Page 7 - Nearshoring to Romania

This guide delves into the particularities that nearshoring to Romania presents, after first trying to
answer the key question: why go to Romania?
In answering this question a comparison is made between nearshoring to Romania and offshoring to
the Far East countries, in order to reveal the clear advantages that the first option presents for Dutch
businesses.

The main benefits of working in Romania, as identified by the experienced NRCC members, are listed
and explained in a clear and thorough manner. These benefits are framed in three categories:
employment advantages, cultural compatibility of Romania with the Netherlands and ease of running
an office in Romania. The types of work that are best suited for execution in Romania are also
identified.

However, nearshoring (like offshoring) is not without challenges - the "to keep in mind" section
completes the picture of what operating in Romania entails, by presenting the most common pitfalls.
Romania is presented in an objective and realistic manner, making thus this guide a must-read for any
Dutch entrepreneur that considers nearshoring to Romania — and especially for one who has contact
for the first time with Romania.

A large part of the guide is dedicated to the actual steps that need to be taken once a decision has been
made to nearshore to Romania. The following topics and problems are touched upon:

üNearshoring to a partner versus setting up own branch? (includes an analysis of the
factors that need to be taken into consideration when deciding which of the two options
to opt for)

üThe impact of the nearshoring operation on the home organization
üHow to start and run a branch in Romania?
Ÿ Legal aspects
Ÿ Hiring employees

üLeadership: The advantages and disadvantages of starting with a Romanian manager or
with a Dutch manager to Romania are analyzed and weighed. This is important, since the
manager who will be responsible for the branch office will have to be a strong intermediate
between at one hand the home office and on the other hand the new local employees.
üPartner selection: instructions on how to find the best nearshoring partner.

Last, a concrete example of nearshoring (in the IT industry) is presented. The structure presented
hereby represents the backbone of virtually any nearshoring activity, thus being of great use for
prospective nearshoring endeavours.

7
Nearshoring to Romania, NRCC 2013