The study notes the software industry is also one of the most balanced business sectors in terms of foreign and local business ownership. Foreign investors own 53% of the capital of software companies in Romania, while local investment grew 5 percentage points and reached 47% in 2018.
Foreign investors on the Romanian software market come from over 60 countries. Top investors include Germany (10.7%), Luxembourg (7.3%), Netherlands (7.2%), UK (5.5%) and Cyprus (4.8%) and control over two thirds of the foreign-held software business in Romania.
Local investors in the industry come form Bucharest and Cluj, as well as medium-sized cities like Targu-Mures, the study noted.
“Romania is starting to take shape as a regional hub not just for outsourcing but for successful start-ups. Software development is one of the few industries in Romania where foreign and local investments are balanced, reflecting solid and healthy development of this sector,” said Roxana Popescu, managing director at KeysFin.
Software developers in Romania had a total turnover of EUR5.7 billion in 2018, 12.6% higher compared with 2017 and 51.6% higher compared with 2014.
KeysFin estimates total turnover in the Romanian software industry will grow 10.4% this year, to over EUR6.2 billion.
Approximately 20,700 software companies operated in Romania in 2018, 18.6% more than in 2017 and 30% more than in 2014.
The top software companies on the Romanian market by turnover in 2018 were Oracle Romania (EUR206 million; 3.6% of the total), IBM Romania (EUR200 million; 3.5% of the total), Ericsson Telecommunication Romania (EUR170 million; 3% of the total), SAP Romania (EUR108 million) and Endava Romania (approximately EUR108 million) .
Of the 20,700 software companies analyzed, 13,200 (64%) registered profit, 5,600 (27%) registered loss and the rest broke even in 2018.
The local software industry employed an average of 110.000 people in 2018, 2.9% more than in 2017 and 40% more than in 2014.