Exchange rates and associated risks to outsourcing Romania

The last few weeks have increased the pressure on the Romanian IT outsourcing providers. RON is stronger against EURO thus making the Romanian software services exports to EURO countries more expensive. As most of the Romanian outsourcing providers operate their rates in EURO, the stronger RON is eating from the profit margin. If as that is not enough, EURO gained against USD making the Indian based IT outsourcing companies more attractive to EURO countries. They have prices in USD and EURO countries can afford more expensive prices. Put into equation the difficulty of the big software operators to find and hire talent in Romania and you have a shady outcast of the Romanian IT outsourcing industry. Romania IT is going out of here unless Romanian outsourcing providers adapt and increase productivity or reduce costs.

About Adrian Pintilie

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