Mihai Filip, CEO of OVES Enterprise: The advance of the software and services market in Romania suddenly slows down at the end of the year.

• OVES Enterprise ends 2022 with double sales compared to last year
• At the industry level, a decrease in programmers’ fees is predicted, in line with the market situation
• Romania is becoming an increasingly risky area, in terms of accessing specialized personnel, in the context in which more and more companies are looking for developers in other areas of the globe

The progress of the software and services market in Romania suddenly brakes at the end of the year, as many of the projects traditionally close before the end of the year, and companies are reserved in starting new ones, in this moment. The reluctance of companies is justified by the global trend to reduce spending, in the context of the outbreak of a potential new crisis, as a result of the prolongation of the war in Ukraine, increased inflation, the energy crisis and massive layoffs made by large technology companies.

Thus, if, traditionally, in Romania, the IT segment has an annual growth rate of 15% – 17%, according to the Employers’ Association of the Software and Services Industry (ANIS), the evolution at the end of the year, from the last 2 months, shows, according to OVES Enterprise estimates, at most a 5% increase compared to the same period last year, anticipating a bigger setback next year.

“Currently, in the market, we have a chain of weaknesses going on: companies have money, but investors are more cautious with the funds they have, many of the manufacturers no longer have budgets or have reduced them, while service companies have less work. At the same time, some projects are put on stand-by for an indefinite period, there are massive layoffs, at least in the US, and tech companies that had a good year are now moving forward with only essential products, secondary ones being put on hold hold”, says Mihai Filip, CEO of OVES Enterprise, noting that the first signs of such a moment appeared around August. “We worked five times harder to be able to meet our target of 6-7 million euros that we set for ourselves this year.”

Last year, the turnover of OVES Enterprise increased 4 times, reaching approximately 14 million lei. For 2022, the company aims, at least, to double revenues, the goal assumed at the beginning of the year being 30 million lei.
The end of the year brings even less money for programmers, their fees falling in line with the market situation, due to the greater supply of developers and the lack of projects.

“The big tech companies in the US have made layoffs: Facebook, Twitter, Amazon, etc. As there is a greater supply of developers in the market, both due to layoffs and the decrease in the number of projects, the fees charged also decreased. And this also generates a sorting, a more careful filtering between the good and the less good developers”, says Mihai Filip.
At the same time, Romania is becoming an increasingly risky area, in terms of accessing specialized personnel, in the context in which more and more companies are looking for developers in other areas of the globe, especially since the fees charged by Romanian programmers are getting closer and closer to those of US developers.

Things are also changing for software service providers. They will have more difficult access to projects in the coming period, as product development companies find it easier to hire resources. And product companies that still want teams from service companies are looking, above all, for very experienced developers or those who know several technologies.

About OVES Enterprise

OVES Enterprise is a Romanian software development company, established in 2015 in Cluj-Napoca. Starting in 2019, OVES’ strategy included offering more complex software development services for projects in the automotive, eCommerce, fintech, telecom, international government institutions, etc., the company becoming a technological partner for complex and technologically sophisticated projects. Currently, 80% of the company’s turnover is generated by projects outside Romania, which integrate new technologies in the field of artificial intelligence and big data. OVES Enterprise currently has 107 employees and offices in Romania, Germany and the United Arab Emirates.