Market Insights Technology IT Services IT Outsourcing

Application Outsourcing - Romania

Romania

The projected revenue in the Application Outsourcing market for Romania is expected to reach US$96.39m in 2024.
This indicates a positive growth trend for the country's outsourcing industry.
Furthermore, it is anticipated that the market will experience a compound annual growth rate (CAGR 2024-2029) of 2.32%, resulting in a market volume of US$108.10m by 2029.
In terms of average spend per employee in the Application Outsourcing market, in Romania is projected to reach US$11.73 in 2024.
This figure demonstrates the financial investment made by companies in outsourcing services within the country.
When considering global comparisons, it is worth noting that United States is expected to generate the highest revenue in the Application Outsourcing market, amounting to US$42,860.00m in 2024.
This highlights the dominance of the US market in this sector.
Romania has become a leading destination for application outsourcing in the IT services market due to its highly skilled workforce and competitive cost advantages.

Key regions: India, Italy, Germany, Brazil, Japan

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Analyst Opinion

Romania, located in Southeast Europe, is a country that has been rapidly developing its technology sector in recent years. The Application Outsourcing market in Romania has been no exception to this trend, experiencing significant growth and development in recent years.

Customer preferences: Romania's Application Outsourcing market has seen an increase in demand for software development services for companies in Western Europe and the United States. This demand is driven by the country's highly skilled workforce, competitive pricing, and favorable time zone for collaboration with Western companies. Additionally, Romanian companies are known for their expertise in areas such as cloud computing, artificial intelligence, and blockchain technology, which have become increasingly important for businesses around the world.

Trends in the market: One of the key trends in the Romanian Application Outsourcing market is the increasing demand for nearshore outsourcing services. This trend is driven by the country's close proximity to Western Europe, which allows for easier collaboration and communication between Romanian companies and their clients. Additionally, Romanian companies have been investing in new technologies and expanding their capabilities in order to meet the growing demand for more complex software development projects.Another trend in the market is the increasing focus on cybersecurity. As companies around the world become more reliant on technology, the need for strong cybersecurity measures has become increasingly important. Romanian companies have been investing in cybersecurity technologies and expertise in order to meet this growing demand.

Local special circumstances: One of the unique aspects of the Romanian Application Outsourcing market is the country's large pool of highly skilled IT professionals. Romania has a long history of investing in education and training in the technology sector, which has resulted in a highly skilled workforce that is in high demand around the world. Additionally, Romania has a favorable business environment, with low taxes and a relatively low cost of living, which has made it an attractive location for outsourcing services.

Underlying macroeconomic factors: Romania's Application Outsourcing market has been driven by a number of underlying macroeconomic factors. The country's strong economic growth in recent years has led to increased investment in the technology sector, as companies look to take advantage of the country's skilled workforce and favorable business environment. Additionally, Romania's membership in the European Union has made it an attractive location for outsourcing services, as companies can take advantage of the country's favorable trade agreements and access to the European market. Finally, Romania's government has been actively promoting the country's technology sector, investing in education and infrastructure in order to attract more foreign investment and support the growth of the industry.

Methodology

Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.