Everything You Need to Know About Outsourcing Custom Software Development Services in Romania

Outsourcing custom software development services have become a popular choice for many businesses. Software development outsourcing allows you to focus on your core business and let someone else handle the technical aspects of running a website or application. You should consider exploring the outsourcing market because you do not need to focus on finding an in-house team to achieve your business goals.  

This article will discuss why choosing outsourcing development services in Romania can benefit your company.

What Do Outsourcing Custom Software Development Services Mean? 

Custom software development outsourcing services mean working with a third party providing a particular skill set and vast experience. You are free to choose a remote team or a software development company to work with to achieve business objectives, improve and automate business processes, overcome business challenges and achieve healthy business growth.   

Enterprises can hire an outsourcing company for any customisation, from improving pre-developed software and consulting services to guiding the business through its digital transformation, all the way to creating a custom software solution from scratch. However, you can delegate any part of your software development project to an outside vendor.  

Around 60% of US and Canada-based companies outsource their IT services. Software application development is the most frequent outsourced service because product development is the most backbreaking and resource-demanding process. More and more companies are trying to leverage new and immersive technologies such as the Internet of Things, robotics and artificial intelligence in various business departments to gain a competitive edge over other organisations in the market. Because of this, software development plays a critical role in consolidating business operations, scaling your business efficiently, engaging customers and providing a unique and flawless customer experience.        

In other words, software outsourcing services allow companies to build top-notch software products more efficiently and cost-saving way. From custom software development to CMS and CRM development, mobile solutions and custom eCommerce development, we can help your business have better economic growth and scale efficiently.     

What Is The Purpose of Software Development Outsourcing?

The purpose of development outsourcing is to have access to development teams that possess dedicated technical skill that fits your business needs. Moreover, sourcing IT services will allow your company to choose experts with the proper knowledge of the programming language you want. You can also collaborate with them long- or short-term.      

We stand by outsourcing software developers as a top solution for cost-saving, high-quality work, upscaling your business and fast delivery. Let’s explore the benefits of why outsourcing talent can benefit you: 

Diverse Talent Pool 

The software industry is rapidly changing and if you want to keep your products or services competitive, you must adapt fast and be flexible. Moreover, you have to choose the right technologies to build your custom software from the start. Having an internal team to take care of your digital product can limit you to their tech skills and experience. You must hire an additional expert if you need to use a new programming language or development tool. 

However, when you outsource your web or mobile project, you have complete access to a diverse talent pool with various development and soft skills. An external company can jump in at any project stage and adapt quickly to your needs.   

Dedicated Team

Working with an outsourcing custom software development company, you will get a dedicated team tailored to your needs and goals. From project managers, developers, UX/UI designers, and QA to digital marketers, all work on your project. Their focus is on critical tasks and delivering top-notch results. Therefore, you do not need to hire new staff or delegate your developers to more projects, which can lead to delays, compromised quality and extra costs.    

Faster Project and Team Scalability

For companies that want to accelerate the development process, add more features to their app or expand their products and services into other markets, we strongly recommend looking into a partnership with a third party. An in-house team will need more time to adapt as training might be required, the workload is growing, and it is more time-consuming and expensive. However, there is other another scenario you might find yourself in. After the project launch, you realise that your in-house team is too big and you do not need all the human resources to maintain the app. Moving employees from one team to another or letting them go is not optimal. 

In partnering up with software outsourcing companies, scalability is one of the main advantages. The flexibility of growing or downscaling the dedicated teams to your project can be done in no time. Outsourcing is the best option if you need tech talent for a project-based or one-off short-term project.  

Quicker Project Launch

Working with an outsourcing team will allow you to launch to the market faster without compromising the quality of your product. It is well known that being faster than your competitors in releasing a new product or service is essential for your company’s success and financial growth. When partnering with an external team, you will have more control over the product development’s timeline because they can allocate more workforce to your project. Therefore, you can reduce the time to market.  

Access to New Technologies, Vendors and Broader Markets

An external team might have a different perspective on your custom software. New approaches and out-of-the-box ideas are representative of an outsourced team. This can lead to a better and improved project with more future features and scalability opportunities. 

Outsourcing companies usually partner with various vendors and create long-lasting partnerships with them. Therefore, you will have access to these vendors as well. When collaborating with an external team for multiple projects or for a longer time, you can consider them as an extension of your company, as you will get familiar with their working behaviour, communication style and expertise areas.

Moreover, because you outsource your development team, they have proper knowledge of various industries and industry-specific requirements. If you want to expand your business and penetrate new markets, the team you are working with can bring valuable insights and help you understand market trends. You will take the right decisions from the start. 

Why Is Romania Outsourcing a Booming Market?

Romania is an excellent option for companies looking to outsource software development services; we will point them out in this chapter. Before starting, here are some facts about Romania that we want you to know: 

Facts about Romania 

• Romania is located in Eastern Europe, with a population of over 19 million people.
• In March 2004, Romania became a NATO member. 
• In January 2007, Romania became a member of the European Union.
• Romania is the 12th largest country in the UE and has the 17th largest economy by nominal GDP.  
• Romania is the leader in Europe and the sixth worldwide regarding the number of certified IT specialists, with density rates per 1,000 inhabitants more remarkable than in the US or Russia. 
• Romania’s IT market has been growing for the past two decades. The IT sector is growing substantially yearly, and software development in the Romania industry is €3.2bn in 2022. 
• Romania outsources software development and IT projects to companies from Western Europe, such as Germany, France, the UK, Italy, etc. and North America.
• Global software companies such as Oracle, Amazon, IBM, Microsoft, and Deutsche Bank have already got to enjoy the potential of Romanian developers at competitive rates while maintaining product quality and reducing time to market.
• Romania is the third country in Europe with the fastest internet speed. The average internet speed is 160MB/s on cable and 38.09 MB/s on mobile.
• In 2019 the National Strategy for Implementation of 5G was adopted, and in August 2019, Bucharest became the first city with full 5G coverage.

The Outsourcing Market in Romania

Ideamotive.co has a full report on the State of Software Development Outsourcing In Romania. According to their findings, here are some interesting facts about the outsourcing market in Romania:

• Over 100.000 IT Professionals.
• The value of the IT sector in 2019 was $7 bn.
• Over 300 potential software development partners.
• Over 8.500 IT student graduates from +50 universities.
• Over 80% of tech companies in Romania handle IT projects for foreign countries. 
• Romanian software developers are in the 16th place on the Top Coder list and the top 25 in the Skillvalue rating.
• Around 30% of Romania’s tech talent are women.
• According to Clutch.co, 158 Romanian firms offer outsourcing services. 
• Romania’s top 3 IT outsourcing services are custom software development, web development, and mobile app development.  

Main IT Outsourcing Hubs in Romania

• Cluj-Napoca is the country’s second-biggest IT business pool and has been named the “Silicon Valley of Romania”. However, in Cluj-Napoca are over 160 IT outsourcing companies in Romania, making it the first city with the largest talent pool available for outsourcing services.   
• Bucharest is the capital of Romania and the most prominent tech hub in the country. In Bucharest, you can find over 110 IT outsourcing hubs. 
• Iași has a solid academic tradition and is one of the rising tech hubs in Romania. You can find over 30 tech hubs. 
• Timișoara is regarded as the most developed city in Romania and has seen a boom in foreign investments in the tech sector. In Timișoara and Brașov, you can find over 20 tech hubs.  
• Sibiu is an upcoming service centre in Romania with more German speakers than in other cities.

Cluj-Napoca – The Main Hub for Software Development Outsourcing Services

As mentioned previously, Cluj-Napoca is the main tech hub when comes to outsourcing services with over 160 companies dedicated to this market. We want to share with you some facts about the outsourcing industry in Cluj-Napoca:    

• Cluj-Napoca is one of the largest cities in Romania, located in the northwestern part of Transylvania. 
• It has a population of over 308.000 inhabitants. 
• It has developed into a multi-cultural city with an active business environment oriented towards innovation and development. 
• 1 in 11 employees works in the IT sector in Cluj-Napoca. 
• More than 15.000 people work in the IT sector, and Cluj-Napoca is the home of almost 1.300 IT businesses focused on optimisation and outsourcing. 
• 90% of the businesses in the IT sector in Cluj-Napoca are focused on Software Development Outsourcing for complex IT projects with end-to-end products.
• In 2021, Cluj-Napoca was named the most “business-friendly” Romanian city, according to the Emerging Europe Business Perception Index for 2021 ranking. 
• In 2015, Cluj-Napoca was recognised as the friendliest city for foreign people in Europe. The audit interviewed around 41,000 people in 79 cities across Europe.
• For companies looking for a skilled workforce, Cluj has over 80.000 students and 100.000+ higher education graduates. 
• Cluj-Napoca’s top 3 IT outsourcing industries are finance, healthcare, and eCommerce.   

We also recommend you watch a short documentary by Recorder about how the IT industry has changed Cluj-Napoca. 

Why Working With Us, Flowmatters, Can Further Your Business Success? 

We, Flowmatters, started our journey almost two decades ago in Cluj-Napoca, Romania. We are a small-size full-service digital agency focused on crafting digital experiences and delivering custom software development products. We approach every project with an open mind, and we first want to understand your business needs and goals to design a tailor-made project. We focus on integrating industry-specific modules and features. We have successfully launched over 150 projects for clients such as Bosch, Blitz Imobiliare, ING, Dacia, Renault, Oriflame and others. 

We have a Clutch review score of 4.9 out of 5 stars, and we pride ourselves on creating long-lasting and fruitful partnerships. You can check out our portfolio and Clutch profile to learn more about how we work and what our partners have to say about our collaboration.  

We can help your business grow and overcome any challenge. We deliver creative, out-of-the-box and all-in-all amazing projects. We can help you with product strategy and roadmap planning, application design and development, support and maintenance and custom software development. We have extensive experience working with industries such as eCommerce, education, healthcare, real estate, investment, finance and others. 

Do you think of outsourcing custom software development services in Romania? Give us a call, and let’s discuss how to further your business success. 

Frequently Asked Questions