2017-05-29

Some elements of the IT market in Romania for 2016 presented by ANIS (National Software Industry Association of Romania):

- the IT market in Romania is influenced by the high demand from Western Europe and the attractive cost structure
- However, the growth of the software industry and IT services is hampered by the lack of resources and skills that users are looking for
- it is estimated that over the next 3 years, this industry will generate more than 3% of the country's GDP, but only if the IT managers could compensate the outdated character of the education system and the low rate of foreigners
- the IT sector is certainly a growth vector for the country, based on: specialized human capital and wages higher than the average in the economy
- On the mid-term, there is a visible increase in value added by IT services, with progress being made in terms of junior workforce growth
- On the longer term, Romania's position is expected to strengthen as a target market for higher added-value services, research and development centers and projects that would include state-of-the-art solutions and technologies
- At national level, there is a netting between the local market and the export of IT services. These two segments grew at different rates, and growth rates are expected to remain stable.
- the software services market has been affected by several internal and external factors which have negatively influenced the development and chances of IT vendors
- Romania has been the only country in the region where a small number of suppliers have captured almost the full market for complex IT solutions. This is mainly the public sector and state-controlled companies (especially in the energy and transport sectors), the relationship with political power playing the most important role.
- Over the past 5 years, some of the most important local IT systems integrators have been investigated for corruption or tax evasion, some businesses becoming insolvent or restructuring
- the local market is concentrated around multinationals, although local budget expenditures are uncertain even for them
- there are clear signs of growing market maturity at local level, the number of managers or executives educated in the field, interest in business-oriented technologies
- the global private sector climate is characterized by slow decisions, the money being spent only to meet clear and focused objectives in the short term. Most companies are still reluctant to launch IT projects fully provided by IT vendors.
- offshore / nearshore IT centers have grown significantly and continue to expand, due to fiscal incentives, highly qualified human resources, growing demand from developed markets (Western Europe and the US)
- In the last 10 years, the most active in this field were strategic investors (IT corporations) and entrepreneurs
- the investment funds are growing, there are numerous opportunities to enter the local IT market. However, as large multinational companies dominate the IT services sector, the chances of local entrepreneurs are driven by the development of high value added services or software products for the global market. Niche products on the local market are not enough to support the development of the sector.