Romania Archives - rinf.tech https://www.rinf.tech/tag/romania/ Wed, 22 Mar 2023 15:19:10 +0000 en-US hourly 1 https://www.rinf.tech/wp-content/uploads/2020/05/favicon-150x150.png Romania Archives - rinf.tech https://www.rinf.tech/tag/romania/ 32 32 Benefits of Relocating to Romania for Latin American Software Engineers https://www.rinf.tech/benefits-of-relocating-to-romania-for-latin-american-software-engineers/ Fri, 17 Mar 2023 11:49:01 +0000 https://www.rinf.tech/?p=22002 Rinf.tech launches Relocation Program for Latin American software engineers looking for a career change and international experience. Find out the details in this blog post.

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Benefits of Relocating to Romania for Latin American Software Engineers

As one of the most sought-after and lucrative professions globally, software engineering presents several considerations for specialists deciding where to work. Quality of life is a crucial factor, encompassing aspects such as work-life balance, healthcare quality, crime rate, and availability of leisure activity.

The software development industry is experiencing rapid growth, with an anticipated CAGR of 11.7% from 2022 to 2030. The demand for developers is projected to surge by 22% by 2029, highlighting the industry’s potential for expansion and the increasing need for developers.

Contents

Why do software engineers relocate?

Software engineers might decide to move abroad for a variety of factors. The first justification is better job possibilities, including higher pay, more fulfilling work, and better career prospects. Certain countries, like Romania, have a high demand for qualified software developers, making them desirable locations for professionals in this industry.

Living expense is another factor in software engineers moving to other nations. Software engineers may discover that the cost of living in another country is lower depending on where they are from, enabling them to save more money or have a better quality of life.

Another aspect that might affect a software engineer’s decision to move is how they live. Some software engineers may be attracted to other nations for lifestyle reasons, like a desire for a warmer climate, access to outdoor activities, or a chance to experience a different culture. Romania, for example, offers a high quality of life, with beautiful natural landscapes, historic cities, and a thriving arts and culture scene.

Software developers may also decide to move to countries with prestigious academic institutions or programs. They can improve their job prospects, advance their education, and broaden their skill set.

The choice to relocate is ultimately very personal and is influenced by each person’s unique circumstances, preferences, and objectives.

Why relocate to Romania?

With Bucharest setting the pace as a major player in the sector, Romania has been gradually establishing itself as an emerging tech hub. The impressive internet speed in Bucharest, among the fastest in the world, makes the city desirable for software developers seeking a dynamic environment. Additionally, other cities like Cluj, Timisoara, and Iasi have seen growth in the tech sector, providing various employment options for software engineers in multiple disciplines.

Being part of the European Union, Romania allows for easy traveling and relocation around Europe for software engineers from other EU countries. This makes it an excellent location for those who want to experience living and working in a different country while still accessing the benefits and opportunities of EU membership.

In addition to its prospering tech sector, Romania is renowned for its stunning architecture and scenery. Numerous castles, churches, and other historic structures can be found throughout the nation, providing a glimpse into its rich cultural history. The high degree of English proficiency in Romania makes it simpler for software engineers from English-speaking countries to integrate and communicate effectively.

Romania would provide a familiar environment and mentality for software engineers from those nations because it has a shared Latin ancestry with many Latin American countries. Additionally, the country has a small cost of living, which attracts software engineers seeking to save money or enhance their standard of living. Romania also has a high standard of well-being and medical treatment for people who want to live a healthy, balanced lifestyle.

Romania has a wide range of excellent state and private schools, ensuring that education is available to all students and is of a high caliber. Thanks to Romania’s expanding music and art scene, software engineers have many opportunities to immerse themselves in a vibrant and varied community of artists and creatives. Last but not least, Romania is renowned for its high standard of security and safety, giving software developers a sense of stability and peace of mind.

Benefits of relocation to Romania

Low cost of living

Life Quality

Up-and-coming Tech Hub

High level of safety & security

Easy traveling around Europe

Breathtakingly beautiful scenary

Common Latin inheritance

Robust expat community

Rinf.tech relocation program

Suppose you’re considering moving to Romania with Rinf.tech, you may be curious about the procedure. The good news is that Rinf.tech’s relocation program is straightforward and open, and we will walk you through it step by step.

An HR interview is the first step, during which you will review your professional background, experience, and reasons for moving to Romania. You will proceed to technical prescreening, which evaluates your technical skills and knowledge to determine if you are a good match for the company. You will advance to a technical interview if you pass the prescreening, where you will be given more complex technical questions to determine your suitability for the job.

If the technical discussion goes well, a final offer from Rinf.tech will be made to you. Once you accept the offer, the next stage is gathering the necessary paperwork, such as your personal identification document (passport), apostilled college diploma, and criminal history record. You will be guided through this procedure by Rinf.tech, who will also make sure you have all the required paperwork.

After receiving the necessary paperwork, Rinf.tech will start the procedure for securing your work authorization and visa. The work permit and visa applications may take up to 30 days to complete. Throughout this procedure, Rinf.tech will keep you informed and ensure you have all the required paperwork.

You will receive your travel papers and be able to travel to Romania once you have acquired your visa and work permit. The journey time can range from 2 to 7 days, depending on location.

The moving procedure lasts about three months, and Rinf.tech will be by your side the entire time. They will keep in touch and assist you constantly to ensure everything goes according to plan. You can rest easy knowing that your relocation to Romania will be managed professionally and successfully.

relocate to Europe for software engineers

Benefits of relocating to Romania with Rinf.tech

For software developers who choose to move to Romania, Rinf.tech has a lot to offer. A competitive salary that allows software engineers to live comfortably in the country is one of the perks. Additionally, Rinf.tech provides housing assistance for the duration of the partnership, paying for rent, deposits, agent fees, plane tickets, visas, and all other moving expenses, including legal services.

The legal and transfer processes are made simple and hassle-free by Rinf.tech. Additionally, the business assists with securing legal papers like a status, bank account, and medical exam. The company also provides a profit-sharing plan that rewards software engineers for recommending candidates for open positions, health insurance, travel medical insurance, and other benefits.

The chance to perform in numerous foreign countries is another advantage of moving to Romania with Rinf.tech. Software engineers can transfer to the Rinf.tech US branch after working with Rinf.tech Romania for one year. Thanks to this chance, software engineers will have more exposure to foreign clients and projects, which also offers the opportunity to work on high-value projects utilizing cutting-edge technology.

Software engineers’ requirements and knowledge gaps are catered to by Rinf.tech, which also offers intercultural experiences. Technical guilds also ensure that software developers can exchange knowledge and skills to support their and each other’s growth.

Additional perks include a football squad, 21+2 vacation days annually, medical insurance, a benefit online platform, and access to Bookster, Romania’s first public library of the twenty-first century.

There are several steps in the relocation procedure with Rinf.tech. A software engineer will first conduct a human resources interview, then a technical prescreening and evaluation. After getting a final offer, the software engineer will gather moving-related paperwork, such as a personal ID, college diploma, and apostilled criminal record. The complete relocation procedure, which includes gathering all required paperwork, getting a work permit, getting a visa, and getting a flight to Romania, can take up to three months. Rinf.tech maintains constant communication throughout the process to guarantee agreement on the relocation status.

Why relocate to Romania with Rinf.tech?

Worldwide recognized customers

Hundreds of high-complexity projects delivered since 2006

Own R&D Center for Embedded & IoT

Robust Automotive Software Unit

300+ projects successfully delivered to OEMs & Tier 1 Suppliers

Intel Gold Partner & AI Builders Member

Agile Root Program to help you take your skills to the next level

600+ high-caliber software engineers

First-hand experience of engineers who relocated to Romania with Rinf.tech

We have already had South American engineers who chose to relocate to Romania with Rinf.tech, and we requested them to share their complete relocation experience with us.

One of the best things about working at Rinf.tech is that developers can choose the projects they want to work on, and if they are unhappy with one, they can request a change by speaking with HR. Employees can work on-site at the headquarters or remotely based on the project. In addition to providing excellent working tools, the company handles finding and renting apartments for its employees, which is essential. To enhance communication abilities, the company also offers English classes. Since Romanian and Portuguese are derived from Latin, some words are similar, and the currency and standard of living are comparable to Brazil's. Bucharest is a very secure metropolis with convenient public transportation. With the present income, I can maintain a high standard of living for myself and my spouse and save 30% of the total. Additionally, Romania has adequate public transportation, and there have been no issues such as robberies or other crimes.

Guilherme Stella, Software Engineer

As a member of the Rinf.tech team, I have been impressed with the company's potential for growth and success. I've been particularly impressed with the company's commitment to gender balance, not only in lower-level positions but also in management roles. It's something I've noticed on the Rinf.tech dashboard is an objective point of pride for me as a team member. Romania is a great place to live and work. The culture, food, and parties are all fantastic, and the cost of living is comparable to where I came from in São José Do Rio Preto – São Paulo. While there are some bureaucratic hurdles to overcome, I remain optimistic about my experience with Rinf.tech and would recommend it to others.”

Vinicius Carvalho, Software Engineer

Conclusion

Software engineers seeking to relocate from Latin America have a great opportunity in Romania. Thanks to its thriving tech sector, cheap cost of living, rich cultural heritage, and friendly locals, Romania offers a great environment for personal and professional development. Romania has something to offer, whether you’re looking for a fresh challenge, a better standard of living, or just a change of scenery. So, if you’re considering relocating, we recommend researching Romania and seeing what it offers. It might be the ideal location for you.

Would you like to learn more about our Relocation Program and how you can benefit from it?

Contact Us

Looking for a technology partner?

Let’s talk.

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]]> rinf.tech Joins Transilvania IT Cluster https://www.rinf.tech/rinf-tech-joins-transilvania-it-cluster/ Thu, 27 Oct 2022 09:34:45 +0000 https://www.rinf.tech/?p=20969 rinf.tech becomes a member of Transilvania IT Cluster in Cluj.

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rinf.tech Joins Transilvania IT Cluster

We're excited to announce that rinf.tech becomes a member of Transilvania IT Cluster.

Transilvania IT Cluster works at the intersection of entrepreneurship, research, innovation, and public administration, pushing forward discussion and action around digital transformation and thus enhancing community development through digitization.

Based out of Cluj-Napoca, the Cluster currently includes more than 115 members. Its mission is to represent the interests of member companies and generate added value for them through engagement while also contributing to the development of Romania’s North-Western regional ecosystem.

Since rinf.tech is opening a new office in Cluj, we believe it’s of utmost importance for us to integrate and become a valuable part of the local technology community. We aim to contribute our expertise, knowledge, and lessons learned from hundreds of successfully delivered projects to the growth and evolution of a local software engineering community.

You can see our listing among large companies here.

Looking for a technology partner?

Let’s talk.

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]]> rinf.tech Recognized As Romania’s Best Custom Software and R&D Solutions Provider 2022 https://www.rinf.tech/rinf-tech-featured-as-romanias-best-custom-software-and-rd-solutions-provider-2022/ Tue, 04 Oct 2022 14:02:00 +0000 https://www.rinf.tech/?p=20455 We're excited to have been recognized as the Best Custom Software Development and R&D Solutions Provider in Romania by the Acquisition International Magazine.

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rinf.tech Recognized As Romania's Best Custom Software and R&D Solutions Provider 2022

We're excited to have been featured as the Best Custom Software Development and R&D Solutions Provider in Romania by the Acquisition International Magazine.

A leading B2B publication, Acquisition International has launched the inaugural edition of the Research & Development Awards to acknowledge the incredible efforts of the teams that worked tirelessly to bring their customers’ vision to life.

rinf.tech was named Romania’s Best Custom Software and R&D Solutions Provider 2022.

The Awards aim to commend “those most deserving for their ingenuity and hard work.”

Acquisition International is a monthly digital business magazine committed to bringing its readers up to the minute news, comment and analysis. It is owned by AI Global Media Ltd, a UK based B2B publishing house.

Each nominee for Research and Development Awards was assessed based on their merits. The judges at Acquisition International gathered information independently from a variety of publicly accessible sources which were then assessed alongside supporting material supplied by a nominating party or the nominee themselves.

This industry recognition award marks a new important milestone achieved in our business journey this year. We’re grateful to our awesome Teams and Squads for their dedication and commitment, efforts to go the extra mile to delight each and every customer as well as disrupt different industries and domains with meaningful software and hardware solutions.

Looking for a technology partner?

Let’s talk.

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]]> Romania as an IT Outsourcing 4.0 Destination: Market Overview https://www.rinf.tech/romania-as-an-it-outsourcing-4-0-destination-market-overview/ Tue, 28 Dec 2021 14:59:32 +0000 https://www.rinf.tech/?p=16237 This article looks into today's Romanian ICT industry and talent pool to explore whether Western companies should consider outsourcing their custom software development and R&D projects to Romania.

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Romania as an IT Outsourcing 4.0 Destination: Market Overview

The Covid-19 pandemic has triggered an unprecedented increase in the digitization processes as many companies across the globe have moved to advanced software solutions to better meet customer needs, improve and streamline their internal processes and embrace innovation within the Industry 4.0. context.

Yet, challenges such as high cost and lack of domestic software engineering talent, fierce competition for fast time-to-market, high barriers to enter the emerging tech ecosystem and others drive companies in Western and Northern Europe and North America – from startups and SMBs to large manufacturing enterprises – to seek new business models and leverage talent pools and competencies outside their national borders. Like a decade ago, Western companies still turn to IT Outsourcing as an effective way to overcome challenges and withstand competition.

However, there’s a significant difference in factors driving companies to outsource ten years ago and today. In the past, most outsourced their custom software development projects for the sake of cost-saving as a result of labor cost arbitrage. Today, according to Deloitte, companies outsource to unleash marketplace speed and leverage strategic partnerships in order to develop new capabilities, integrate them to create value, and drive that value into the business. That’s what IT Outsourcing 4.0 is referred to.

Does Romania check the box as an IT Outsourcing 4.0 ready destination?

This article will look into today’s Romanian ICT industry, existing talent pool, and disruptive potential to explore whether Western companies should consider outsourcing their custom software development and R&D projects to Romania.

Contents

Romanian IT and software services market overview

In May 2021, Eurostat announced that Romania’s economy had seen the highest growth in the EU in the first quarter of 2021, at 2.8%.

A month later, in June 2021, Deloitte listed Romania as one of only six countries in the world (together with China, Chile, Australia, Lithuania, and South Korea) whose GDP had grown during the pandemic. 

Global software companies such as Oracle, Amazon, IBM, and Deutsche Bank have already exploited the potential of Romanian software developers at competitive rates compared to Western Europe while maintaining product quality and reducing time to market. They also contributed to the initial development of the tech startup ecosystem that is evolving in leaps and bounds nowadays.

Today, Romania is one of the leading countries in the region in terms of ITO, SSC, and BPO. Companies such as London Stock Exchange Group, Viavi, Huawei, Capgemini, Samsung, Amazon, Accenture have opened centers in Romania for R&D, business services, logistics, custom software development, etc.

Now let’s delve into details.

According to the World Intellectual Property Organization (WIPO), Romania ranks 48th among 132 countries in the Global Innovation Index (GII) 2021. Romania performs best in Knowledge and Technology, followed by infrastructure (see below).

 

Top 5 GII pillar ranks for Romania in 2021

romania innovation 2021

 
In particular, as per GII 2021, Romania strengths are:
 
  • ICT services exports – rank #10
  • Knowledge impact – rank #12
  • ISO Quality Certification – rank #16
  • High-tech manufacturing – rank #21
  • Knowledge diffusion – rank #23
  • High-tech exports – rank #27

Romania’s IT industry is one of the fastest-growing ones in Central and Eastern Europe. As of 2020, the local ICT market was estimated at $6.4 billion. According to a study by ANIS (Asociația Patronală a Industriei de Software și Servicii), IT exports account for 85% of this value ($5.5 billion).

Almost half of the total revenue ($2.9 billion) comes from large companies with more than 250 employees, followed by small companies (under 50 employees) contributing $2.2 billion, and mid-size companies (50-249 employees) bringing in $1.3 billion.

The country’s leading IT development city is Bucharest, which accounts for 63% of all IT revenues.

Romania’s digital agenda also sets priorities for critical sectors of the Romanian economy and society, such as

Domestic IT market overview

The structure of the domestic marketis as follows:

  • Major buyers: manufacturing (39%), finance (20%), professional and consumer services (16%),
  • The fastest-growing sectors: finance (26%), professional and consumer services, telecommunications, retail, and cybersecurity.
  • Software services (64%) versus products (36%).

IT Outsourcing market overview

Valued at approximately $5.5 billion in 2021, the Romanian IT exports market has been growing at about 15% annually. The annual outsourcing growth rate is 20%. As much as 90% of ITO services are exported to the EU countries, including Germany, France, the UK, the Netherlands, and the Nordic countries.

Romanian ITO hubs are spread well across the whole country: South (Bucharest, Craiova), Center (Cluj-Napoca, Brasov, Sibiu), West (Timisoara, Oradea), North East (Iasi).

In Romania, software development services aren’t much cheaper than in other Eastern European countries. Yet, they’re cost-effective for Western businesses due to IT labor cost arbirage.

As an ITO buyer, you will have the advantage of working with the second largest pool of software engineers in Europe (after Ukraine) skilled in technologies and domains such as Java, JavaScript, C#, HTML, CSS, Angular, React, Python, DevOps, Machine/Deep Learning, Computer Vision, NLP, data science, cloud, and cybersecurity.

On average, a senior software engineer based in Bucharest makes €50,000 per year. Romanian IT outsourcing companies can provide a good mix of junior, mid-level, and senior talent for client-tailored Managed or Dedicated Teams, helping customers optimize expenses and save software development budgets. At rinf.tech, for instance, we offer 9 service delivery models, from Augmented Teams to turnkey solutions, that can be mixed for the best quality-cost ratio depending on the client’s budget, project complexity, business goals, etc.

Romanian tech education and talent pool

Romania boasts the highest per capita technology workforce in Europe. 

Here’re some highlights:

  • Romania has 5 top technical universities and 59 domain-specific educational institutions
  • The total of 202,000 ITC professionals (45% under the age of 34 y.o.) is employed by national and international IT and software service companies
  • 68% have a university degree
  • Romanian ITO talent pool – about 110,000 specialists (54% of the workforce working in ICT)
  • Universities and high schools graduate 30,000 junior specialists per year
  • Each year, around 2,000 people re-skill and switch to IT jobs from other areas

 

According to the National Institute of Statistics, Romania’s ICT sector evolution is the major driver for the automotive, aerospace, chemical, agriculture, and many other sectors and Industry 4.0 as a whole.

In terms of cyber education, in the 2019-2020 academic year, more than 15 cybersecurity programs were developed across the country, focusing on cybersecurity of military information systems, cryptography, and digital research on machine learning and network security.

In terms of gender balance, Romania is ranked 3rd in the EU for women working in ICT: 24% of tech graduates in Romania are women, marking one of the most inclusive and gender-balanced work cultures and environments.

Special incentives for the IT industry in Romania

Research and development (R&D)

Companies doing business in Romania can receive an additional deduction of 50% on their respective research and development costs. In addition, accelerated depreciation can be applied to technologies and equipment used in R&D. For large investments, public assistance schemes or individual assistance are available.

Income tax exemption for IT staff involved in software development

Romania does not tax the income of IT employees involved in software development. Thus, Romania is one of the most competitive markets for outsourcing, with an average annual labor cost of 67,000 RON ($15,300) in software development.

Technology focus areas 

Focus on Cybersecurity

Cybersecurity is one of the leading components of the ICT sector in Romania. According to Trade.Gov, Romania’s National Digital Agenda 2020 Strategy, the full implementation of the cyber security-based strategic vision will require a total investment of about $2.64 billion.

In 2021, Bucharest has become home to the European Competence Center for Industrial, Technological, and Research Cybersecurity – an EU special agency tasked with funding and coordinating cybersecurity research projects for encryption and network security all over Europe.

 

Focus on Robotics

According to the International Federation of Robotics (IFR), there are about industrial 3,100 robots in Romania, of which 40% are used in the automotive industry.

Pilot and full-fledged robotic solutions built in Romania have received accolades and been acknowledged on the global scene. In 2021, a Romanian robotics team made up of students from Traian Lalescu High School in Hunedoara won the first prize in the health category at the FIRST Global Challenge international robotics competition.

The participating teams were tasked with identifying a pandemic-related issue in their community across education, environment, health, or economics, and then creating a robotic prototype to address it. The winning team from Romania offered an inexpensive scalable healthcare solution including an autonomous robot sterilizer using UV radiation.

Custom robotic development is gaining traction in Romania, as more companies big and small consider robots to be the new sources for additional business value generation. Currently, 24% of SMEs in Romania confirm they need software robots to accelerate business digitization and improve operational efficiency by automating operations, according to a 2021 study by Tailent.

Custom robotic development outsourcing to Romania is another prospective area, as the country has accumulated solid know-how and deep domain knowledge from the delivery of custom automotive projects that rely heavily on IoT, embedded development, robotics, and AI tech. 

We at rinf.tech have a Robotic Division that both provides RPA and bespoke product and services robotization solutions and builds our own enterprise robots for different industries within Romania and abroad.

 

Focus on Quantum Computing 

In 2020, Romania was one of the four countries to  have agreed to work together with 20 other EU Member States towards developing a quantum communication infrastructure (QCI) across Europe. The QCI aims to enhance European capabilities in quantum computing technology and industrial competitiveness.

"We will actively contribute to the development of quantum technologies by playing to our strengths: lasers, nanotechnologies, and quantum theory, among others. As one of the driving technologies of the 21st century, quantum technologies will have a major impact on our lives by making Europe a better, safer, and more competitive place to live and work."

Dragos Ciuparu, Romania's State Secretary for Research Tweet

Following the national agenda for future technologies and quantum, in particular, we at rinf.tech have launched a Quantum Computing training for our employees that will be conducted by a Deutsche Bank consultant. With this initiative, we’re aiming to contribute to the future readiness of our software engineering talent.

Are you looking to outsource your custom software development project to Romania?

Contact us!

Romania is Europe's leading destination for automotive innovation outsourcing

Germany’s automotive industry is one of the most active outsourcers to Romania.

In 2018, the German engineering and electronics company Bosch Engineering took advantage of Romania’s potential as an R&D center. The company has invested €30 million in its engineering center headquartered in Cluj-Napoca, which was completed in 2020. The center develops software, hardware, and products for mechanical engineering in autonomous driving, electric vehicles, and the Internet of Things (IoT).

Ford announced this year that it will invest $300 million in producing a new light commercial vehicle at its Craiova plant in Romania, starting in 2023. Craiova follows two other Ford businesses focused on the production of all-electric cars, the Cologne Electrified Vehicle Center in Germany and the Kocaeli plant in Turkey. Thanks to this expansion, Ford’s total investment in its manufacturing operations in Romania has approached $2 billion since 2008. 

“Ford’s Craiova operations have proven to be globally competitive and flexible,” said Stuart Rowley, President, Ford of Europe, announcing the project. “Our plan to build this new light commercial vehicle in Romania reflects our continued positive partnership with local suppliers and the community, as well as the success of the entire Ford Craiova team.”

Porsche Engineering, a technology service provider and a subsidiary of Porsche, has chosen Timisoara to host its second R&D center in Romania. The aim is to expand the network of innovation centers into developing future cars: smart and connected. For Romania, this is another boon to developing high-tech automotive innovation projects.

“Five years ago, when we first came to Romania, we were impressed with the creativity, flexibility, and fast learning ability of the people we met,” says Dirk Lappé, Technical Director of Porsche Engineering. According to him, the company is “delighted to continue to exploit this potential” in the future.

As an innovative philosophy, Porsche Engineering combines the latest in software technology, functions, and capabilities with automotive expertise to create more intelligent, efficient, and user-friendly vehicles. Following their success in Cluj-Napoca, the company chose Timisoara for its high-tech direction in both academia and industry.

This will create about 300 new jobs in the automotive industry in Timisoara in 2022 and beyond. Opportunities will emerge primarily in software development and testing, focusing on automated driving functions, machine learning, virtual energy management, and digital cockpit trends. The Porsche Engineering management team is particularly encouraged by the opportunities offered by the city’s technical universities. It plans to partner with the Polytechnic University of Timisoara and the Western University of Timisoara for joint projects.

At rinf.tech, we have a robust Automotive Software Development Division in Timisoara that provides custom development services to some of the leading German OEMs and Tier 1 providers. 

Based on our firsthand experience, the following types of projects have the highest demand for outsourcing among automotive companies so far:

VC and investment climate

Technology is considered the main engine of growth in Romania, with an annual investment growth of €20 million, according to Romania’s Employers’ Association of the Software and Services Industry (ANIS).

Germany remains Romania’s largest trading partner, with a volume of €30.9 billion estimated in 2020. The trade volume between the two countries in the first six months of 2021 amounted to €16.4 billion (20.5% increase). It’s projected to exceed €32 billion by 2022, according to AHK.

Romania M&A landscape

According to EY Digital Investment Index, the Romanian M&A market was impacted by the COVID-19 pandemic, resulting in delays or suspended deals. While H1 2020 saw a significant slowdown in growth, H2 2020 saw an unexpected return. KPMG and PwC’s 2021 M&A forecast for Romania suggests that healthy transaction numbers are mapped this year despite the ongoing pandemic.

As per EY, the expected growth in M&A activity is driven by the fact that nearly two-thirds (62%) of CEOs globally believe their organizations must radically transform their operations over the next two years. To achieve this, they are beginning to turn to new technologies, among which the most likely investments in the next two years are:

  •  IoT (67%),
  • Artificial Intelligence (64%) and
  • Cloud computing (61%).

 

Fifty-two percent of CEOs who have dived into the digital space through M&A with Romanian companies said the approach exceeded expectations, and 45% reported similarly on tech partnerships, expecting more deals, corporate venture capital, and investments in 2021. 

We’ll make sure to update you on whether their expectations were met once the 2021 stats and figures have been released.

Some of the most notable deals on the Romanian M&A scene in 2021

January 2021: ThoughtWorks acquires Gemini

A global software consulting firm ThoughtWorks, backed by private equity firm Apax Partners, acquired Gemini Solutions, a privately held software development and consulting services firm based in Silicon Valley. The terms of the deal were not disclosed. Gemini Solutions was founded in 2005 and provides software and product development services. The company has over 170 employees, including software engineers and operations staff based in Romania “covering a broad spectrum of technologies across the entire software product development life cycle”. 

This M&A resulted in the establishment of Thoughtworks Romania with the Gemini Solutions team at its core.

February 2021: Orion acquires Tellence

New Jersey-based Orion Innovation, backed by private equity firm One Equity Partners (OEP), acquired Tellence Technologies, a technology services company headquartered in Bucharest. Tellence, founded in 2012, develops digital technologies for companies in telecommunications and media, cybersecurity, and other industries. The financial terms of the deal were not disclosed.

April 2021: Wipro acquires Metro Systems

IT services giant Wipro has announced the completion of the $63 million acquisition of Metro-NOM GMBH and Metro Systems Romania SRL as part of its digital and IT partnership with Metro AG.

Conclusion

Our research shows that Romania is an Outsourcing 4.0 ready destination due to the following facts:

  • It provides foreign companies an opportunity to tap into a massive pool of software engineering talent with the most in-demand Industry 4.0 skills such as cyber security, IoT, and AI.
  • Romania has an ICT-focused educational system that helps keep the pool sustainable and refreshable.
  • Romanian IT service providers help develop and nurture future-ready talent through innovative initiatives such as quantum computing training, encryption, etc.
  • Many Romanian outsourcing companies become more mature by turning from just coding service providers into consultancies with in-depth knowledge focused on developing long-term strategic tech partnerships with foreign customers and helping them build internal expertise.
  • Romanian R&D landscape attracts companies from advanced tech-driven industries that critically need to create new business cases and experiment with the latest technologies.

 

Wrapping up, the Romanian ICT sector can become a one-stop shop for foreign investors, assisting and advising international companies and startups on cutting-edge project implementation and evolution.

Looking for a technology partner?

Let’s talk.

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