit from outsourcing to Romania?

    Various industries can benefit from outsourcing software development to Romania. Some common sectors include technology, e-commerce, finance, healthcare, telecommunications, and media. Romanian IT companies have the expertise to cater to a wide range of industries and can adapt their services to meet specific project requirements.

    How do I get started with outsourcing to Romania?

    To get started with outsourcing to Romania, you can research and shortlist reputable IT companies based on their expertise, portfolio, and client testimonials. Reach out to them for initial discussions, provide project requirements, and evaluate their proposals. It is recommended to schedule consultations or meetings to discuss project details further and assess compatibility before finalising the partnership.

    Is intellectual property protection ensured when outsourcing to Romania?

    Intellectual property protection is an essential aspect of outsourcing agreements. Most Romanian IT companies are accustomed to signing Non-Disclosure Agreements (NDAs) and taking necessary measures to protect clients’ intellectual property rights. IT outsourcing contracts also specify that the product and its connected intellectual property are owned by the client at the end of the project and once all payment instalments have been made. It is crucial to discuss and address intellectual property protection concerns during the contract negotiation stage.

    Can I scale my outsourcing partnership in Romania as my business grows?

    Yes, Romanian IT companies are equipped to handle projects of varying scales. They are experienced in collaborating with both small startups and large enterprises. By establishing a strong partnership and clear communication channels, you can scale your outsourcing engagement in Romania as your business grows and requirements evolve.