Many people outside Romania understood the message and stopped bothering us with requests for web site design for $200. Romania is not India, and we are proud of this. Instead, Romania is pretty expensive as outsourcing location. Yes, it is.
Now, after one year and almost entered in EU, let's see how wages in Romania's IT industry have evolved (below are minimal wages):
| Without taxes / USD / month (netto income) | All taxes included /USD / month (real costs) | |
|---|---|---|
| Junior web programmer PHP/MySQL | 250 USD | ~ 450 USD |
| Experienced web programmer | 600 USD | ~ 950 USD |
| Senior Web designer | 500 USD | ~ 850 USD |
| Junior Java developer | 450 USD | ~800 USD |
| Senior Java Developer | 1000 USD | ~1600USD |
| Middle Manager | 1500 USD | ~2500 USD |
Another important fact that a foreign investor should understand is that in today's Romania there is a deep crisis of fresh engineers and programmers. The educational system is a disaster. Only about 10% of every promotion really represents young people that deserve to get an employment. So it is easy to understand why wages will follow the growing pattern in the years to come.
UPDATE - as of December 2007 - after 1 year in EU
| Without taxes / USD / month (netto income) | All taxes included /USD / month (real costs) | |
|---|---|---|
| Junior web programmer PHP/MySQL | 350 USD | ~ 550 USD |
| Experienced web programmer | 850 USD | ~ 1400 USD |
| Senior Web designer | 850 USD | ~ 1400 USD |
| Junior Java developer | 600 USD | ~1100 USD |
| Senior Java Developer | 1400 USD | ~2500 USD |
| Middle Manager | 2500 USD | ~4000 USD |
However, the HR's are predicting for the next year only limited increases (up to 10%). There are several rumors in the market that some developers will start relocate production in other countries.
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