The software and services industry is one of the very few fields that had a favorable evolution even during the recent crisis periods. As an example, the average annual growth rate of 4% was quite low compared to the years before the crisis, which amounts to 15-20%.
There is a strong differentiation within the software segment - services area vs. product area, and Romania makes no exception.
As reported by the US Department of Commerce, Romania’s IT market is one of the fastest growing markets in Central and Eastern Europe. The IT market is forecasted to grow at 3.1% over 2017-2021 to a value of RON 9.9 billion ($2.47 billion) in 2021.
Romania has had an important tradition in research, development, and innovation in the technical field. The technical expertise and lower labor costs of engineers have helped attract interesting and more significant projects towards the local industry. Industry clusters can be found in major university cities: Bucharest, Cluj-Napoca, Iasi, Timisoara, Craiova, and Brasov.
The Software and IT Services market is worth around 5 billion euros ($5.5bn) and is estimated to grow by around 15% each year until 2021. The structure of the domestic market is as follows.
.Net and JAVA seem the most sought after technologies in the actual Romanian software landscape, Germany, US and Netherlands being the countries well represented in the market. Iasi emerged as an IT hub in the last years, and some companies are prospecting Moldova in their search for IT talent.
A new study from PEGA and Marketforce says that is expected both AI and automation to have a positive impact on business performance. Almost eight out of ten (79 percent) of their respondents expect RPA to deliver significant efficiency improvements and 59 percent expect to see an enhanced customer experience by relieving staff of repetitive manual processes such as data inputting. AI is expected to have a similar effect, with 73 percent expecting it to improve efficiency and 62 percent expecting an improved customer experience.
Keeping in mind these figures, we can say that only sky’s the limit for the IT services development, and that Romania seems a very promising alternative keeping in mind the accelerated growth of the sector in the last years.
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