Developers in Moldova: where do they fit into the Eastern European outsourcing market?

This article was written by Tristan Senvcia, and published on 15 December, 2017 on https://youteam.co.uk

It is of interest to our prospective clients interested in the Moldova Corporate Tour 2.0

Developers in Moldova: Where They Fit into the Eastern European Outsourcing Market?

Tristan Senycia

Wine, Java, Web & PHP Developers, Moldova’s contribution to the Global Economy

Overview of Moldova as an outsourcing destination

This article focuses on Moldova as a possible alternative outsourcing location in Eastern Europe. Moldova is a small country in South Eastern Europe with 3.6 million inhabitants and an area of almost 34k square kilometres. Chisinau is the capital of Moldova and the biggest city of the country. Most of business activities including the IT sector happen in Chisinau.

Moldovans speak Romanian, Russian and Moldovan languages. According to the official statistics, more than 60% of students study English as their primary foreign language, followed by French. English language is practically a prerequisite of working in IT,  developers in Moldova, on the average, have a good grasp of English.

The economic situation in Moldova is a little unstable. Moldova’s GDP per capita is 1 918 USD, which one of the lowest in Europe. Moldova is still a country with a high level of corruption and bureaucracy, the infrastructure is not well developed yet. In 2014, Moldova entered into European Union Association Agreement, which, hopefully, will lead to harmonisation of its policies with European standards. The IT sector is growing steadily in Moldova as the government implements incentives to create a favourable business climate.

Moldova’s IT market

The IT sector in Moldova employees around 12,500 people. Developers in Moldova are well suited to web development and basic coding. The most in-demand developers in Moldova are those who know  PHP, Java, Python.

Second-tier IT companies such as Pentalog, Endava and RedSky have been outsourcing software development to Moldova for over a decade. There are a number of Moldovan software companies that employ up to 250 PHP, Java and web developers.

The internal software development market is not that developed and undersized, so the developers in Moldova are mostly focused working for international clients.  The impending  launch of an IT Park in Moldova will presumably  have a positive impact on the sector. The turnover of the IT sector is projected to quadruple between 2017-2021, with the number of companies and employees tripling within this same timespan.

In terms of cost of software development services Moldova offers the lowest prices in Eastern Europe. The average price for IT services provided by web developers in Moldova is in the order of 20-24 USD/ hour for a Mid Level Developer.

The turnover of the IT sector in Moldova is projected to quadruple between 2017-2021.

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Technical and social skills of developers in Moldova

As previously mentioned, developers in Moldova are highly skilled with PHP, Java and Python. Companies outsourcing web development to Moldova, market their staff as having strong technical skills, combined with a good work ethic, as can be seen from clients reviews on Clutch. This is in spite of university education not providing an  adequate  level of expertise in computer science or programming in comparison with European institutions. Students who want to work as PHP, Java developers have to look for additional training or self-educate online.

It’s also worth mentioning that in 2017 Tekwill ICT Excellence Centre was officially launched in Chisinau, which offers a variety of educational programmes focused on a broad range of skills – from basic to advanced technologies and business practices.

Software development companies working with developers in Moldova report that they are mostly disciplined, persistent and ambitious. Culturally Moldova is influenced by Europe and Russia at the same time, although the mentality of the younger generation, who constitute the majority of the developers in Moldova, tend to be more open minded and proactive. Currently, brain drain is a huge challenge for the software development industry in Moldova as many developers prefer to work in neighbouring Romania, where the salaries are far higher.

The improvements in the education system, tax incentives, infrastructure development are required to make Moldova a favourable business environment for software development companies and to help it with establishing itself as a competitive IT market in Eastern Europe.

Source: https://youteam.co.uk/blog/developers-in-moldova-where-they-fit-into-the-eastern-european-outsourcing-market/

 

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