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IT Nearshoring in Romania

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Many companies are looking for a cheaper outsourcing option that offers high-quality services and accommodations. Nearshoring in Romania is one way you can achieve this. There are plenty of benefits to this strategy, including cost-effectiveness, a better workforce and opportunities to visit for those who would prefer to do business face-to-face.

State of the IT industry in Romania

Digital Romania is a local initiative that aims to promote the development of the IT&C sector by using digital technologies and techniques. There is an association for Romania that has plans to increase the IT&C industry’s part of GDP to 10% by 2025. Currently, it is only about 6%. In order to achieve this goal, ANIS has called for authorities to extend fiscal privileges and open up the public sector to digitalization and private projects by favoring interoperable (API First) and cloud-based public infrastructure. In exchange for this, ANIS plans to create the biggest information technology hub in Central and Eastern Europe by value.

This is a great opportunity for companies looking for a software development outsourcing destination. IT or business process outsourcing companies in Romania have become very popular amongst businesses looking for a cheaper option that offers high quality services and accommodations.

In today’s global marketplace, there is an increased need for organizations to find new ways of reducing operational costs while maintaining their competitive edge. This has led more companies than ever before to seek out nearshoring options. There, they can hire talent from overseas but have them work remotely in a nearby country.

The following are some reasons why you should consider outsourcing services in Romania, as well as some downsides of this practice.

Pros and cons of nearshore software services in Romania

Pros:

Cost effectiveness

The cost effectiveness of software development nearshoring in Romania is an important reason why this type of outsourcing became popular in the Western Europe. Nearshore outsourcing software development solutions allows companies to reduce their costs due to not having to move an entire workforce internationally. Instead, they can maintain a lot of local operations while investing in offshore office space and services.

Better workforce

Companies will be able to find a better workforce when nearshoring in Romania. The Romanian labour market has a pool of talented individuals who are skilled and educated. They also have the right attitude and team spirit to make them desirable as employees. Whether it’s business processes, software developers, or a dedicated team for customer service, you’ll be able to find people with an innovative approach.

Knowledge and skills availability

The knowledge and skills availability in the Romanian software development services market is another reason why nearshore outsourcing is popular in the industry. The Romanian nationals are educated with a wide variety of skilled professionals who will be able to provide the right expertise for any given project. They also have a great attitude that gives them an advantage in today’s competitive jobs market. Today’s businesses appreciate dedicated teams with great language and communication skills, affinity for nearshore projects, and a full-stack skillset, all with the added benefit of cost reduction.

Good infrastructure

The infrastructure of Romania can also help improve nearshore software development success for companies. For example, the country has a high-speed internet infrastructure covering more than 91 percent of the population. The telecommunication industry also plays an important role in delivering efficient services with good speed and performance, allowing the delivery of projects just in time at affordable rates.

Cons:

The company must be willing to sacrifice some degree of control over the outsourced business

The company must be willing to sacrifice some degree of control over the outsourced business in order for nearshore outsourcing in Romania to work. The country is a good option for companies that want to improve their existing IT support by hiring a team of highly qualified Romanian professionals who can provide a customised service. Companies, for example, will be able to save even more money on services if they are willing to take on an offshore partner who can provide language translation and technical knowledge transfer.

Some communication difficulties may arise

Some communication difficulties may arise when nearshoring in Romania, but these can be easily overcome. For instance, companies that are willing to hire the right offshore partner who can provide language translation and technical knowledge transfer will have better results. It is also important to find the right Romanian professionals with the desired expertise for any given project. This way you can work around any language barriers that may occur.

Low labour productivity

The low labor productivity is one of the few disadvantages of nearshoring in Romania. To ensure that projects and deadlines are met, Romanian nationals who work in nearshore outsourcing must be highly motivated and disciplined. Otherwise, the labour will not keep up with international standards, which could affect productivity in the long run.

As you can see, nearshoring in Romania has its benefits. If you are looking for an outsourcing destination that is not too costly but provides high quality services, then this might be the right option for your business. Still, if you want the perfect solution, make sure to check how nearshoring in Poland can bring the best results.

 

Resources:
https://www.romania-insider.com/itc-industry-association-share-gdp-2025

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