The largest companies in this business had almost 16,000 employees last year, some 3,000 more than in 2011. The companies with most employees and highest revenue were Oracle and SIVECO, a local business.
Unlike other industries, such as telecommunications, where operators’ revenue and profit are dwindling, only three of the 50 largest software companies were in the red and only ten saw their revenue shrink.
Whereas other industries had to fire people, software companies continued to hire, with only three of the top fifty resorting to layoffs, according to Finance Ministry data for 2012.
The higher revenue and the increase in the number of employees are largely because of the projects outsourced to Romania by multinationals and the contracts local companies won to do software modules for foreign companies. The number of locally owned companies that have their own products and derive most of the revenue in Romania is low.
Market research and consultancy company Pierre Audoin Consultants (PAC) valued the software market in Romania at EUR325 million last year, much lower than other countries in the region. Companies continued to look for ways to cut costs, instead of investing in IT, as PAC’s managing director Central and Eastern Europe Eugen Schwab-Chesaru has previously told ZF.
“Outsourcing of infrastructure, technical support and hosting in data centers was in the black last year. Everything we call ‘infrastructure outsourcing services’ saw 12% to 14% growth,” Schwab-Chesaru said.
“This is already a market trend. Such services cannot tell you that investments are being made on the market just that companies are trying not to invest and only pay for what they use and turn capital expenditures into operating expenses. Which is why companies invest less in their own data centers and prefer to outsource such services and let specialized companies take care of their needs. This segment of infrastructure outsourcing services is very small, only 3% of the software and services market.”
One of the top companies that is not growing on the back of projects outsourced by multinationals is Bitdefender, held by the Talpes family, which has its own product range.
It makes most of its revenue abroad because Romanian users allocate little money to software and PC and smartphone penetration is lower than on Western markets. The EUR36 million figure does not show Bitdefender’s entire revenue, only part of its revenue in Romania and other markets. The company does not reveal its total revenue.
Companies such as Oracle, Microsoft and SAP derive their revenue from selling software in Romania, as well as from development and support centers that work with international customers, but they do not reveal their revenue structure.
Considering the tax optimization schemes multinationals use, it is not clear how much of the figures in their filings with the Finance Ministry reflect their real business in Romania.
The second top player, SIVECO, is an example of a company that started twenty-one years ago working for multinational companies and then developed its own products. Sales of such products abroad generate about 40% of the company’s revenue.
Another major local company whose business is selling software and services in Romania and abroad is Totalsoft, whose main shareholder is Greece’s Global Finance fund.
(English version by Loredana Fratila-Cristescu)
|
Company |
Revenue (mln. euros) |
2012/2011 trend |
Net profit (mln. euros) |
2012/2011 trend |
Average number of employees |
2012/2011 trend |
|
Oracle |
105.2 |
4.2% |
-3.3 |
– |
2,184 |
469 |
|
SIVECO |
46.3 |
-4.3% |
4.1 |
17.4% |
1,148 |
184 |
|
BitDefender |
36.1 |
12.9% |
0.0 |
-99.9% |
278 |
-92 |
|
Microsoft |
33.3 |
4.8% |
2.7 |
-8.4% |
251 |
8 |
|
SAP |
23.2 |
47.3% |
2.9 |
61.8% |
171 |
80 |
|
Ubisoft |
22.0 |
8.4% |
0.9 |
8.7% |
886 |
79 |
|
Luxoft |
21.2 |
14.2% |
3.1 |
-38.1% |
669 |
79 |
|
Total Soft |
20.9 |
-3.4% |
-0.8 |
– |
436 |
48 |
|
Infineon Technologies |
17.4 |
1.0% |
1.0 |
21.7% |
236 |
27 |
|
Ixia |
16.8 |
33.1% |
0.8 |
142.2% |
364 |
105 |
|
Iquest Technologies |
16.7 |
38.9% |
3.5 |
35.9% |
295 |
30 |
|
Electronic Arts |
15.6 |
30.4% |
0.8 |
18.9% |
329 |
58 |
|
Endava Romania |
14.5 |
59.2% |
0.3 |
321.8% |
527 |
213 |
|
Crys Computers |
14.0 |
38.2% |
0.7 |
46.1% |
204 |
25 |
|
Gameloft |
13.7 |
32.4% |
0.4 |
263.1% |
674 |
176 |
|
Evoline |
13.0 |
54.4% |
2.7 |
59.4% |
365 |
112 |
|
TSE Development |
12.7 |
44.6% |
1.2 |
51.3% |
208 |
68 |
|
Misys International |
12.6 |
22.4% |
4.0 |
98.1% |
280 |
10 |
|
Techteam (Stefanini) |
11.8 |
32.8% |
0.4 |
45.2% |
562 |
N/A |
|
SD&C |
11.5 |
92.6% |
0.0 |
-60.1% |
61 |
2 |
|
Pentalog |
11.1 |
17.4% |
0.4 |
-17.1% |
308 |
52 |
|
EBS |
11.1 |
133.7% |
1.3 |
176.4% |
240 |
139 |
|
Softwin |
10.8 |
-30.7% |
1.4 |
-59.5% |
368 |
12 |
|
Freescale Semiconductor |
9.8 |
-5.5% |
0.2 |
-57.1% |
240 |
9 |
|
Axway |
8.7 |
-0.3% |
1.5 |
10.2% |
204 |
6 |
|
Arobs Transilvania Software |
8.7 |
9.2% |
0.5 |
-52.5% |
277 |
58 |
|
Enea Services |
7.8 |
27.2% |
0.7 |
-26.7% |
204 |
40 |
|
Intel Software Development |
7.2 |
89.2% |
0.4 |
– |
74 |
31 |
|
Fortech |
7.0 |
62.3% |
1.3 |
124.5% |
239 |
79 |
|
ISDC |
6.4 |
32.5% |
0.2 |
26.4% |
197 |
40 |
|
Softvision |
6.3 |
18.9% |
0.1 |
-78.3% |
666 |
143 |
|
Computaris |
6.2 |
-14.3% |
0.1 |
-72.4% |
131 |
-25 |
|
Info World |
6.1 |
14.0% |
0.2 |
-51.8% |
173 |
20 |
|
Yonder |
6.0 |
21.5% |
0.9 |
36.2% |
215 |
35 |
|
Mind Software |
5.8 |
19.2% |
0.2 |
8.4% |
273 |
20 |
|
Pentalog Ausy |
5.4 |
-17.6% |
0.4 |
9.3% |
94 |
-35 |
|
Sobis Solutions |
5.2 |
-17.5% |
0.6 |
-56.5% |
201 |
0 |
|
OSF Global Services |
5.2 |
36.0% |
0.2 |
98.0% |
272 |
37 |
|
OCE Software |
4.5 |
2.6% |
0.2 |
-40.4% |
135 |
10 |
|
AVIRA SOFT SRL |
4.3 |
25.0% |
0.3 |
302.2% |
98 |
15 |
|
Tora Trading Services |
4.2 |
12.7% |
0.1 |
50.2% |
122 |
24 |
|
Wizrom Software |
4.2 |
-3.9% |
-0.2 |
– |
101 |
8 |
|
Amazon Development Center |
3.9 |
58.2% |
0.3 |
68.9% |
118 |
55 |
|
Ingenio Software |
3.7 |
30.1% |
0.2 |
-8.6% |
56 |
5 |
|
Intergraph Computer |
3.6 |
-42.8% |
0.9 |
-67.4% |
23 |
4 |
|
Language Weaver |
3.5 |
98.8% |
0.1 |
112.0% |
97 |
23 |
|
Garmin |
3.3 |
49.4% |
0.2 |
56.4% |
88 |
14 |
|
IT Six Global Services |
3.1 |
57.5% |
0.7 |
72.1% |
90 |
20 |
|
Berg Computers |
2.8 |
-4.8% |
0.4 |
-9.2% |
N/A |
– |
|
Industrial Software |
2.7 |
19.5% |
0.6 |
18.0% |
62 |
11 |
|
Transart |
2.7 |
-0.1% |
0.1 |
-23.0% |
89 |
-4 |
|
Telmap Services |
2.6 |
22.1% |
0.1 |
27.8% |
96 |
12 |
|
Eservglobal Telecom |
2.6 |
0.5% |
0.2 |
0.3% |
64 |
2 |
|
Inside Software |
2.6 |
19.3% |
0.3 |
5.0% |
68 |
2 |
|
Embarcadero Technologies |
2.4 |
-18.0% |
0.1 |
-15.8% |
114 |
-34 |
|
Waters |
2.3 |
13.9% |
0.1 |
13.0% |
82 |
8 |
|
Route 66 |
2.3 |
5.3% |
0.0 |
356.9% |
86 |
8 |
|
Beenear |
2.1 |
17.7% |
0.1 |
15.7% |
80 |
6 |
|
Evozon Systems |
2.0 |
88.5% |
0.4 |
559.9% |
147 |
60 |
|
Christian Gavrila (Crisoft) |
2.0 |
9.3% |
0.0 |
-93.4% |
33 |
2 |
|
Synygy Europa |
1.9 |
56.9% |
0.4 |
1605.3% |
151 |
35 |
|
Iquest Technologies |
1.9 |
26.1% |
0.1 |
-26.9% |
93 |
19 |
|
Comodo Security Solutions |
1.8 |
-7.9% |
0.0 |
-50.9% |
94 |
-7 |
|
Pluriva |
1.7 |
-29.0% |
-0.4 |
– |
64 |
-34 |
|
Skobbler |
1.7 |
34.1% |
0.0 |
5.7% |
56 |
11 |
|
Centric IT Solutions |
1.6 |
150.3% |
0.4 |
337.6% |
N/A |
– |
|
Kaspersky Info Systems |
1.6 |
8.6% |
0.6 |
489.1% |
8 |
0 |
|
Senior Software Agency |
1.6 |
7.9% |
0.0 |
492.5% |
59 |
11 |
|
Advantage Software Factory |
1.6 |
-5.9% |
-0.1 |
– |
30 |
5 |
|
Gemini Solutions |
1.5 |
16.0% |
0.0 |
537.0% |
70 |
5 |
Sources: Finance Ministry, ZF. Official Journal
Note: The results reported by SIVECO with the Finance Ministry do not include its entire international revenue; the company posted EUR67.5 million total revenue last year. Some companies also have support operations besides their software development business. The ranking includes companies for which data are available from the Finance Ministry. ZF monitors more than 100 software companies for this ranking.