January 10, 2023

Software Outsourcing in Romania: Pricing in 2023

The average daily cost for software outsourcing in Romania is between $300 and $360.

For Bucharest (the largest city and tech hub), the average cost is between $350 – $420

More details:

As companies continue to adapt to digital transformation challenges, software outsourcing is becoming more and more popular for businesses. This strategy has affected Romania too, where the software outsourcing market is expected to grow in 2023, with pricing remaining stable compared to 2022.

We have shared all the market state data focusing on pricing trends and factors likely to impact pricing in the current year. So whether you are a business owner, CTO, or IT manager, check these valuable insights into the software outsourcing market!

We currently estimate an average industry income of $2000/month. Meanwhile, a software engineer’s average salary is around $2500 per month.

The software industry is encouraged by national politics, so for a net income of $2500/month, the employer’s cost will be approximately $3900. We have used this online calculator, a useful tool subsuming all tax obligations for the IT industry.

$2500 x 1.57 ≈ $3925

Other employer expenses:

– Office monthly rent, utilities, and miscellaneous totaling an average of $600/month for each developer.

$3925 + $600= $4525

– Project management, recruiting, hardware, and risks. When managing a project, you must monitor all of them. And another thing to consider is the money that goes to suppliers. This can range from $1000 to $2000 a month, depending on the specific needs and abilities of the company.

$4525 + $1000/$2000 = $5525/$6525 ≈ $300 – $360/day, considering an average of 18 working days per month.

Red flag: Software companies in Romania that charge less than $300 per day are questionable. Some companies charge less because they pay fewer taxes or cut corners. In these situations, it’s important to speak to a lawyer before signing any agreements. If you have questions, feel free to contact us.

PS: The rates we have calculated are a national average and will vary depending on city, technology, and seniority level.

If you are planning to grow development teams larger than 50 ppl, we can only recommend four cities in Romania – Bucharest, Timisoara, Cluj, and Iasi.

The cost of software development in Bucharest is about 15% higher than in other places in Romania. Expect to pay between $350 and $420 per day for developers in Bucharest. Cluj’s cost is about 10% higher than the national average, with rates between $330 and $400 per day. Developers from Timisoara and Iasi usually charge similar rates as the national average.