Zitec Forecasts 20% Consolidated Revenue Growth in 2024 and Highlights Challenges in Romania's IT Industry

Despite a challenging economic environment affecting the Romanian IT industry, Zitec anticipates a 20% consolidated revenue growth for 2024.
Zitec Forecasts 20% Consolidated Revenue Growth in 2024 and Highlights Challenges in Romania's IT Industry

Bucharest, Romania – June 6, 2024 – Zitec, a leader in IT and digital transformation solutions in Romania, forecasts a 20% consolidated revenue growth in 2024, demonstrating stability and resilience in the current economic context. The verticals that registered the most significant increases in the first quarter of 2024 were Retail, with a 15% increase, the public procurement area, as well as new areas that benefited from more interest this year, such as Data & AI.

One of the pillars of Zitec's growth is the consolidation of its local and international client portfolio. Since the beginning of the year, top brands such as HeyBlu (Romania), ProFiduciaria (Romania), European Athletics (Switzerland), and Sportano (Poland) have joined Zitec's portfolio. Zitec team's experience and anticipation of market needs have significantly contributed to the portfolio expansion despite Romania's economic challenges and fiscal environment.

Another area of accelerated development this year is the digital transformation of public services. So far, Zitec has participated in over 20 public tenders, recording a success rate of 30%.

"We are delighted to have achieved our goals set at the beginning of the year to participate in more tenders aimed at the digital transformation of public services. The improvements in transparency and fairness of the selection process in public tenders have given us the confidence to participate actively in this process. Numerous important public institutions have chosen us as a partner for digitalization in the context of PNNR (National Recovery and Resilience Plan), and this confirms our team's ability to leverage their technical experience to facilitate Romanians' access to quality public services," declares Cristiana Cotorelea, Public Sector Director at Zitec.

At the same time, the company draws attention to the challenges in Romania's IT industry and the fiscal measures the Romanian Government took in 2023, which are still negatively affecting the business environment and employees in this sector.

"We are confident in Zitec's growth and development throughout 2024, but we are cautious about the future and draw attention to the persistent challenges in the Romanian IT industry," declares Alex Lăpușan, CEO and co-founder of Zitec.

"Our concerns come from the global decrease in demand for IT services and the abrupt elimination 2023 of tax breaks for IT employees, a government decision that still produces significant negative effects in the absence of policies that can compensate for this impact. It is imperative that the Romanian state provide much stronger support for Research & Development activities, at least at the level of competing countries in the region," adds Alex Lăpușan.

Zitec offers a stable and secure work environment for its over 400 specialists, providing them the necessary support to develop professionally and reach their full potential. Thus, it was among the first companies in the industry to choose to fully bear the costs associated with the government's decision to eliminate benefits for IT employees (having a negative impact of 700,000 euros estimated for 2024 for the company). In addition, Zitec invests an annual budget of over 800,000 euros in the well-being and development of team members, offering them a flexible way of working, the possibility to work remotely from anywhere, programs for their passions, continuous professional development opportunities, and a work environment that promotes courage, innovation, and authenticity. The loyalty rate, which in the first 5 months of the year is over 97%, significantly higher than the industry average, demonstrates the positive impact of a strong organizational culture.

For this year, Zitec plans to expand its team by approximately 100 specialists with technical profiles in the software development area on technologies such as .NET or PHP, Quality Assurance, and Project Management, but also non-technical profiles (in the sales, marketing, and human resources teams) and management.

Regarding the plans for the second half of 2024, Zitec remains a trusted partner in the digital transformation of companies, offering efficient solutions adapted to the specific needs of clients from various industries such as retail, fintech, or cloud solutions. Zitec will continue to invest in Research & Development and projects focusing in the following period on Data & AI and is targeting a 20% increase in consolidated revenue compared to 2023.

About Zitec

Zitec is a nearshoring software engineering partner of choice to European multinationals and mid-size industry groups addressing complex multi-tenant and multi-user digital transformation. Its R&D and project capabilities shorten ramp-up time to development, production and commercialization of bespoke digital products in e-commerce, SaaS platforms, mobile apps, embedded fintech, cloud architecture and microservices for low-risk predictability and posterity, expediting operational efficiency, cost-savings and scale. Zitec teams have delivered over half a million custom product development services along with 750 end-to-end digital projects to a constant CSAT of above 80%. As one of Europe’s leading independent software services companies, it enjoys an eNPS of over 20 points above the industry average.

A certified partner of Adobe, AWS, Google Cloud, Microsoft Digital & App Innovation, Microsoft Azure, VTEX and more, Zitec has been in business since 2003, serving over 300 customers across 30 countries, including Decathlon, Leroy Merlin, PayPoint, PayU, Token and Romania’s biggest e-retailer, eMag. Zitec is a CREST and NIS certified Security Auditor, in addition to ISO:9001 and ISO:27001. Learn about Zitec at www.zitec.com.

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Maria Deac