IT market in Chisinau
Chisinau is definitely worth visiting for several reasons. Firstly, to see how the capital of Moldova has turned from a small provincial town of the Soviet past into a tantalizing city. Secondly, to be amused by the fact that over the past decade Chisinau has become the main Moldovan paradise for offshore software development! Here you will not only find qualified IT specialists but also be satisfied with fair prices for services, a great location, and a suitable time zone. There is, even more, to be surprised about when it comes to the IT market in Moldova: from the tax rates to the high level of the talent’s education. So, here’s everything you need to know about the IT market in Chisinau.
It’s safe to say that Moldova has become super eye-catchy for many foreign investors who see a great future for the country, mostly due to the IT sector. You may have heard that Ukraine, Poland, and the Czech Republic are the countries with the most freelancers working for IT companies from all over the world, but recently Moldova has been added to this list as well. Today, many international IT businesses prefer to outsource software development in Moldova because of its simplified tax rates and legislation for the IT sector.
Speaking of the IT market in Moldova, there are over 20,000 people that are involved in this field and most of them are coding for other countries. It’s important to mention that most Moldovan IT talents are really great to work with because not only are they highly educated and speak English at a good level, but they also know how to do business with foreign companies. Plus, they are more than just about basic coding, as those who know Java, Python, and PHP are the most wanted specialists today.
As you can guess, the highest concentration of IT talents is in Chisinau and it’s also a place where you can find one of the greatest IT Parks in Europe. It was launched in 2017 and today, there are 400 different companies that are already involved in the project. As we have already mentioned, most tech talents work for foreign companies and no wonder that 300 of the companies of IT Park focused on international clients. The program is rapidly growing, and in 2022 alone, 152 companies joined IT Park. Among them are companies from the US, the UK, Canada, Italy, Germany, Ukraine, etc. Not many people know but many well-known foreign tech firms for over a decade prefer to cooperate with IT specialists from Moldova.
What attracts all these international companies, is the low price rates for IT services and the good quality of the work. For example, the average web developer will charge around $20-$25 an hour, while the same skilled employee from the US will ask for $38-$50. Of course, a more experienced developer from Moldova is in the order of $40-50 per hour but keep in mind that more skilled IT specialists from the US will also earn more than $70.
However, not only the low rates of services are an attractive point for all the foreign companies that prefer to be located in Moldova. Being a member of the e-Park is also a great opportunity due to the simplified and reduced tax and administration. A single tax of 7% on turnover, the ability to work from anywhere in Moldova, and simplified administration that helps save time and costs are also important reasons.
It seems pretty obvious why we are considering opening a talent pool in Chisinau, right? First off, Moldova in general has a decent track record of working with big international companies such as LG, Ford, DHL, Orange, and many others. Additionally, it is expected that over the next few years, R&D and engineering services in IT will perform amazingly which gives a great opportunity to catch the wave. The transition and expansion of the IT field have already begun and we can see the way Endava, the most known Moldovan tech unicorn performs. It shows great results as it grows fast and has already employed 900 high-skilled IT professionals in Moldova. With high professionals and relatively affordable charges, it is always easier to launch a start-up or develop any project.