New Cluj ITC Structure
Formerly known as the 1st hardware centre in Romania, Cluj-Napoca went through massive changes during 2012. The disinvestment strategies of a gigantic Telecom Corporation and the latter general economic landscape meant a 40% decrease of total market value, but also let software development win market shares. Today, software development holds 18% of the total local market expressed in net revenues, against 6% recorded in 2009.
Top Business Partners
A key growth factor for Cluj-Napoca is the set of selected partners that the business community attracts year by year. Due to a specific mix of cultural traits, diverse ethnical presence (Romanian, Hungarian and German) and elite academic institutions, the city has become a preferred destination for outsourcing and offshoring.
Germany is #1 Partner and Investor in the software development sector of Cluj-Napoca. “Cultural proximity, language skills, working ethics and well established socio-economical leverages with the German business community are the foundation for the good cooperation.” Declares Mr. Levente Szélyes – CEO, Codespring and he continues: “On top of that, Germany is Europe’s #1 ITC market and informally nominated Europe’s Silicon Valley having diverse industries and a cultural attitude towards performance and diligence”. The search for reliable partners and creative talent make Cluj-Napoca a healthy choice.
United Kingdom is the second largest ITC partner for Cluj-Napoca, closely followed by USA investors and customers. Netherlands partners have also a noticeable presence and have consistently promoted the idea of continuing strategic partnerships with Cluj software professionals. Finland and fellow Scandinavian countries put their mark on the city’s ITC progress.
Growing ITC Talent Pool
The privilege of hosting 11 Universities in Cluj-Napoca, delivers about 1000 ITC graduates per year. In partnership with the corporate community, many R&D projects are being conducted. The mind-set for innovation and personal contribution to assigned projects is being shaped since the early stages of the profession.
As one can observe on the table above, companies hired more in 2011 compared to the years before. The same trend was noticed in 2012. Part of the 55% growth recorded on the software employment market of Cluj-Napoca in 2011, is due to the changes of the work regulation. Today fewer professionals are working as independent authorized practitioners, but the option is still a good choice.
Sourcing Strategies for 2013
In 2012, Romania has reached pole position in Deloitte’s CEE Technology Top 50. In the same time, Jones Lang LaSalle allowed the 9th rank in the Top 10 Outsourcing Destinations Globally. The key driver proves to be the added value that most Romanian providers manage to bring on the table.
Recent deals and agreements strive to fine-tune resources, costs and expected business impact in order to reach the best results. Whether we speak about staff augmentation, consulting, managed services, cloud-based outsourcing, offshoring or partial outsourcing, Cluj-Napoca ITC community constantly readapts to evolving needs. We estimate that 2013 will be a year of growth, profit restoration and redefinition of Cluj-Napoca’s strategic posture on the ITC map.
This report was provided by Tünde Székely, Publication Chair Romania of the General Council of the German Outsourcing Association.