Cluj, the capital of Romania's Transylvania region, is being recognized for more than its vampiric lore. As more Western companies turn to outsourcing in Romania, the city is rebranding itself as Eastern Europe's Silicon Valley. While neither image fully captures reality, Cluj-Napoca has undeniably become a thriving hub for software development outsourcing and innovative technology. With a population of around 300,000, about 15% of the city's inhabitants work in IT outsourcing [1]. This concentration of professionals has created a unique ecosystem, fostering talent concentration, improving infrastructure, and building a culture of innovation. Let’s investigate why IT outsourcing in Cluj is garnering interest and what makes this city an attractive destination for software development.
What makes Cluj, Romania, attractive for IT outsourcing?
Over the past five years, Cluj has experienced remarkable growth in its IT sector. The number of IT companies has doubled, while the count of startups has nearly tripled [2]. This surge can be attributed to the increasing demand for IT outsourcing in Cluj, with 90% of IT companies offering end-to-end outsourcing services. Let's explore the four main reasons why outsourcing software development in Cluj is garnering attention.
ICT education
Cluj has the country's highest concentration of college students per thousand inhabitants and is home to Babes-Bolyai University, the top higher education institution in Romania. The university has over 43K students and offers a variety of foreign language courses and STEM majors [3]. The presence of so many students shapes the city's atmosphere, likely making it more vibrant, youthful, and intellectually dynamic.
According to Times Higher Education, Babes-Bolyai University comes 74th in quality education. It particularly excels in research quality and international outlook metrics [4].
Large talent pool
Cluj is home to over 20K developers, accounting for about 9% of Romania's total developer population of 202K [5]. Over 200 IT outsourcing companies operate out of Cluj, six of which have over a thousand employees. This abundance of talent allows companies to scale their teams according to project needs, avoiding delays or skill shortages. The large talent pool fosters healthy competition among developers in IT outsourcing in Cluj, spurring innovation and elevating work quality. Companies reap the benefits of fresh perspectives and cutting-edge solutions that such a diverse developer community provides.
Romanian developers predominantly specialize in outsourcing to the IT sector. Financial services, healthcare, and business services compete for second place, highlighting their versatility across industries. Additionally, a strong presence in ecommerce, consumer products, education, and automotive sectors demonstrates a well-rounded capability to support diverse digital needs.
The largest number of IT professionals in Cluj are trained in C# and C++, with over 8,000 developers each. Java is also popular but has fewer developers, followed by .NET, JavaScript, PHP, and Python.
A long history of cooperation with Western firms
The IT outsourcing boom in Cluj began back in the early 2000s and has progressed until today. The city has had over two decades of experience working with Western firms. This long history of cooperation has allowed Cluj to develop a deep understanding of North American and European business practices, cultural expectations, and quality standards.
Some companies have established long-lasting outsourcing partnerships with Cluj, leading them to open offices in the city. Genpact, IBM, and Siemens have set up R&D centers there. These firms contribute to the local talent pool by creating job opportunities and fostering skill development through training and mentorship programs.
People in Cluj especially welcome international cooperation and cultural exchange. Cluj has been recognized as the most foreigner-friendly city in the country, with 90% of its residents believing that foreigners positively impact the city [6].
English proficiency
Romania ranks 15th globally in English proficiency; its score is comparable to Finland and Poland [7]. The country's working-age population scores even higher, on par with Belgium and Sweden. This high level of English proficiency among the workforce is crucial for IT outsourcing. It ensures clear communication, minimizes misunderstandings and facilitates smooth collaboration.
Read more: IT outsourcing to Romania: major hubs, talent pool, and more
Wrap up
IT outsourcing to Cluj has established itself as an excellent choice for several reasons. Firstly, the city has an established ICT education system, nurturing a highly skilled workforce. Secondly, Cluj offers a big and diverse pool of talented developers. Thirdly, the city's extensive experience collaborating with Western companies has fostered a comprehensive understanding of Western business practices. Lastly, the high level of English proficiency among the local workforce facilitates effective communication and collaboration. These factors combined create the appeal of software IT outsourcing in Cluj.
Why choose N-iX as your technology outsourcing partner in Romania?
N-iX brings over 21 years of experience supporting industry leaders and Fortune 500 companies to enhance their operations and services. N-iX has a presence in Romania, alongside Europe and Latin America, an internal team of more than 2,200 professionals, and a recruitment database containing over 270,000 candidates. This combination guarantees the necessary expertise and rapid scalability for your projects.
Our operational approach includes balanced teams with diverse seniority levels led by PMP-certified Project Managers. We foster an agile culture that prioritizes iterative development and employs refined CI/CD and DevOps practices. This methodology results in accelerated development processes and improved team velocity.
We provide various cooperation models that allow businesses to maintain control while leveraging our expertise. Choosing N-iX as your technology outsourcing partner in Romania offers access to top talent, streamlined processes, and significant cost savings.
References
- What Is Cluj-Napoca's Position In The Industry Space? Metroverse, 2024
- Pentalog
- Top Universities 2024
- Babeş-Bolyai University, Times Higher Education 2024
- ClujIT
- Perceptions of City Life in the United Kingdom and Europe
- EF EPI
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