Romanian IT sector in 2020: Smaller, but more profitable

The revenues of the 23,000 Romanian companies active in the IT sector increased in 2020 by only 2.5% compared to 2019, to RON 32.3 bln (EUR 6.8 bln), according to calculations compiled by termene.ro, quoted by News.ro. The analysis was based on the financial statements filed by companies to the tax authority, says Romania-Insider.com.

The increase was smaller than the headline consumer price inflation (2.7% in the year) or the 5.5% increase in the prices in the IT&C sector. One year before, the revenues of the same companies soared by 32%.

Not only that the IT companies posted only a slim nominal (and negative real) advance in 2020, but the number of employees declined by some 3,000 to 117,000 after a robust advance from 112,000 in 2018 to 120,000 in 2019.

And yet, despite the shrinking turnover and employment, the companies posted visibly stronger profits in 2020: RON 4.8 bln (EUR 1 bln), roughly one-fifth up from RON 4 bln in 2019 (and RON 3 bln in 2018).

Regarding the evolution of the number of employees by region, the companies based in Bucharest-Ilfov fired about 1,600 people, while those in Cluj County hired about 1,000 people.

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