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The Market for Software Outsourcing in Romania. CEO Perspective

In an interview for Bizz, Călin Văduva, Fortech CEO, discusses the evolution of software outsourcing in Romania and its future perspectives. The main points are covered in the following lines:

Romania’s Strengths as a Software Outsourcing Destination

Romania’s strengths as a destination for outsourcing derives from a mix of factors such as the variety of technical and linguistic skills combined with management abilities, the quality-price balance offered to clients, the operational efficiency, the ability to understand the customer’s culture and the geographic proximity to the customer. Also, the multitude of educational programs developed or supported by Romanian providers of outsourcing services proves once again the commitment of these companies to providing clients with quality, continuity and long-term stability.

Romania’s Regional Positioning Among Other Tech Players

Considering the turnover, the export levels, the positive evolution of the Romanian players in the field as well as the recognition in international rankings such as Deloitte Technology Fast Growing, we can say that Romania occupies a top position among the countries that provide software development and testing services.

Evolution of Romania’s Outsourcing Market in 2014 and Perspectives for 2015

Romania is mainly an export market of software and testing services. Over 90% of Romanian companies are operating in this zone. As a result, 2014 was defined by actions meant to consolidate the key directions for an outsourcing business and to optimize the internal processes and technologies.

2015 amplifies the need for focus on quality, innovation and re-positioning as a strategic partner for the business and not only as a partner in cost savings, as it might be often perceived. Additionally, more and more companies have started to direct a percentage of their resources towards product development.

Romania’s Most Developed Segments

Historically speaking, Romania, has been gaining momentum with the augmented teams. Basically, renowned companies in the United States and Western Europe have been expanding their R & D departments with qualified personnel from Romania. This occurred in the context of a shortage of technical talent on the mature markets where these companies operate.

Romania’s Tech Talent Diagnosis

There is already an imbalance between supply and demand, especially if we talk about senior level professionals. This will probably grow in the near future as the current academic model cannot provide long-term sustainability. At the same time, customers’ increasing expectations lead to the need to recruit staff who proves not only broad technical expertise but also business knowledge and managerial skills. At this level, the gap is even more obvious.

Fortech’s Evolution in 2014 and the First Quarter of 2015

Our business model is defined by a systematic evolution, based on the development of long-term relationships, investments in quality and the improvement of technical and management skills. This led us to stability and growth year by year.

Considering the financial perspective, 2014 brought us an increase of 15% compared with 2013. Also, during the first months of 2015 we recorded a 30% increase compared with the same period of last year. This increase comes as a result of our continuous relationships with existing partners, our 10 new customers and of the 30% increase in the number of employees. We currently count over 450 employees, of which 60% have more than 3 years of experience.

Innovation, one of our focal points, saw investments in internal processes optimization and development of programs for employees. Furthermore, we launched our own product development initiatives such as – a real estate platform- and an investment platform for start-ups called Seed For Tech.