A recent study by ANIS (Employers’s Association of the Software and Service Industry), analyzing the state of IT&C in Romania in 2023, reveals important insights. Despite a challenging global economic environment, the industry showcased resilience, with total turnover surpassing €15.5B in 2023—a 12.16% increase compared to 2022.
However, while the industry experienced financial growth, the number of employees in the IT sector saw a decline (-5%). After reaching a peak of 200,629 employees in 2022, the number dropped by 10,477 in 2023, signaling a potential challenge for the sector in maintaining its workforce amidst broader economic uncertainties.
Romania’s IT&C sector comprises 48,405 companies
The IT sector remains highly diverse, both in terms of activity types, technologies, and operational models. Of the 48,405 companies registered in the IT&C sector, 45,467 operate within IT, while 2,938 are in telecommunications.
Custom software development continues to be the leading component, accounting for 40.24% of total turnover and growing by 19.92% in 2023. This segment also contributed to a gross added value (GAV) of €10.2B, marking a 19.5% increase compared to 2022. In the same period, telecommunications recorded a GAV of €2.5B, a 20.4% increase year-over-year.
IT&C sector contributed €45.3B to Romanian GDP in 2023
One of the key takeaways from the ANIS study is the IT&C sector’s major multiplier effect on the broader economy. In 2021, the industry’s total contribution to GDP was 14.16%. Direct impacts, driven by core IT&C activities like software development and tech services, represented 7.99% of GDP. Meanwhile, the indirect impact—reflecting the increased demand in other industries to support IT activities—accounted for 2.74% of GDP. Additionally, the induced impact, stemming from IT employees’ consumption, contributed 3.42% to the GDP.
The total impact of the IT&C sector amounted to €45.3B in 2023, reinforcing its position as a key driver of Romania’s economy. Furthermore, the study highlights that over 880,000 jobs were directly and indirectly created by the IT&C industry in 2021.
IT employees contributed an average of €11,215 in fiscal contributions
The study underscores the critical role of fiscal incentives, such as income tax exemptions for IT professionals, in maintaining the sector’s competitiveness. Despite these exemptions, the sector was the second largest contributor to the national budget. In 2023, IT employees’ fiscal contributions were the highest across the economy, averaging €11,215 per employee.
However, removing this tax exemption could lead to a potential 26.7% decrease in sector profitability, assuming all other economic conditions remain constant.
Only 5.7% of IT companies launched a new product despite 78.8% innovating
The study also examined the level of innovation in the IT&C sector. While 78.8% of respondents reported having innovation initiatives over the last three years, only 5.7% launched a product to market. This suggests that while there are numerous innovation efforts, converting ideas into marketable products remains limited.
Respondents identified several structural barriers to innovation, such as limited access to specific fiscal incentives for R&D and challenges in accessing existing mechanisms, as well as a lack of innovation hubs and intellectual property registration expertise. Medium and large companies, however, allocate up to 12% of their budgets for R&D, driving continuous growth and competitive differentiation.
Commenting on the findings, Edward Crețescu, President of ANIS, emphasized the strategic importance of the IT industry in Romania:
“The study offers a scientifically grounded perspective on the role of IT in Romania’s economy. The sector’s direct contribution to GDP has grown exponentially over the past decade, but the multiplier effect of technology is even more impressive. It fosters economic growth and accelerates the development of other industries through digitalization and innovation. The future of the economy is tech-driven, and we need a strong commitment from all stakeholders—private sector, public authorities, academia, and civil society—to build a robust digital ecosystem and an innovation-based industrial policy. This will elevate Romania’s economy to the next level. Today’s study can serve as a foundation for data-driven public policies aimed at supporting the IT industry and maximizing its potential as a source of growth for the entire economy.”
