Outsourcing - Why, When and Where?

February 20, 2019

Digitization is changing the business world. Entire industries are being disrupted and reinvented as we speak. In order to thrive in this dynamic world, companies must be agile and take advantage of digital opportunities at every turn.

Success in today’s business environment is driven by innovation and “out of the box” thinking. With this in mind, more and more companies choose to outsource services and reach out to experts in different areas. This allows businesses to increase their efficiency and to focus on their niche while still getting support from specialists.

Why outsourcing is the way forward

Outsourcing has gained a lot of ground over the last few years and it is expected to continue to grow and gain popularity across different sectors. Amongst the most commonly outsourced functions are the ones pertaining to IT. More and more companies looking for cost-efficient solutions choose to develop their software overseas. And I say cost-efficient because lately the focus has shifted to “quality over quantity”, meaning that cutting costs is no longer the main reason for decentralizing activities. Sure, outsourcing allows for significant cost savings, but it also means improved core business focus and flexibility in use of resources, access to a world-class talent pool, and the list can continue.

Why Romania is the new outsourcing hotspot

The go-to ITO destination for companies looking for high-quality, yet affordable work is Europe. More exactly, Central and Eastern Europe (CEE) are increasingly popular options when it comes to outsourcing software development.

The majority of countries that fall under the CEE region are ranked amongst the top rated destinations for outsourcing. Given their reputation for high quality work, advanced technical skills and proficiency in English, this comes as no surprise. Countries such as Ukraine, Poland and Romania are highly ranked on HackerRank and TopCoder.

     1. Highly Qualified IT Professionals

Romania is said to have one of the largest populations of certified IT specialists in Europe. With a pool of about 100,000 professionals in various IT-related niche segments, it ranks 1st in Europe and 6th worldwide.

One of the main reasons for this is the Romanian educational system. Not only does it do a great job in preparing the next generation of software developers, but it also provides the necessary environment for labor market integration.

Since the IT sector is one of the highest paying in Romania, more and more programmes that strengthen the relationship between companies and universities are being implemented every year. IT companies organize internships and workshops in schools and universities as a way to attract top talent.This of course benefits both parties, as students get firsthand know-how from IT professionals.

As for the education system itself, some say the standards of academic excellence and the rigour of the curricula are reminiscent of the country’s history of communism, special importance being attached to science, mathematics and technology.

More than 60% of the people working in the IT sector are computer science majors.

     2. Cost-Efficiency

Let’s talk money. Eastern Europe is known for its competitive prices, so if you’re looking to cut costs and still get high quality services, look no further.

As opposed to outsourcing to India, China or the Philippines, prices here fall under the moderate range. But let’s be honest, quality work costs money and outsourcing to the cheapest bidder has its own type of price.

We’re talking from experience when we’re saying that hiring a team from a bargain destination is like playing the lottery - the odds are not in your favor. Have a look at the following article presenting some statistics on the matter: http://newobserveronline.com/95-of-it-engineers-in-india-incapable-new-report-reveals

That being said, you can still save money and get great results. Romanian developers might not be the cheapest on the market, but the price-quality ratio justifies the investment.

Outsourcing is no longer all about cutting costs. As mentioned before, during the past few years there has been a global shift towards cost-effectiveness. Cheap labor is not compatible with an innovation driven culture of quality.

Romania is an ideal destination for clients looking to balance quality and cost.

     3. Multilingual Communication

Romania’s multilingual culture is another one of the aspects that make it one of the top destinations for outsourcing.

According to the EF English Proficiency Index, Romania ranked #16 in the world with a high English language proficiency. Besides being proficient in English, Romanians are also known to speak French, German, Italian and/or Spanish.

Foreign languages are taught in schools, meaning that by the time they graduate college, most Romanians are fluent in at least two languages.

Communication is vital when establishing any kind of business relationship. Successful communication leads to successful projects, therefore language proficiency should be one of the main reasons affecting the destination for outsourcing services. This ensures that both parties are on the same page and that all goals, expectations and requirements are clearly stated and understood.

The vast majority of Romanian developers are proficient in at least one foreign language, meaning that it comes natural for them to communicate clearly and effectively with clients abroad.

     4. Culture and Mentality

Apart from the language barrier, another common issue affecting business relationship is related to cultural gaps. Differences in cultural background, values and traditions might seem harmless at a first glance, but they can have a notable impact on an outsourcing engagement.

Romania shares a lot similarities with the western culture, making it a great choice for companies in Europe and USA looking to outsource.

      5. Business Environment

Romania is widely recognised as one of the top quality ITO providers in Europe. With a stable IT sector growth rate, it has attracted investors all over the world, especially after joining the European Union in 2007.

The presence of global high tech companies such as Microsoft, IBM, Oracle, Intel, Amazon, Emerson and National Instruments confirm that Romania is nothing less than a hidden outsourcing gem. It’s no wonder that Romanian is the second most spoken language in the Microsoft offices.

     6. Blockchain / ETH

Romanians have been part of the blockchain space since its beginning by contributing to the core development of projects such as Bitcoin, Ethereum, Cardano, Cosmos, Zilliqa and Aion. Their contribution includes launching their own projects (e.g. IPSX, Elrond, Sether) and supporting tools like the Moonlet Wallet, as well as building blockchain developer communities.

Having experienced communism not so long ago, it comes as no surprise that Romanian devs jumped right into a censorship resistant technology. This is one of the reasons why Romania is one of the most concentrated resources for blockchain development.

Conclusion

Romania has gained its reputation of being a great ITO destination thanks to its major tech hubs, large talent pool and affordable prices. Romanian developers are highly skilled in a wide array of technologies, multilingual and open-minded. If you’re looking to work with passionate and professional individuals who are known for their “out of the box” thinking and ability to deliver great results, you’re in luck. You have reached your destination.


Looking for highly skilled devs? Let’s get in touch.

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