According to Economica.net, Romania is the 4th largest outsourcing market in the world, and when it comes to IT outsourcing, Romania is indeed one of the most attractive destinations in Eastern Europe. The reason is that is has over 95,000 IT professionals and a 15% annual growth rate. A CGS report has showed that the extent of foreign investments in Romania will increase by 20% over the next two years. While these numbers speak of Romania in general, let’s see why the city of Cluj-Napoca in particular, is one of the best IT outsourcing destinations in Eastern Europe.
1. Culture and Mentality
Outsourcing is mostly about the value for money, but there are even more important things than minimizing the costs of the work force. We’re talking about the cultural aspects of things. Cluj-Napoca is the 2nd largest city in Romania, located in the heart of Transylvania, West Romania (which, by the way, is perhaps the most beautiful regions in the country). Given its geographical location and historical background (the Austro-Hungarian occupation and influences), Cluj-Napoca is closer in mentality to Western Europe. Hence, the mentality and style of the people living here is quite different from what you will find in the capital of Bucharest, Iași or Constanța, the other major cities in Romania. These cultural similarities of Cluj-Napoca to the Western European cities make it a top IT outsourcing option and undoubtedly the best one in Romania.
2. Highly skilled IT Developers
While India may be a great IT outsourcing option given the cheap labor, it is more convenient for a company to set up a center in Eastern Europe, when it comes to more sophisticated services, such as programming skills. According to the first National University Metaranking Survey issued in November 2016, Cluj-Napoca is home to the best higher education institution in Romania, namely the “Babeș-Bolyai” University of Cluj-Napoca. Out of its 21 faculties, The Mathematics and Computer Science is the most wanted and the annual admission competition is fierce. It’s no wonder Cluj-Napoca has become Romania’s IT hub and its top outsourcing destination! The main reason? Very many and highly skilled IT professionals looking for awesome career opportunities.
3. Tax Incentives for IT Outsourcing Companies
Although this point generally applies to Romania, we couldn’t have gone without mentioning the tax incentives for IT companies. Alongside Poland, Romania has implemented tax regulations that entice foreign IT companies to set up centers in their territories. The 2017 offshore landscaping Global Services Location Index has ranked Romania 3rd places out of 10 Central and Eastern European countries for financial attractiveness. If you add the fact that Cluj-Napoca is the unofficial Silicon Valley of Romania, you now know why it’s a safe bet to outsource here.
4. Openness to Different Cultures
Did you know that every 4 out of 5 Romanian speaks English? Ramyani Basu, head of The Digital Transformation Practice at A.T. Kearney in the UK said that “In Poland, Bulgaria or Romania, companies can find good technical skills and linguistic capabilities in addition to English.” Romanians are taking up foreign language classes from their early stages of school education. And this continues until their upper school graduation. Their openness to other cultures and languages makes them fast language learners and at the same time very flexible, tolerant, adaptable and resourceful IT professionals. The kind of people you need in your company.
5. The IT Professionals of Cluj-Napoca
In the end, it all goes down to the people of Cluj-Napoca. Besides their excellent IT skills, English language command, openness and eagerness to build a career in IT, the people of Cluj-Napoca can easily distinguish from the rest of the Romanian people. How? Cluj-Napoca is mainly a university city and the people that come here are the best students from all over Transylvania. They choose Cluj-Napoca because they want to create successful careers for themselves and perform. They are boheme, with a great sense of humour, easy going and welcoming people. At the same time they are the kind of people who want to make a difference in this world and become better versions of themselves.
As an experienced IT recruitment agency in Cluj-Napoca we work with these people every day. Over time we have build great relations with them and what we can say is that the IT professionals in Cluj-Napoca have a great work ethics, are highly skills in the latest IT technologies and are very self-motivated. From our experience we can say that, YES! Cluj-Napoca is a great outsourcing destination in Romania, perhaps the best IT outsourcing cities in the country. And if you’re a company looking for more IT outsourcing tips or consultancy on the matter, we’re eager to help you with even more information! Contact us today!