ANIS Sentiment Survey 2024 confirms a moderate optimism within the Romanian IT industry for this year

The IT industry expresses moderate optimism for 2024, following 2023 ending below initial expectations, as per data from the ANIS Sentiment Survey 2024. ANIS, the Employers’ Association of the Software and Services Industry, conducted the survey in December 2023 among its member companies, representing approximately 65% of the entire software and IT services sector in terms of revenue. Year-end results fell below those anticipated at the beginning of the previous year, with the tax changes in 2023 deemed to have a major (34%) and moderate (62%) impact, leading to relatively less optimistic estimates for 2024.   “Both the ANIS Sentiment Survey data and direct insights from ANIS members confirm a moderate optimism within the Romanian IT industry for 2024. This optimism is grounded in the projects each company has in the pipeline, largely in foreign markets where our companies excel (in the first 9 months of 2023, the industry provided Romania with a record trade surplus of 3.7 billion euros). It is also based on specialists trained through the companies’ own efforts in the previous years of accelerated growth. The clear need for the digitization of public services and the economy at large could be a factor of optimism, although many companies do not see it as a certain opportunity for their business. There is a dose of pessimism, especially stemming from the unpredictability of public policies and fiscal instability, which, as seen last year, can have a significant impact on the majority of companies,” says Corina Vasile, Executive Director of ANIS.   The optimism in the Romanian IT industry has been tempered since the previous year. In the previous edition of the ANIS Sentiment Survey, published at the beginning of 2023, over 68% of respondents indicated they would end the year with an expanded team. However, only 44% of them actually concluded the last year with a higher number of employees. At the same time, while only 9.5% expected a decrease in the number of employees in 2023, by the end of the year, 24% of respondents indicated that their company’s team had decreased.   Better news comes from the volume of contracted projects. Initially, 61% of managers expected the number of contracted projects in 2023 to increase, but by the end of the year, 56% reported that these objectives were achieved. Simultaneously, 30% of companies reported maintaining the volume of projects at a level similar to 2022. A decrease was recorded in only 14% of respondents, although previously more than 30% of companies were more pessimistic in this regard.   Estimates regarding revenues did not undergo major changes in the segment that experienced growth. Thus, while at the beginning of 2023, 65% of companies expected to finish the year with increased revenues, 62% of them succeeded. On the other hand, although only 5% of respondents anticipated a decrease in revenues at the beginning of the year, end-of-year data indicated a decrease for 14% of them. According to the ANIS Sentiment Survey, 64% of IT companies aim to end 2024 with a larger team than in 2023. 28% of respondents estimate that their team will remain the same this year, and only 8% believe it will decrease.   Among the respondent companies, 56% anticipate having higher turnover in 2024 compared to 2023, 34% expect it to be similar, and 10% consider the possibility of a revenue decline.   “The tempering of anticipated growth and, especially, the significant percentages in the stagnation area are not a good sign, especially in a period when Romania needs to rapidly narrow technological gaps with Western and even Central and Eastern European countries to remain competitive. The economy and public services need to be digitized rapidly. As I have repeatedly stated, alongside the negative numerical impact of fiscal measures, they have conveyed a confusing message to the economy, leaving the industry uncertain about priorities and the government’s economic policy. Uncertainty in public policies, especially in fiscal matters, materializes in economic results below potential,” commented the executive director of ANIS.