IT&C in Romania
IT&C in Romania
Market size
Technology is considered a primary growth driver for Romania, enjoying a EUR 20 million investment yearly growth.
The IT&C services sector fostered a 9% yearly growth rate of the large companies’ revenue, 73% of the revenue being generated by companies with foreign capital, according to the Association of Business Service Leaders in Romania.
Global software companies such as Oracle, Amazon, IBM or Deutsche Bank have already leveraged the development potential of Romanian software developers at competitive costs compared to Western Europe, while maintaining the product quality. They have also contributed to the initial development of the tech start-up environment that is developing today.
Today, Romania is one of the leading countries in the region not only for IT&C development, but also for SSC & BPO. Over the last years, names like London Stock Exchange Group, Viavi, Huawei, Capgemini, Samsung, Amazon, Accenture have opened Centers in Romania, either for R&D, Business Services, Logistic or others.
Human Capital
Known for their high qualification and potential, their flexibility and language skills, Romania’s IT&C professionals have gained an excellent reputation within the industry worldwide.
In 2019, Romania held the 8th position within the EU27’s “Employed ICT specialists by educational attainment level – Tertiary education” ranking. That includes: Bachelor’s Degree Diploma (short & long cycle), Master, Post-graduate and PhD studies.
Employees activating in the IT&C sector benefit from exemption on the standard 10% income tax, in compliance with the Romanian current legislation.
Main cities
The main Romanian hubs, with the strongest representation of start-ups and the biggest players in the IT&C field are Bucharest, Cluj-Napoca, Iasi, Timisoara and Brasov.
Other important centers are Sibiu, Craiova, Bacau, Targu Mures, Suceava, Galati, Constanta, Ploiesti, Pitesti, Arad, Oradea and Baia Mare.
Bucharest is home to more than half the country’s IT workforce, according to Brainspotting. The most requests come from companies from USA, UK and Germany, followed by France, Canada, Ireland, Switzerland, Netherlands or India.
Venture capital
2020 was definitely a good year for the investment market, with all-time-highs in terms of transactions, capital invested and local capital engaged. And, as this trend will most probably continue, more money will be available for early-stage startups. […] In 2020, a new wave of startups has been seeded – new, bold bets have been made, and we’ll see their results starting in the next year. (Source: Romanian Venture Report 2020 – https://www.howtoweb.co/romanian-venture-report-2020/)
Financing through VC in Romania witnessed a massive increase triggered mainly by the growing number of start-ups and tech companies. Therefore, the local success stories may set foot for others to follow.
The Romanian Unicorn UiPath ranks second in Atomico’s Top 10 VC-backed $1B+ private European tech companies in 2020, according to The State of European Tech 2020 Report. Founded in 2005, UiPath builds technology called Robotic Process Automation, or RPA. On February 1, 2021 UiPath Inc., announced it has closed a USD 750 million Series F funding round at a post-money valuation of USD 35 billion.
Elrond, a blockchain start-up founded in 2017, is considered the second Romanian Unicorn. In February 2021, the capitalization of EGLD (eGold), a cryptocurrency launched by the company, reached USD 1 billion.
Tech events and accelerators
Are an important element in attracting VC funding. These help the start-up community not only with funding but with mentoring and guidance.
Bucharest is one of the Europe’s top tech cities of the future. Over the last five years, Atomico has included Bucharest in Top 20 European Hubs by capital invested.