Romania — a top favored software outsourcing destination-Part 2

Reasons to Consider Software Outsourcing to Romania

LiftUp Solutions
Mar 29 · 5 min read

By Amalia Bădescu, 29th March, 2021

Since adhering to the European Union, Romania has shown great potential for developing its innovation capability. With 19 million citizens, it has the seventh-largest population amongst the EU member states. The IT sector is now growing rapidly after global companies have established engineering operations and centers of excellence with Amazon, IBM, HP, Microsoft, and Oracle leading the pack. These reconfirm Romania’s position at the top of the most dynamic IT hubs in the world.

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Because Romania’s labor cost is still considered a competitive advantage, our country is still on foreign investors’ map of high returns on investment. Romania has more IT engineers per capita than the US, India, China, or Russia. When it comes to ITO, Romania is first in Europe and sixth in the world, in terms of the number of certified IT specialists.

All the trends lead experts to believe that there will be an increase in the investor’s “appetite” for the IT start-ups. In 2020, cloud technologies remained the focus of companies across the globe. It is believed that microservices architecture will gather even more popularity, continuing to replace legacy architecture. Hence, cloud-based integrated solutions and online platforms will further enable Web, Mobile, Business Intelligence, Artificial Intelligence, and IoT components.

The Romanian tech unicorn and other successful tech startups

With vital innovation hubs grown in the historical education centers of Bucharest, Cluj-Napoca, Timisoara, Oradea, Brasov, Iasi, and Oradea— and startups popping up everywhere in the country’s major cities — the ecosystem has been supported by one of the fastest-growing ICT workforces in Europe,

In March 2018, UiPath, a startup founded in Bucharest and now headquartered in New York, managed to raise $153 million from international investors, reaching $1 billion in valuation. After a new 750 million series raised in February 2021, UiPath has now reached $35 billion in valuation. Following in the footsteps of UiPath, Romania now has the great potential to become one of the most vibrant innovation hubs in Central and Eastern Europe.

Cyscale, a Romanian startup that develops security solutions for cloud data, has raised €350K in less than four hours after the company listed on SeedBlink, the largest crowdfunding country-wide platform in Southeast Europe. Overseas companies also often have “Romanian DNA.” Last year, the European Investment Fund and Romania’s ministry for European Fund signed an agreement to make €40million available to entrepreneurship accelerators and seed funds for innovative Romanian companies. Mr. Vadan reckons this “will probably change the investment landscape.”

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For example, Romanian startup Typing DNA, a behavioral biometrics company protecting online users’ identity-based on how they type on their keyboards, recently raised €6.2 million in Series A funding to create ‘typing identity.’ The company was selected as one of the top 50 innovative startups in Europe (EUTOP50) and is a Techstars NYC alumni, used by millions of users worldwide.

Romania as a regional tech aggregator for business.

Romania was designated among the fastest growing economies in the EU in 2019, with an estimated GDP growth rate of 6.4%. It is emerging as one of the best countries in Europe for startups and investors to join forces. Actually, Romania is seen among the top European software outsourcing destinations by most West European countries and the USA.
Romania is currently registering the best results for Internet Connectivity, due to the utilization of high-speed broadband and the vast availability of high capacity fixed networks, especially in the urban areas.

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49% of the Romanian households have subscriptions to fast broadband services (at least 100 Mbps), placing Romania in 5th place in the EU regarding Internet speed.

Geography is no longer a barrier to opportunity. In the past years, we saw more Romanian founders get into international competitions and win prizes from giants like Facebook, Google (Mondly Languages — FB App of the year, and best of 2017 on Google Play), or Microsoft (Dacobots). We also saw more awareness about the investors and accelerators from New Europe 100 or Central European Startup Awards (Nodmakerspace, Spherik, or Catalyst). This reinforces Marius Ghenea’s (Partner 3TS Capital) statement that

This is based on the fact that, at this point, Romania is the top market in the SEE region in many business segments, already exceeding Hungary and the Czech Republic, and is well placed geographically but also geopolitical (including increasingly close cooperation with the US on the economic side). Another important thing to mention is that we already see more tech development centers in Romania, not just Bucharest — these are cities with large university centers and good national and international flight connections — with key European hubs.”

Resilient and dynamic, the Romanian IT landscape proved its driving force in the last decade by rapidly recovering from the setbacks of the economic crisis, and will continue to thrive and increase over the following years, earning a noteworthy presence as an excellent and trusted technology partner.

In today’s digitally transformed world, where software and mobile development are imperative to the growth and success of a business, developers have become an asset to businesses and the new development talent hunting is getting fierce. With LiftUp as your technology ally, you will find reliable development talent that will help you focus on driving technology initiatives, complete your projects, evolve, and outpace your competition.

Digital Nourishment

Digital news -IT especially, facts, stories and food for thought

Digital Nourishment

Digital news -IT especially, facts, stories and food for thought from the passionate people at LiftUp Solutions, delivering custom-made online solutions for companies that want to grow and have success in the digital era since 2016.

LiftUp Solutions

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LiftUp is an IT consulting company that delivers custom-made online solutions for companies that want to grow and have success in the digital era.

Digital Nourishment

Digital news -IT especially, facts, stories and food for thought from the passionate people at LiftUp Solutions, delivering custom-made online solutions for companies that want to grow and have success in the digital era since 2016.