The pillar of economic growth of Romania, hit from America: “The alarm sirens called. If it moves to the US, we go into withdrawal”
The perfect storm is approaching, and Romania is about to lose the most profitable sector of the industry. A well -known economist and former head of the bank comes with a gloomy warning.
Pipera's office buildings risk staying empty if the IT industry gets in difficulty
The well -known economist Radu Georgescu announces hard times for a long -privileged area. The perfect storm comes from America, warns the former banker.
Tech companies in the United States are increasingly tempted to give up investments from abroad and take part in the program started by Donald Trump, which aims to return the big American companies at home. Romania will suffer when this policy will begin to materialize, says Radu Georgescu. In a Facebook post, the former banker says how the perfect storm could look that would hit Romania's economy.
The perfect storm is approaching
“Yesterday I had the management meeting in a building in the Silicon Valley from Romania. Pipera-Aurel Vlaicu area is the Silicon Valley from Romania. In Romania, 90% of IT companies are outsourced for foreign companies, most American companies. In the last month, in companies that do Outsourcing they have sounded alarm sirens. For US companies. Radu Georgescu began.
The bad news would be, he says, that the first ones to suffer in Romania will be the IT companies.
“IT companies will be the first to return to the US. In Pipera is a large American IT company that has 3-4 buildings. If this company moves its activity to the US, the IT industry is involpe. If we have taken their jobs until now, now the Americans want to bring their jobs back. In the US, in the last 12 months over 150,000 IT-you have been fired. Yesterday I went to a TV show. I was asked what is the first economic danger for Romania. This is. I said that the first danger is that over 6 months in the Silicon Valley in Romania to blow the wind, and the buildings are empty”, Writes the expert.
Radu Georgescu, who owns a company that produces software, says that companies working in the outsourcing system will be the most exposed, and those who have their own products will more easily absorb the shock.
The first industry in Romania hit in America
“This is why I and Marius I chose to develop software to be ours. It is risky to depend on the products made by others. How do you think the Silicon Valley in Romania will show over 6 months? ”, Radu Georgescu concluded.
The IT industry in Romania has been considered, especially in the last 20 years, an economic growth pillar. It mattered enormously that for a long time the costs here have been lower compared to the US or other countries. However, with the increase of the wages of the ITs, who arrived at the level of those in the West, things have changed. Meanwhile, the Romanian authorities have decided to eliminate some of the tax facilities granted to the IT industry during the mandates of Adrian Nastase and Emil Boc. With the increase of expenses, many companies have decided to reorient themselves to countries where wages are much lower. The Republic of Moldova, in Europe, but especially countries that India now attract most investments in this area.
