Romania: The Emerging Innovation Hub Powering Outstaffing in CEE (2025)

Livia
September 5 2025 5 min read
Romania - emerging innovation hub

Exec Summary

  • Outstaffing in CEE – Central and Eastern Europe (CEE) has established itself as one of the fastest-growing innovation corridors worldwide, with a startup ecosystem now valued at over €243 billion, home to more than 3,800 VC-backed startups, 275+ scaleups, and nearly 57 unicorns as of 2025, according to Dealroom. Within this regional story, Romania has emerged as a standout destination for companies looking to expand their engineering and innovation capacity.
  • We’ve got over 250,000 software developers, an ICT sector projected to generate $1.3 billion in 2025 according to Alcor BPO, and a startup ecosystem valued at €19 billion by 2024, according to Romania Insider
  • Global champions like UiPath and Bitdefender, alongside a wave of fast-growing challengers such as DRUID AI and Finqware, are helping Romania shift from being seen as a nearshore outsourcing market to being recognized as a strategic innovation hub
  • For businesses considering outstaffing, Romania offers cost efficiency and access to engineers with product-building experience, global exposure, and domain expertise across key industries as well.

Why Romania Stands Out in the CEE Innovation Story

Scale and quality of talent

It’s the second-largest IT workforce in Central and Eastern Europe, with one of the most diverse tech pipelines in Europe, with 42.5% of STEM graduates being women. Programs such as the Romanian Repatriot initiative have already brought back 82,000 professionals from abroad, further enriching the talent pool. This says a lot given the great track record of outstaffing in CEE.

For companies outsourcing to Romania, this means access to scalable teams that combine depth of expertise with diversity and international experience.

A mature and growing ecosystem

Romania’s startup ecosystem reached a valuation of €19 billion by 2024, with over 2,300 active startups across sectors such as fintech, automation, cybersecurity, and healthtech. In the first half of 2025 alone, Romanian startups raised €80 million in funding, with the standout round being DRUID AI’s $50.2 million Series C.

The investment landscape is supported by active angel groups such as TechAngels, which has injected €46 million into more than 270 startups over the past 12 years. For outstaffing partners, this ecosystem maturity is crucial. Local engineers are not only executing code but also exposed to product thinking and global scaling strategies, making them better suited for complex, innovation-driven projects.

Public and enterprise require sophistication

Romania’s government has become a significant driver of digital transformation. In 2025, it launched the Government Private Cloud migration program, designed to modernize state IT systems and expand procurement for automation, cloud, and cybersecurity providers. 

This domestic demand translates into teams with real-world experience delivering enterprise-scale and government-grade projects, which directly benefits foreign companies outsourcing here, making it a favorite destination for outstaffing in CEE.

Unique Advantages 

What makes Romania stand out in the crowded Central and Eastern European landscape is not just its cost efficiency, but the combination of scale, sophistication, and proven global impact. 

Unlike some nearshore destinations where outsourcing is seen as a transactional relationship, Romania has developed the capabilities to act as a true innovation partner.

The first advantage is the rare quality-to-cost ratio. 

Romania’s 250,000+ engineers command significantly lower salaries than their Western European or US counterparts, yet their output reflects the standards of seasoned product builders. This is partly due to Romania’s thriving startup ecosystem, valued at €19 billion by 2024, which has exposed local talent to scaling products beyond domestic markets. Engineers in Romania are not simply executors of tasks; they have learned to think like founders, problem-solvers, and global operators.

Take the AI and automation sector as a prime example. 

Romania is home to UiPath, a company that has grown from a small Bucharest startup into one of the world’s most influential automation platforms. Today, UiPath powers automation at some of the largest enterprises worldwide and, in 2025, expanded into “agentic AI” by acquiring UK-based Peak (UiPath). Working at or alongside a global category leader means thousands of Romanian engineers are familiar with cutting-edge RPA and enterprise AI—expertise that they bring into outsourced projects. Similarly, DRUID AI’s $50.2 million Series C in 2025 signals that we continue to generate challengers with international credibility in applied AI. Outstaffing partners gain direct access to these skill sets, without paying the premium they would in Silicon Valley or London.

The cybersecurity vertical reinforces this narrative. 

Romania is home to Bitdefender, a globally recognized security firm protecting more than 500 million devices. In 2024, the company returned to profitability with a net profit of RON 239.6 million (Profit.ro), demonstrating its resilience and scalability. Beyond Bitdefender, Romania also hosts NATO’s Cyber Defence PTC (NATO), showing strategic importance in Europe’s digital security. For companies outstaffing sensitive projects, this kind of ecosystem creates confidence: teams in Romania are trained to handle enterprise- and government-grade cybersecurity challenges as part of their day-to-day reality. For companies looking for outstaffing in CEE, this capability of creating global players weighs significantly.

The fintech ecosystem offers another perspective. 

While countries like Lithuania dominate licensing, Romania focuses on infrastructure and middleware. Startups like Finqware, which builds open banking integrations, and NXT Enterprises, which raised €7 million in H1 2025 for tokenized trade contracts, show how Romanian talent is shaping the rails of future finance. Engineers exposed to projects that must comply with EU PSD2 directives develop an instinct for regulatory alignment and data security, qualities crucial for fintech companies outsourcing development.

Even in creative industries, the track record stands. Amber has co-developed AAA gaming titles for global publishers, while AMC Romania supplies digital art to some of the biggest studios in the world. Romanian creative engineers don’t just build games; they integrate narrative, design, and technology into exports consumed globally. This cross-disciplinary expertise is attractive for companies looking to outsource in areas where user experience is as important as code quality.

On top of these verticals, there’s also the institutional alignment with Western standards. 

As an EU member, Romania guarantees GDPR compliance for data protection, which is non-negotiable for many industries. As a NATO member, it offers additional reassurance for businesses concerned about geopolitical risk. Add to this the high level of English proficiency and a time zone that overlaps neatly with both Western Europe and the US East Coast, and Romania emerges not as a second-best option, but as a strategic outstaffing partner that checks every operational box.

Finally, the country’s track record of producing global companies helped the local ecosystem in transitioning to quality standards.

A Powerhouse for Outstaffing in CEE

Romania has the depth of a large talent pool, the maturity of a €19 billion startup ecosystem, and the credibility of producing unicorns and global champions.

For companies considering outstaffing, the key takeaway is clear: Romania is no longer just a cost-effective nearshoring option, as it can be used as a strategic partner for innovation