Nearshore software development in Romania 

Nearshore software development refers to a model where you build a team in the same or adjacent time zone instead of relying on a local talent pool or distanced offshore teams.
At nCube, we provide nearshore software development services in Central & Eastern Europe (CEE). We have presence in such countries as Poland, Ukraine, Romania, Bulgaria, and Moldova, thereby ensuring on-the-ground support for your nearshore unit.

If you’re based in Western Europe, then you’ve probably dealt with traditional outsourcing and faced a few headaches: from limited control over the project and wide time zone gaps to scarce daily interaction and cultural or language barriers.
Nearshore outsourcing fixed that, and more. You’ll work with a team in a similar time zone, communicate daily without disrupting your team’s schedule, solve blockers in real time, and collaborate with people who share your cultural and language context.
With a solid provider of nearshore development Europe like nCube, you’ll get an integrated team in a European country of your choosing, fully supported by us and aligned with your operations and culture.

Romania’s IT market has been growing steadily year after year, and has reached €13.6 billion, having grown by 15% between 2020-2025. The main export services include nearshoring, software development outsourcing, and a wide range of IT and BPO services.
Prompted by ongoing support from government digitalization programs and EU funding, “nearshore Romania” has become a recognizable term for favorable business climate, IT infrastructure, and quality of services.
The country continues to invest in digital transformation and remains a key tech destination in Europe.

The largest Romanian cities have emerged as key hubs for nearshoring in Romania. Bucharest and Cluj-Napoca have the highest concentration of software engineers, housing nearly 60% of the total IT talent population. The rest of the talent is spread between Iași, Timișoara, Brașov, and Sibiu.
Bucharest: The largest and most developed tech hub, with a large software development community specializing in AI/Data, Cybersecurity, Healthcare, Fintech, and Enterprise software.
Cluj-Napoca: Often called Romania’s “Silicon Valley,” with R&D and innovative product development at the forefront. If you nearshore to Romania to access expertise in IoT, Healthcare, AI/ML, Blockchain, Financial services, you’ll find it here.
Iași stands out as the 3d in size IT hub oriented at software development in MedTech, Fintech, and E-commerce
Timișoara: Another growing hub in western Romania, popular for R&D, embedded systems, automotive software, and enterprise IT.
Brașov, and Sibiu: Closely connected to Western Europe, these cities are emerging destinations for nearshoring in Romania, known for their strong automotive sector, industrial systems expertise, R&D capabilities, and custom software development.

Romanian developer salaries tend to vary based on seniority, project complexity, and other factors. Contact us for a personalized estimate tailored to your team's needs.
That said, European and North American tech companies are increasingly drawn to Romania for its strong price-to-quality ratio. Local specialists typically charge 40-60% less than their Western counterparts largely due to the country’s lower cost of living.
Junior developers: $20-$35/hour
Mid-level engineers: $35-$50/hour
Senior and specialized talent: $50-$80/hour
Advanced roles in Cloud, AI/ML, DevOps, or Cybersecurity may reach $70-$100/hour

Romania offers one of the most competitive cost-to-quality ratios in Central & Eastern Europe (CEE). Romanian software development rates are lower than in Poland and the Czech Republic, comparable to Hungary and Slovakia, and slightly higher than Bulgaria.
Compared to Western Europe and the US, Romania remains significantly more affordable, typically 30-50% cheaper than Western EU locations and up to 60% cheaper than the US.
Overall, Romania sits in the middle of the CEE price spectrum. Despite the lower rates, the quality of software development is high thanks to a strong technology-driven educational base and deep technical expertise of Romanian developers.

When it comes to services like nearshore, Romania is one of the strongest locations. It combines a large pool of around 200,000 software specialists, solid engineering expertise across Automotive, IoT, Embedded, Healthcare, Fintech, and Cybersecurity, strong English proficiency ranking 10th in Europe, and overall affordability compared to other CEE countries.
Compared with the Czech Republic, Bulgaria, Slovakia and Hungary, Romania provides better scalability due to a greater pool of software development experts.
Ukraine remains more affordable, but Romania has the advantage of EU alignment and stability.
Romania also ranks highest in English proficiency among major CEE tech hubs, outperforming Poland, Bulgaria, Hungary, Slovakia, and Ukraine.
Nearshoring in Romania is more cost-effective than Poland and the Czech Republic, more stable than Ukraine, and more scalable than Hungary or Slovakia.

Nearshoring to Romania is attractive thanks to several essential benefits:
Skilled and scalable tech talent pool: Romania is home to one of the largest software engineering workforces in CEE, with around 200,000 IT professionals and nearly 30% of students enrolled in STEM fields. Its talent base covers a wide spectrum of expertise, including Java, .NET, Python, mobile development, DevOps, Cloud, and Cybersecurity.
100% English speaking engineers: Most local engineers are fluent in English, enabling smooth interaction and day-to-day collaboration with international teams.
EU regulatory alignment: Romania is part of the EU, so it follows all GDPR and EU cybersecurity regulations and general practices of European companies. This fosters long-term collaboration, rather than short-term engagements.
Meaningful cost savings: Businesses typically seek nearshore talent to reduce labor and operational costs. Romania lets you cut your budget by 40-60% compared to the local market, while staffing your project with equally skilled engineers. A nearshore partner like us will help you add high-fit engineers when it comes to tech competencies, timeframes, and budget.
Cultural and work-style compatibility: Local professionals share a strong bond with Western Europe, which reduces integration friction and supports long-term cooperation.
Geographic and time-zone advantage: Romanian time zone (UTC+2 / UTC+3) is convenient for Western European businesses as well as maintains 3-7 hour overlap with the US. A Romanian partner like nCube has extensive experience setting up the right communication flows and coordination practices across time zones, ensuring a highly interactive environment no matter where you’re located.

Romania has seen a significant infrastructure development in recent years, which has entered every domain, including software development:
High-performance digital infrastructure: Romania has some of the fastest internet speeds in Europe, stable connectivity, and strong cloud readiness.
Mature tech hubs and ecosystems: Cities like Bucharest, Cluj-Napoca, Iași, and Timișoara offer modern office spaces, innovation centers, and experienced engineering communities, which are up on par with leading CEE hubs.
EU-level data protection and compliance: Romania adheres to GDPR IP protection standards and aligns with NIS2 cybersecurity norms, which gives nearshore partners in Western Europe transparent compliance practices.
EU regulatory alignment: It ensures security in legal processes, dispute resolution, and investor protections, which gives Romania an upper hand over non-EU markets. Experienced partners (us included) will handle legal alignment for you.

Yes. Romania offers a supportive tax and funding environment for IT companies. The corporate income tax is 16%, and companies benefit from incentives for R&D activities and reinvested profits. The micro-enterprise tax regime (1% or 3%) applies to companies with up to €250,000 in annual revenue. A partial IT employee income tax exemption is also available.
Romania provides strong support for digital growth through EU-funded programs and national grants focused on digital transformation, AI, cybersecurity, and SME modernization, making it an attractive environment for IT investment.

While nearshoring to Romania is a popular choice for global businesses, there are some potential challenges to consider.
Rising labor costs: Developer salaries and hourly rates have increased steadily in recent years, making Romanian developers pricier than European nearshore developers located in Bulgaria, Ukraine, or Moldova.
Smaller talent pool than top CEE hubs: Although Romania has a solid base of around 200,000 IT professionals and ranks 3d in the region, its talent pool is still smaller than Poland’s 450,000 and Ukraine’s 350,000, which creates higher competition for mid-level and senior engineers.
Talent acquisition & retention pressure: Global players like Microsoft, Oracle, and Amazon, along with major local IT companies, compete for the same specialists. This might increase salaries, extend hiring cycles, and make talent retention more challenging. At the same time, our retention rate is exceptionally strong at 98%, with an average 3.5-year tenure per developer, thanks to our comprehensive retention and support services.
Recent tax policy changes: Updates to Romania’s IT income tax rules in 2023-2024 created uncertainty, which was negatively received by many companies, causing them to rethink their budgets, salaries, and payroll planning when hiring nearshore teams.
Regulatory & compliance complexity for US companies: Even though EU and US companies are familiar with GDPR and security rules, working with a Romanian team still requires extra legal checks, DPAs, and security alignment. It adds more paperwork and coordination to make sure both sides are on the same page when it comes to data protection and cybersecurity standards.

Finding the right Romanian software partner can make or break your expansion plans. The goal is to work with a vendor who brings top talent, reliable and transparent collaboration, and full on-the-ground support for your team.
Validate their talent network in Romania: Look for vendors with strong hiring pipelines in Bucharest, Cluj-Napoca, Iași, and Timișoara, plus access to secondary hubs to avoid saturated markets. We at nCube maintain a vast network of local software engineers across 100+ technologies and have the capacity to close your most complex vacancies.
Check their screening and vetting process: Ensure the partner evaluates technical skills, English proficiency, and cultural fit. These are our vital steps during talent acquisition, so you meet only relevant candidates.
Assess their integration approach: A solid provider of nearshore to Romania should help you set up communication workflows, onboarding routines, and cross-team collaboration norms. We support all of these and provide on-the-ground assistance for your team, including office and IT infrastructure, retention programs, payroll, and legal support.
Look for transparency in pricing: Rates should be clearly outlined by seniority and tech stack, with no hidden fees. With us, there is no upfront payment, and you only pay once you decide to move forward with a developer.
Review track record with EU/US clients: Nearshore experience is critical. Working with an EU-ready partner shows that the provider is mature and reliable. It shows strong client communication, consistent delivery, and the ability to handle strict European business standards. Our EU portfolio includes companies such as AstraZeneca, InPost, Flightright, CrossEngage, and others.
Evaluate retention and team stability: Ask about attrition, long-term retention programs, and how the provider keeps engineers motivated and aligned with your roadmap. Our own retention rate is exceptionally strong at 98%, with an average 3.5-year tenure per developer, supported by comprehensive retention and ongoing support services.

We can help you hire and onboard developers in 2-6 weeks, depending on the roles, seniority, and your internal interview flow. You’ll receive your first vetted CVs within 24-48 hours thanks to our active Romanian talent network and established hiring pipeline. In many cases, we’ve helped companies cut their time-to-hire by up to 60% compared to local recruitment.