IT Industry and its Role in the Economic Development of Romania

• Author: Dumitru Daniel Leon, Neculai Tabara
• Pages: 211-217

ISSN: 2067 – 9211 Performance and Risks in the European Economy

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IT Industry and its Role in the

Economic Development of Romania

Dumitru Daniel Leon1, Neculai Tabără2

Abstract: The IT industry is currently one of the main engines of the Romanian economy, being undoubtedly

the most attractive sector in terms of wages and other benefits. The Romanian IT industry is attractive to the

world's major IT corporations due to the low cost of the workforce, and the high professional qualifications of

employees, but also due to tax benefits offered by the Romanian state. It is very important that this sector of

activity is not only developing in our country but also in other countries of the world. This study aims at an

analysis of the IT industry in our country through which the author intends to better understand the factors

that have led to its development. To achieve this goal, we will conduct various analyzes of the financial

performance and position of enterprises in the IT industry, as well as the role in the development of the

Romanian economy. The usefulness of the current study becomes more important as we look at the possible

future measures that will lead to the development of this sector, but we will also try to present the risks that

are likely to occur.

Keywords: Turnover; Net profit; Development; IT industry

JEL Classification: A10; L25; L86; M41

1. Introduction

This study aims to analyze the main factors that have led to the growth of t his sector of activity to

determine, on the basis of the main indicators, the financial performance and the position of

enterprises in the IT industry. At the same time, we will determine what are the main opportunities for

developing this sector of activity but also what are the main threats that are worthy of note. For this

analysis, we took into account a sample of 65 companies, whose code of Classification of Activities in

the National Economy (CAEN) is 6201 Custom Software Execution Activities (Customer-oriented

Software) companies operating in all the historical regions of the country. The representative cities in

which most companies operate are Bucharest, Cluj, Iasi and Timisoara. The IT industry in Romania

has been the star of economic growth in recent years, currently accounting for about 5% of the Gross

Domestic Product, which shows that of the total of 190 billion dollars as Romania's GDP, close to 20

billion dollars are given by the IT industry.

1 PhD, Alexandru Ioan Cuza University of Iasi, Romania, Addres s: Blvd. Carol I, no. 22, Iasi, Romania, Tel.: +40232201102,

int. 2377, Fax: +40232217000 , Cor responding author:

2 Associate Professor, PhD, Alexandru Ioan Cuza University of Iasi, Romania, Address: Blvd. Carol I, no. 22, Iasi, Romania,

Tel.: +40232201102, int. 2377, Fax: +40232217000, E-mail: