The software industry in Romania
Present and Future – a study
ANIS – about
• ANIS is the software industry’s employers association
• Established in 1998 by a group of Romanian companies
• More than 100 member companies now
• Total revenue of all companies is > 35% of the total output of the
sector
• Total number of employees – over 10,000, which is about 16% of the
sector
• Strategic mission: grow the Romanian software industry
• Strategic priorities:
– Promote Romania as a value added software outsourcing destination
– Help member companies develop new business models, including
developing products, spin-offs, etc.
Situation Analysis and Key Trends of the Romanian
Software Market in 2012
The Romanian packaged
software market
continued to
grow
in
2012, reaching
approximately
$433
million representing
year-on-year growth of
7.5
%.
The CAD* market
reached almost $60
million and a
year-on-year growth of
around 10% .
System
infrastructure
software
represented 31.7%
of the market.
Application and
development
software accounted
for the remaining
16.1% of the market.
The applications
segment was the
most dynamic
representing in 2012
more than a half
(52.2%) of the
market.
NOTE: CAD = Custom Application DevelopmentSoftware Related Activities, Packaged Software vs.
Custom Development in Romania, 2012
11%
development
of commercial
packaged software
43%
custom
software
development
for third parties
46%
both
commercial
packaged
software and
custom software
Despite the fact that 46% of the companies claim to be involved both in commercial packaged software and custom software, if we look at the revenue split from the two activity types, only 29.5% of this revenue stems from developing and selling commercial packaged software. This means that local software companies are still largely focused on custom development projects, which usually have a quicker turnaround and generate the majority of operational revenue streams.
Packaged SW, R&D, and CAD in Revenue (US$
million) and Growth (CAGR %)
•In 2012, the total CAD market reached $ 378
million. 17% local vs. 83%
exported.
• In 2012, the total R&D market reached $ 115
million. 41% engineering vs.
59% software development.
• In 2012, the total Packaged Software market reached $ 246 million. 34% local vs. 66% exported. 0 50 100 150 200 250 300 350 400 2010 2011 2012
CAD Packaged SW R&D
CAGR 4.5%
CAGR 5.7%
Commercial Software Applications
Vertical Markets Distribution
Revenue Splits by Industry Verticals
3% 5% 6% 8% 8% 9% 10% 11% 13% 13% 13% Telecommunications Education Construction Healthcare Other
Entertainment & Media Business and personal services Government
Retail & Wholesale
Banking, Insurance, other financial services Manufacturing
Industries in need of the great bulk of locally developed packaged commercial
applications are manufacturing, finance (banking, insurance, and other financial services), and
retail and wholesale, each with 13%, followed by government (11%) and business and personal services (10%). On the other hand, construction, education, and telecommunications do not seem to attract high demand for the development of local
packaged commercial applications.
Human Resources
Recruitment Pool
N = 1,660. Source: IDC IT Buyers’ Pulse Survey, 2011
Q: Number of Employees Directly Involved in
Software Development, Change in the Next 3 Years
• With more than 300,000 tertiary education graduates per year, of which nearly 4,000 are pure computing
graduates, Romania seems to have secured its pool of candidates in the information and communications technology sector. Still, with more and more multinationals looking to expand their activities throughout the region and offering BPO and contact center as a service (CCaaS), local companies find themselves challenged in the process of recruiting personnel.
• As revealed by the latest IDC-ANIS survey, most of Romania’s software companies increased their number of employees over the past three years and are looking to expand further in the coming three-year period.
Decr
ease
Incr
ease
1% 0% 1% 1% 27% 6% 27% 16% 18% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% >50% 25-49% 10-24% < 10% The Same < 10% 10-24% 25-49% > 50%Accelerator for students backed by ANIS
Innovation Labs
• Concept:
– Hackathon: 24 hour product development event
– Tech Talks: educational and inspirational speeches
– Workshops: mentoring sessions with industry
professionals
Innovation Labs Hackaton
• 135 participants
• 35 pitched ideas
• 20 teams formed
• 24 hour of developing and business definition
• 12 Mentors
• 8 Judges
Innovation Labs Tech Talks
• 11 classes held by Romanian
industry leaders, successful
entrepreneurs or executives of
international companies in
Romania
• Subjects ranging from career planning to entrepreneurship, sales,
marketing and finance
Innovation Labs Demo Day
•
Seenesthesis – helps the children
who lost their visual sense to
exercise their tactile memory and
learn about the shapes and colors of
common objects in the surrounding
world.
•
Wyliodrin – a cheap
hardware-software solution allowing remote
programming and real time
monitoring of devices like Raspberry
Pi and Arduino
Nicolae Filipescu 39-41, 1st floor, sector 2, Bucharest, 020961 +40-21-3121397 [email protected] www.anis.ro www.facebook.com/anis.romania www.twitter.com/ANIS_RO