Overview of the Romanian Software
and IT Services Industry
Forum IT Romania – Austria, Vienna, June 4-5
Valerica Dragomir
Executive Director of ANIS
Agenda
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About ANIS
Software and IT Services in Romania
Software and IT Services Ecosystem
Romania’s Competitive Assessment
About ANIS
About ANIS – who we are
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Association of software companies in Romania
Established in 1998
+100 member companies, with national representation
Members’ combined revenue represents +35% of the sector
Members’ combined no. of employees is about 10,000 / 16%
of the sector
About ANIS – what we do
 Strategic mission: grow the Romanian software industry
 Strategic priorities:
• Promote Romania as a high value added software
outsourcing destination
• Inform and assist member companies in developing new
business models, including developing products, spin-offs,
etc.
• Growing the domestic software market by promoting
enhanced technology use towards SMBs
Software and IT Services in Romania
Romanian Technology Market in Brief
 Government is still among the biggest buyers, along
Manufacturing and Utilities sectors
 Local companies are taking the upper hand on large
international technology vendors
 Romania is a solid near-shore/ offshore services center
• Delivery for offshore/near-shore clients in the U.S., Western
Europe (France, Italy, Germany, Benelux, United Kingdom) and recently
the Middle East
• ~50 offshore centers – 30% IT services + 20% R&D centers
• ~50.000 people working in this segment (2012 estimate)
*Source: “Software and IT Services in Romania”, ANIS-IDC, 2013
IT in Romania – quick facts and figures
• Romanian IT market - 2.1 billion EUR in 2012 (4.3% growth)
• Overall projected growth for the next 3-5 years: 2.4%
• Software projected growth for the next 3-5 years: 3.3%
14.90%
Hardware
Software
14.80%
IT Services
70.30%
Source: “Software and IT Services in Romania”, ANIS-IDC, 2013
Software in Romania – quick facts and figures
• Custom application development ~ 43M Eur in 2012 (10%
growth)
• Packaged software in 2012: 312M Eur (7.5% growth)
Applications
segment
16%
52.25%
31.70%
System
infrastructure
software
Application and
development
software
Source: “Software and IT Services in Romania”, ANIS-IDC, 2013
Types of Packaged Software Developed
60%
54%
50%
41%
40%
30%
38%
33%
32%
31%
27%
24%
20%
10%
0%
Source: “Software and IT Services in Romania”, ANIS-IDC, 2013
23%
22%
13%
Package Software Revenue Split by Verticals
14%
12%
13%
13%
13%
11%
10%
10%
9%
8%
8%
6%
6%
4%
2%
0%
Source: “Software and IT Services in Romania”, ANIS-IDC, 2013
5%
3%
Packaged software vs. Custom development
No. of companies: there is still focus on custom software
development projects
Development of
commercial
packaged software
11%
Custom software
development for
third parties
46%
43%
Both commercial
packaged software
and custom
development
Source: “Software and IT Services in Romania”, ANIS-IDC, 2013
Packaged software vs. Custom development
Revenue split: proprietary software is more productive in
revenue generation
16%
29.50%
Sales of proprietary
commercial packaged
software
Custom software
development for third
parties
Provision of other IT
services
53%
Source: “Software and IT Services in Romania”, ANIS-IDC, 2013
Software and IT Services Ecosystem
Software and IT Services Ecosystem
International
vendors
Intl. vendors
 Revenues derive from L&M
for own applications
 Production not localized in
Romania
 They do not contribute to the
local production
 Examples: HP, IBM,
Microsoft, Oracle, SAP,
Siebel
Source: “Software and IT Services in Romania”, ANIS-IDC, 2013
Software and IT Services Ecosystem
International
vendors
R&D Centers
R&D Centers
 Revenues derive from L&M
for own applications
 They do not contribute to the
local production
 Production IS localized in
Romania, through captive
R&D Centers
 Examples: Adobe, Freescale,
Intel, IXIA
Source: “Software and IT Services in Romania”, ANIS-IDC, 2013
Software and IT Services Ecosystem
International
vendors
R&D Centers
Outsourcing
companies
Outsourcing companies
 Revenue derives from
custom development for third
parties
 Contribute to the size of
outsourcing business located
in Romania
 They do not contribute to the
local production of software
 Examples: companies
present at the meeting
Source: “Software and IT Services in Romania”, ANIS-IDC, 2013
Software and IT Services Ecosystem
International
vendors
R&D Centers
Product
companies
Outsourcing
companies
Product companies
 Revenue derives from L&M
from their own applications
 Production of applications is
localized in Romania
 Contribute greatly to the local
production
 Examples: Bitdefender,
Gecad, Siveco, Total Soft,
Wizrom
Source: “Software and IT Services in Romania”, ANIS-IDC, 2013
Romania’s Competitive Assessment
Romania’s Competitive Assessment
Romania’s IT services offshore market 350 M Eur in 2012
(excluding the export of pure licenses)
Structure of offshore/ near-shore market:
9%
IT services
29%
BPO Services
62%
R&D (engineering)
Source: “Software and IT Services in Romania”, ANIS-IDC, 2013
Romania’s Competitive Assessment - HR
• Largest pool of human resources in CEE – 65.000 employees in
software and IT services companies in 2013 (estimate)
• 300,000 tertiary education graduates/ year, of which +8000 are
pure computing graduates (source: DasCloud.ro study)
• Technical studies distribution:
o Computer Science/ Automation ~30%
o Mathematics/ Informatics ~29%
o Engineering ~21%
o Economic Studies ~9%
o Other ~8%
Source: “Software and IT Services in Romania”, ANIS-IDC, 2013
Romania’s Competitive Assessment - HR
• 44% of local companies expanded their teams over the last 3
years, while 64% will still expand for the next 3 years
• Staff turn-over rates decreased in the last 3 years
• Drawbacks: constant need of highly skilled specialists, salaries
and benefits are growing
Source: “Software and IT Services in Romania”, ANIS-IDC, 2013
Romania’s Competitive Assessment –
Business Environment
• Sectors with growing IT budgets in the next 5 years:
manufacturing, utilities, insurance, healthcare, education,
business services
• Sectors with steady IT budgets in the next 5 years: transport,
communications and utilities, finance, and the public sector
• SMB Sector will be forced into spending more on and outsource
IT operations to be competitive
• The Public Sector will have projects openings, under the
influence of the EU Digital Agenda 2020
Source: “Software and IT Services in Romania”, ANIS-IDC, 2013
Drivers for the Romanian Software Industry
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Going Mobile
Hardware Usage
Pent-up Demand
EU Funds
Increased Internet Penetration
New Technology and Delivery Models
Source: “Software and IT Services in Romania”, ANIS-IDC, 2013
Main Factors Stimulating the Growth
Improvements to IP legislation
44%
Industry events/ workshops
45%
Increasing number of software development
incubators
46%
Access to newer technologies
56%
Government incetives
57%
Specialized curricula in universities
58%
increasing availability of IT skills
61%
Foreign investment in the local companies
67%
0%
10%
20%
30%
40%
Source: “Software and IT Services in Romania”, ANIS-IDC, 2013
50%
60%
70%
80%
Software and IT Services in Romania - 2013
• Study on the development of the industry of software and IT
services in Romania
• Commissioned by ANIS and rolled out by IDC
• Published in November 2013
• For more info: http://bit.ly/ITstudy
Romanian Software Outsourcing Index - 2013
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Catalogue of companies active in the outsourcing business
55 detailed companies’ profiles
1st edition was published by ANIS in October 2013
Accessible online at: www.anis.ro/rsoi
Thank you !
Valerica Dragomir
executive director
valerica.dragomir@anis.ro
Nicolae Filipescu 39-41, 1st floor,
sector 2, Bucharest, 020961
+40-21-3121397
www.anis.ro
www.facebook.com/anis.romania
www.twitter.com/ANIS_RO