Nearshoring Guide Part 1: Choosing Romania as the desired destination

Today’s software development market is moving extremely fast; with it, expectations and demands are increasing considerably. With a constant need to always stay up to date with the latest technologies and solutions, companies nowadays are facing an extremely tiresome development process. 

The demands are always changing, and covering IT costs is getting more challenging. At this point, most companies turn to external help. It’s cheaper than hiring in-house and a lot quicker. But how can you choose the right provider and still get good quality services? Moreover, how do you know the right practice for your business? 

Nearshoring IT services - a win-win strategy 

So let’s bring this matter closer to home, to a fast-growing region in terms of outsourcing. Because of its proximity to the Western world, it received its own name - nearshoring. 

Nearshoring means searching for external help but much closer to your country, usually somewhere in the same region. For Europe, the most accessible nearshoring region is the CEE (Central and Eastern Europe). 

Countries like Romania, Poland and Hungary offer top-quality software development services at very affordable prices. Due to its closeness to the Western region, the work culture is very similar, and time zones are convenient. 

 We will explore today what it means to nearshore projects, why you should choose this and not offshoring and why the CEE and Romania, in particular, are top destinations for this type of business move.

Geography  and multiculturality 

Located at the crossroads of Central, Eastern and Southeastern Europe, Romania has a vibrant history that has affected its development over the past centuries. Transylvania, for example, was part of the Austro-Hungarian empire until the beginning of the 20th century. These historical influences strongly impacted the country’s current development and similarity to Western culture. People here are growing up with a well-formed linguistic heritage that allows them to learn languages like English and German easily. 

By the time they start their careers, Romanians usually speak at least one or two foreign languages. And who doesn’t like working with people who are fluent in your native language?

A developing economy

The economic development in this region is constantly growing. With an economic growth rate of 4.6 in 2022, Romania has maintained a solid position within the EU.

Romania has a strong STEM education offering, so many people are encouraged from an early age to pursue a technical career. The IT industry accounts for more than 6% of the country’s GDP, and not to mention that more and more people are shifting their careers in this field mainly because it’s becoming one of the most rewarding and profitable sectors. 

Additionally, the gender pay gap is among the lowest in the EU, and women represent 25% of the IT workforce

Strong safety  and security

The 2023 Global Peace Index ranks Romania 31 out of 163, with a high state of peace rating. Additionally, the country ranks low for natural disasters, terrorist attacks, and other safety concerns such as theft. However, it is generally recommended to take the usual precautions as you would do when visiting a foreign country. 

At the same time, the road infrastructure is a work in progress and can pose road safety risks. Still, it rarely affects travel within large cities such as Cluj-Napoca, Oradea, Bucharest, etc. 

Convenient travel and time zone differences

One of the most important aspects to consider when choosing a nearshoring destination is time. Choosing Europe as a destination for externalising certain services or projects will greatly impact the quality of the overall outcome. 

Romania is close to Western countries such as Germany, The UK and The Netherlands. Flight time is a maximum 2 of or 2:30 hours, and the time zone is GMT +2, which is very convenient. With only two hours ahead of the UK and one from continental Europe, Romania is gaining significantly more points in this field than any other offshoring destination. 

Choosing a neighbouring country like Romania ensures a better involvement in the whole development process. In other words, you can be part of the project, guide the remote team and work together towards the same goals.

European Union Benefits and regulations

Choosing Europe as a desired destination for augmenting your team has its many perks, especially from a regulatory point of view. Choosing to work with a company located in a country that is an active member of the EU will give you the liberty and safety to conduct that business operation without hidden costs or money-draining taxes.

Since 2007, Romania has been a member of the European Union and is subject to its laws and regulations, such as GDPR. You can rest assured that a high number of legal and financial aspects are conducive to a great partnership with zero surprises down the road. 

This means that all the legal aspects are well protected and you can keep your focus on the most important aspect of the partnership - getting that project going. 

Choosing Romania as an ideal IT nearshoring destination 

More and more Western companies choose Romania as a nearshoring destination. Its attractiveness is due to its vibrant culture, rich heritage, and highly skilled professionals ready to tackle any challenge. So you will not only get a Western-like quality work done at much lower costs, but you’re also gaining a team of experts that can guide you through this whole process and be of great value to your overall business. Q

Qubiz has been the technological partner of choice for many Western European companies in countries such as The Netherlands, The UK and the DACH region. We’ve worked with both big and small companies from different industries and managed to successfully deliver cutting-edge IT solutions for businesses that are on an path towards innovation. 

That is what a true technological partner should look like. Qubiz can act as a one-stop-shop by providing services covering the whole application lifecycle, including functional design and consulting, software architecture design, UX/UI design, software development, QA, and maintenance.

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Jump to the other two parts:

Nearshoring Guide Part 2: The Romanian Talent Pool

Nearshoring Guide Part 3: Finding the Right IT Partner

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