Why Romania?

Why should you choose to work with a Romanian outsourcing provider? Let’s start with the definition of the term: software development outsourcing (and IT offshoring in general) helps businesses to benefit from high quality services, with minimum cost and time spending, also cutting down a very large part of the project management efforts. And this is what Romanians excel at.

Traditionally, Eastern Europe is renowned for a high level of education, and reduced labor costs. During the past decade, outsourcing companies from this area have become highly appreciated providers of offshore software development services.

According to recent studies, that evaluate Romania‘s economical evolution during the recent years and after the integration in the European Union,
the IT sector is one of the fastest growing industries in Romania. This
country possesses a significant potential for export of information
technologies, especially in the field of software development and IT
offshore outsourcing.

With over 100 universities, the country annually produces 30,000
engineering graduates of which 8,000 earn degrees in IT. Romanian
student teams won first place at the International Olympiad of Informatics in 2003 in the US and were third in the world at the International Mathematical Olympiad in Mexico in 2005. However, mathematical and programming skills are typically strong in all CEE countries.

What really sets Romanians apart from other countries in the race for attracting offshore outsourcing contractors is their language skills.  The Romanian language belongs to the Latin language group, making it easy for Romanians to pick up French, Italian, or Spanish. In addition, they held first place in the
Certificate of Proficiency in English exam at Cambridge University, according to a 2003 Pierre Audoin Consulting report. This is why Romania  is the only country in the world that can provide outsourcing services,  especially call centers agents, in 22 to 25 different foreign languages  at expert level without any additional training investments.

Driven by the struggle to shake off the political corruption and being confronted for a long while with a scarcity in proper jobs, Romanian youth has channeled itself to those kind of activities that brought them recognition and ompensations. These are the motives why most skilled and foreign language trained Romanians are driven to market  places like Rent a Coder, Elance Online, or eWork. For years, Romanians  have been among the top three most active nations
at this international crossing, according to Rent a Coder Founder and
CEO Ian Ippolito. In November 2005 Romanians accounted for 18 percent of
the marketplace transaction volume, followed by Indians and Americans
with 17 percent and 16 percent respectively. The CEO declared that “Some
buyers have told me that they prefer Romanian coders because their
experience was that Romanians were harder working, more reliable with
deadlines, and didn’t pester them with requests for payment before the
job was completed.”

However, with a population of only 23 million it is hardly understandable how Romanians are so efficient at what they do, compared with megaliths like Russia or India. Primarily, because of the difficult  past of the country, the nowadays youth is relying mostly on talent. If  the past was so gloomy, the present and future look better and better after the 2007 EU integration. Romania is also a NATO member and this year’s Bucharest summit has brought offshore outsourcing clients attention upon the developing nation.

Important companies such as Siemens, Alcatel, and Motorola have set
up research and development, software development, or manufacturing
facilities in Romania. Siemens is the leading foreign employer with over
2,000 in the local workforce. Oracle maintains its European development
and call centers there; its call center in Bucharest provides support
in 13 European languages.

IT export became an important part of the economy, currently involving nearly 17,000 people. In 2005 the export of software and IT services reached $250-280 million, estimates Florin Vrejoiu, Executive VP of the Romanian Association for Electronic and Software Industries, an association which includes about 300 member companies. The exports are especially centered on R&D outsourcing, mechanical engineering outsourcing and security and embedded software development, like Softwin, a company renowned for the anti-virus tool BitDefender.
Microsoft acquired intellectual property rights for RAV AntiVirus from
GeCad, another successful maker of anti-virus software, in 2003, which
reflects the increasing interest of foreigners in local companies and
their products.

Outsourcing Journal states that Romania attracts Western clients due to the high level of technical and language skills of IT workers, its well-developed (albeit fragmented) IT industry, and availability of a vast IT labor pool,
largely untapped by IT outsourcing companies. This industry is by far
the fastest growing in the Romanian economy. IT attracts foreign investors and is experiencing a wave of acquisitions of local companies by foreign investors. Evolutionary transformations, such as further growth and acquisitions as well as a reduction in the level of industry’s fragmentation, can be expected.

the source:http://www.sbp-romania.com/Articles/Why-Romania.aspx

 

Council Implementing Decision of 26 March 2012 authorizing Romania to introduce a special measure derogating from Article 287 of Directive 2006/112/EC on the common system of value added tax

The EU Council approved Romania’s request to increase the turnover threshold
of companies that have to pay a Value Added Tax (VAT), from EUR 35,000 to EUR 50,000. The decision was recently published in the EU Official Gazette.

The decision features a threshold of EUR 65,000 at the exchange rate when
Romania joined the EU, which was of around RON 3.3 per EUR, that would
translate into some EUR 50,000 at the current rate.

The measure is valid until the end of 2014 or until a new European law sets
new thresholds.

Romania’s plan to increase this threshold was included in the letter of
intent with the International Monetary Fund (IMF) and the European Commission in 2010. The document also mentioned that Romania’s Finance Ministry was planning to introduce a simplified taxation system for companies with a turnover below the EUR 50,000 threshold.

Companies which do not pay VAT in Romania have simpler accounting
procedures, as those that pay VAT have to pay it to the state for the products
and services they sell, and ask for a VAT refund for the products they buy from
other VAT payers

 

(Română) Anul 2012 aduce modificari importante in domeniul fiscal.

 

 

 

Dedicated to your long-term success

We know that a successful business is more than a sum of its parts. It’s about properly aligned business processes that lead to operational efficiency, well managed costs and increased profitability. As a large firm, we can provide all the practical and commercial assistance you need in a way that is relevant and appropriate for your business. We’ve built our success on developing trusted relationships and delivering solutions and ideas tailored to the needs of our clients, no matter the size.

Whether you’re an entrepreneur growing your business or part of the management team of an innovative company entering new markets, we can help your business grow by:

  • Bringing glocal (global and local) expertise with access to the same knowledge, networks and opportunities available to big business;
  • Telling it like it is, by giving you the frank and honest insight and advice you expect from a trusted advisor;
  • Understanding your key drivers at a business and personal
    level.

We offer the perspective of a third party with business consulting, tax and accounting experience, to support you in tackling key business issues:

  • Thriving in the new “business as usual”
  • Evaluating your business
  • Growing and financing your business
  • Accounting, tax and compliance
  • Managing your wealth
  • Planning your succession
  • Managing your people
  • Managing your risk

 

Human Resources

Human Resources Services

ADMINEX RO brings together all of the professionals working in the human resource consulting arena – specialists in individual tax, payroll, benefits, assessment, education, equity, reward, staffing, regulatory, legal, and process management – offering clients an unmatched breadth and depth of local and global expertise. Services available includes individual advice, ranging from assistance with obtaining work and residence permits, to advice and assistance with all matters regarding Romania’s personal income taxation legislation; executive recruitment and selection; salary surveys; outplacement, and human resources audit.

Tax and Legal Services

 

Tax and Legal Services

ADMINEX Romania’s tax advisory practice comprises international and local tax experts, and customs, VAT, individual taxation and human resources specialists. As the country’s largest tax consultancy, they are able to specialise in all areas of tax, including:

Corporate Taxation

The Team has extensive experience in advising clients based on Romanian laws and their interpretation by tax authorities, as well as their interrelation with international regulations and treaties. Our specialists are highly qualified to advise on all aspects of inward investments in Romania, and the structuring of those investments in terms of profit tax, withholding tax, dividend tax and local tax regulations. We provides proactive advice on international tax planning and structuring; mergers and restructuring, and undertakes company health checks and due diligence projects, and assistance with tax authorities (during tax inspections, and lodging of objections).
Indirect Taxation

ADMINEX indirect tax specialists have extensive experience in resolving complex issues related to indirect taxes, customs procedures and foreign trade. Services available include VAT consultancy and tax reviews; VAT planning and efficiency schemes for domestic and cross-border operations; assistance with standard and fast VAT refund procedures; assistance during tax inspections; support and advice during appeals. Customs consulting includes tax planning for minimising import duties; implementation of temporary customs regimes; authorised exporter status and simplified customs procedures implementation; use of bonded warehouses and customs-free trade zones; intellectual property rights; obtaining import/export licences; assistance during customs clearance and audits; support during customs litigation or complaints.

 

Consulting

Consulting – Operations

Delivering competitive advantage through improved processes & systems

  • Sustainable Cost Management We assist you in reducing your operating cost base via improving processes
  • Sustainable Chain Management We help you improve your operational supply chain processes with a view to increased performance
  • Customer Lifetime Value We support you in implementing effective customer  acquisition, penetration and retention strategies
  • Customer Experience & Satisfaction We advise you on how to align your product/services offers and channel interactions to maximize your customer satisfaction and retention
  • Sales Excellence We assist you to enhance and align customer-centric account management and sales force team structures, workflow processes, culture, incentives and measurement
  • System/Process Improvement We work closely with you in order to reduce operational costs and improve accuracy
  • Project Management We support you in all aspects of project management to ensure quality assurance for all sizes of projects

Consulting – Finance & Accounting

Increasing the value of the finance function for your business

  • Standardisation and  Simplification We conduct an assessment of  your current standards applied to finance control, processes, behaviours,  data, organisation, people and systems in order to improve your finance processes and map them to best practices
  • Corporate Performance Management We assist you to transform your performance management process in order to better support your business requirements
  • Consolidation and Management Information We have developed a unique methodology “smart close” to accelerate your closing and consolidation process
  • Shared Service Centres and Outsourcing We provide tailored solutions for setting up Shared Service Centres operations and outsourcing qualifying activities
  • People and Organisation We advise you in aligning people and organisational structures to improve business operations
  • Treasury and Capital Optimisation We support you in optimising and developing your treasury support system

 

Consulting – People and Change Management

  • People strategy We help you identify, design and implement the key people initiatives to support business strategy and optimize the value of human capital in your organization
  • Culture We conduct diagnostic strategies/cultural misalignment analyses and develop frameworks and plans to transform organizations
  • Leadership and Talent  Management Jointly with you, we develop approaches and tools to provide leaders and top teams with skills to build the people capacity
  • Reward and performance management We advise on performance alignment and employee engagement through reward initiatives at CEO, executive and employee levels
  • Change management We partner with you to achieve cultural transformation and business changes
  • HR effectiveness We assess your HR function and processes, by measuring and benchmarking key performance indicators, and we propose improved delivery models.

Consulting – Governance, Risk and Compliance

Providing structure for business sustainability

  • Internal Audit We support you in the development of your world-class internal audit function, provide skilled resources under flexible internal audit sourcing arrangements and perform external quality reviews of the internal audit department
  • Governance We support you in designing and implementing governance frameworks and best practices
  • Enterprise Risk/Portfolio Management We assess your existing risk framework and advise you in designing and implementing an enterprise wide business approach to risk
  • Revenue Process Assurance and  Controls We support you in improving top-line revenue growth and minimise reward leakage by identifying cross-functional processes, technologies, organizational and quantification strategies that minimise incremental revenue leakage
  • Managing Business Process for Compliance Outcomes We support you in establishing a compliance mindset by aligning compliance initiatives to business objectives; embedding compliance into business operations; leveraging technology
  • Compliance Monitoring and Reporting We support you in the development of performance measures and design or review of monitoring and testing programmes
  • Incident Identification and Remediation We support you in identifying and addressing complaints and breaches of legislation and internal processes