How Is Romania Faring as Eastern Europe’s Prime Outsourcing Destination?

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Romania has firmly emerged to be an epicenter of outsourcing mainly for white-collar intellect including data crunching, bookkeeping, research and development. Today, hundreds of American companies have outsourced services to Eastern Europe. Most notably, I.B.M., Morgan Stanley and Dell not only have outsourced services to Romania, but have also helped other American companies do so. Outsourcing, mainly from a software perspective, is really booming in this region, as it quickly integrates itself economically to the countries in the west. This progress has drastically reduced the level of unemployment in Romania, and Eastern Europe in general. In this article, we’ll ask how Romania’s faring as Eastern Europe’s prime software outsourcing destination.

Romania’s Culture

Romania has a very unique culture which is brought about by its geographical position and the historical evolution. The Romanians are mainly the descendants of the Balkans but they have been Romanized. The culture of Romania is very similar to the other European cultures and has some influence with the Slavic countries. Traditional Romanian cultural practices include wood carving, dance, folk arts, ceramics, weaving, house decoration and the fascinating folk music which still flourishes in the country even to date. The official language is Romanian and has Latin roots dating back to the Roman occupation of that area – but also contains some words from the Slavic language, Turkish and the Greek. Education

Numerous educational reforms have been implemented in Romania over the past years. The IT sector has immensely developed due to the creation of IT universities in the region. The country has some of the biggest software and hardware industries which provide services to most of the neighboring nations. All this has been achieved through the creation of the many learning institutions offering IT education to the young generation. This extensive and well educated IT pool greatly powers the top profile nearshore software outsourcing companies in the country.. Throughout the nation’s cities, there are scores of highly skilled developers in some of the most common software development languages and platforms, including C++, Java and Microsoft Technologies.

 IT Talent – How Does Romania Compare

Romania is among nations that significantly export IT services and software. Most of the outsourcing firms in this country have immensely talented IT software groups. The fact that the country’s offshore and nearshore software development services meet global classifications make it a considerable landing pad for European and American companies. Favorable economic conditions have ensured that Romania’s IT sector grows – as it has undergone through a drastic evolution through the past few years. More so, software and hardware services have continued to exhibit an upward trend in recent years according to research carried out by the (NICR) “National Institute for Computers Romanian”. Total turnover for the IT sector in Romania increased 8% in 2010, and further increased by 2% in 2011. These trends are evident as both local and foreign IT employers have been requesting for services primarily related to JAVA, C++, .NET and PHP.  PHP particularly had a high demand in 2011 and 2012. Since the mobile sector has also greatly improved in the past years, employers have started looking for people with a high combination of technologies such as Android, C++, Java and iOS because they need people to use the applications as they are depending on while projects are underway. IT talent seekers are increasingly looking to recruit the nation’s share of iOS and Android developers as the mobile sector solidifies its gain over other forms of software technologies. Though Romania is recognized as a top talent IT hub, most employers are looking for people who are doing well in the industry and mostly the top talent across the world. The young and motivated professionals in Romania’s IT sector have not only mastered English but also French, German and the Italian languages and thus are a crucial part of the Romania’s appeal, this is according to the analysts’ club.

blankCost Effectiveness                         

When evaluating Romania for outsourcing services business, clients put into consideration the provider’s technology expertise, previous experience, money and some solid procedures of financial reporting’s. All this is according to ANIS (the Employers’ Association of the Software and Services Industry). There is also an advisory firm, Tholons, which backs-up this information. It states that price is no longer an important aspect in outsourcing on a global scale. Mostly, higher cost locations may mean provision of better services and great results. However, that is not to say that there aren’t scores of outsourcing clients who won’t take a second look at the price tag for nearshore outsourcing services. Analysts have noticed that, on a global scale, focus is shifting from offshore to nearshore locations such as Eastern Europe. This has been enabled by the close proximity of time zones between the suppliers and the clients, the language and also the cultural affinity. Romania is viewed to be more productive than the traditional offshore vendors and is seen as a complementary location to India .This is because Eastern Europe provides a balance between the quality and the cost. By leveraging this balance, the Romania nearshore software development scene easily gets bonus points.

Compatibility with the Rest of Europe

Romania, being one of the EU member states, has faced challenges in terms of the industrial policy and has been underway to effect changes so as to compete with the rest of the European countries. In order to support development of Romania, the European Development Platform was initiated so as to strengthen the economic relation of Romania at international levels and also across Europe. The quality software services in Romania have attracted most of the European companies, both small and medium-sized. The specialists are known to be bold, creative, experienced and can communicate in foreign languages which make it easy to transact with them. Their costs are also cheaper compared to other Western European nearshore software outsourcing companies. These are some of the benefits of the offshore development processes in Romania that are unlikely to be found in the rest of the nearby countries.

The Future or Romania’s Nearshoring Pursuit

Considered the country’s standing on the international scene regarding the provision of nearshore software outsourcing services, and putting in mind its current momentum, Romania has a bright future as a software outsourcing destination. But the vibrancy and future success of that standing will largely be based on the nation’s ability to constantly supply highly skilled providers. Personally, I’d think that as much as Romania modernizes its education system, it’ll have enough up its sleeves to outdo some of the other best known software outsourcing zones in the world.