Eastern Europe is known across the tech industry as having some of the most thriving software development companies in the world. And it’s IT outsourcing which is particularly prevalent in this part of the continent; in the last few decades, several Eastern European countries have experienced an average of 10% growth each year in their IT industries, and the rest of the world is taking note.
In 2017, Romania was the fastest growing economy in the EU, with an estimated GDP growth rate of 6.4%. And much of this growth was driven, and still is, by tech startups and IT outsourcing solutions. Why was that? The primary reasons were the country’s reduced hourly rates in comparison to Western Europe, many multilingual highly skilled professionals and the proximity to Central Europe. Keen to learn more? Here are 5 reasons to choose Romania for your business’s IT outsourcing.
TALENT
Romanian IT professionals are valued for their work culture, innovation, creativity, and most importantly, their excellent technical abilities. The majority of skilled IT workers are fluent in technical English, with many also speaking French, German, Spanish, Hungarian and other languages, too.
Inside the country, great emphasis is placed on the prevalence of gaining expertise working with software such as Java, JavaScript, .Net, PHP and several other platforms. This mixed skillset is attracting interest from businesses across the world.
UNIVERSITIES AND EDUCATION
There are 41 technical universities in Romania, producing approximately 5000 graduates every year, particularly in the field of computer and software engineering. This makes a total of 120.000 new specialists annually (software developers, software testers), with flexible, adaptable skills.
The Bucharest Tech Week, occurring annually in the first week of September, has become one of Europe’s focal points for innovation and ideas, with several business summits, events and expos bringing together some of the greatest minds in the industry.
RATES
Though Romania may not provide the same low rates as other global IT outsourcing hubs such as India, for a European country which is just an hour ahead of Berlin and two of London, prices represent excellent value for money. This enhanced accessibility and fluidity of practice, combined with the ability to offer services in house, make Romania an increasingly popular choice for those who value quality over quantity.
ACCESSIBILITY
Romania’s 13 year membership of the European Union is hugely beneficial to businesses considering IT outsourcing in the country reducing financial and legal concerns, and providing an extra blanket of business security. The IT industry of focused cities of Cluj-Napoca, Bucharest, Iasi and Targu Mures are well connected to both Western Europe and the East, which has insiders predicting even bigger growth in the future, as the global economy’s focus looks likely to shift further towards Asia in the coming years.
HIGH SPEED INTERNET
Without meaning to be crude and reductive, what would an industry focused economy be without a functioning internet infrastructure? Fortunately for potential customers, Romania is ranked as having the fifth fastest internet in the world (only behind Singapore, Sweden, Denmark and Norway) with an average of 38.6 Mbps measured in the last 12 months, up 81 percent compared with 2017.
When considering the cost of doing business in those countries above it, the value for money offered by Romania for IT outsourcing shouldn’t be sniffed at. In fact, there have been recent reports that the country has the cheapest super-fast broadband internet on the planet. Time to sink your teeth into the Land of Dracula, perhaps?
OTHER COUNTRIES TO CONSIDER
Ukraine
The IT industry in Ukraine has developed massively in recent years. The nation is well known for its well-educated IT professionals who are skilled on multiple platforms and offer competitive rates. This advanced development of the IT sector, in addition to the continuous increase in the amount of new developers annually, is offering new chances for potential clients. The core of the IT outsourcing business in Ukraine is the capital, Kiev.
Poland
According to Bloomberg, Poland is ranked among the most advanced IT countries in Europe. In fact, its IT sector is one of the key branches of the country’s economy. Poland provides one of the biggest working areas in Europe through its 120’000 IT specialists working in the country.
The majority of the IT outsourcing companies are located in Krakow and Warsaw, and with decades of experience behind them, the companies concentrate on software and hardware design. But everything has a price; Poland is by far among the most expensive countries on our list.
Belarus
Belarus has around 54.000 IT professionals, with half of them specialising in outsourcing. The IT industry is supported by the government, with tax exemptions for all residential IT companies offered. The epicentre of this sector is in Minsk, the capital city of Belarus. Believe it or not, this little country in Eastern Europe has over 50 years’ experience in technology development.
Bulgaria
A rapidly growing community of programmers are located in Sofia, the capital city of Bulgaria. The highly educated, motivated and skilled professionals here, and the reduced costs in the country, put Bulgaria on the map as one of the key IT outsourcing alternatives in Easter Europe.