IT Outsourcing - Romania

Romania

Revenue in the IT Outsourcing market is projected to reach US$455.50m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 10.02%, resulting in a market volume of US$734.30m by 2029.
The average Spend per Employee in the IT Outsourcing market is projected to reach US$55.45 in 2024.
In global comparison, most revenue will be generated in the United States (US$197.30bn in 2024).

Key regions: Netherlands, United States, Japan, Germany, Italy

Definition:
The IT Outsourcing market refers to the external contracting of IT functions, services, or projects instead of relying on company-owned resources. By outsourcing IT tasks (e.g., to IT suppliers or software developers), enterprises are able to focus on their core functions and save internal resources and costs (e.g., office space, maintenance, and utilities). Thus, outsourcing teams becomes a viable cost resilience strategy in an environment where companies are looking to save money more than ever.

In an IT context, these activities include IT administration, IT application, and web hosting services. Non-IT-related outsourcing services are excluded.

Structure:

IT Outsourcing contains four distinct markets that are based on different services:

Administration Outsourcing refers to the market for services associated with the external sourcing of typical IT administration tasks such as hardware supply, setup, configuration, maintenance, security, and support.
Application Outsourcing refers to the market for all IT application services in a software production context, spanning from requirement assessments to concept and design of software applications.
Web Hosting includes all types of internet hosting services that allow companies or individuals to provide access to their web page via the World Wide Web.
Other IT Outsourcing refers to aggregated revenues of the types of IT outsourcing that are not specifically mentioned in the other IT Outsourcing markets, such as infrastructure outsourcing, network outsourcing, and managed services.

Additional Information:

The IT Outsourcing market comprises revenues, revenue change, average spend per employee, and revenues of the outsourcing types. Market values represent revenues that are generated by primary vendors either directly or through distribution channels at the manufacturer price level (excluding VAT). Reported market revenues include spending by enterprises (B2B) and governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed. Key players in the market include IBM, Accenture, Capgemini, NTT, and Hewlett Packard Enterprise.

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Market

Region

Region comparison

Currency

Analyst Opinion

The IT Outsourcing market in Romania has been steadily growing in recent years, making it a popular destination for companies looking to outsource their IT services.

Customer preferences: One of the main reasons for this growth is the country's highly skilled workforce, with a large pool of IT professionals who are proficient in English and other European languages. This has made Romania an attractive destination for companies looking to outsource their IT services, particularly those in Western Europe and North America. Additionally, Romania has a favorable time zone for clients in these regions, making it easier to collaborate and communicate with their outsourced team.

Trends in the market: In recent years, Romania has seen an increase in demand for nearshoring services, particularly from companies in Western Europe. This trend has been driven by a desire for closer collaboration, cultural affinity, and a shared business culture. Additionally, the rise of remote work and virtual teams has made it easier to work with teams in different locations, further fueling the demand for nearshoring services.Another trend in the Romanian IT Outsourcing market is the growing demand for software development services, particularly in emerging technologies such as artificial intelligence, machine learning, and blockchain. This demand is being driven by the need for companies to stay competitive and innovate in a rapidly changing business environment.

Local special circumstances: One of the unique aspects of the Romanian IT Outsourcing market is the strong focus on education and skills development. The country has a large number of universities and technical schools that offer IT-related courses, ensuring a steady supply of skilled professionals for the industry. Additionally, many IT companies in Romania invest heavily in training and development programs for their employees, ensuring that they stay up-to-date with the latest technologies and trends.

Underlying macroeconomic factors: Romania's IT Outsourcing market is also being supported by favorable macroeconomic factors. The country has a relatively low cost of living and a favorable tax regime, making it an attractive destination for companies looking to reduce their costs. Additionally, Romania is a member of the European Union, which provides access to a large market and a stable regulatory environment. Finally, the country has a strong entrepreneurial culture and a supportive startup ecosystem, which has helped to drive innovation and growth in the IT industry.

Methodology

Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.