Software Development Outsourcing

Software development outsourcing equals to contracting a specialized team to deliver a turnkey solution. The key fact is that software development outsourcing brings along not only financial benefits but also in-depth programming expertise. SOFTECH has been providing global software development outsourcing services from our Romanian offices since 1998 and we are still passionate about helping our worldwide customers build complex innovative software products and solutions.

SOFTECH’s software development outsourcing capabilities cover the full software development life cycle. Product/Project Managers and CTOs know best what type of software development outsourcing services they need and we usually start with a software requirements specification. The developement team can step in at any software development outsourcing stage:



Use Case


Estimation Architecture


Development Integration Testing Maintenance

The software development outsourcing services that SOFTECH can offer include: front-end development, back-end development, embedded development.

Software Development Outsourcing’s Advantages and Benefits

In the last decade, Cluj-Napoca has become a global software development outsourcing provider pole. SOFTECH has a proven contribution to the local software development outsourcing movement for the company has entered its first software development outsourcing contract in the late 90’s. During 20 years of complex work, our customers and partners counted consistent positive results.

The advantages and benefits of software development outsourcing to SOFTECH team from Cluj-Napoca, Romania are counted in the table below:

Software Development Outsourcing
with SOFTECH from Cluj, Romania
Software Development Outsourcing
with SOFTECH from Cluj, Romania
Proficiency and Expertise Faster go-to-market
Concentration on business core processes Increased business efficiency
Risk-sharing Potential for growth and development
Lower operational costs Higher business margins
Multi-language communication skills Broader geographical coverage
Project Scalability Reduced project costs
Proximity to European locations due to the city’s international airport Rapid access to the software development team
Tax facilities for programmers in Romania Lower hiring costs

Software Development Outsourcing Contract and Agreements with SOFTECH, Romania

Since SOFTECH has been working on software development outsourcing projects with customers from USA, Canada, Germany, Netherlands Austria, UK, Switzerland, Denmark, Norway, Finland and Hungary we consider it important to let our partners know about the importance of software development outsourcing contract and agreements.

Software development outsourcing projects are rather complex and difficult to structure, manage and run. The greatest outcome of the outsourcing contracts is the financial advantage between two companies from two different countries.

Romania has a developing economy and still has one of the lowest living costs in Europe. On the contrary, the pool of talented and skillful software developers is one of the best in Europe. Therefore, software development outsourcing contracts with Romanian partners resulted as a legacy of the former regime’s education system oriented towards science and technical excellence.

Software Development Outsourcing Contract or Agreement
with SOFTECH in Cluj-Napoca, Romania
Romania is a EU member state, therefore can provide the fiscal advantages of intra-EU operations
Romania and the United States of America have signed treaties in order to support mutual business and cooperation
Romania is offering the biggest tax incentives in the region to IT employees
The total development costs in Romania are av. 36-40% lower than in US or Western Europe
Clear definition of the software development outsourcing project
Mutual agreement on major milestones and delivery deadlines
Forecast of potential software development outsourcing bottle-necks
Overcoming miscommunications and misunderstandings
Fine-tuning the collaboration through open negociations and correct estimations

Software Development Outsourcing Cooperation Models

Depending on where the customer is located and how much involvement is needed from their side, the software development outsourcing cooperation may take different shapes.

The Offshore Software Development Outsourcing Model

Offshoring works best when the focus is put on process efficiency, price-quality ratio, tax benefits and business growth. It is a global market model used for long-term and complex software development. Outsourcing the full software development life cycle to SOFTECH team is an already tested approach, as the length of some ongoing cooperation surpass 10 contractual years.

The Nearshore Software Development Outsourcing Model

In the situation of a tighter cooperation between the customer and the software development outsourcing provider, nearshoring is recommended. Direct flights to Cluj offices for meetings and important discussions are possible and quick (1 hour – 2 hour flights). The teams have cultural similarities and speak common languages (mainly English or German). The time zones are similar (London -2 hours, Amsterdam – 1 hour) as the local hour is UTC/GMT +3 hours. The teams working in sprints may take faster decisions and adapt the software development process accordingly.

The Extended Teams Software Development Outsourcing Model

Often software development outsourcing works between highly specialized software development teams. The client team does the management of the project and many interactions and cooperation occur between the two teams. This is the so-known extended team model. The software development outsourcing company provides highly technically skilled persons able to add value to the outsourced project.

How Does Software Development Outsourcing to Cluj, Romania Fit Your Business Scope?

For the software development outsourcing astute practitioners there are several insights that for new customers and non-tech businesses must be detailed. For some it is so natural to outsource as it is natural to contract a construction company for a house. SOFTECH has encountered all kind of situations and we agree that each customer and project is unique.

The Turnkey Software Solution

Companies from various industry sectors sometimes look for a turnkey software at the end of the software development outsourcing contract. It is profitable to build a software solution that helps you further develop a particular business or just to comply with the new digital economy.

When turnkey software is delivered the software development team is fully responsible for the quality and functionalities of the end-product. The decision around the software development outsourcing provider goes around complex criteria:

  • Can the software development-outsourcing provider design the appropriate soloution?
  • Can the selected team implement at the promised quality?
  • Can and will they meet the deadline for market-release?
  • Can they further provide outsourcing for technical support and maintenance?
  • Wil the software development outsourcing contract fit in a pre-established budget?

When the customer has decided upon a software development outsourcing provider the main advantage is the peace of mind that a specialized team has taken this project in hands.

From SOFTECH’s experience this approach fits for smaller software development projects with clear specifications, where the project owners look for both financial and quality advantages. Cluj corresponds as a stable economic region and SOFTECH has some important proven history with global leading companies.

The Design and Build Model

Specialized software development departments and companies will rather asses the opportunity to extend their team or acquire specialized skills form a software development outsourcing partner. SOFTECH has been successfully working with tech teams in the past two decades and we may conclude that is was a mutually advantageous cooperation.

In the use case analysis and architecture design phase, the software development outsourcing customer is looking for various solutions and estimates. A disparity between prices and solutions is foreseeable depending on the software development outsourcing provider’s location and know-how. The decision around the software development outsourcing provider will cover a different set of criteria:

  • Which outsourced software development team has the capacity to implement the designed solution?
  • Which can best adjust to justified changes ?
  • Which software development outsourcing provider has the necessary expertise to add value to the project?
  • Which software development outsourcing provider can best control its costs?

The design and build model will rather go on an hourly rate pricing model or pre-established instalments across the year (monthly, quarterly invoicing). From SOFTECH company history, this software development outsourcing model works best for specialized customers who are able and can provide technical guidance across the software development cycle.

Software outsourcing to Cluj-Napoca, Romania is at hand when done with the right partner.

Softech offers software outsourcing services both offshore and near shore. The extended-teams version is also a cooperation model that may suit certain projects.

When initiating a software outsourcing cooperation with Softech, the outsourcing partner will benefit of the team’s openness to discuss different technology solutions. Next, Softech team is ready to assume the commonly agreed responsibilities in the outsourcing project.

You can outsource to Softech the entire software development cycle or just several parts of it:

Requirements Analysis

Use Case Analysis


Architecture Design





Softech outsourcing team can undertake:

  • Java development

  • C++ development

  • C# development

  • Objective-C Development (iOS, MacOS)

  • Android Development

  • Database Design

All the above can be put to service for developing desktop, web and mobile applications (native and cross-platform)