Outstanding digital infrastructure, affordable housing and rentals, cheapest broadband, low cost of living, friendly culture and great human capital, maintain Romania  as an appealing ICT Destination in the EU. For those interested to initiate ICT projects, nearshore or offshore, Romania might just be your destination of choice.

Amidst the recent political turmoil that Romania has been going through since the start of the 2024 presidential elections in Q4, the country is still struggling to leverage its structural advantages in order to attract investments and trade partners. The effort is valid for the Romanian ICT sector too, since it has to tackle the impact of both local fiscal changes and global tech winter phenomenon.

Paradoxically, even if Romania is one of EU’s champions in terms of Fixed Very High-Capacity Network (VHCN) and Fibre to the Premises (FTTP) coverage, according to the Digital Decade Country Report 2024, the level of actual investments in specialized workforce education, in R&D and innovation in the ICT sector are the lowest in the EU. From these contrasting facts, arises the not-to-miss opportunity for international ICT businesses and investors who are in search of a reliable and productive ICT destination.

The fact that Romania is an appealing ICT Destination in the EU, must be one

Digital Infrastructure Leadership in the European Union

Situated in the eastern part of EU, Romania delivered excellent performance in terms of EU Digital Decade Gigabit connectivity target. Having a 95% coverage of households, Romania is close to delivering almost full FTTP coverage to its citizens and businesses, including in rural areas, where coverage has reached a striking 92.5% and is progressing quickly. Romania also has the highest take up of high-speed internet in the EU: 94% of internet connections are at speeds of 100Mbps or above!

On the other hand, Romania needs to catch up on the level of 5G coverage, estimated at 33% of populated areas in 2024, behind the EU average of 89.3%.

Cheapest Rates in the EU for Fixed, Mobile Broadband and Voice

According to the mobile and fixed broadband prices in Europe study, published in April 2024, by the European Commission, Romania is currently the best option in the EU. All the offers in Romania belong to the least expensive cluster in their respective baskets.

Most Affordable Housing and Rentals in Europe

According to Deloitte Property Index 2024, published in August 2024, Romania is one of the three cheapest new housing  European countries, after Bosnia and Herzegovina and Greece, with an average price of 1,504 EUR/sqm in 2023, The most expensive housing city in Romania is Cluj-Napoca, a growing ICT hub in the CEE, with 2,434 EUR/sqm. Nevertheless, for the rentals, according to the same index, Romania is still one of the most affordable real estate markets in Europe, with Cluj-Napoca having reportedly an average monthly rent of 9.7 EUR/sqm, followed by the capital city – Bucharest, with a monthly average rent of 9.2 EUR/sqm.

Lowest Cost of Living in the European Union

As presented by the Global Economy online publication and data from the World Bank International Comparison Program, Romania and Bulgaria still have the lowest cost of living in the EU area.

Most Desirable Digital Nomads Destination

In the latest Microsoft’s Digital Futures Index, Romania is ranked first (with a 150 total score compared to the CEE 100 average) for the Attractiveness for Digital Nomads index, closely followed by Sweden (148 score), Denmark (147 score) and the Netherlands (142 score). The last three countries, are also considered frontrunner countries in this specific index.

According to the same index, Romania also has outstanding results in terms of gender diversity of IT Pros (with a 144 score) with 26% female ICT specialists of the total ICT workforce, against an EU average of 19.4%.

Opportunities to Explore in the ICT Landscape of Romania

International business practices in a global context have shown that often-successful ventures and collaborations occur when domestic and foreign resources match. Given the current context, there are several pillars that a company may build its market advantages on the Romanian ICT market.

• Contract or outsource already established teams of ICT specialists. In this scenario, an international organisation from a developed economy may have access to an already trained and motivated team, while also benefiting of the economies resulting from the providers’ lower operating costs in a developing economy, including personnel, facilities, infrastructure and utilities, equipment and materials, services and other.
• Deliver professional tech training. One of the less covered areas on the Romanian labour market is the supply of professional trainings. People are keen to join businesses and organizations that provide specific tech skills training and create new job opportunities. This way, you can shape your team in the way your international ICT business needs it.
• Capitalize on language skills. Romania is a very particular landscape in terms of language skills. Given the ethnic mix and openness to travel, people living and working in Romania have conversational level of English, German, Italian, Spanish, French, Hungarian and other. If business organizations are also open to offer language trainings on the job, your employees will find that as being a nice part of their weekly routine.
• Offer competitive packages so that ICT experts reconsider migrating to regions that are more expensive across the world. Having a good living condition in Romania is very achievable, given the natural landscape, the living culture, the ease of travelling and affordable housing options.
• Partner with existing ICT companies on specific business levels. Build strategic alliances, make joint ventures, consider strategic mergers and vertical integrations. Depending on your business type, seek the right partner and initiate discussions. Explore the local context of the ICT market in Romania, make visits and gather information.
• Go for greenfield investments. There is such a great demand for new jobs, new facilities in the ICT field, that local administration will be prompt to offer support for these projects. Even you may find a lot of the proceedings a little bit clumsy, as soon as things get on the right course, they will also move rather fats.

Any of the above mentioned may suit your business needs, there are chances that you will find a good implementation model in Romania.

Romania remains still an appealing ICT destination in the EU for the upcoming years, and in case you are curious about the ICT hub in the city of Cluj-Napoca or the broader Transylvania region, write us directly or stay tuned for more information.

SOFTECH software development, based in Cluj-Napoca, is a proud member of ANIS – Employers association of Software and Services Industry in Romania and of Transilvania IT – the regional IT cluster. As an active player on the global ICT market, we are open for long-term collaborations on software development projects.