Businesses seeking outsourcing software development solutions increasingly turn their attention to Central and Eastern Europe. Among the countries in this region, Romania has emerged as a powerhouse for tech talent and services. With its robust ecosystem of tech companies and impressive pool of 192,000 software engineers, the country is a good choice for organizations looking to extend their development capabilities.
The Romanian IT industry combines technical excellence with cost efficiency, offering high-quality services at more affordable rates than the US and Western Europe. This winning combination has attracted international corporations, fueling the country’s rapid growth as a technology hub.
In this article, we’ll examine software development in Romania, its talent pool, infrastructure, developer rates, and other factors driving its success in the global IT sector.
Key takeaways:
- Romania’s IT industry has several tech hubs and over 45,000 IT companies. However, it still lags behind neighboring countries like Poland and the Czech Republic.
- Despite an impressive talent pool, the country has long faced a brain drain, and with the recent removal of tax exemptions for IT specialists, this challenge may resurface.
- Romanian developers offer some of the most competitive rates in the CEE region, but with new tax regulations and rising competition, the pricing is expected to increase.
Understanding Romania’s IT sector: Key facts and figures
Over the past decade, the Romanian tech industry has grown about 8-10% annually, becoming a major contributor to the country’s economy. The local IT sector now exceeds $6 billion annually.
Despite the growth, Romania’s IT services market still has room to expand. Its value is much lower than in other countries in Central Europe, such as Poland ($10.44 billion) or the Czech Republic ($6.47 billion).
The Romanian government has launched several initiatives to support digital transformation within the country and attract foreign investments in the software industry. One example is the PNRR Digitalization of SMEs program. This program offers grants from $0.54 million to $3.3 million for digitization projects involving partnerships between non-IT firms and software companies. Additionally, businesses investing in research and development can benefit from an extra 50% deduction on eligible R&D expenses.
Another key factor contributing to Romania’s favorable business environment is that global tech giants, such as Amazon, IBM, HP, Microsoft, and Oracle, have established their presence there. Several Romanian IT companies have also expanded into international markets. Successful products originating from Romania include UiPath, a leading enterprise robotic process automation platform, and theMarketer, an email and marketing automation solution.
A closer look at software development in Romania
Outsourcing services is the leading segment of the Romanian IT market, now valued at over $500 million annually. The country’s economic growth, skilled workforce, and relatively low cost of living create an attractive environment for companies seeking offshore software development.
Let’s look at what Romania has to offer as a software outsourcing destination.
Tech hubs
The Romanian software development industry is primarily concentrated in Bucharest, which generates 63% of the country’s IT revenue. Cluj-Napoca, located in the northwest, is the second-largest tech hub and home to major technology parks, including TETAPOLIS Science and Technology Park and Liberty Technology Park Cluj.
In contrast, some other Central and Eastern European countries offer a more distributed IT ecosystem. For example, Poland has at least seven major tech hubs located in Warsaw, Wroclaw, Krakow, Tricity (combining Gdansk, Gdynia, Sopot), Katowice, Lodz, and Poznan. This wider geographic spread provides businesses with more options when selecting software developers.
Talent pool
The country has around 192,000 developers, a significant increase from 2020, when there were 50,000 fewer. While the overall trend is quite promising, the reality is more complex.
According to the ANIS survey, 68% of IT companies planned to expand their teams in 2023, but only 44% succeeded. Meanwhile, just 9.5% expected workforce reductions, yet 24% reported a decline in team size. This highlights a significant talent gap—despite the growing number of software engineers in Romania, the demand for highly skilled developers continues to exceed the supply in the local market.
One possible reason is the brain drain. For years, Romania recorded the highest increase in migration among all EU states, with many well-educated young professionals leaving it. In 2001-2015, the Romanian government introduced income tax exemptions for IT initiatives to retain tech talent, which had some positive effects. However, they were revoked in 2025. So, chances are that Romanian developers will again look for better opportunities in the US and Western Europe.
Those considering hiring software developers in Central and Eastern Europe might want to explore countries with a larger skilled tech talent pool and a lower risk of employee turnover. For example, Poland employs over 400,000 people in the ICT sector and is experiencing a reverse brain drain, with Polish professionals returning home to work in its booming tech industry.
Education
Romania has a strong tradition in tech education. The country ranks 13th globally in the Index of Excellence in STEM education—ten spots behind Poland.
Romanian top universities consistently produce highly skilled graduates. These include:
- University Politehnica of Bucharest
- Babeș-Bolyai University in Cluj-Napoca
- Technical University of Cluj-Napoca
Additionally, multiple smaller institutions offer specialized programs in computer science, software engineering, and IT-related fields, ensuring a steady pipeline of skilled developers. The country’s Educated Romania Project aims to strengthen STEM education in schools further by integrating related activities into curricula and enhancing teaching methods.
Beyond offering strong technical expertise in software development, Romania also ranks #12 globally in English proficiency. Many IT professionals are comfortable communicating, writing technical documentation, and collaborating in English, ensuring seamless integration with international teams.
IT infrastructure
Romania boasts a strong and rapidly evolving IT infrastructure, enabling local software development companies to operate efficiently and deliver high-quality outsourcing services. The country has:
- Quality internet connection. Romania is known for having some of the fastest Internet speeds in the CEE region. In December 2023, the country’s internet access rate reached a record high of 92%.
- 5G connectivity: While 4G is still the most common, Romania already has 2.3 million 5G connections. Telecom operators have also invested in communication technology to improve their networks and service quality.
- Data centers. The demand for cloud services and data processing is driving the growth of local data centers, and Romania currently has 58 of them.
- Tech parks. Romania is home to several technology parks that provide infrastructure for tech companies and startups, fostering collaboration and innovation across the IT sector.
Industry expertise
In Romania, software development firms serve diverse industries. Local developers are particularly known for their expertise in:
- Finance and banking: fintech solutions, payment app development, secure payment systems, banking development services, and fraud detection tools.
- Healthcare: telemedicine platforms, electronic health records systems, and medical imaging solutions.
- Automotive and manufacturing: embedded software and industrial automation systems, supporting global car manufacturers and industrial tech firms.
- E-commerce and retail: custom e-commerce platforms, machine learning recommendation engines, and logistics optimization solutions.
To meet the demand from local and international clients, Romanian software development companies offer a wide range of services. These include web development, mobile app development, mobile and web design, SaaS development, and API integration. Romanian developers are also well-versed in cloud migration, infrastructure management, and building blockchain-based solutions, such as smart contracts, cryptocurrency platforms, and secure distributed applications.
However, not all local development companies offer the same level of services or expertise. So, when choosing a provider, it’s important to find one that matches your specific IT needs.
Cost
The cost-quality ratio is one of the top reasons why outsource software development to Romania. Thanks to a lower cost of living, local development companies offer competitive pricing. Software engineers in Romania charge $25–$50 per hour, while in Western Europe and the US, rates can go from $60 to $150 per hour.
Here’s a comparison of annual tech salaries in the US and Romania to give a clearer picture of this cost difference and what it means in the long run.
| Role | Average salary* (US) | Average salary* (Romania) | Cost-savings |
| Software developer | $103,000 | $24,000 | $80,000 |
| Project manager | $90,500 | $21,000 | $69,500 |
| UI/UX designer | $86,800 | $15,600 | $71,200 |
| QA engineer | $92,500 | $15,600 | $76,900 |
| DevOps engineer | $109,000 | $24,000 | $85,000 |
Source: Glassdoor
The table shows average figures, meaning senior software developers charge 20-25% higher rates, while junior specialists typically earn 20-40% less. Project and custom software development costs will also vary depending on the size and structure of a development team, project requirements, etc.
Compared to other CEE outsourcing destinations, the salaries of Romanian developers are quite competitive. Their peers in Poland and the Czech Republic typically charge a bit more. The difference in pricing was enabled by the income tax exemption for IT professionals, which ended on January 1, 2025. As a result, the salaries of Romanian software engineers will likely go up soon to match the regional average.
Legal aspects
The country offers a secure business environment that welcomes foreign investment. What’s more, many local IT companies have extensive experience working with international clients and follow well-established collaboration protocols. This is especially important for financial institutions operating under the EU’s Digital Operational Resilience Act (DORA), which sets strict requirements for ICT outsourcing—such as risk assessment, clear contracts, audit rights, and ongoing oversight of third-party providers.
Outsourcing software development to Romania is a straightforward process. If a business partners with a Romanian IT company under a B2B contract, the vendor handles all issues related to labor law compliance. But if a client finds developers on local job boards and hires them directly, they must ensure their employment contracts follow Romanian labor laws.
A foreign company doesn’t need to set up a local branch or subsidiary to work with an IT outsourcing service provider. A Service Level Agreement (SLA) is usually enough to outline the project scope, responsibilities, and expectations.
Additionally, companies have to sign a written agreement regarding IP transactions. If an organization wants to retain full ownership of software solutions developed in Romania, it should ensure its SLA or a separate contract explicitly states IP rights transfer.
Compare the real cost of development
The right decision starts with the right data
Challenges when outsourcing software development to Romania
While Romania is a strong outsourcing destination, there are a few challenges to keep in mind when hiring developers. We’ve already touched on some of them, but let’s summarize the key points:
- Talent availability. Romania has a highly skilled IT talent pool, but demand for top tech experts often exceeds supply. As a result, finding and securing experienced developers can take longer than expected.
- Competition for IT talent. With a talent shortage, Romanian developers have plenty of job opportunities to choose from. This can lead to higher turnover rates as professionals seek better offers, both locally and internationally.
- Rising salaries. Romanian software developers have traditionally charged more affordable rates than their CEE peers. However, salaries are expected to rise due to the removal of the income tax exemption for IT professionals and growing competition.
- Time zone differences. Romania operates in Eastern European Time (EET), which works well for Western European clients but may present scheduling challenges for businesses in the US.
If any of these factors is a dealbreaker, businesses might consider other CEE outsourcing destinations. For instance, Poland has a skilled tech talent pool twice the size of Romania’s, giving potential clients more options in terms of expertise and collaboration models.
Final thoughts
When outsourcing software development to Romania, a company gets a strong mix of technical expertise, cost-effectiveness, business-friendly conditions, and government-backed economic stability. Over the past decade, the country’s technology sector has constantly evolved, attracting global tech companies with foreign direct investments and international clients looking for reliable yet affordable development teams.
However, rising salaries and competition for top talent are factors to consider when picking Romania as your outsourcing destination. If you’re exploring other markets, Poland could be a great alternative. At Neontri, we’re here to help you navigate these choices.
Our team provides comprehensive consulting services to help you determine the best outsourcing strategy based on your project requirements, timeline, and budget constraints. Neontri’s project management approach combines local oversight with transparent communication channels, allowing for seamless collaboration despite geographical differences.
Whether you need assistance with team assembly or custom software development services, Neontri’s end-to-end services are designed to maximize the benefits of IT outsourcing. Contact us today for a personalized consultation about your software development needs.
FAQ
What are the key factors to consider when choosing a mobile banking app development company in Romania?
Choosing a team for banking mobile development in Romania is similar to the same process in any other country. Look for a company with experience in building financial apps. Ensure their software engineers are skilled in iOS, Android, and cross-platform development, prioritize user-friendly design, and implement robust security.
How does the mobile banking app development cost in Romania compare to other Eastern European countries?
Romania generally offers slightly lower mobile banking app development rates than other Eastern European countries. To get the most accurate pricing, it’s best to contact custom software development companies directly.
How do Romanian software development companies ensure the security of mobile banking apps?
Romanian software development companies follow GDPR and other industry standards to ensure data protection. They also implement secure coding practices and encryption to protect sensitive information. Additionally, if included in the scope of services, Romanian developers may conduct penetration testing to identify vulnerabilities, implement multi-factor authentication (MFA) for added security, and provide ongoing maintenance with regular updates to address emerging threats.
How do Romanian software development companies integrate AI and machine learning into banking solutions?
Romanian IT companies use machine learning in banking solutions for fraud detection, personalized services, predictive analytics, and smart chatbots. They also leverage AI technologies to create successful and scalable products to help banks streamline processes, better manage risks, and make data-driven decisions.
How does Romania’s developer pool compare to neighboring countries like Poland or the Czech Republic?
Romania’s developer pool is strong and competitive within Central Europe, though it differs in profile from its neighbors. Salaries are generally lower, which makes it attractive for cost-sensitive projects, and the country produces a steady stream of IT graduates each year.
English proficiency is solid, but Poland typically ranks higher, while the Czech market is often associated with engineering rigor and stability. Romania, on the other hand, combines affordability with solid technical skills and is building a reputation in specialized areas such as cybersecurity and fintech.
