Exploring Romania as a Top Nearshoring Destination for IT and Remote Work

Romania has become one of Eastern Europe's top IT nearshoring sites.  Being an EU member since 2007 with a consistent, rapidly expanding economy, the nation provides a safe corporate climate and compliance with European rules.  Growth is mostly driven by the technology sector, which sources claim expanded about 8% yearly from 2017 to 2021 (Eurostat, 2023).  Roughly 5.5% of Romania's GDP came from the IT industry in 2019; by 2030 it is expected to be €52 billion (nearly 10% of GDP) (Eurostat, 2023).  This strong growth and a favourable government attitude on international investment have strengthened Romania's image as a top Eastern European outsourcing centre. Working with Romanian nearshoring providers gives companies a big talent pool, cost savings, and geographic closeness, all under a European cultural and legal framework.

The Strength of Romania’s IT Talent Pool: Education, Skills, and Language

With about 192,000 software developers as of 2023, Romania has one of the largest IT talent pools in Europe (Eurostat, 2023). Eurostat figures show that the larger ICT workforce, IT and communications workers; reached 240,800 in 2023, with 82% of these workers under 34 years old (Eurostat, 2023). 

 Romania's educational system guarantees a consistent flow of technical talent.  According to the Romanian Ministry of Education (Romanian Government Publications, 2023), the country boasts 41 technical universities and many respected computer science courses.  Every year, numerous graduates with degrees in computer science, engineering, and mathematics join the IT industry.  Strong foundations in STEM education, such as the legacy of competitive programming and math Olympiads, have helped to create a reputation for technical talent.  Romanian coders are frequently praised for their solid foundation in computer science and exceptional problem-solving skills

Romanian IT experts are among the best in the world. For example, in HackerRank's programming challenges, which measure developers’ skills globally, Romania ranked 20th (HackerRank, 2020). Other studies place Romania even higher; for instance, SkillValue ranked it 3rd in the world for the quality of its programmers (SkillValue, 2021). Romanian professionals are skilled in a wide range of programming languages and frameworks, such as Python, Java, PHP, JavaScript, as well as C/C++, .NET, and mobile app frameworks. This diverse skill set enables Romanian teams to handle various projects, including business software, cloud solutions, AI, and cybersecurity.

Romania also ranks 12th globally for English proficiency in the EF English Proficiency Index (EF Education First, 2022). Many Romanians are multilingual, and most IT workers speak English well. Apart from English, many developers also speak German, French, or Italian, thanks to the country's multilingual education system and cultural connections (EF Education First, 2022). This language proficiency ensures smooth communication with Western European clients, making language a non-issue for remote work partnerships.

Romania’s ICT workforce has grown rapidly in recent years, increasing from around 140,000 in 2020 to 240,800 in 2023 (Eurostat, 2023). A notable 82% of these professionals are under 34 years old, reflecting a young and dynamic workforce that is up-to-date with the latest technologies and eager to innovate (Eurostat, 2023).

Romania's educational system provides a steady supply of tech talent. The country has 41 technical universities and many respected computer science programs (Romanian Government Publications, 2023). Each year, thousands of graduates with degrees in computer science, engineering, and mathematics enter the IT job market. Romania has a strong tradition in STEM education, including competitive programming and math Olympiads, which has helped develop a reputation for technical excellence. Romanian developers are often praised for their solid foundation in computer science and their problem-solving abilities.

Tech Ecosystem: Startups, R&D Hubs, and Government Support

Romania’s tech ecosystem is thriving, with a growing startup scene alongside a strong presence of global tech companies and research and development (R&D) centres. Several well-known tech startups call Romania home, including UiPath, a robotic process automation company that went public in 2021 and is now valued at over $35 billion (Romanian Government Publications, 2023). Other successful Romanian companies include cybersecurity firm Bitdefender and blockchain platform Elrond, both of which have been valued at over $1 billion, making them unicorns (Romanian Government Publications, 2023).

Romania is also a popular destination for multinational companies. Major tech firms such as Microsoft, Amazon, IBM, Oracle, and Adobe have established significant operations in the country. Microsoft, for example, has several offices in Bucharest and Timișoara, employing over 2,000 people, while Amazon employs over 4,000 people in three cities (Romanian Government Publications, 2023). The presence of these leading companies reinforces Romania’s position as a key IT hub.

The Romanian government supports the tech sector with various initiatives designed to boost the country’s tech capacity. For example, Romania offers tax exemptions for software developers and R&D roles, making it an appealing location for foreign companies (Romanian Business Chamber, 2023). Romania also participates in European Union innovation and research programmes, which provide funding for startups and tech projects (Romanian Business Chamber, 2023). These efforts ensure that Romania’s tech ecosystem remains innovative, attracting continuous investment and talent.

Remote Work Infrastructure and Connectivity

Romania excels in the infrastructure needed for remote work. The country is known for its fast internet and modern office facilities. Romania consistently ranks among the top countries for internet speed, placing 12th globally for broadband download speeds in recent rankings (Eurostat, 2023). Major cities like Bucharest, Cluj-Napoca, and Timișoara have excellent internet connectivity, with widespread access to fiber-optic networks, ensuring remote teams can work smoothly without interruptions.

Romania also has some of the fastest mobile internet speeds worldwide, with 5G services now available in major cities. According to recent reports, Romania ranks 2nd globally for mobile download speeds and 1st for upload speeds (Eurostat, 2023). This means that even mobile workers or those using secondary connections can stay connected during work hours.

The country also offers modern office spaces and coworking hubs, particularly in cities like Bucharest, Cluj-Napoca, and Timișoara. These spaces are equipped with the latest technology, making it easy for businesses to operate efficiently. Many coworking spaces in Romania are designed for tech professionals and startups, offering reliable internet, meeting rooms, and flexible working hours, which are ideal for businesses setting up remote teams (Romanian Business Chamber, 2023).

Time Zone and Geographic Advantages
Romania’s time zone is an important advantage for European businesses. Located in the Eastern European Time Zone (EET), Romania is just one hour ahead of Central European Time (CET) and two hours ahead of UK time. This makes it easy for teams to work with clients and partners across Europe, as Romanian teams can collaborate during the same hours as most Western European clients, reducing scheduling conflicts.

For U.S.-based companies, Romania’s time zone offers an additional benefit in creating a "follow-the-sun" development model. With a 7-hour time difference from New York and a 10-hour difference from California, Romanian teams can work on projects during U.S. off-hours and deliver results before the U.S. teams begin their workday (Romanian Business Chamber, 2023). This flexibility makes Romania an ideal location for 24-hour development cycles.

Romania’s location also makes it easy for clients to visit their remote teams. Major international airports in cities like Bucharest, Cluj-Napoca, and Timișoara make travel to Romania quick and easy. Its proximity to Western Europe allows for affordable travel, with flights from cities like London, Paris, and Berlin taking only a couple of hours (Romanian Business Chamber, 2023). Additionally, as Romania is part of the EU, citizens from most EU countries and several other nations can travel without the need for a visa.

‍Cost-Effectiveness: Salary and Operational Cost Advantages

Romania is an affordable destination for IT nearshoring, with salaries much lower than in Western Europe or the U.S. For example, the average salary for an IT professional in Romania is around €1,600 per month, much less than in countries like Germany, the UK, or the U.S. (Eurostat, 2023). Despite these lower wages, Romanian IT professionals are highly skilled, and the country is known for offering excellent value for money in tech outsourcing.

In addition to lower salaries, operational costs in Romania are also much lower than in Western Europe. Office rents in cities like Bucharest and Cluj are a fraction of the cost of similar office spaces in cities like London or Paris. Romania’s cost of living is among the lowest in the EU, making it an attractive choice for companies looking to cut overall operational expenses (Romanian Business Chamber, 2023).

Romania’s favourable tax policies also make it more appealing. For example, software developers and R&D employees in Romania are exempt from income tax, which significantly lowers the cost of hiring local talent (Romanian Business Chamber, 2023). The country also offers tax incentives for businesses that reinvest in new technology or set up operations in designated tech parks (Romanian Government Publications, 2023). These policies make Romania an even more attractive option for businesses seeking efficient growth.

Cultural Compatibility with Western Companies

Romania offers excellent cultural compatibility with Western businesses. Romanian professionals are known for their strong work ethic and professionalism, which aligns well with Western business practices. The business culture in Romania is similar to that of Western Europe, with a focus on punctuality, transparency, and clear communication. Many Romanian IT professionals are also experienced in working with international clients, having collaborated with businesses from Western Europe and the U.S.

Romania's high level of English proficiency further enhances effective communication. According to the EF English Proficiency Index (2022), Romania ranks 12th globally for English skills, making it easy for clients to communicate with their Romanian teams without language barriers. Additionally, many Romanian professionals speak other languages, such as German, French, or Italian, which helps them work with clients from various countries.

Romanian developers are also familiar with agile methodologies, collaborative tools, and global best practices in software development, making them great partners for remote teams. Their experience with international companies ensures they can easily integrate into global workflows, reducing any cultural or operational challenges (HackerRank, 2020).

Summary of Benefits for Potential Clients

In conclusion, Romania offers several key advantages for businesses looking for a nearshoring destination for IT and remote work:

• A skilled talent pool with expertise in a wide range of technologies, supported by a strong educational system.
  
  
• A vibrant tech ecosystem, with successful startups and a solid presence of global tech companies.
  
  
• Excellent infrastructure for remote work, including high-speed internet, modern office spaces, and a growing number of coworking hubs.
  
  
• A convenient location within the EU, with a time zone that aligns well with most European countries and easy travel for face-to-face meetings.
  
  
• Cost-effectiveness, with competitive salaries, lower operational costs, and favourable tax policies.
  
  
• Strong cultural compatibility with Western companies, ensuring smooth communication and integration into global teams.
  
  

By nearshoring to Romania, companies gain access to top-quality IT talent at a fraction of the cost of Western Europe or the U.S., while maintaining high standards of quality and professionalism. Romania’s combination of skilled talent, cost savings, and smooth collaboration makes it an ideal destination for businesses seeking to scale their IT operations in a cost-effective way.

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References

• Eurostat. (2023). ICT professionals in the EU – Statistics on employment and education. European Commission. Retrieved from https://ec.europa.eu/eurostat
• EF Education First. (2022). EF English Proficiency Index 2022. EF. Retrieved from https://www.ef.com/epi
• HackerRank. (2020). 2020 Developer Skills Report. HackerRank. Retrieved from https://www.hackerrank.com
• SkillValue. (2021). Global Developer Skills Report. SkillValue. Retrieved from https://www.skillvalue.com
• Romanian Business Chamber. (2023). Romania: Business-friendly policies and tax incentives. Romanian Business Chamber. Retrieved from https://www.romanianchamber.ro
• Romanian Government Publications. (2023). Romania’s support for the tech industry. Romanian Government Publications. Retrieved from https://www.gov.ro

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