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ROMANIAN SOFTWARE
COMMUNITY 2019
SUMMARY
Introduction 3
Software and Services Sector 4
Companies Overview 4
Employees 5
Productivity 6
Discussion 8
The report has a research component of the software and services sector,
tech communities and events, education and learning. This offers
comprehensive perspective on the software ecosystem in Romania.
For several years, the sector has enjoyed growth in both the number of
employees and in revenue. The delivered quality is also reflected in productivity
gains. Industry performance is sensitive to rapid technology changes and as
we face a new wave of technology, there is a risk of losing the pace if we do
not adapt.
We are grateful to be helpers for those companies who feel the call for
adventure. And humble because they are making the hard work. These are
some of the thoughts that led me to start DOvelopers and work with
passionate people that make things happen.
We hope you find this research useful and feel free to contact me at
connect@dovelopers.com if you have any questions.
Eduard Budacu
Founder and Agile Coach
DOvelopers
SOFTWARE AND SERVICES SECTOR
Taken into account that Agile was first used in IT companies, we wanted to have an overview of the industry in
Romania in the past years. We have selected over 2000 companies with specific software services1. These companies
had generated a revenue greater between 50.000 and 225 mil euros., with no less than than 5 employees. Our
sample of selected companies employ around 94000 people in 2017.
Companies Overview
In Romania the software and services sector is comprised of a lot of small players, that provide custom software
development and a few big players such as Oracle Romania, IBM Romania or Ericsson Telecommunications Romania.
Software factories are among the employers that have between 1000 and 2000 people. These companies usually
provide software development capabilities for enterprise local and international clients.
85% of the companies in the selected sample have less than 50 employees. At this size usually founders are directly
involved in managing the company. Furthermore 41% have 10 or less employees.
1 We took into account organisations that have the following NACE codes: 5821, 5829, 6201, 6202, 6203, 6209, 6311, 6312
© DOvelopers 2019. Developed by Eduard Budacu and Cristina Pana
Turnover is highly correlated with the size of the company.
Employees
The data shows us a growth of 77,12% in employees number as from 2013, with an average of 15,37%. The timeline
taken into account for data analysis is 2013 - 2017.
From the extracted sample, we noticed that 33 big companies employ more than 38% of the total number of
approximately. 94000 . Medium sized companies that have between 101 and 400 employees cover 24%, while small
sized companies with less than 100 employees cover 38% of the total number of employees.
Productivity
The years before the economic crisis meant a rapid growth of labour costs, followed by a decrease immediately after
the crisis started. In the last years we see a constant increase of around 10%.
We further selected company profiles from each category and extracted details from corporate websites, social media
and LinkedIn profiles of employees regarding structure, roles and references to methodologies uses.
Most of the companies are focused on specific technologies that are provided services. References to Agile methods
are made to emphasise the quality of the development practices. Also flexibility is promoted as a benefit for employees
that would rather work in a dynamic environment without bureaucratic procedures and a flat hierarchy.
Smaller companies tend to be lead by the founders that are also involved in execution. The way of working is usually
customised for the specific needs of the company.
Medium companies are managed by boards comprised of CEO, COO, CTO and representatives from other
departments like HR, Finances, Quality Assurance. In the past years there were companies organised around teams
that are lead either by a technical lead or a mix between project management / adapted Scrum roles. We also noticed
a lot of roles combining responsibilities of process and product management.
As companies grow in size we tend to notice more complex structures that involve diverse roles and titles. Still a big
part of the employees are focused on execution as a reflection on the main source of revenue that is outsourcing
software development.
The acknowledgement of the good technology education system, talented developers and affordable
human resources costs attracted big players in finance, telecommunications and retail that further increased
competition between companies to retain talent. Highlights in values like trust, innovation, continuous
improvement and flexibility are meant to create unique employer propositions.
Increases in revenue are highly dependent on managing to hire more people, but we can also see an
increase in productivity as the companies developed the capacity to deliver end-to-end projects and more
complex services.
Adding more value is the primary concern of company managers. This emerges from the threat of losing the
price advantage due to salaries increase.
Majority of the jobs in the industry are available for technical roles, but we've seen an increase in job ads
that reference agile methods and practices as a necessary skill set for candidates. Also there are slightly
more roles of Agile professionals like Agile Project Managers, Scrum Masters and Product Managers. This
creates opportunities for training employees to gain new skills, experience new roles and take more
responsibility.
This survey was completed by 162 respondents from cities around Romania, predominantly Bucharest, Cluj Napoca
and Iasi. The online survey was conducted between November 2018 - February 2019. We discarded 3% of invalid
responses, counting a total of 157 respondents to be taken into account for this study.
The channels used for distribution were: social media channels (LinkedIn, Facebook, Instagram), www.meetup.com
platform in the communities that had an agile interest stated; direct messages to target audience.
Respondents were able to make multiple selections with several preconfigured answers for participants. Open-ended
questions were available as well, for detailed inputs and answers.
Organisations Overview
Most respondents work in Technology, Outsourcing Software Development or E-commerce industry. We have also
noticed in the past 2 years a rise of interest for Agile concept, practices and tools from Banking industry and non-tech
companies, also shown in the survey results.
Common team size is 5 - 9 people per project / product, which includes IT and non-IT roles. In regards to distribution,
we can see a mix of co-located and distributed team, with a variation of more than three hour time zone difference.
We can conclude that much of the development work is catered towards international clients.
The target audiences were persons who worked in software teams and certified agile practitioners. Respondents roles
distribution is balanced, covering a perspective from a process, product, development, quality and management side.
FIG. 13 ROLES
About 73 % from respondents have over 5 years experience IT. And ≈41% from respondents have grown their
practical Agile Experience within the last 3 - 5 years.
Companies in Romania are in a full process of adapting to Agile methods and practices. We notices in figure 16 that
approximately 71% of respondents have mentioned that their organisations have been practicing agile development
methods in the past 5 years.
Respondents were also asked to assess the current state of Agile in their organisation and approximately 32% of
responses ranked the maturity level below intermediate.
While we have a good percentage of people that show themselves satisfied, 31,8% are neutral. The current
satisfaction level reflects an opportunity for improvement within companies that apply Agile methods and practices.
The way of working has a significant impact in job satisfaction, engagement and employee motivation.
We can observe that the main area of focus is towards efficiency and productivity through process improvements.
Project visibility
Speed time to market
Better working processes
Enhanced software quality
Autonomous teams
Agile Challenges
Superficial documentation
Team resistance to change
Misunderstanding roles
Customer does not understand
Agile
Conflicts with other departments
With an overwhelming majority, but not surprising, respondents recommend Agile as a way of working. Success is
being recognised and respondents can see the benefits of using methods, and practices that integrate Agile
concepts.
97% 3%
Respondents recognise Scrum as the most used Agile method with a high result (83%), followed by Kanban, a hybrid
version between both methods and SAFe . This is also correlated with the distribution of roles (Scrum Master, Product
Owner) and with the previous analysis regarding certifications and communities in Romania.
As to Agile Practices, the top five consists of : Product Backlog, Sprint Backlog, User Story, Acceptance Criteria and
Definition of Done. These results are consistent with the previous Agile Methods conclusion.
Furthermore, most of meetings and events that the respondents participate at mostly Scrum related events. This is in
direct connection to previous results in regards to adopted Agile methods.
Although sometimes it is considered undesirable, the Daily Standup has the highest value (91%). Other types of
meetings were defined as weekly standup, team meetings or alignment meeting (2 times per week).
FIG. 26 MEETINGS
Atlassian Jira is by far the most used tracking and management tool used by respondents, with 86% response rate.
Our findings in regards to tools are used in the development work, we can grasp a comprehensive perspective in
figure 28. More than 70% of respondents use an Agile Project Management Tool, Bug Trackers, Taskboard,
Confluence, GitHub. Least used tool is Index cards, with a low of ≈ 78%.
We can see a direction towards using automating deployment, build and release tools. Meanwhile there is a low usage
for automates test tools and refactoring, as less than 37% of users currently use such tools.
One question may arise from this data: How can we help teams in automating their work, so they can focus towards
user satisfaction and business growth?
FIG. 28 TOOLS
Other mentioned tools were: SFDC, Craft.Io Aha!, Confluence, Github, Assembla, Open Air, Kumu, Test Track, Service
Now, IBM Clearcase, Version One, Clubhouse Basecamp, Clarity, Gitlab, Bitbucket, Value Proposition Canvas, Google
Sites, Redmine, BunnyShell, Octopus, Jira Connections, Adobe XD, Jama, CA Directory, Zidox, Cypress, Value
Stream Mapping, Target Process,Jenkins, Snow, Trello, Wbs, Git, Intellij, Upraise.
“Velocity”, a metric for work done, which is often used in agile software development, has the highest value (49,04%).
It is followed closely by Customer satisfaction. The least measured and tracked metric is Unsuccessful Deployments,
with a value of approximately 1%.
While Business value was a key metric in measuring Agile success, respondents also counted it as a valuable metric in
measuring progress.
49%
VELOCITY
46%
CUSTOMER
SATISFACTION
40%
BUSINESS
VALUE
Respondents demonstrated an increased use of continuous integration, unit tests and coding standards and less
interaction with refactoring and automated testing.
We can observe that most learning is done by individual study and practice and less by training and internal Agile
support via coaches or dedicated learning roles.
We can observe that knowledge sharing is done mostly through interactions and informal ways, presentations being the top
option in sharing know-how.
The evolution of the community is contributing to the spread of best practices. This is consistent with agile values that
emphasis the importance of individuals and interactions in producing quality software. By the use of online social
networks we assist to a new way learning that is more decentralised and less dependent on a single source of
information.
Groups of interests are self organising by using online platforms to find people with similar concerns. To have an
overview for Romanian we extracted from meetup.com most popular groups and communities which organises tech
events on topics related to technology, software development and Agile.
In regards to sharing Agile know-how, The Bucharest Agile Software Meetup Group is a community of practice with
the purpose of spreading Agile and Software Craftsmanship best practices in Romania. It was founded in 2008 by
Maria Diaconu and has now reached a number of 3206 members in January 2019.
The most popular event called Agile Talks is hosted every month by local tech hubs or companies and brings two
speakers that share their experience and learnings. Group discussions are facilitated after the presentation using the
Open Space technique.
We wanted to extract what are the interests in 2018 within the technology and software industry based on the growth
of subscribers in these groups and communities. Table 1 shows AI, Agile and DevOps as top discussion themes, with
a flavour of UX, Blockchain and Design Thinking.
Universities are the main source of talent for companies providing more than *7000* graduates every year. Great
majority of the students undertake internship programs during the college that allow them to acquire practical
experience. Most of them even opt-in for a full time job that makes finding a balance between studying and working
quite a challenge.
Fundamental knowledge and strong technical skills Ability to work in a team and great communication skills
Graduates expected to become jack-of-all trades Specialists willing to continuously learn and improve
Introducing Agile Practices as a framework to sustain learning allows actors involved in education to create
personalised project based learning. This would enhance practical experience, foster collaboration and improve soft
skills.
As more and more teachers are adopting projects as a way of learning technical
disciplines students require the capacity to self-organise, maintain focus and handle
pressing deadlines. Practices like Sprints, Goals, Backlogs, Kanban Boards, Pair
Programming, Code Review, Demos and Retrospectives can be easily integrated in
class.
Creating bonds between students and practitioners would facilitate new ways of
learning by introducing mentoring and coaching approaches. Companies should
continue to play an active role in development of future graduates. And while there is
a practice in opening internships for students, there is a greater need in designing
research programs that would engage students in creating knowledge and allowing
them to become active contributors in the community.
From a continuous learning perspective, a study published by Eurostat in 2018 states that only 4% of the Romanian
companies provide training in digital skills for employees. This is very low compared with the EU average of 21%.
Large businesses are more likely to provide training a 26% do it compared the the EU average of 68%. There is a
great need to integrate learning as part of the development process because sending people to a training is often not
enough to gain the skills required to keep pace with the rapid development of technology.
There is a tendency for people in the tech industry to be self-taught and the gap in training provided by companies is
covered with personal development by attending conferences, hackatons, meet-ups and online courses. This gives
the employee a competitive advantage and a freedom to choose the company that best fits it’s career path.
Along with this the development of interest groups and community events have a positive effect in engaging more
people in learning. We see this both as a way of compensating low investments from companies and an opportunity
to create meaningful relationships that would lead to a new generation of leaders and entrepreneurs.
© DOvelopers 2019. Developed by Eduard Budacu and Cristina Pana
CONCLUSION
Agile is becoming the norm and standard of an optimal software development process
approach. Many software companies have adapted their practices in order to respond to
the dynamic business environment. Although in this research we can grasp that there is
significant room for improvement, the benefits of Agile methods and practices are
corresponding with the expectations and reason for adoption.
Organisations are starting to shift towards business value and quality, with an emphasis on
technical capability and process improvement. While customer satisfaction has a high
score in measuring progress and joins the top five in measuring Agile success, the main
focus is on accelerating the software delivery times and maximising productivity.
Respondents have stated that having internal Agile Expertise, consistency, discipline and
learning programs help mostly with the adoption process. Nevertheless, they stated that
they mostly learn about Agile topics on their own and by doing, with a lower involvement
from Agile Coaches, external consultants or via workshops.
Adopting a new practice in a team involves a significant effort because of the time invested
in acquiring know-how and getting all teams members aligned. One of the challenges
mentioned are resistance to change and misunderstanding of roles, which can be caused
by lack of right knowledge.
Scrum is recognised as the most used Agile method, with most of meetings being
prescribed by the Scrum framework. This iterative and incremental approach to developing
software is mirrored in the engineering practices selected such as: continuous integration
and deployment, unit testing, small releases, developing by feature, etc.
The survey received positive responses in regards to using automated tools and having
DevOps initiative in progress. In terms of innovation, we noticed a positive result, with an
approximately 35% of currently in the works and planned for the future Machine learning
initiatives.
Companies in Romania already reached a functional and stable level of integrating best
practices. Now is the time for action and experimenting in order to increase the value of
products developed within Agile teams.
Meetup Community
meetup.com
ABOUT US
The company was founded in 2016 in Bucharest by Eduard Budacu and Cristina
Pana.