Offshore Development Centers

Offshore Development Centers in Romania

The ability to extend software engineering, development or support capabilities by outsourcing services has proven essential for US companies facing intense competitive pressure.

While India has been the traditional destination for such services, we argue that Eastern Europe and Romania in particular now provide the superior value proposition for organizations looking to establish an offshore development center (ODC).

Offshore Development Center - why Romania

Rooted in a solid history of technical and engineering excellence, Eastern Europe’s rise as a credible offshoring alternative to Asia is recently gathering momentum. Still considered an emerging destination, the region combines low costs with excellent quality of services, communication and infrastructure as well as low political risks thus providing the best perspectives for offshore outsourcing.

While previously negligible on the offshoring map, Romania is poised to become a key destination for offshored IT processes. Having the highest density of IT professionals in Europe and delivering up to 60% cost savings, Romania provides a superior value proposition for US organizations.

Offshore Services Suitable for High Level Tasks

The IT talent necessary for high level tasks is readily available in Romania with the performance and quality of Romanian programmers widely acknowledged. This advantage enables companies to offshore more advanced engineering tasks driving growth through innovation and new product development. By contrast, India, although highly competitive for lower-level tasks, is less suitable for outsourcing advanced processes. This is because experienced programmers are much more difficult to locate and their services often priced higher than their Romanian counterparts.

While primarily a destination for higher level tasks, Romania also ranks as an attractive destination for software support or maintenance services thanks to competitive service rates and superior English language skills.

IT / BPO Environment

The business environment for establishing an offshore development center in Romania is defined as one of the simplest and most favorable in the area. Foreign investment is encouraged by applying a flat 16% tax on p=company profit. Furthermore, as stimulating the IT sector has been a priority for the Romanian government, tax incentives have been put in place to retain IT specialists. The infrastructure for information services is favorable as well as Romania has consistently ranked fourth in the world for average broadband speed.

Risk and Long Term Perspectives

Still considered an emerging destination for offshore IT services, Romania has the potential to remain a profitable location for outsourcing for many years to come.

The risk associated with an investment here is lower than for Asian destinations. Eastern Europe and Romania in particular benefit from a stable political and business environment with laws that are frequently harmonized with those of EU countries and economical policies aligned to encourage investment in IT.

Compared to an Asian center, an Eastern European software development or support center comes with lower associated risk and promises sustained return on investment perspectives.

Capitalize on Eastern Europe's IT potential

At RINF we provide the solutions US companies require to seize the opportunities in Eastern Europe. Using out experience, proven processes and superior ability to attract and retain IT talent we assist companies in setting up dedicated software development and support centers in Romania.