Andrew
Burak
CEO at Relevant

Outsourcing to Romania: Here’s What You Should Know

Outsourcing

Romania is not the most cost-effective outsourcing destination, however, it has several peculiar advantages that set it apart. Talk about an ideal geographical, a higher level of technical proficiency and outshining soft skills, plus mastery of not only English but German, French and Italian, the list goes on. The Romanian IT market is listed among the best software development and design outsourcing markets by several review boards. And the country has the largest number of certified IT specialists in Europe. 

Due to the above reasons and more, outsourcing software development to Romania makes a lot of business sense to Western companies that greatly value quality. 

Five best countries to outsource software development

There are several reasons why you might consider outsourcing software development. It’s a great way to save money and get high-quality work as well. However, before you outsource software development to Romania, you should do your research and familiarize yourself with other countries. This will enable you to focus your search effectively and make an informed decision. Let’s look at the best countries to outsource software development in 2021:

Ukraine

Ukraine has one of the largest IT talent pools. This is owed to the practical education system that natures the Ukrainian tech industry. According to statistics, specialists from Ukraine score upwards of 88.7% on all HackerRank challenges. 

Currently, Ukraine is home to more than 210,000 IT specialists. And many of them have good command of the English language which makes the communication with Ukrainian teams smooth and easy. These are some of the factors that make outsourcing to Ukraine a reasonable business move.

India

When you think of outsourcing, India is one of the countries that should come to mind. It comes second among the countries with the most English speakers in the world. This makes it a perfect choice for those looking to outsource. 

Apart from the language factor, the education system in India weighs heavily on mathematical skills and produces millions of IT graduates yearly.

China

China produces as many as 4.7 million STEM graduates yearly. HackerRank cited China as the country that would win if we are to have programming Olympics. 

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The only drawback when it comes to China is the language barrier. A very small portion of Chinese engineers speaks English fluently, which presents a major challenge for those who want to outsource. 

Poland

Poland is also among the top five countries home to a large pool of skilled software programmers. To add to the skill level, 30% of the Polish population speaks English as their second language. This makes communication easier for Western countries looking to outsource in Poland.

Romania

The upside to software development outsourcing to Romania is that the country has high-quality IT talent. The citizens in Romania receive unlimited access to tuition-free, egalitarian education, which has significantly helped make the country one of the best tech hubs in the world. 

Therefore, if quality is a priority, Romania is a much better option. In the HackerRank programming tests, engineers from Romania are placed 20th globally. 

Romanian IT ecosystem: The overview

The IT ecosystem in Romania has vast potential, and the country is located strategically. Additionally, the economy in Romania was among the fastest-growing in the European Union in 2019. Over the past few years, Romania has cultivated a crop of young and skilled IT professionals. This has sparked interest from many countries that now want to take advantage of Romania’s flourishing tech hub. 

The IT sector in Romania is an essential part of the country’s economy. Currently, the government is running several long-term incentive programs to support and encourage the growth of this sector. According to Cushman & Wakefield Echinox, the top 50 largest technology companies in Romania have quadrupled their businesses and teams in the last ten years (2009-2019). In 2019, their combined turnover reached EUR 3 billion and the number of employees was in excess of 50,000.

stats of IT Sector turnover in Romania
Source: Software Development in Ukraine, Poland, Belarus, and Romania report

Also, the educational system is highly focused on cultivating mathematical and computer science skills. This creates an environment that enables the continuous expansion of the IT pool. 

Romania ranks among the top 20 countries when it comes to software development. The numbers don’t lie. The IT industry in Romania has an annual growth rate of 14.3%, and tech-related activities contribute about 6% of the country’s entire GDP. These numbers are expected to double by the year 2025. 

Below is a list of Romanian tech hubs and IT companies that have dedicated software development teams

Romanian tech hubs

Here are the most important tech hubs in Romania:

  • Cluj-Napoca
    This city has a reputation for a large pool of talented and educated young people. This attracts foreign investment and the emergence of startups. AROBS Transilvania Software is among the competing companies in this locale.
  • Iasi
    Similarly to Cluj-Napoca, lasi has a strong academic tradition. It’s one of the rising tech hubs inside Romania. Also, lasi is a destination for one of AROBS branches.
  • Bucharest
    Bucharest, the capital of Romania, is the largest tech hub in the country. It is the major center of attraction for most businesses that seek to outsource their software development in the state.
  • Sibiu
    This is an upcoming service center in Romania. There is a higher availability of German skills in this location compared to any other city.
  • Timișoara
    Timișoara has seen a boom in foreign investment, especially in the tech sector. It is regarded as the most developed city in Romania with more production companies. The average wage is 428 euros.
Romania vs Ukraine as main software development hubs

Top 5 IT companies in Romania

Here are some of the best IT companies located in Romania (the list is based on Clutch reviews).

  1. Neurony
    Neurony has been in business for over 17 years. The company specializes in software consultancies and building web applications. 
  2. Synergo Group
    Based in Timișoara, Romania, Synergo Group is an agency that specializes in custom software development. It provides services to startups and large corporations. The company not only develops software but also provides reliable support.
  3. Lateral Inc.
    This company offers a wide range of services in the tech business sector. The services include consulting services, design, concept, and implementation. Lateral Inc. is prepared to do business with both small and large-scale enterprises.
  4. MoldoWEB
    MoldoWEB specializes in the development of mobile and web applications. The company puts more attention on creating scalable and proficient apps that are innovative. The company is located in Cluj-Napoca, Romania.
  5. BusyMachines
    This software development company is based in Timisoara, Romania. It creates complete software products for companies that specialize in innovative business solutions. Experts are available to deliver quality products and services that are scalable.

The above are but a few of the top IT companies in Romania you can work with when outsourcing to Romania.

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Four reasons why Romania is perfect for outsourcing your software development

It makes a lot of sense to outsource software development services to Romania. According to data provided by Eurostat, Romania is the 4th largest country in the European Union when it comes to ITC value addition. Let’s look at some more reasons why one might decide to outsource to Romania: 

Software development expertise

There are hundreds of IT companies in Romania, and software development in the country is now at an advanced stage. Romanian software developers can support and deliver virtually any technology. Whether you want to hire developers in Romania capable of working with Java, C#, JavaScript, HTML, CSS, or Angular and React, you will have a variety of high-quality options. 

If you want to outsource mobile development services, you can be guaranteed that you will find a team that can deliver your solution in any programming language of your choice. 

Cost of services vs. Quality

Romania is not remarkably cheaper than other countries when it comes to software development services. However, you will have the advantage of working with the second-largest pool of software engineers in the region and the best quality. In other words, Romania offers the best value for your money. 

top reasons to outsource to Romania

Accessibility

Romania is the easternmost country in the European Union, but the top tech companies in Romania are closely connected to the rest of Europe. For instance, Timisoara is only two hours away from Munich by air and less than three hours from London and Barcelona. This makes it possible for people looking for offshore software development in Romania to travel to and fro in a single day. That means when outsourcing web development or any other services to Romania, there will be minimal barriers in travel and communication. 

Multilingual software developers

Romanian software engineers are proficient in a lot of foreign languages, including English. This makes communication effortless. It also enables Romanian IT companies to provide flawless customer support.

Romania vs. Ukraine: Which one is excellent for outsourcing your development project?

Outsourcing to Romania vs. Ukraine is one of the most debatable subjects in the industry. However, when it comes to offshore outsourcing to Romania vs. Ukraine, it all depends on preference. Both countries are pretty awesome; but, there are several factors why IT outsourcing to Romania makes business sense. The education in the country is of high quality, and the engineers have strong communication skills. 

Much like Romania, Ukraine is also gaining a lot of weight as the go-to outsourcing destination. It’s currently one of the best countries to outsource software development, and the vast pool of tech talent and low labor costs give it a competitive edge. 

Considering Ukraine is much larger than Romania in terms of size, the tech community in Ukraine is more vibrant than the IT market in Romania. There are a lot of meetups and tech conferences that take place on a regular basis in Ukraine. 

Top 10 Cities of The Future according to cost-effectiveness
Source: fDix TNW Tech Cities of the Future 2020/21

Ukraine is also known as a reliable development center when it comes to IT services. To date, many notable industry giants have chosen Ukraine as an R&D center. These include Google, Cisco, and Oracle.

Currently, there are more than 210,000 IT specialists in Ukraine. This makes the country a much better outsourcing destination than Romania, which has about 144,000 IT professionals.

At the same time, Romania is experiencing a tech talent shortage. According to Software Development Academy, by the end of 2020, the deficit of software engineers and testers in the country could reach between 40,000 and 50,000 professionals. Under these circumstances, it becomes more challenging to find the right tech specialists in Romania especially when you need to start your project fast.

Wrapping up

When it comes to outsourcing, Eastern European countries are a gem. However, you should know that besides finding the best country for outsourcing, you should also find a qualified tech partner to connect you with the best engineers for what you need. That is where Relevant comes into the picture. We have many accomplished projects with notable global companies under our belt. You can find them here

If you need an experienced IT specialist or a skilled, dedicated team in Eastern Europe, Relevant is your best shot!

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Tags: outsourcing
Written by
Andrew Burak
CEO at Relevant
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