Software Outsourcing Readiness
In Eastern Europe, Romania has established itself as the country most culturally aligned with the United States. A member of the European Union, its entrepreneurial environment makes it a hotspot for software outsourcing, app development and tech research.
A tight job market had driven up costs and forced tech companies to import talent from Ukraine and Moldova. With the IMF now predicting a serious spike in unemployment, fresh eyes will turn on Romania, which has a well-established outsourcing sector and a track record of attracting big-business investment from the likes of Oracle, IBM and Facebook.
The official language is Romanian; however a very high percentage of the workforce speaks English, French, German or Italian.
Romania’s GDP growth was strong in 2019, driven by consumer spending and a rebound in investment, with unemployment reaching historic lows. That’s been reversed due to the impact of the COVID-19 pandemic. The International Monetary Fund expects the Romanian economy to contract by 5% in 2020, followed by a return to growth in 2021.
In its 2019 annual report, the European Commission criticized Romania's "backtracking from the progress made in previous years" on judicial reforms and the fight against corruption. Prime Minister Ludovic Orban, a career politician who came to power in November 2019 on an anti-corruption platform, has been described by Romanian political analyst Radu Magdin Orban as one of the last, if not the last, “liberal Mohicans”. While his minority centrist coalition remains vulnerable, opinion polls suggest the government retains strong public support.