Transilvania Analytics

WHY OUTSOURCING (to ROMANIA)?

What are the most recent trends in the outsourcing sector?

In 2019, the outsourcing industry’s global market size reached $92.5 billion. Before 2025, it is anticipated that this will reach $105.5 billion. More than 35% of small companies have an outsourcing supplier, while almost 65% of corporate leaders have an outsourcing partner for their software application development, according to a 2019 Clutch research. For their organisation’s application and software maintenance, more than 50% turn to IT outsourcing professionals. More technical duties are being delegated to independent contractors or third-party businesses that can offer the knowledge and direction required.

Outsourcing of IT Services is a flourishing business in Romania, no doubt. Outsourcing and near-shoring models are constantly improved to keep up with the changes in the market. As of 2021, the IT industry covers 6.2% of the Romanian Gross Domestic Product (GDP), and it is estimated to reach 10% of GDP by 2025, according to a study conducted by the Employers’ Association of the Software and Services Industry (ANIS).

Romania is perceived as a good place for investing. A highly trained labour force, abundant natural resources, geographical advantages that facilitate transportation of goods and one of the largest markets in Central and Eastern Europe are attributes that make Romania an increasingly attractive destination for investment (KPMG report).

The tech market in Romania also exhibits a strong focus on gender equality. According to the Eurostat study, women make up about 30% of the nation’s tech talent. Romania is third in the EU in terms of the proportion of women working as software developers, trailing only Bulgaria and Greece.

Over 80% of the Romanian tech companies deliver IT-related projects for companies from Western Europe, USA, the Middle East and Africa. Various skill evaluation reports acknowledge Romanian IT specialists’ expertise. As of 2022, they appear 19th on the Top Coder list. Romania ranks 6th in Europe and 16th worldwide for English Proficiency (EF’s Global English Proficiency Index 2018).

Romania is also in the top 3 European countries with the fastest internet, with 160.87Mbps.

Why choose Cluj-Napoca, Transylvania?

Cluj-Napoca is the 2nd biggest IT hub in Romania. Babes-Bolyai University was repeatedly in the QS rankings of the best education institutions in the world. Cluj-Napoca hosts over 100.000 students, out of which 33% are of technical – engineering profile and ICT. With a population of 350.000, Cluj is a flourishing economic, industrial, commercial, financial and IT center. With over 1500 computer science graduates/year, Cluj provides a steady resource pool of software developers.

There are many things to say about Cluj-Napoca and yes, we might be subjective, so let’s rely on statistics.

  • the city with the highest economic growth rate in Romania in the last decade (Forbes, 2018)
  • the best-ranked Romanian city in the Global Quality of Life Index (Numbeo, 2019).
  • The second European city in terms of access to employment (Eurostat, 2018)
  • The Romanian city with the highest cultural vitality besides the capital (National Institute for Cultural Research and Formation, 2016)
  • Friendliest city in Europe with foreigners (European Commission Study, 2015)
  • Modern international airport with daily flights to Germany, France, Austria, UK and other European countries
  • In the last 10 years, the number of Business Process Outsourcing and Service Centers doubled, with 13% annual average increase in BPO and SSC employment.
  • The number of IT employees tripled in the last 10 years

Get a free consultation on how to set up your dedicated team in Cluj-Napoca

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