M&a Activity In It Services And Software Sector In Romania Is Expected To Accelerate In 2021

According to statistics, specialists from Ukraine score upwards of 88.7% on all HackerRank challenges. Romania has become an attractive location in Europe for technology outsourcing.

Eastern Europe tech in review: the key moments of 2021 – Sifted

Eastern Europe tech in review: the key moments of 2021.

Posted: Thu, 30 Dec 2021 05:00:53 GMT [source]

Many companies in Western Europe and North America have already chosen to outsource their IT services to Romania, one of the top European software outsourcing destinations. The abundance of professional, multilingual talent, which you can contract at the right price-to-quality ratio, makes IT outsourcing to Romania a long-term advantageous business decision. Pentalog is a digital services platform dedicated to helping companies access world-class software engineering and product talent. With a global workforce spanning more than 16 locations, our staffing solutions and digital services power client success. As mentioned before, the key features of nearshore outsourcing are proximity in space, time, and culture.

Ascendro Technologies

Areus developed a unique location-enabled mobile application for a Romanian consulting firm. The firm’s end-client was a conservation organization that focuses on protecting Romania’s natural resources and wildlife, and the app enabled users to track environmental activity throughout the country. Areus successfully delivered the project to the end-client’s satisfaction, and the consultancy considered it a particularly smooth partnership.

  • Romania is well-developed and offers state-of-the-art telecom, ISP, and cellular networks in all major cities and towns.
  • Each of the three countries has a solid technical education system with scores of institutions teaching programming majors.
  • Four days later they had found someone equally competent and we didn’t have to worry about the admin side of things.
  • Dedicated Team Model- The client is able to start working with a core project team and then expand within the outsourcing company.
  • It’s crucial to have a clear vision of your product and to work with an outsourcing company that provides additional research and analysis.
  • Learn why nearshore software development in Romania is a good option for your project.

O’Reilly offers another trustworthy source of information on how much software and web development costs across major nearshore outsourcing destinations. In 2016, the media publisher unveiled a set of stats on median salaries of programmers across 27 countries. Test automation engineers, designers, product and project managers constitute the remaining 40%. They created software components for the hardware that the client produces, including malware protection, data analytics software, and backup and restoration services. The client was very happy with the outcome of the project and said that the quality and quantity of the product were impressive.

Software Developer Rates In The Best Outsourcing Countries All Over The World

To compare Romania with the rest of the world, you can look at price, quality of the engineers, and size of the talent pool. As already mentioned, differences in the hourly rates for vetted freelancers around the world are relatively small. Of software outsourcing romania course, quality comes from the code, effective communication, and proactivity. Romania is the third strongest software outsourcing destination in Europe, with over 120,000 professional developers and about 7,500 IT college graduates each year.

You can also contact other owners in the destination country and ask all your questions, for example, regarding the legal system, tax collection system, approach to task management, etc. Adding complexity to the issue is the significant STEM salary gap between the US and Mexico. Despite having similar education levels, the demand is so high in the US that US STEM talent often earns a salary significantly higher than that of their Mexican counterparts. Because of this, companies often opt to outsource and Mexico has poised themselves as an ideal alternative. People all over the world speak English as a second language, but because English is a very nuanced and complex language, there can be many things that are lost in communication. This can be particularly frustrating when communication is already difficult due to time zones and distance.

The company puts more attention on creating scalable and proficient apps that are innovative. This city has a reputation for a large pool of talented and educated young people. AROBS Transilvania Software is among the competing companies in this locale. CivicSoft hires skilled, enthusiastic, and creative developers and puts them to work to surpass your IT objectives.

Budget and cost are decisive factors when choosing where to outsource. As mentioned earlier, Romania has cheaper rates for software development. But let’s take a closer look at how much it costs to hire developers in Romania compared to other countries. Romania is located close to many European countries with more minor time zone differences.

Benefits And Risks Of Outsourcing Software Development

According to the National Institute of Statistics, the IT industry in Romania has over 110,000 active employees, which accounts for 20% of the total IT&C employees in Central and Eastern Europe. Forty-six percent of all Romanian IT professionals are based in Bucharest, 12% in Cluj, 9% in Timisoara, and 6% in Iasi. Working with Pentalog Freelancers helped us significantly, they responded really well to the urgency of the situation. After just one week we had found a qualified freelancer to undertake our mission. The platform gave us support and guidance right through the selection and administration process, so that the mission could run as smoothly as possible. Pentalog’s 200 full-time PHP Developers in Romania have added value to every outsourcing project they have worked on. Location is an important factor when choosing how you want to collaborate with outsourced teams.

That’s impressive, considering that the company was founded merely four years ago. Since then, it has accumulated $16 million in three funding rounds to continue expansion in the US, European, and SouthEast Asia markets. The Romanian startup scene experienced a landmark moment in 2018 when UiPath became the first local startup to obtain unicorn status. The company’s enormous success provided an incentive for many active, young entrepreneurs to seek funding to support their innovation-driven businesses. → All the above information is based on the data provided on a state-owned website, investromania.gov.ro.

(P) Evolution from software outsourcing to IT partnership – Romania-Insider.com

(P) Evolution from software outsourcing to IT partnership.

Posted: Wed, 15 Dec 2021 08:00:00 GMT [source]

For our clients in the US and other areas, Romania is too far away to be considered nearshoring but it is still an excellent offshore solution. Choosing Romania as an outsourcing destination gives you access to experienced IT engineers, world-class software development and opportunities to form rewarding collaborations. Publications the world over post alarming news and statistics about the global tech talent shortage. Thus, Relocate Global forecasts a global shortage ofover 85 million tech workersby 2030. For example, Brazil, Japan, and Indonesia will take the brunt of the storm.

Best Software Solutions For Logistics Companies For 2022

Scand is a software development company with 20 years of experience that is based in Minsk, Belarus. Throughout these years, Scand has carried out 600 projects for clients all around the world. The core focus of Scand is product development with the help of .NET, Java, PHP, and C/C++. SoftServe is an international outsourcing partner that has offices in several Eastern European destinations.

If they have strong internal management, you won’t have to supervise the team too much and can directly communicate with the project manager who oversees the project. All of these things will give you a clear idea of whether the software development company and its developers can complete your project successfully. You should understand that the average rates of Romanian and US developers include only the salary that the engineer earns. No additional bonuses, hiring costs, and expenses for the equipment are not included. In the column of YouTeam rates, you can see the price you will pay to work with an outsourced software developer. Romania also enjoys the many socio-economic benefits of being a member of the European Union. Most importantly, as an EU member, they provide a stable and secure business environment for software outsourcing projects.

What Is Nearshoring? Software Development Outsourcing Done Right

Microsoft’s customers range from consumers to small businesses to large corporations and governments. By 2020, the IT Outsourcing market is expected to reach $404,646 million. Apple, Google, and Facebook are companies that have all outsourced or currently outsource aspects of their software development efforts.

Depending on the capabilities of your business, you can choose whether it is more convenient for you to hire a whole team or individual specialists. Vietnam has been viewed as one of the top countries to outsource to for years, its economy is one of the quickest growing across the Asia-Pacific area. What is more, for the past several years, the software development unit has grown at a rate of 10% each year. The country is widely perceived as one of the best countries for outsourcing web development. Reported that Ukraine is the best country to outsource software development in the Outsourcing Market in Eastern Europe. According to HackerRank analytics, developers from Ukraine received an overall score of 88.7% on all HackerRank challenges. STX Next is an IT outsourcing company based in Poland that counts 350+ employees.

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Furthermore, you will enjoy an outstanding skill depth and breadth and a difficult-to-match proactive attitude. Companies on the lookout for software professionals will find in Romania experts hailed worldwide.

  • Other prominent state education institutions include the University of Iași and the West University of Timisoara.
  • Digitalya OPS is a full-service digital agency based in Iasi, Romania.
  • Unless your company is in a major destination for outsourcing, you will pay higher hourly rates for onshoring than for nearshoring or offshoring.
  • I would like to thank all those who helped and supported this project , and the providers with whom I worked and interviewed on-site.
  • Scand is a software development company with 20 years of experience that is based in Minsk, Belarus.
  • How much does it cost to hire offshore developers in top outsourcing regions?
  • A steady sociopolitical environment is also conducive to offshore software development.

The client portfolios of Ukrainian offshore software development companies also feature high-tech manufacturers like IBM, Boeing, and Ford. Founded in 2016, Cicada Technologies is a software development company based in Cluj-Napoca, Romania. They also provide IoT development, UX/UI design, and web development services. Founded in 2017, CodexWorks Technologies is a development company based in Cluj-Napoca, Romania with a team of 7. They focus on custom software development and web development services. Outsourcing software development to Eastern Europe is a workable solution for 40% of leaders who continue to experience talent scarcity in IT.

Great English skills and vast experience in working on international projects. Elrond – another success story for a Romanian startup comes from a highly scalable blockchain platform for distributed apps, enterprises, and the new internet economy. Like FintechOS, Elrond came up in 2017, but it has already managed to shake up the tech world with its unique technology expected to bring a 1000x improvement in global payments speed.

77% of German and 66% of Dutch businesses choose outsourcing software development to Eastern Europe according to Daxx’s own research. There is just a 2-hour time difference from other European countries, a 5-hour time difference from New York, and a 10-hour from San Francisco. There are regular direct flights to most of the major European capitals, and access to the U.S. with one layover. Most Romanian IT services and software companies are based in Bucharest, Cluj-Napoca, Timișoara, and Iasi. Keep in mind that labor makes for 50 to 70% of your outsourcing costs. Thus, each stage of the collaboration requires additional investments. First, you select the provider with research, interviews, and visits.

Webventure Development

But then, you may also consider outsourcing your development project to another European country, such as Romania. Ranks in the top 10 globally in the number of certified IT specialists — around half of whom are software developers. Microsoft is best known for its Windows operating systems, Office products, and Internet Explorer, and Edge web browsers. Millions of people use LinkedIn, Microsoft’s business social network, for making professional connections, and sales of Xbox video games continue to rise.

However, for non-tech orientated businesses, asking existing IT employees to develop software on the fly can be a security risk. Number of developersMax-min hourly ratesHackerRankTopCoderBrainbenchUkraine100,00034–641153Poland140,00056–883412Romania95,00039– Comparing the three, no country is a clear winner. Ukraine’s dynamic market and slightly lower prices make for an excellent environment for startups and product companies. Romania, on the other hand, seems to have a well-rooted expertise in fintech, while Poland touts splendid conditions for large R&D projects. To assist you in your search for a partner, we’ve compiled this list of the top software development companies in Romania. Browse descriptions, feedback, and awards to find which can best suit your company’s needs.

Romania is the easternmost country in the European Union, but the top tech companies in Romania are closely connected to the rest of Europe. For instance, Timisoara is only two hours away from Munich by air and less than three hours from London and Barcelona. This makes it possible for people looking for offshore software development in Romania to travel to and fro in a single day. That means when outsourcing web development or any other services to Romania, there will be minimal barriers in travel and communication. TechSmith started working with its Romanian outsourcing partner last year after acquiring Knowmia, a company whose apps and services for teachers were developed by Gemini Solutions. Today, TechSmith outsources mobile product development, cloud service development, and some research and development work on new platforms to Gemini.