On Nearshoring and RARo - Frequently asked questions

Nearshoring is a form of outsourcing. However, nearshoring and onshoring mean that business processes and responsibilities are not outsourced to far-off countries or other continents, a practice known as offshoring. Onshoring involves outsourcing within a country’s own borders (within Germany, for example), whereas nearshoring entails shifting some or all of a company’s operations to bordering or near-by countries.

Nearshoring makes it possible to cost-effectively outsource business operations that can only be performed at great expense in a company’s domestic market or are no longer feasible due to a shortage of skilled labour. At the same time, outsourcing to eastern European countries, for example, allows businesses to access a large pool of young, well-educated and motivated staff, especially in IT.

The scaling of the necessary resources is significantly easier than in the domestic market. Moreover, the agile working methods practised by nearshore employees can provide positive momentum for internal organisational structures.

Nearshoring offers a host of advantages over offshoring:

• few differences in time zones
• cultural proximity
• service providers have good English skills, and in some cases good German skills, depending on the nearshoring location
• standardised EU regulations depending on the nearshoring location (such as Romania)
• easier logistics and accessibility

Romania is a nearshoring location that offers a wide range of advantages:

• EU member since 2007, meaning the same basic legal standards
• large pool of well-educated IT staff thanks to tax incentives
• substantially lower wage costs
• good German skills depending on the region (such as Transylvania)
• close economic ties between Romania and Germany
• excellent flight connections (direct flights from Dortmund, Düsseldorf, Frankfurt, Nuremberg and Munich to Cluj-Napoca)
• only 1 hour time difference

Nearshoring is perfect for any company that wants to cost-effectively outsource IT development and IT operation services to a location that is not too far away. RARo is especially interesting for businesses that are subject to special security standards due to specific regulations in Germany.

Examples include service providers in the financial, healthcare and welfare industries, as well as utility companies and the public sector.

RARo uses an integrated management system to support compliance with internal and external requirements resulting from factors such as RARo’s business activities, contractual obligations and legal and regulatory standards.

This integrated management system is subject to a continuous improvement process and covers quality and information security management, among other aspects, to ensure an appropriate level of quality and security. To this end, RARo has defined responsibilities and involves all members of staff in the process.

RARo, based in Cluj-Napoca, Romania, was founded in 2020 as a joint venture by IT systems developer Ratiodata GmbH and IT services provider Accesa IT-Group GmbH.

Ratiodata owns 74.9 per cent of the company, with Accesa holding the remaining 25.1 per cent.

RARo combines the extensive industry experience of Ratiodata with Accesa’s nearshoring presence and its expertise in modern software development for clients in Germany, Austria and Switzerland.

RARo provides a wide range of IT nearshoring services in the areas of consulting, software development and services, testing, operational IT support and managed services. The company helps boost the efficiency, agility, quality and security of its clients’ IT systems through tailor-made, reliable and forward-looking services and solutions.