Proceedings of the 16th International Academic Conference, Amsterdam

IMPACT OF HUMAN ASSET VALUE ON BUSINESS FINANCIAL RESULTS ON SOFTWARE BUSINESS IN ROMANIA

MARIUS RADU

Abstract:

The relative low salaries of the IT employees compared to the Western countries, the employees skills and the location of the country have supported outsourcing become one of the most competitive Romanian sectors. The IT sector in Romania maintains a steady growth sustained by outsourcing companies. The Romanian IT software development sector is highly competitive when we take into account the level of technical proficiency of the IT employees in the country and the financial performance of the companies. The article presents the structure of the industry and competition between actors based on the multivariate analysis of the data from 301 Romanian IT companies. An outliers mining research approach is used to discover the data records for companies which have an exceptional behavior comparing with other records of the companies in the remaining dataset. Further on are presented the results from a regression analysis applied to understand the influence of human capital force on financial performance of the IT software companies in Romania. In general the human capital dimension does improve the companies financial performance and creates value, but on the other side there are outlying performers - IT companies with a peculiar financial performance for which human capital is not the main business driver.

Keywords: software business, outsourcing, outliers analysis, industry competition

DOI: 10.20472/IAC.2015.016.059

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