The software industry in Romania

Transcription

1 The software industry in Romania Present and Future a study Andrei Pitis

2 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. Growing the domestic software market promote technology to SMBs

3 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 applications segment was the most dynamic representing in 2012 more than a half (52.2%) of the market. System infrastructure software represented 31.7% of the market. NOTE: CAD = Custom Application Development Application and development software accounted for the remaining 16.1% of the market. The CAD* market reached almost $60 million and a yearon-year growth of around 10%. Source: ANIS-IDC report

4 Software Related Activities, Packaged Software vs. Custom Development in Romania, % development of commercial packaged software 46% both commercial packaged software and custom software 43% custom software development for third parties 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. Source: ANIS-IDC report

5 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 CAGR 4.5% CAGR 5.7% In 2012, the total Packaged 100 Software market reached $ million. 34% local vs. 66% exported CAD Packaged SW R&D CAGR 6.8% Source: ANIS-IDC report

6 Commercial Software Applications Vertical Markets Distribution Revenue Splits by Industry Verticals 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. 13% 13% 13% 11% 3% 5% 10% 6% 9% 8% 8% Telecommunications Education Construction Healthcare Other Entertainment & Media Business and personal services Government Retail & Wholesale Banking, Insurance, other financial services Manufacturing Source: ANIS-IDC report

7 Human Resources Recruitment Pool 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. > 50% 25-49% 10-24% < 10% The Same < 10% 10-24% 1% 1% 6% 18% 16% 27% 27% Decrease Increase 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 % 0% >50% 1% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% 50% N = 1,660. Source: IDC IT Buyers Pulse Survey, 2011 Source: ANIS-IDC report

8 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 Boost Day mid term, Demo Day at the end

9 Innovation Labs Hackaton 135 participants 35 pitched ideas 20 teams formed 24 hour of developing and business definition 12 Mentors 8 Judges 12 teams selected for the program

10 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

11 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 hardwaresoftware solution allowing remote programming and real time monitoring of devices like Raspberry Pi and Arduino

12 Andrei Pitis president Nicolae Filipescu 39-41, 1 st floor, sector 2, Bucharest, [email protected]