romanian software outsourcing index 2013 Catalogue of Romanian Software Outsourcing Companies CONTENT 3 Forward 4 ANIS Overview: Priorities, objectives, projects 5 Outsourcing in Romania - A Plea for the Romanian Software Development and Services Delivery Excellence 7 Geo-distribution of the Romanian IT&C industry 9 Software Outsourcing Company Profiles Forward The vision ANIS is embracing is that of a strong IT sector, leading technolgical innovation while at the same time supporting the growth of the whole economy. We are aiming to promote Romania internationally as a leader for software development, as well as a high-end software and IT services provider. With IT exports lead by sofware outsourcing companies and R&D centers, our advocacy efforts go in assisting these companies in growing their business and expanding their potential, as we are looking forward to a high-value added services and product-based software industry. Andrei Pitis President of ANIS Romania has been a leading player in the software development space and has been ranked at the top of IT outsourcing service providers in the global market by all the major consulting firms since 2005. Outstanding technical skills and a passion for engineering marked in people's genes, a culture of open communication, strong work ethics, great language skills and one of the best developed Internet infrastructures in the world helped Romania become one of the most attractive destinations for the IT outsourcing and software development businesses. More and more software companies develop and grow in Romania for its renowned global delivery service centers and R&D potential. The country's competitiveness has raised awareness not only among European clients, for whom the advantage of operating under the Sorin Gavanescu ANIS Vicepresident - Outsourcing European Union umbrella brings obvious business advantages, but also among more distant markets, such as the US, Canada, Australia and countries in the Middle East who also invested heavily in software outsourcing projects in Romania. We at ANIS are very happy to publish the country's first software outsourcing companies catalogue, based on data collected directly from the companies in August-September 2013. www.anis.ro | 3 ANIS Overview: Priorities, objectives, projects ANIS represents the interests of Romanian IT ANIS' vision can be transposed in 3-pillars companies and supports the development of the strategy: software and services industry, as well as the • A plan to grow the internal software growth of companies involved both in market - for creating local products that can outsourcing projects and in developing proprietary be exported in later stages applications. • A plan to encourage creation of The association was founded in 1998 and now proprietary software products - startups, includes approx. 100 members - companies with accelerators, incubators, entrepreneurial both Romanian and foreign capital, small and education programs medium companies as well as multinational ones, • A plan to support outsourcing and R&D with presence in the main technical universities in centers, based on creativity and not on costs. the country. ANIS aims to contribute to promoting Romania as ANIS projects on short and medium a regional leader for software development and term established exporter for high quality software • Release of an extensive study on the evolution ANIS represents the products and services. ANIS is also acting as main of the local IT industry, to track a path for point of contact for information regarding the future development and create premises for interests of industry. product development based business model Romanian IT During the last years, ANIS was closely involved, • Planning a vision of growth of the local companies and together with other organizations, in creating and industry, to maximize opportunities for various promoting abroad the national brand for the IT types of companies in the software and supports the industry -"romaniaIT - Creative Talent. Technical services business and promoting this vision to development of the Excellence". organizations and governmental bodies that can contribute to setting up concrete support Cooperation with both public and private sector software and services measures for this vision partners is the main success factor for many of industry, as well as the association's projects. ANIS is a member in the • Development of programs and events to the growth of Export Council, was involved in CoNaCo - support companies in their efforts to identify National Competitivity Council and is now and approach potential customers companies involved represented in the Coalition for the Development • Continuous involvement in working groups both in outsourcing of Romania, created by the Prime Minister and and committees that analyse and propose coordinated by the Ministry of Economy. measures for supporting the growth of the industry. projects and in ANIS is also closely involved and has active developing partnerships with bilateral chambers of commerce proprietary - AmCham, Romanian-French Chamber of Main directions that will aggregate the Commerce, Romanian-German Chamber of association's projects in the following years: applications. Commerce - as well as with commercial representations attached to embassies of the 1. Lobby and advocacy efforts for promoting target countries for our industry. and supporting the software and IT services industry, through: Vision: Romanian software from • Involvement in industry working groups, "lohn" to brand coordinated by various governmental bodies Following member consultations and decisions of • Promoting a set of legislative measures to the association's General Assembly, ANIS' efforts support industry development and on short and medium term are concentrated domestic market growth towards promoting a new business model for the national software industry onto the creation of • Supporting transparency of public for proprietary software. public bidding on IT&C projects 2. Facilitate companies' access to financing, The local industry is under the pressure of through briefing sessions on topics such as changing focus from human resources - financing in EU projects, investment funds technically qualified, but cheap - that can develop access etc. custom made software, to creating innovative software projects with local capital. This way we 3. Continuous learning programs, through can address the need of creating many more jobs courses and training to help companies and in an industry which is growing significantly. their employees to maintain a high level of qualifications. 4 | www.anis.ro Outsourcing in Romania A Plea for the Romanian Software Development and Services Delivery Excellence A Look Back to the Last Decade Impact of the Global Crisis on the Local Companies The evolution of the IT industry in Romania has been a typical one for developing countries and economies. In The global crisis brought about a non-typical evolution of the years 2000 the sector was booming, with markets and niches that generated significant changes for year-on-year growth rates between 25 and 30%. companies in the software and services segment. Those servicing mostly public sector companies found During following decade, domestic market technology themselves in difficulty. While in 2008 the turnover sales, especially hardware and infrastructure and networks generated by the domestic market operations was equipment, were the drivers for this growth. Companies superior to exports, the general pressure on and from investments were supported by internal budget international customers for better cost management, if allocations as well as funding through european projects not cutting, was put to an excellent use by exporting applications. National and local administrations, in their Romanian companies, mainly in the outsourcing business. efforts of catching up with technological development, contributed largely to the growth of the sector. Focus on increasing productivity and decreasing costs through technology was actually the winning card for The software segment was growing as well, but to a Romanian software companies, both on the internal and slower pace. ANIS estimates showed that in 2002-2003, external market. from the total IT spending, the allocation for software products and projects was of about 30%, while in more 2010 was the post-crisis recovery year for Romanian mature economies this percentage went up to 60%. software and services exporters. Both the number of projects and their value have been on the rise, as a result As context evolved and both private companies and of how international customers chose to approach the public administration diversified operations, the need for changes induced by the global crisis. software products to support operations and help them increase competitivity, business turnover for the software Feedback from companies and ANIS estimates show that and services segment went up accordingly. Between 2002 the sector has used the excellent opportunity and and 2007, Romanian software industry saw a yearly maintained the growing trend, although at slower pace increase of +20% of the sector turnover; at the than in the pre-crisis years. beginning of 2008, estimates indicated projected growth rates of at least 15% in the following years. Exports grew by 40% between 2008 and 2011; this reflects the rising interest for Romanian companies The pre-crisis years were extremely beneficial for the especially the software development area