Romania is emerging as a significant player in the Agile nearshoring landscape, offering a compelling mix of cost-effectiveness, skilled workforce, and robust infrastructure that caters well to the demands of the IT and software development sectors. The country’s IT&C sector is on a trajectory to increase its contribution to the GDP to 10% by 2025, up from the current 6%, with efforts focused on digitalization and creating the largest information technology hub in Central and Eastern Europe. This ambition is underpinned by ANIS’s initiative to extend fiscal privileges and favor cloud-based public infrastructure to stimulate growth within the sector.
The appeal of Romania as an Agile nearshoring destination is underscored by several key factors. Cost-effectiveness stands out, as companies can maintain local operations while leveraging offshore resources, thus significantly reducing operational expenses without compromising on the quality of services. The Romanian labor market is rich with talented, skilled, and educated individuals, providing a better workforce for companies looking for innovative and dedicated teams. Furthermore, the availability of a wide variety of skilled professionals ensures that companies can find the right expertise for any given project, with added benefits of cost reduction.
Romania’s high-speed internet infrastructure, which covers more than 91% of the population, alongside an efficient telecommunication industry, plays a crucial role in ensuring the success of nearshore software development. This infrastructure supports timely and affordable project delivery, enhancing the competitiveness of companies that choose to nearshore their operations to Romania.
However, it’s essential to acknowledge some challenges associated with nearshoring in Romania. Companies must be prepared to sacrifice a degree of control over outsourced business segments, tackle potential communication difficulties, and address the concern of low labor productivity. Despite these challenges, the advantages of nearshoring in Romania, such as cost savings, access to a skilled workforce, and good infrastructure, often outweigh the downsides, making it a valuable strategy for companies aiming to stay competitive in the global marketplace.
As the global outsourcing market is projected to grow significantly, nearshoring in countries like Romania becomes increasingly attractive for companies seeking to cut costs and maintain competitiveness, especially in times of economic uncertainty. The demand for nearshore software development services continues to rise, with a majority of companies recognizing it as a tool to reduce costs effectively. The average rates for nearshore software development being notably lower than onshore rates further illustrates the financial viability of this outsourcing model .
Romania’s burgeoning IT&C sector, supported by strategic initiatives and a conducive infrastructure, positions the country as an attractive nearshore destination for Agile software development, offering a blend of cost efficiency, skilled talent, and technological readiness that companies across Europe and beyond find appealing.