Over the past years, the lohn method, by which an importer brings its own raw materials and technology but uses workers from the exporting country has expanded in Romania to the IT industry, under a specific form.
Thus, many of the software specialists who do not choose to emigrate are hired by foreign companies operating in Romania, most of them owned by Romanians who used to live in Western countries and who can adapt to the market, being familiar with the "oddities" of the domestic business environment.
This kind of business brings good earnings to all parties involved, as IT specialists have salaries below the national average and the companies significantly reduce their output expenditures, given that labour force is cheaper than in importing countries.
"American companies need professionals for the IT sector, which is undergoing continuous development. Romania can provide such specialists to companies that want them for their knowledge and powerful motivation," said American ambassador to Bucharest James Rosapepe, who is to visit several Cluj-based American companies, specialising in information technology and offering their services mostly to US clients.
The domains most in demand on the foreign market are projects involving business feasibility, marketing and software design, as well as those aimed at creating internet applications for financial services industry.
"Today, foreign companies boast the bulk of Romanian software exports," says Alexandru Borcea, president of the Romanian Association for the Electronics and Software Industry (ARIES). In an attempt to explain why 100% Romanian IT companies are having a hard time establishing a presence on the international market, Borcea says: "Domestic companies lack a positive image abroad.
"The emergence of enough hardware supplies will somewhat bridge the image gap that separates Romanian and foreign companies, he adds.
The Romanian IT market has been estimated at $227.14 million in 1999 and had the following structure: hardware - 75.3 % (circa $171 million), software and services - 24.7% ($56 million). The National Agency for Communications and Information Technology expects almost 11% annual growth by 2003.
"Out of this amount, software exports account for more than $30 million," Alexandru Borcea says. "But the exact export figures are difficult to assess, since a lot of companies and private individuals are active in this industry but cannot be identified, as the final product is most of the times sent directly over the Internet," he continues.
According to ANCI estimates, in 1999 the software and computer services industry employed 15,000 people, and this year the number may go as high as 17,000. There are about 1,200 software and IT services firms, but this number could shrink by 5% to 10% as the industry consolidates.
More than 70% of all information technology companies are located in Bucharest, and companies with more than 100 employees, according to ANCI estimates, are mostly targeted at the foreign market.
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