Why Romania is a Top Destination for Nearshore Software Development

Nearshoring software development to Romania? Yes, it’s a smart move. According to devsdata.com, nearshoring to Romania can cut costs by up to 45% compared to Western European markets. Now that’s a number worth paying attention to!

In today’s article, we’ll talk about the advantages of nearshoring software development to Romania and how this could be a strategic decision for your business. Read on and see why Romania is an inspired choice.

Nearshoring explained: benefits and use cases

First things first. Offshore, nearshore… these are terms we often come across in the context of IT outsourcing, and it’s important to understand the difference.

Offshore development is a specific category within outsourcing that involves the delegation of IT services to a team based in a distant country (usually on another continent). On the other hand, nearshore development means working with partners in geographically closer countries.

In short:

• Nearshore: partners located in nearby countries (e.g. Germany and Romania)
• Offshore: partners in distant countries (e.g. Germany and India)

Today, we’re focusing on nearshoring IT services to Romania from the perspective of Western European countries (Germany, France, etc).

Why do some companies prefer nearshoring over offshoring?

Here are some reasons:

Geographical proximity

Business travel is easier to organize because a flight to Romania typically takes just 2–3 hours from most major European cities.

Cultural similarity

Romania, for example, shares many cultural values and working styles with Western European countries, thanks to EU integration and strong Western educational influences.

Compatible time zone

The time zone difference is minimal (usually just one hour), which makes real-time collaboration between teams smooth and in sync.

Benefits of nearshoring

Lower costs

Cost savings are often the number one reason companies choose nearshoring. Nearshoring to Romania offers significantly lower rates than Western Europe, with a comparable, and in many cases higher, level of expertise. On top of that, you avoid the high costs associated with long-distance international travel.

Faster delivery time

Projects move faster when you’re in the same time zone and on the same continent. Collaboration is smoother and timelines are easier to manage, things that help deliver faster results.

Agility and flexibility

You can adjust the team according to the project needs. Thanks to proximity and compatible cultures, adjustments are made quickly and communication is efficient and clear.

Advantages of choosing Romania for nearshoring

Romania joined the European Union on January 1, 2007. This translates into a stable legal framework, GDPR-compliant data protection, and shared organizational values with Western Europe.

Additionally, there are other advantages, such as:

• Geographical proximity – Romania is very well connected with capitals such as Berlin, Paris, Amsterdam, and Brussels, with direct flights of 2-3 hours.
• Time zone compatibility – Romania is located in EET, with a 0-1 hour difference from Central Europe.
• High English proficiency – Romania ranks 12th in the world in the EF English Proficiency Index 2024, with the score 593 meaning “high proficiency.”
• Strong technical education – Romania is home to 41 technical universities, 3 of which are in international top rankings. Every year, over 6500 graduates enter the IT job market, contributing to a talent pool of over 190,000 software engineers.

Success stories: global brands working with Romania

According to devsdata.com, large global companies such as Accenture and Amazon have significant operations in Romania.

Accenture is practicing nearshoring to Romania by employing over 4,000 IT specialists in cities such as Bucharest, Timișoara, and Iași. Amazon, on the other hand, is practicing offshoring to Romania through its recently opened corporate center in Iași.

Choosing the right nearshore partner

Before making the final decision, make sure to keep a few aspects in mind when choosing your partner.

1) Analyze your company’s needs

When it comes to your needs, think in terms of industry, services, and technologies. Do you need a fintech solution? E-commerce or healthcare? Then choose a Romanian partner with proven experience in that specific field or with clients in similar industries. Also, always consider the services you require (development, testing, etc.) and the tech stack involved.

2) Check the provider’s experience

Two things matter here: experience in offshore projects as well as actual technical experience. Check reviews, testimonials, portfolios, case studies, etc.

3) Agile working model

A partner working Agile is able to iterate quickly, adapt strategy, and deliver more efficiently. This translates later into less wasted time and better results.

4) Cultural fit and willingness to grow

Look for a team that’s eager to learn and grow alongside you. If your goal is innovation, you need a partner who shares that drive. Make sure your values align (especially when it comes to growth and innovation) and that your partner actively supports continuous learning within their team.

Final thoughts

If you’re a Western European IT manager looking for a nearby, efficient, and highly skilled partner, nearshoring software development to Romania is a solution with tremendous potential.

Thanks to its strategic geographic location, cultural compatibility, and thriving tech community, Romania continues to attract international brands and solidify its position as a leader in nearshore software development in Eastern Europe.

Planning a new project? Maybe it’s time to move forward with Romania – top outsourcing destination.