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Why Romania?
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These days the term of outsourcing is mostly used as a replacement of Offshore Outsourcing, and it's most prominent in the IT industry. IT companies all over the world have searched for a way to relocate parts of their business process using IT and human resources in other parts of the world where the costs are lower and development perspectives better.
Outsourcing to Romania is now a solution synonymous with flexibility and reliability. With a high number of IT certified specialists and a developed IT business infrastructure, Romania becomes the best solution for quality business process outsourcing.
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Outsourcing to Romania |
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| Professional and reliable IT services at any levels |
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According to a global IT IQ report made by Brainbench, Romania dominates Europe with more than 16,000 certified specialists. The research places Romania rank 6th in the world and 2nd in Europe in professional competence and intellectual training.
Companies like Microsoft, Adobe, Oracle, IBM have understood the opportunities of opening local production facilities and research centers in Romania, and in many more hi-tech companies around the globe are planning to open local representations here
The past few years have seen a significant growth in the IT outsourcing area, with companies of all sizes from Western Europe and United States finding partners in Romania for software production.
Romania is considered to become the next India for IT talent. More and more, business developers all over the world consider Romanian programmers' strong "understanding of English" and other multilingual skills a win over India's lower costs.
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| Developed IT infrastructure |
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Romania has implemented almost all the international standards of mobile telecommunications, and the country has registered one of the largest growths of mobile communication.
Large companies like Orange and Vodafone are the top of the mobile telecommunications market, proving that the potential of growth and profit here are much higher than in other parts of the world. Romania is considered a very good market for 3G and mobile application services in the next years given the economical growth and IT services development prognoses. |
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| High level of education |
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Romania has one of the top technical educational systems worldwide, visible by Romanians' domination of the international competitions in IT, Mathematics and Physics.
Romanian students are winning gold, silver and bronze medals to the International Olympiads in Informatics since 1990
Romania holds the 5th place among the countries of the EMEA region (Europe, Middle East and Africa) and the 11th place in the world within the Cisco Networking Academy program, with a total of approximately 3.000 students inscribed and 105 local Cisco academies.
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| Cultural and social development |
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The report 'Offshore Romania 2003' by Pierre Audoin Consultants claims that Romanian culture is much closer to European and North American culture than are its main competitors . Having a closer cultural link helps reduce some of the problems that result from teams with differing cultural backgrounds working together. It also means that Romanians can better understand the subtle cultural and ethical issues in software-human interface design for a western market.
According to a study made by The Eastern European Translators Association 60% of the Romanians speak a foreign language, usually English. Some 25% of them speak 2 foreign languages (usually English and French), while 4% of them speak more than 2 foreign languages. The study indicates that English will become the Romanians' 2nd native language in future.
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| Great future developments |
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The Global Outsourcing Report provides insight on the global outsourcing market, with specific reference to each country opportunities and threats. Romania is placed on the 7th place in the Future Opportunity Rank (FOR) and on 10th position in Global Opportunity Rank (GOR)
Here are some of the conclusions of this report:
 IT COMPETENCY RISK: Highly skilled workforce, focus on specialized software; excellent R&D and creative skills Custom Code Writing (body shopping): Very good System Writing Project R&D: Excellent The Romanian IT industry will become a leading regional supplier of Internet-based services, specialized software and contract manufacturing by 2010 by leveraging national competitive advantages; Romania has a history of scientific achievement and technical expertise.
HUMAN CAPITAL RISK: It has an abundance of well-educated and highly skilled worker; 20,000 IT certifications; surpasses almost all Europe in its IT resource pool creation. Labor force: 9.28 million
COST: Wages are low. It will take seven to eight years for wages in Romania to catch up with the rest of the EU; IT costs are $2,360; very top MCSE annual cost is $12,000.
MARKET OPPORTUNITY Annual rate of growth of the Romanian IT companies exceeded on average 25% for the last few years, and that of export 60%;
"The software industry is growing at a remarkable rate, more than 4800 firms currently being active in this area. Over 25,000 employees are working in the software and services area. The total number of Romanian specialists is also growing steadily as the market expands. The software developed and the services provided are estimated at nearly 200 million EUR in 2002. The software industry has posted an exponential growth as the big corporations use highly skilled Romanians for off-shore software development. This is a market segment that occupies a significant share of the specialized IT work-force. However, a highly qualified labor potential is left available to develop more competitive high-tech products. " ("Information And Communications Technology" - brochure of Ministry of Public Information) |
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| Low costs |
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With IT wages much lower than Western European countries and US, outsourcing to Romania is a very good solution to find high quality professionals and companies at affordable prices, thus assuring fast return of investment and good profitability for new business ideas.
The cost advantage linked to Romania outsourcing increases with the percentage of development effort outsourced and the percentage of work performed offshore. They are maximized when the entire development is outsourced in Romania and all the work is performed offshore. Cost advantage can be illustrated by taking up a sample case.
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Hours |
Romania |
Onshore |
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Rate/H($) |
Total($) |
Rate/H($) |
Total($) |
| 1 Project Manager |
300 |
35 |
10,500 |
80 |
24,000 |
| 2 Software Engineers |
2,000 |
15 |
30,000 |
40 |
80,000 |
| 2 Testers |
300 |
8 |
2,400 |
20 |
6,000 |
| Other expenses |
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- |
2,000 |
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| Total |
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44,900 |
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100,000 |
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