Nearshoring to Romania: a strategic opportunity for businesses

As Europe’s economy is returning to a slow growth, companies across the continent are re-evaluating their strategies to remain competitive and resilient. The UK, in particular, is experiencing economic pressures as well. With increased labor costs and rising National Insurance contributions up by 2%, many UK-based companies are facing higher operating expenses that directly impact their profitability and growth potential. This climate will make businesses look for cost-saving measures that do not compromise quality or talent. Therefore, nearshoring to Romania might be a good solution.

Romania is a great and preferred nearshoring location for several reasons, particularly in the IT sector. It has one of the fastest-growing technology markets in Central and Eastern Europe, with a pool of highly skilled professionals who are known for their expertise in areas like software development, cybersecurity, and more.

Romania’s IT industry has grown by 12% last year, contributing 8% to the GDP in 2023. To put that into perspective, the country’s ICT revenue hit 15.5 billion euros in 2023, which would land Romania at 18th place globally according to ANIS and ReportLinker, and is on track to reach 19.2 billion euros by 2028. With around 202,000 engineers skilled in a wide range of technologies. Romania’s tech talent is vast and growing.

But it’s not just technical proficiency that sets Romanian developers apart, they are also highly fluent in English, as a second language, placing Romania among the top 15 countries for English proficiency according to the EF English Proficiency Index. In addition, many engineers are also proficient in a third language like French, German, Italian or Spanish. This capability, combined with a Western-aligned work ethic, ensures great communication and seamless project management for European clients. Not to mention they are also known for their problem-solving skills and adaptability, skills that align well with the Agile methodologies commonly used in tech projects. This cultural fit, alongside the competitive cost, positions Romania as a strategic nearshoring destination for European companies seeking to optimize costs without sacrificing quality.

STEM expertise

Romania’s STEM (science, technology, engineering, mathematics) expertise has led to the development of a highly skilled talent pool, concentrated in cities like Bucharest, Cluj-Napoca, Iasi, and Timisoara. This has attracted global giants like Amazon, Google, Adobe, Microsoft, Deloitte, London Stock Exchange, British American Tobacco, Vodafone to establish tech hubs and R&D centers in the country. Romania’s academic institutions continue to produce a steady stream of specialists making the country a valuable partner for companies seeking skilled professionals.

Startup scene

According to a technology report created by the UK/Romania Business, Romania’s startup scene has seen rapid growth in recent years, backed by both local and international investment. Since 2016, the European Investment Fund has played an important role in supporting domestic venture capital (VC) through funds like Early Game Ventures and GapMinder, with GapMinder’s 80 million euro Fund II being the largest in the country. Additionally, Underline Ventures closed a significant milestone in 2023 with its 20 million euro private-money fund, showing confidence in the local startup ecosystem.

At the same time, Romania has attracted a lot of interest from UK-based venture capital, with 13 UK VC firms now investing in Romanian startups. Local innovation hubs are also encouraging a more diverse venture environment, with organizations like Bravva and WIT supporting female angel investments. The country’s ecosystem is also boosted by crowdfunding platforms like Seedblink, which has expanded across Europe. As Romania continues to solidify its position as a key player in the regional and global tech scene, these investments are helping the growth of the startup community, making it an attractive destination for foreign companies looking to access innovative and cost-effective solutions.

Proximity

Romania’s proximity to Western Europe is a significant advantage for companies looking to nearshore their IT operations. With just a 2-3 hour flight from major European capitals and minimal time zone differences, it’s easy for teams to collaborate seamlessly in real-time. This geographical closeness, combined with a Western-aligned work ethic, allows for smooth communication and quick project turnarounds, making it easier for UK companies to manage remote teams effectively.

The technical delivery culture is another key factor that makes it a top nearshoring destination. Romanian developers don’t just bring technical skills to the table, they also have a mindset focused on delivering quality software by taking a proactive, consultative approach. This is a result of Romania’s influence of Western work practices, which emphasize clear communication, proactive problem-solving, and Agile methodologies.

Romanian tech teams are used to working in high-pressure environments where quality and speed are critical, making them ideal partners for companies that need reliable and efficient software development. This shared vision on results-driven delivery means that projects can move forward without friction, ensuring that expectations are met and often exceeded.

EU-Compliant environment

Romania offers a secure and reliable business environment, deeply integrated into EU standards and governed by comprehensive data privacy laws like GDPR. Being part of the EU means Romania upholds the same rigorous frameworks for data protection and compliance, ensuring that companies can confidently handle sensitive information without concerns about security breaches.

But beyond this, as a member of key global and regional partnerships, Romania is supported by a network that provides geopolitical stability and ensures a safe environment for business. This level of protection offers companies an extra layer of security when nearshoring, ensuring their operations are both compliant and well-protected in a trusted ecosystem.

Conclusion

As businesses continue to adapt to the changing economic landscape, choosing the right partner and the right strategy is key. That’s why Cegeka and Romania offer a winning combination. Cegeka offers global expertise combined with a local touch, ensuring seamless communication and a personalized approach for every project.

We have a strong nearshoring presence in countries such as Belgium, the Netherlands, Germany, UK and more, leveraging a delivery center that employs over 900 skilled professionals. This model allows us to bring our expertise closer to your business operations, reducing costs while maintaining high standards of quality. By integrating seamlessly with your teams, we ensure faster time-to-market, efficient project execution, and culturally aligned collaboration. Our nearshoring approach offers the best of both worlds: proximity to your core markets and access to our extensive pool of talent in Romania, ensuring agile and flexible solutions tailored to your specific needs.

Discovery Phase

At Cegeka, we believe the Discovery Phase is a crucial step before starting a project, as it lays the foundation for success. This phase helps us align project goals with your business needs, allowing us to develop tailored solutions while minimizing potential pitfalls. During the Discovery Phase, we conduct a series of collaborative workshops involving a dedicated team of experts, including an Architect, Business Analyst, UI/UX Specialist, and Project Manager. Together, we define the project’s purpose and objectives while identifying potential risks and challenges. This process allows us to outline a clear project roadmap, creating a high-level architecture, a prioritized backlog, timelines, and budget estimates.

Application Management Service

The Application Management Service is designed to help businesses run smoothly and smarter by addressing critical IT challenges. As companies face increasing business expectations, with demands for quicker support and more value-driven solutions, Cegeka ensures a high-quality response aligned with your needs. We focus on delivery efficiency, optimizing costs through flexible scaling, achieving up to 30% cost savings in run services and 2x faster releases. By driving IT transformation, we simplify complex portfolios using proven methodologies, modernizing legacy systems through end-to-end expertise. With high availability, transparency, and efficient reporting, we ensure zero business disruptions, empowering organizations to enhance productivity while maintaining cost efficiency and scalability.

End-to-End project development

We also specialize in delivering projects from end-to-end, ensuring seamless execution at every stage. Our end-to-end project delivery development includes a wide range of solutions, everything from initial planning to design, development, testing and deployment, software and infrastructure services and implementation of applications for exponential technologies. We adopt a collaborative approach, working closely with your teams/stakeholders to align our solutions with your business goals. By leveraging agile methodologies and a deep understanding of industry best practices, we ensure that projects are delivered on time, within budget, and to the highest standards.

Team as a Service

The Team as a Service model is tailored to your specific needs, ensuring that we build a custom IT team that aligns perfectly with your organization. We work closely with you to understand your objectives and quickly assemble the right experts to meet your project demands. Throughout this partnership, you remain in full control of your projects and scope, while we handle the complexities of team management, enabling you to focus on your strategic goals without the hassle of hiring and training.

IT Team extension

The IT Team extension model is ideal for companies looking to integrate skilled IT engineers into their in-house teams. This flexible approach enables rapid scaling to meet project demands, providing specialized talent exactly when needed. Whether you’re expanding your team quickly or seeking expertise for a specific project, we ensure you have access to the right skills.

Consultancy

Of course, all our services are supported by our consultancy expertise. Our consultants bring industry knowledge and strategic insights to guide your projects, ensuring that every solution is not only technically sound but also aligned with your business goals. We collaborate closely with you to drive innovation, enabling you to achieve sustainable growth.

Romania’s tech scene, backed by Western influence in work practice and quality execution, provides a strong foundation for delivering complex IT projects. The country’s engineers are known for their ability to adapt quickly and think outside the box, driving efficiency and productivity. That’s why when you choose Cegeka in Romania, you’re choosing to access into a dynamic tech ecosystem that prioritizes agility and client collaboration to drive growth.