Software development in Romania: a market overview
Romania has established itself as a prominent hub for software development outsourcing. With more than 202,000 developers in Romania as of 2024-25 review, the country has many experienced tech experts who can solve the most complicated technical problems. Bucharest, Cluj-Napoca, Iasi, and other Romanian IT centers are home to companies that provide quality software development services to businesses from the US and EU.
When considering software development in Romania, it's crucial to examine the Romanian ICT market, the tech talent pool, key tech hubs, and the engineering capabilities of local IT vendors. Understanding these aspects will help you determine if this location aligns with your tech needs.
Romania's IT sector
The technology sector in Romania has been experiencing steady growth, primarily fueled by a highly qualified workforce. Notably, the ICT sector in Romania contributes around 6.2% of the country's GDP. By 2026, Romania's ICT exports are predicted to reach $9.3B, a significant increase from $8B in 2023. The country's exports have grown by 14.6% since 1999, on average at 3.7% yearly.
Some notable hubs in Romania, mainly focused on IT and outsourcing, have contributed to the growth of software development in Romania. The country's EU membership in 2007 played a significant role in catalyzing its IT branch, attracting global giants such as Huawei, Hewlett-Packard, Ericsson, and Adobe to set up their operations here. Furthermore, Microsoft's regional department operates two global business support centers in Bucharest and Timisoara.
Strong position as an outsourcing destination
Romania's strong position as an outsourcing destination is evident from its ranking of 30th in the Kearney Global Services Location Index 2023. The GSLI assesses the attractiveness of countries as offshore locations for business services, taking into account factors like labor and infrastructure costs, available skills, quality of services provided, infrastructure, business environment, and political and social risks. Romania scored higher than many European countries, including Ireland and the Netherlands, further solidifying its reputation as an attractive destination for software development in Romania. This recognition has led companies from various industries, such as telecom, manufacturing, and e-commerce, to establish R&D centers and offices in Romania.Key Technical Skills and Emerging Technologies
Among the major players making their mark in the country, Oracle stands out as the largest employer, boasting a workforce of 4,000 employees. Furthermore, Adobe Romania shines as Adobe's most prominent R&D Center in the EMEA region, showcasing the company's commitment to innovation in Romania. Meanwhile, Amazon's Development Center in Iasi holds significant importance as the company's first-ever R&D center in Eastern Europe, solidifying Romania's position as an attractive destination for global tech giants seeking to harness the country's talent and expertise. The presence of multinationals further reinforces the country's reputation as a reliable outsourcing hub, which continues to offer abundant resources and skilled professionals for various software development projects.
These major tech players' presence in Romania showcases the country's strong tech ecosystem and its ability to nurture cutting-edge research and development. It also underscores the availability of skilled tech professionals and the conducive environment for innovation and technological advancement. As these global tech giants invest in Romania, it further solidifies the country's position as an attractive destination for software development and technology investments. This enhances Romania's reputation as a reliable and competitive player in the global tech industry.
To support the continuous growth of the IT industry, the Romanian government actively supports software development in Romania. It implements measures such as exempting software developers from the 16% income tax and introducing various incentives to bolster local IT companies. This has fostered the growth of a digital economy and created a business-friendly environment. As a result of these positive changes, foreign direct investments in Romania rose to €10.7B ($11.64B) in 2022.
Software development companies in Romania
Although small-sized vendors currently constitute approximately 90% of all IT companies in the Romanian tech market, these companies tend to grow both in number and size. In 2023, the number of large vendors employing 250+ professionals in Romania has reached 42. Among these, 11 companies stand out with a workforce exceeding 1,000 employees; two companies have surpassed the 10,000-employee mark.
This steady expansion in the number and size of IT companies demonstrates the potential for further growth and development in the Romanian tech industry. There is also an increase in the variety of services offered by software development companies. Romanian companies' most common software development services are web development, mobile app development, ecommerce development, user interface design, and IT strategy consulting.
