Gartner puts Romania on outsourcing short-list

“Romania is now on a short-list for major international corporations, who have budgets of hundreds of millions of euros for offshoring services alone, who do not have the time for in-depth research of the markets, and make their decisions on the basis of recommendations of advisorz companies,” according to an exclusive statement for Business Standard by Felix Enescu, principal Consultant for Gartner in Romania.

The report uses ten criteria (language, government support, labor pool, infrastructure, educational system, cost, political and economic environment, cultural compatibility, global and legal maturity, and data and intellectual property security and privacy) to compile a list of the top 30 global destinations for IT services.

Gartner’s Consultant gives the example of a major US financial corporation which had an annual budget in 2005 of $400 million for offshoring alone, of a total of $1.6 billion allocated for application development. “Major corporations allocate some 1-2 percent of their turnover for IT budgets, of which 80 percent for maintenance and 20 percent for developmetn of new applications and services,” added Gartner.

He went on to explain that the local IT industry is now in the attention of international corporations, and Romanian companies will receive development contracts, helping outsourcing businesses, especially project outsourcing, not source code writing.