10 reasons why Romania is an excellent nearshore location for software development

In a world where digital innovation sets the pace, companies are constantly seeking efficient and cost-effective solutions for software development. Romania, as a nearshore location, has emerged as a top destination in recent decades. This is not only due to the high skill level of local IT talent, excellent infrastructure, and the minimal time difference with Western Europe, but also because of similarities in work culture and mentality, as well as its EU membership. Read on to discover why Romania is an excellent choice for nearshore software development.

Romania is a republic located in southeastern Europe, with a rich history dating back to classical antiquity. However, Romania is a relatively young state: in the past, the region consisted of multiple states under different names. For most of its recent history – between the Middle Ages and the late 19th century – the area was made up of three principalities: Wallachia, Moldavia, and Transylvania. In 1862, these principalities united to form Romania, with Bucharest as its capital.

Today, the country has a population of around 19 million people. Many will remember the communist dictator Ceaușescu, who remained in power until 1989. Since then, Romania has undergone rapid economic development and, as of 2025, is among the European countries with the fastest economic growth. Romania is steadily progressing toward a level of prosperity comparable to that of countries like Greece and Portugal.

Against the backdrop of these developments, we present ten reasons why Romania is an excellent choice for outsourcing software development.

1. Rapidly growing ICT sector in Romania

Since the turn of the century, Romania has focused heavily on ICT services as part of its economic strategy, leading to significant growth in the sector. Between 2017 and 2021, the Romanian ICT sector experienced an annual growth rate of 8%. As a result, in 2022, the ICT sector accounted for an impressive 6.2% of Romania’s GDP. In comparison, the ICT sector in the Netherlands contributed 5.3% to its GDP in 2023. The strength of Romania’s ICT sector is also highlighted in the 2024 IT Competitiveness Index by Emerging Europe, where Romania ranks fifth among Central and Eastern European countries.

The country boasts well-developed IT hubs in cities such as Bucharest, Cluj-Napoca, and Timișoara. Romania has also produced key players on the international stage, such as the security company RAV (acquired by Microsoft in 2003), cybersecurity leader BitDefender, and RPA developer UIPath.

Outsourcing service providers are also strongly represented within Romania’s ICT industry. According to Emerging Europe, Romania exported over €9 billion worth of ICT services in 2022, equivalent to 3.28% of the country’s GDP. This marks a significant increase compared to 2018, when ICT service exports amounted to €4.795 billion, or 2.33% of GDP. This growth demonstrates Romania’s increasing focus on IT and, in particular, on exporting its technical expertise and capabilities.

2. A wide pool of highly skilled professionals in the IT sector

Software development is a key branch of Romania’s IT sector. The country is home to thousands of companies specializing in software development, with the industry’s revenue reaching an impressive €3.2 billion in 2023. The economic focus on ICT services has also led to a continuous increase in the number of ICT professionals.

Romania’s education system and IT industry benefit from government support, resulting in a steady influx of new IT specialists each year. Last year, there were 196,200 ICT professionals, accounting for 2.6% of the workforce. This marks a significant increase compared to nine years earlier in 2014, when the number stood at 139,900. Moreover, an impressive 76.9% of these ICT professionals are highly educated. The number of ICT specialists is expected to continue growing, with 36,360 students enrolled in bachelor’s ICT programs and 8,613 in master’s programs in 2022 alone.

3. High-quality technical talent

Romanian developers have long been known for their strong technical skills and versatility in various programming languages. STEM subjects receive significant attention in Romania’s education system.

Romania ranks sixth globally in the all-time medal standings of the International Mathematical Olympiad (IMO), highlighting a long-standing tradition of excellence in mathematics. Mathematical skills and programming are closely related, as both require logical thinking, problem-solving, and abstraction. Mathematics aids in understanding algorithms, data structures, and concepts such as recursion and optimization. Linear algebra, calculus, and probability theory are essential in fields like machine learning, computer graphics, and cryptography. While not all programming tasks require advanced mathematics, a strong foundation in mathematical thinking provides a significant advantage when developing efficient and creative software solutions.

4. Alignment with Dutch mentality and (work) culture

The work culture in Romania closely mirrors that of the Netherlands. Just like in the Netherlands, employees in Romania are punctual and adopt a direct communication style. They typically work 40 hours a week, with two days of rest and relaxation over the weekend. Including overtime, the maximum workweek cannot exceed 48 hours. Overall, the work ethic of Romanian IT professionals is of a very high standard, and they tend to feel deeply engaged with the company they work for.

Romanians also value building trust and developing personal relationships with others. This applies to both private and business contacts. Anyone looking to successfully collaborate with Romanians would do well to invest time and energy in building these personal relationships. These efforts will pay off in the long term.

5. Almost the same time zone

Working with Romanian developers presents few challenges in practice. As mentioned, their workweek closely mirrors that of the Netherlands, and their working hours align quite well. Romania is only one hour ahead of the Netherlands, which means communication with Romanian developers can happen quickly and efficiently. This advantage is not found when working with developers in the Far East, where the time difference is much larger, and where English proficiency is often lower.

6. Good command of the English language

The official language of Romania is Romanian, a Latin-based language. This contrasts with nearly all Eastern European countries, where Slavic languages are spoken and the Cyrillic alphabet is used. Romanians are known for their strong command of the English language. According to the EF English Proficiency Index, they are the best in this regard among all Eastern European countries, ranking twelfth across Europe. Additionally, many Romanians also speak German or French as a second language.

7. Good cost-quality ratio for labor

With an excellent balance between cost and quality, Romania is an ideal destination for nearshoring software development. The country provides businesses with access to a large pool of talented developers at attractive rates. This allows Dutch companies to achieve significant annual cost savings while benefiting from the expertise of skilled IT professionals known for their technical skills, language proficiency, extensive domain knowledge, adaptability, and work ethic.

8. Excellent infrastructure in Romania

Romania boasts one of the fastest internet networks in the world, thanks to significant investments in fiber optic technology. Cities like Timișoara rank among the fastest in the world in terms of internet speed. The country also scores highly with its data center infrastructure, with no less than 48 data centers located across the country.

The accessibility of businesses is generally good. In addition to multiple international airports, including Henri Coandă International Airport in Bucharest, there are excellent local transport options with buses and minibuses for ease of travel.

9. Political stability

Romania offers a stable political environment that is conducive to business activities. The Romanian government has implemented various policies to attract foreign investments and promote a competitive business climate.

These efforts have led to a favorable atmosphere for companies to establish and expand their operations in Romania. The government actively supports the IT sector, ensuring businesses have access to the necessary resources and support to thrive. Despite some political challenges, the focus on economic growth and attracting foreign investments remains a priority, contributing to Romania’s overall stability and attractiveness as a nearshore location.

10. Member of the European Union and NATO

Like the Netherlands, Romania is part of the European Union, granting it access to the broader European market. This also means that the country must adhere to the same EU regulations and laws. As a result, privacy and security standards are comparable, which is not always the case with non-EU countries. Therefore, as a client, you do not need to worry about compliance. Everything in this area is well-regulated, just like in the Netherlands.

Romania’s NATO membership offers an additional layer of security and stability for Dutch entrepreneurs considering outsourcing their software development to the country. As a NATO member, Romania benefits from a strong international alliance that contributes to the country’s safety and stability. This membership not only strengthens Romania’s political and military position but also promotes a stable economic climate. For Dutch companies, this reduces the risk of geopolitical unrest that could disrupt business activities.

Want to know more about outsourcing software development to Romania?

Are you ready to take your software development to the next level? Choosing Romania as a nearshore location will accelerate the execution of your IT projects. Contact NetRom today through the form below to discover how we can support your organization in harnessing the vast opportunities offered by our Romanian IT specialists in nearshore software development.

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