Attractive Price vs. Performance Balance
Romania is not the lowest cost location for outsourcing, but when performance is added to the equation it can be highly competitive. Customer surveys show that costs and pricing only represent a fraction of the decision criteria for locating offshoring projects. Previous sector experience, technology expertise, quality of the proposal, solid procedures of financial reporting and coordination systems are some of the criteria that decide in favor of Romanian companies.
Technical and sector specific skills at best practice
Romania cannot hope to rival much larger countries such as India, China and Russia in terms of breadth of expertise across application development. Nevertheless, Romanian companies often excel in use and development of new technologies and offer strong software development methodologies and processes. Romanian IT services companies have been involved in projects on the internal market that addressed very specific vertical segments or niche technologies. Turning on the international market, these companies hope to leverage turn-key software applications and customization expertise gained in, among others, public sector, utilities, education and finance sectors.
Ability to understand and satisfy client needs beyond basic technical requirements
It is a common perception that Eastern European countries, Romania included, are not able to compete with “classic” offshoring destinations in terms of number of people and costs.
However, companies with experience of outsourcing to Eastern Europe point to a number of advantages that the region offers for more complex or business-critical engagements. Surveys indicate Romanian development companies’ customers have experienced particular good understanding of their requirements and business needs beyond those set out in the RFP or project specs.
Cultural Fit, Language Skills and Similar Mentality to US/ Western Europe
Geographical proximity to Western Europe is clearly common to all developers in the CEE region, but Romania has a cost advantage compared to Central Europe while its membership of the European Union differentiates it from most of Eastern Europe, enabling Romanian-based providers to more easily visit or deploy staff to client sites both within the EU and without.
An area in which Romania is regarded as particularly strong compared with other countries in Eastern, or even Central, Europe is in the language skills of both management and technical staff. Romania boasts one of the highest rates in CEE of participation in language classes at secondary school level. Language proficiency among the adult population is similarly high. In addition to a significant proportion of the labor force having a high degree of competency in English, there is widespread knowledge of other European languages, most notably French, but also Italian and German.
Visit us back for the 3nd part of the article, with following topics:
• Geo-distribution of the Romanian IT&C industry
• Evolution of main cities and companies
Source: Country Profile, published by romania IT
romaniaIT is a public-private initiative set up in 2006 by a group of stakeholders that included ministries, industry associations and companies interested in promoting the national IT industry abroad. The new brand was internationally launched in March 2007, at CeBIT Hannover, the most prominent IT&C fair in Europe. romaniaIT is governed by a Sectorial Branding Committee, in which the following organizations are members:
MECMA – Ministry of Economy, Trade and Business Environment