Lucian Ghinea, 112hub.com: Kenya is emerging as the alternative to India for outsourcing, offering savings of up to 50%

• Kenya emerges as a cost-competitive alternative to India, offering European firms up to 50% savings on software development.
• 112hub.com leverages on-the-ground expertise in Nairobi to connect clients with English-speaking developers and trusted local suppliers.
• Hybrid teams of senior European experts and cost-effective Kenyan professionals help companies scale globally while maintaining quality and cultural alignment.
• Supported by reforms and a solid legal framework, Kenya’s tech ecosystem attracts major players like Microsoft and Google, reinforcing investor confidence.

112hub.com, a consultancy specialising in market entry and managing outsourced teams, is expanding into East Africa with the opening of an office in Kenya. The move comes as Romania’s outsourcing market reaches maturity and companies look for more cost-competitive solutions. Kenya is emerging as an alternative to India, offering savings of up to 50% in software development.

The expansion was prepared through discussions with technology providers and business leaders in Nairobi, aimed at ensuring a smooth integration into the local market.

Romania’s IT sector has evolved into a market of highly skilled specialists, but rising salaries and talent shortages are eroding its cost advantage. Just as Western Europe and the U.S. once turned to new regions to access affordable developers, the time has come for Romania to do the same. Kenya, with its English-speaking workforce and competitive rates, provides the opportunity to protect Romania’s outsourcing competitiveness while building stronger, blended teams. According to industry data, IT services exports from Romania exceed €8 billion annually, representing over 6% of GDP, a competitiveness challenge that makes diversification urgent.

“Romanian IT firms can no longer rely solely on local talent,” said Lucian Ghinea, CEO of 112hub.com. “Without expanding into new talent pools like Kenya, they risk being outpriced in the global outsourcing race. This is not about moving jobs away from Romania, but about ensuring that local specialists focus on high-value, complex projects while more routine tasks are supported by affordable teams abroad. The future belongs to blended models that keep Romania relevant and competitive.”

“Silicon Savannah”: Kenya Attracts Global Tech Giants

Known as the “Silicon Savannah,” Kenya has emerged in recent years as a regional leader in digital innovation. Both Microsoft and Google have set up African headquarters in Nairobi, confirming Kenya’s role as a continental tech hub.

The local ecosystem benefits from a young, English-speaking workforce, competitive labour costs, and government support for the IT and BPO sectors. Kenyan developers are particularly strong in areas such as fintech (mobile payments and banking), e-commerce platforms, data analytics, and cloud services, capabilities that align with global demand and complement the strengths of European teams.

Kenya, the Alternative to India for IT Outsourcing

For European companies, the move comes at a time when traditional outsourcing destinations in Eastern Europe face rising costs and limited labour supply. Software development hourly rates in countries such as Romania or Bulgaria range between $35 and $70, while in Kenya they average $20 to $30. Depending on role and scope, this can represent savings of 30–50%, allowing companies to reinvest in growth and innovation.

By tapping into this alternative, European and Romanian companies can remain competitive and build hybrid teams that combine senior, highly skilled European experts with cost-effective Kenyan developers. This blended model enables efficiency, scalability, and stronger positioning in global markets.

Traditionally, India has been the default outsourcing destination for cost-sensitive companies, with developer rates often ranging between $18 and $25 per hour. Kenya offers a compelling alternative: while similar in cost, it provides closer time zone alignment with Europe (GMT+3), strong English proficiency, and a fast-growing but less saturated market. This makes collaboration smoother and more efficient for European businesses.

Kenya, a Safe Option for Companies Outsourcing IT

Concerns about stability and trust are common when evaluating new outsourcing destinations. According to the CIA World Factbook, Kenya is a multi-party democracy with a relatively stable government and an independent judiciary, which has implemented significant economic and legal reforms in recent years. Combined with its 2019 Data Protection Act and the establishment of the Office of the Data Protection Commissioner, these measures provide a clear legal framework for businesses, strengthening investor confidence and ensuring compliance with international standards.

The company says it will initially focus on matchmaking services, connecting European clients with vetted Kenyan technology suppliers. The consultancy highlights Kenya’s Data Protection Act (2019) and its Office of the Data Protection Commissioner as evidence of a solid regulatory environment, addressing frequent concerns about data security in emerging markets.

With this move, 112hub.com aims to become a key consultancy partner for European businesses expanding into Africa, while enabling its existing suppliers in Romania, Bulgaria, and Portugal to extend their service portfolios through Kenya. The company has already been active locally, with management teams visiting Nairobi earlier this year to meet with Kenyan companies and assess the ecosystem firsthand. For Romania, this strategy could mark the beginning of a new outsourcing chapter, one where the country evolves from being a low-cost provider into a high-value hub that integrates global talent.

About 112Hub

Founded by CEO Lucian Ghinea, 112Hub is Romania’s only IT outsourcing matchmaking company, with operations in Germany and the United Kingdom and a strong network of providers across Portugal, Romania, and Bulgaria. The company specializes in connecting businesses with tailored outsourcing solutions, offering services such as matchmaking, team building, and M&A support.

For more information, visit www.112hub.com.