The Real Cost of Software Outsourcing: Why Romania Offers the Best ROI

If you started looking for information about the outsourcing cost in Romania, get ready! You’re about to discover the combination every business dreams of: competitive prices and high technical value. Sounds like the best of both worlds, doesn’t it?

In this article, we’ll take a look at these costs, comparing them with those on the international market, all against the backdrop of the classic dilemma: should we build an in-house team or go for outsourcing? Let’s see how the numbers stack up and which option brings the best software development ROI.

Total cost of ownership: In-house vs. Outsourced teams

According to Ptolemay.com, a US company that chooses to build an in-house team ends up paying around $1,000 per hour. By comparison, outsourcing to Europe brings the cost down to about $300 per hour. In other words, by turning to offshore development, an American company would pay only 30% of what it would spend on an in-house team. 

If we narrow the comparison down to Europe alone:

• Western Europe: costs range from €55/hour in Germany to as much as €90/hour in Denmark for a senior software developer (source: ncube.com).
• Eastern Europe: costs start from $30/hour/developer (source: ptolemay.com).

Additionally,  it’s important to keep in mind that the costs of in-house teams aren’t limited to salaries. You also have to factor in the expenses related to recruitment, onboarding, and training. 

Recruitment and Onboarding

According to Glassdoor, the average cost to hire a developer is around $4,000, including job postings and recruiter fees. On top of that, you need to consider onboarding costs.

Salary and Benefits

Beyond the gross salary, you also have to factor in additional expenses such as health insurance, paid vacation, bonuses, and other benefits.

Training

On average, it costs up to $3,000 per year per employee to provide training (source:debutinfotech.com).

The pros and cons of choosing in-house or outsourced teams

Both in-house and outsourced teams come with their own advantages and disadvantages. In-house teams give you full control and a better cultural fit. But they come with higher costs, slower hiring, and fixed expenses. Outsourcing costs less, speeds up time to market, and offers access to global talent. However, it can bring time zone issues or communication challenges. 

Hidden costs to watch out for

Earlier, we discussed visible costs. However, any effective offshore development cost analysis must also include the harder-to-predict expenses:

• Special equipment: if the project requires specific equipment (e.g., medical devices), this must also be provided to the offshore team.
• Collaboration tools: since communication is remote, you’ll need collaboration tools, which may involve license fees.
• Initial training: external teams also need to be trained on the project specifics.
• Rework due to language or cultural barriers: misunderstandings of requirements caused by communication barriers may lead to additional work, resulting in extra costs.
• Additional post-delivery fees: some companies charge extra fees for maintenance and technical support. Always check whether your partner applies such fees before signing the contract.

Furthermore, if the project involves sensitive data (e.g., in the healthcare sector), consider the costs of audits as well as GDPR or HIPAA compliance requirements. Alternatively, choose a partner who is already experienced with these standards. Learn more about how to choose the right outsourcing partner in our article here.

Romania: low cost, high value

Romania is well known for its excellent balance between cost and technical value, making it an ideal destination for software outsourcing. The country boasts a strong IT ecosystem, supported by an active community of over 190,000 developers.

English proficiency is also notably high — Romania ranks 1st in Eastern Europe and 12th globally, according to the EF English Proficiency Index 2024. This significantly reduces the risk of language-related communication issues.

As a member of the European Union and NATO, Romania offers a stable legal and financial framework. Moreover, its work culture is closely aligned with that of Western countries.

Last but not least, Romania’s IT market is mature and well developed, supported by one of the fastest internet connections in the world, which is a logistical advantage for running global software projects.

Now, let’s do a quick recap. Romania offers:

• Over 190,000 active developers
• A high level of English proficiency—ranked 1st in Eastern Europe in the EF English Proficiency Index 2024
• A work culture closely aligned with Western standards
• Legal and financial stability
• A mature IT market. 

Learn more about why outsourcing in Romania makes financial sense.

Long-term ROI and project success rates

One of the most important things to measure in a project is the ROI of software development (the ratio between the investment and the results obtained). We distinguish between two categories of ROI: hard ROI and soft ROI (source: userpilot.com).

HARD ROI = concrete financial results

• Cost efficiency: by outsourcing to Romania, you can save 40–60% compared to Western Europe or the USA.
• Shorter launch time: Romanian teams have high delivery success rates (over 85%, according to Clutch).

Low infrastructure costs: fast internet, well-equipped offices, and low administrative expenses.

SOFT ROI = less quantifiable benefits

• Flexibility and adaptability: Romanian teams are agile, communicative, and solution-oriented.
• Technical expertise and clean code: Romanian developers are known for following best practices in programming, testing, and maintenance.
• Time zone compatibility: the time difference with Western Europe is just 0–1 hour.
• Stability and good team retention: outsourcing companies in Romania focus on employee retention, leading to long-term, stable teams.

Final thoughts

If you’re a CTO, a startup founder, or a financial manager looking for a combination of low costs, top talent, and legal stability, Romania is the most profitable choice you can make.

Hi, we are BEE CODED. Do you want to start a software project with a reliable team in Romania? Discover our outsourcing and SaaS services!