We’ve been talking about offshoring for a while now, and the first thing that comes to mind when we say this word is “India” or “China” or any other country with an abundant workforce and low costs. Offshoring is the activity of moving one company’s processes or some services in another country. The most common offshoring place in the IT industry is India. Its substantial workforce and very convenient prices made India the mecca for IT offshoring. But like all things in life, there are also significant disadvantages to it and lately, more and more companies choose to search for some rather customised approaches, closer to home.
The main pain for offshoring to India is the geographic location. It is so far away from Europe and the US, that any travel arrangement there would take way too much time off anyone’s already overloaded schedule. And let’s not forget about the time difference, which can be a very inconvenient factor if you’re actively involved in the project. And of course, the cultural differences and language barriers make it even more difficult for western companies to work with them.
However, all hope is not lost, on the contrary, there are better options, much closer to home. Many Eastern European countries, including Romania, are an excellent alternative, especially when it comes to technical skills, work culture and in general, ease of communication. This practice is called “nearshoring”, because of the geographical proximity. It takes about 2-3 hours to travel from Western to Eastern Europe, and the time zones are very close (1-2 hours difference). Financial-wise, they are pricier than India, but far more experienced and results-oriented, in other words, you will get your money’s worth without much hassle, mainly because of the shared European culture and a similar academic approach.
Romania is one of the best choices when it comes to delivering high-quality IT solutions, at reasonable prices. With a total workforce of about 8.4 mil., about 100 000 of them work in the IT industry, reads a study from the National Statistics Institute. Due to the academic environment, strongly inclined towards a technical approach, many of Romania’s students choose to opt for a career in this industry. And of course, the financial stability that this industry is providing is always a decisive factor.
There are many more reasons and advantages to picking a Romanian software development company for nearshoring, but let’s take a look at the main ones.
1. Skilled Professionals
With a great talent pool, Romania’s IT professionals pride themselves with having extensive knowledge in this field, and value high-quality work over anything else, same as western European professionals. With an educational system that focuses on exact sciences such as mathematics, computer science, physics and engineering, most major cities in Romania like Cluj, Oradea, Timisoara, and Bucharest, have developed into vibrant IT hubs. The local universities play a big role in this because of their high academic standards, and an ambitious, results-oriented mindset that gets passed on to its students.
So, if you’re considering nearshoring to a Romanian software development company, rest assured, your projects will be carefully completed with the highest level of professionalism.
2. Close Cultural Affinities
Having a similar culture as Western countries, this is one of the places where Romania scores the most points. With a perfect mix between high levels of technical proficiencies in leading-edge technologies and soft skills, excellent communication and language skills, places Romania way ahead of other offshoring countries.
One of the most important aspects of any work-related relationship is having good and constant communication with one another. And this cannot be possible without breaking down the language barriers, cultural differences and work styles. Romanians are taught from an early age, at least one foreign language. Usually, the most commonly learnt language is English, followed closely by French, German and Italian. The biggest plus here is that when working with a Romanian team, the language barrier is not a problem, and so it automatically facilitates the communication between the client and the team.
3. Geographic Proximity
The distance between Romania and Western Europe is relatively small. In terms of travel time, Romania is located at a mere two to three hours flight from the UK, and even less from Germany or The Netherlands. Probably the biggest advantage in terms of geographical positioning is the small difference in time zones. With that being said, Romania is two hours ahead from the UK and Portugal, and one hour ahead of Germany, The Netherlands and the rest of Central and Western Europe.
When working with an offshore team, one of the most crucial aspects to take into consideration is time. It is often ineffective to establish a decent flow in communication with someone who is working while you’re sleeping and vice-versa. That’s why it is essential to have someone, in this case, a team of people, with whom you’re on the same page time-wise, can share your work hours and can jump into a quick meeting to update you about your project’s status.
Since 2007, Romania is a member of the European Union. By being under the EU umbrella Romania is granted certain economic, legal and fiscal advantages that are difficult to obtain offshore. Travel costs and time between EU countries are cheap, fast, and not dependent on visas and other time-consuming formalities. Also, this dimension of stability is one that weighs the most when it comes to deciding on nearshoring projects.
Looking at another perspective in searching for stable grounds, we cannot help but mention the cultural and traditional heritage that Romania possesses. It’s not only a perfectly safe country to visit and discover its natural wonders and traditional beauties, but also more and more foreigners choose to study and move here permanently. According to a study done by SafeAround, Romania ranked on the 29th place, well above the UK (35), Belgium (48), USA (49), France (56) and Portugal (68) in terms of overall safety. Even HRH Prince Charles of Wales loves it here, and it’s no wonder why. Romanians are considered amongst the friendliest and the most welcoming people in Europe. And with this being said, we can transition to the next reason why working with Romanians will bring you the satisfaction of a job properly done and the respect that it deserves.
5. Entrepreneurial Mindset
Romania is considered to be one of the fastest-growing economies in the European Union, with an annual economic growth rate of about 4%. The IT industry alone accounts for more than 6% of the country’s GDP, and it’s growing every year. The start-up scene is flourishing, especially in Romania’s major cities, like Bucharest, Cluj-Napoca, Oradea or Timisoara. This can only mean that the highly skilled IT professionals are doing a more than satisfying job, and it is due mainly to their innate entrepreneurial mindset. Which is one of the most important factors to take into consideration when initiating a new project.
When opting to work with a team of Romanian IT specialists, you will discover their rather collaborative approach as opposed to a process-driven one. When it comes to projects, they take ownership of deliverables with a high level of commitment to outcomes and the overall relationship with the client. Having that in mind, they are eager to find the solution to any software requirements and are more than happy to assist the client with writing the specifications to the project.
Ultimately, when choosing to work with a Romanian software development company, instead of getting the “IT Platoon” of “Yes, Sir” kind of people, you will get an autonomous team, proactively involved in the project, who will act as a department within your company.
6. Excellent Value for Money
The Romanian IT workforce is very reasonably priced. Compared to India, it is a bit more expensive, but as nothing comes free or easy in life, so it is the case with offshoring software development projects. India may offer cheaper prices, but those as well come at a cost, and that cost is usually quality. And let’s not forget about the constant delays that come from working with a team on the other side of the globe.
Having a western work culture, Romania is starting to look really good in terms of nearshoring opportunity. Delivering high-quality projects at a fraction of the cost compared to anywhere in Western Europe, Romania is positioning fast as one of the most attractive destinations for your nearshoring needs.
Did we mention that Romanian IT Specialists benefit from tax incentives from the government?
This fiscal practice aims to encourage research and development activities. Thus, salary income derived as a result of carrying out research and development is exempt from Romanian income tax.
Just think about it, western-quality work and fewer management hours dedicated to the coordination, analysis and control of the offshoring team.
7. Data protection laws
Being under the European Union’s laws, Romania adopted and implemented the General Data Protection Regulation (GDPR) in all its industries and processes. This means that every project containing personal data information is carefully handled by teams of people who understand and implement this European jurisdiction properly.
Altogether, Romania, amongst other Eastern European countries is getting more and more attractive as a nearshoring destination. And the main reason for this is its vibrant western-influenced culture, the extremely favourable proximity to Western Europe and highly skilled specialists, always ready to take on new challenges. So, you will not only get western quality work done with entrepreneurial like-minded teams of people, but you will also get great value for your invested money. And you can get all of this, under the comfort, safety and benefits that the European Union grants its members.
Hello, we’re Qubiz!
Qubiz has been the technological partner of choice for many Western European companies in countries such as The Netherlands, The UK and the DACH region. We’ve worked with both big and small companies from different industries and managed to successfully deliver cutting edge IT solutions for businesses that are on an ascending path towards innovation.
Qubiz can act as a one-stop-shop, by providing services that cover the whole application lifecycle, including functional design and consulting, software architecture design, UX/UI design, software development, QA, and finally maintenance.
Need more information? We’ve got you covered! Just take a look at this guide we’ve put together to help you choose the right course of action for your nearshoring needs.