IT Outsourcing - Romania

Romania

The IT Outsourcing market in Romania is projected to experience significant growth in the coming years.
By 2024, the revenue in this market is expected to reach US$455.50m.
This indicates a positive trend for the country's IT industry.
Furthermore, it is anticipated that the market will continue to expand with an annual growth rate of 10.02% between 2024 and 2029.
This growth rate is expected to result in a market volume of US$734.30m by 2029.
This demonstrates the potential for further development and opportunities within the IT Outsourcing market sector in Romania.
When considering the average spend per employee in the IT Outsourcing market, it is projected to reach US$55.45 by 2024.
This figure highlights the financial investment made by companies in Romania's IT sector to ensure the delivery of high-quality outsourcing services.
In terms of global comparison, it is worth noting that United States is expected to generate the highest revenue in the IT Outsourcing market.
In 2024 alone, United States is projected to reach a revenue of US$197.30bn.
This showcases the dominance of the US market in the IT Outsourcing market industry on a global scale.
Overall, Romania's IT Outsourcing market is poised for growth and has the potential to become a major player in the global IT industry.
With projected revenue and market volume increases, as well as competitive spend per employee figures, in Romania is well-positioned to attract businesses seeking reliable and cost-effective outsourcing solutions.
Romania has emerged as a preferred destination for IT Outsourcing due to its skilled workforce and cost-effectiveness.

Key regions: Brazil, Italy, United States, China, Germany

Definition:
The IT Outsourcing market refers to the external contracting of IT functions, services, or projects instead of relying on company-owned resources. By outsourcing IT tasks (e.g., to IT suppliers or software developers), enterprises are able to focus on their core functions and save internal resources and costs (e.g., office space, maintenance, and utilities). Thus, outsourcing teams becomes a viable cost resilience strategy in an environment where companies are looking to save money more than ever.

In an IT context, these activities include IT administration, IT application, and web hosting services. Non-IT-related outsourcing services are excluded.

Structure:

IT Outsourcing contains four distinct markets that are based on different services:

Administration Outsourcing refers to the market for services associated with the external sourcing of typical IT administration tasks such as hardware supply, setup, configuration, maintenance, security, and support.
Application Outsourcing refers to the market for all IT application services in a software production context, spanning from requirement assessments to concept and design of software applications.
Web Hosting includes all types of internet hosting services that allow companies or individuals to provide access to their web page via the World Wide Web.
Other IT Outsourcing refers to aggregated revenues of the types of IT outsourcing that are not specifically mentioned in the other IT Outsourcing markets, such as infrastructure outsourcing, network outsourcing, and managed services.

Additional Information:

The IT Outsourcing market comprises revenues, revenue change, average spend per employee, and revenues of the outsourcing types. Market values represent revenues that are generated by primary vendors either directly or through distribution channels at the manufacturer price level (excluding VAT). Reported market revenues include spending by enterprises (B2B) and governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed. Key players in the market include IBM, Accenture, Capgemini, NTT, and Hewlett Packard Enterprise.

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Market

Region

Region comparison

Currency

Analyst Opinion

The IT Outsourcing market in Romania has been steadily growing in recent years, making it a popular destination for companies looking to outsource their IT services.

Customer preferences: One of the main reasons for this growth is the country's highly skilled workforce, with a large pool of IT professionals who are proficient in English and other European languages. This has made Romania an attractive destination for companies looking to outsource their IT services, particularly those in Western Europe and North America. Additionally, Romania has a favorable time zone for clients in these regions, making it easier to collaborate and communicate with their outsourced team.

Trends in the market: In recent years, Romania has seen an increase in demand for nearshoring services, particularly from companies in Western Europe. This trend has been driven by a desire for closer collaboration, cultural affinity, and a shared business culture. Additionally, the rise of remote work and virtual teams has made it easier to work with teams in different locations, further fueling the demand for nearshoring services.Another trend in the Romanian IT Outsourcing market is the growing demand for software development services, particularly in emerging technologies such as artificial intelligence, machine learning, and blockchain. This demand is being driven by the need for companies to stay competitive and innovate in a rapidly changing business environment.

Local special circumstances: One of the unique aspects of the Romanian IT Outsourcing market is the strong focus on education and skills development. The country has a large number of universities and technical schools that offer IT-related courses, ensuring a steady supply of skilled professionals for the industry. Additionally, many IT companies in Romania invest heavily in training and development programs for their employees, ensuring that they stay up-to-date with the latest technologies and trends.

Underlying macroeconomic factors: Romania's IT Outsourcing market is also being supported by favorable macroeconomic factors. The country has a relatively low cost of living and a favorable tax regime, making it an attractive destination for companies looking to reduce their costs. Additionally, Romania is a member of the European Union, which provides access to a large market and a stable regulatory environment. Finally, the country has a strong entrepreneurial culture and a supportive startup ecosystem, which has helped to drive innovation and growth in the IT 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.