The situation with outsourcing in Romania is thriving. It has been estimated that by the end of the upcoming year, the industry and businesses connected with outsourcing will increase by 20 percent. To be more specific, 5 percent of Romania’s GDP.
Collaboration is more important than competition
As we have previously stated, Romania is abundant in outsourcing IT services. The present, unlike the past, brings a lot of shared resources between the Romanian competitors. This is a significant step forward in the right direction.
Small cities contribute as well
The outsource activities in smaller cities are also increasing and according to a report by ABSL Romania Cluj- Napoca takes the second place when it comes to outsourcing development centers in the country. Timisoara, Iasi, Brasov, and Craiova are following.
It is important to say that the focus is not on the money, unlike in previous years. In other words, outsourcing is not about only delivering IT services at a low price anymore. Raising competitive potential and innovation is now in the focus.
Romanian developers simply offer more solutions than developers who come from other countries. In-house developers are simply not abundant in ideas and resources. They also fail to bring efficiency, differentiation and process re-engineering. This is why outsourcing is popular in Romania. Costs are not the main driver anymore because the salaries are big enough.
New outsourcing models are required
The best talent is usually hard to find and when it comes to this industry in particular even harder. The industry is developing fast and the best talents already have a spot in the business. This leads to low talent rates and also a shortage of resources we must admit. The productivity levels suffer the most thus the need for new outsourcing models is born.
Transparency is another key factor that most of the companies worry about besides being worried about improving performance, cost, quality and access to technologies and methodologies. Successful collaboration requires transparency. So far, time and material, project-based and team rental are present and appear in the story. What is the story missing? What should Romanian companies do next and how they can be sure their clients have access to everything beyond the surface?
Out- branching is the missing thing
Out- branching in short words is an outsourcing model that has a very simple foundation or in other words simple matrix. An incubator of developers at their premises is created by the provider and besides that; the provider takes care of all the administrative and recruitment issues. The client, on the other hand, pays for the taxes and salaries and also pays for the resources. So like this, clients have complete control over their resources plus the policy is quite open. Therefore they get full transparency. This type of model allows stability and profitability for both.
On the contrary, the model according to some seems a bit too transparent. If we look at the model from the side of competitiveness when it comes to resources, costs, and stability, a single flaw couldn’t be found. The business will be profitable since its start, the development costs will remain competitive throughout the whole process, the focus will be on quality, the best talents will work on it, excellent services with low cost are guaranteed, good manners and many, many more.