A strong involvement of over 12 years in software outsourcing and software testing outsourcing enabled Fortech to collect valuable data on outsourcing to Romania, which you may find useful in any decision you must take on outsourcing to Cluj-Napoca, Romania.
Romania is a member of the European Union since January 1, 2007. With 22 million citizens it has the seventh largest population amongst the EU member states and a dynamic and quickly developing IT industry. Located at the heart of Eastern Europe, Romania has grown into an ideal software development location for companies seeking highly technical and friendly work force, cost-effective business environment at a nearby location.
Numerous management consulting groups listed Romania in rankings on the attractiveness and the dynamics of the IT business environment. 2011 found Romania on the 25th place in the Global Services Location Index (GSLI), an A.T. Kearney report that ranks the top 50 most attractive nearshore destinations. The research was based on 3 main criteria: Financial Attractiveness, People’s Skills and Availability and Business Environment. Moreover, Romania has been shortlisted by KPMG in the top 31 emerging locations worldwide for IT-BPO outsourcing, with Cluj-Napoca being the most interesting outsourcing location in Romania. The Deloitte Technology Fast-500 EMEA program has been recognizing multiple Romanian technology companies that reported fast rates of revenue growth in the past years.
1. Technical Expertise
The software developers in Romania are highly competent and experienced with various software methodologies (both traditional and Agile), technologies such as C, C++, .NET, Java, PHP, Mobile and a great number of niche technologies. Romanian IT professionals are appreciated for their technical excellence as well as for their ingenuity and confidence, a precious combination in any field. This enables companies to successfully manage complex and highly-transactional IT projects.
2. Universities and IT hubs
IT talents are cultivated in Romania’s top high-schools that focus on mathematics and computer science. Romanian students perform at the highest levels in international Informatics and Math Olympiads and in 2012 Romania was ranked first in Europe and tenth in the world at the International Mathematical Olympiad.
Nowadays, Romania successfully trains more than 5000 engineers and computer science graduates in 41 Technical Universities each year. The largest technological hubs have grown in the historical university centers of Bucharest, Cluj-Napoca, Timisoara, Brasov and Iasi. Bucharest has the largest and most diverse IT services talent pool, but also a more competitive environment with higher volatility.
In recent years local entrepreneurial initiatives led to the development of multiple IT hubs in Bucharest, Cluj-Napoca and Timisoara and a strong community of business angels and existing companies that promote the industry through contests, training sessions etc. Moreover, three associations (ANIS – Employers’ Association of the Software and Services Industry, ARIES – Romanian Association for Electronics and Software and ATIC) represent the interests of IT companies at national and regional level, and recently an IT cluster was founded in Cluj-Napoca.
Romanian culture, values and lifestyle have many similarities with the Western European cultures and will also be familiar to any American visitor. Romanians are generally cosmopolitan, educated, fluent English speakers and resourceful creative people. They often have study or work experiences in other European countries which lead to good intercultural and communication skills, helping them collaborate easily with developers from the western world.
Romanian programmers speak English fluently, and are highly articulate. Many Romanian IT professionals also speak German and French. These skills make collaborative projects more prone to succeed, and are critical as email and video conferencing are the primary means of communication.
5. Long-term Relationships and Stability
Romanian IT companies usually value stability and long-term relationships. Most Romanian software companies maintain customer-dedicated teams, meaning they dedicate their teams to specific customers.
6. Easy Access to Romania
Romania is easy to reach with a 1-2 hour flight from London or Frankfurt. Several international airports can be found in Romania’s major cities (Bucharest, Cluj-Napoca, Timisoara, Sibiu) and Romania’s joining the European Union made travel fast and simple. This keeps transportation costs at low levels, affecting the profitability of the outsourcing services in the long-run.
One of Romania’s key strengths remains the competitive costs of the workforce. Salaries are generally lower in Romania than in other European countries like the UK, Germany, Poland or the Czech Republic.
8. Compatible Time-zones
Outsourcing projects in Romania run smoothly because of the flexible time zones. The country’s time zone is compatible with those of European countries (maximum of 2h difference). The developers are also able to work efficiently with U.S clients during the day (2-3 hours of overlap). The conclusion is that a Romanian developer can work during daytime with worldwide clients. Romania’s high-speed broadband internet, ranked fourth worldwide is another key factor that makes the process convenient.
All in all, the great technical and communication skills of the IT professionals, the increased number of technical universities and IT hubs, the culture, the business environment and the labor costs are the most important facts that make Romania an ideal nearshore destination.