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IT&C industry in Romania

 

IT&C in Romania is a well-developed sector, with numerous high-tech companies with very attractive employment cost structures. After the economic slowdown in 2008-2009, most companies focused more on increasing productivity and cutting costs through technology. These strategies worked both on the internal and the external market.

As a result, Romanian companies took up various projects on the internal market that addressed a very specific vertical segment or niche technologies. The shift of focus to international markets was triggered by the software development activities in the benefit of foreign customers, as well as by the expansion of research, development and support centres opened by multinational companies in Romania.

Although Romania is not a low-cost location regarding IT, when it comes to performance, it can be highly competitive, bringing extra value through its high-skilled professionals and high-technology standards.

The main factors of IT&C development of specific interest to investors include well-qualified IT specialists, advanced technology, the active presence of large corporations in Romania (such as Oracle Romania, IBM Romania, Intel, Microsoft, and Adobe) and a well-developed education system, focused on IT technologies and software applications.

The sector advantages are the creation of large R&D IT&C centres for export and the high rate of demand growth of IT&C professionals for domestic IT&C companies and IT departments. However, this transformed the IT&C market into a human resources demand industry, with trained specialists working in this segment.

It is well-known that the IT sector has benefited from exempts from taxes and fee for several years now. According to the Romanian legislation, IT employees who work in the following sectors are exempted from the payment of the income tax: Computer and information systems, Industrial Informatics, Economic Cybernetics, Computer Physics, Chemical Informatics, Automation and Applied Informatics, Technologies and telecommunication systems and Mathematics and Applied Computer engineering. As a result, overall employer costs are much lower, IT employees being the highest paid on the market.

At the same time, the Romanian government supports IT&C companies by eliminating the salary tax for software developers, by stimulating companies' growth through the introduction of the 16% flat tax on profit and also by encouraging companies to participate at fairs to increase their awareness.

 

Moreover, Romania is the leader in Europe and the sixth in the world, in terms of certified IT specialists, having almost 64,000 specialists in the IT sector. Also, almost 5,000 of a total of 30,000 engineers graduating every year in Romania are trained in the IT&C segment.For 2014, software developing companies in Romania have budgeted an increase in the average employees' wages by 8.55%, much higher than the inflation forecast. Furthermore, an AIMS study indicates that software companies will grow the average of the employees' number by 23%.

The only consistent evaluation of IT&C market in Romania was made by Pierre Audoin Consultants (PAC) for 2012. PAC estimated a 2% growth for 2012, at EUR 1.4bn.

For further information, please contact the British-Romanian Chamber of Commerce (BRCC):
Mrs Cristina Ungureanu

Account Manager
Email: cristina.ungureanu@brcconline.eu

 

Strengths

  • Strategic location for EU market
  • Highly qualified human resources, with advance English, French and German expertise
  • Industry's natural development around the excellent centres in Bucharest, Cluj, Iasi and Timisoara
  • Well developed education system, creating 5000 IT specialists and 2000 from other curricular areas
  • Software industry hires 25 000 specialists each year
  • The presence of large IT foreign players
  • Romanian talent spread across various acclaimed foreign multinational companies
  • Exempts of IT companies from tax payments
  • Company productivity comparable with that of developed countries
  • Advanced technology
  • High mobility and flexibility of manpower

 

Romanian Fairs 2014