News / Europe

    From Hackers to Security Experts, Balkan IT Sector Booms

    Romanian Razvan Cernaianu, formerly known as a hacker by the name of TinKode, works at his laptop, Bucharest, March 15, 2013.
    Romanian Razvan Cernaianu, formerly known as a hacker by the name of TinKode, works at his laptop, Bucharest, March 15, 2013.
    Reuters
    After hacking the Pentagon, NASA and Britain's Royal Navy for fun, TinKode got a real job as a computer security expert for a Romanian cyber safety consultancy.
     
    TinKode was the name used by Romanian Razvan Cernaianu when he revealed security holes in government and corporate systems across the world, earning him a two-year suspended prison sentence.
     
    "I was really passionate about carrying out what I call security audits," Cernaianu told Reuters. "It's a hobby, so I did it for free. Moreover, I've always sent emails to those institutions to fix their problems."
     
    Cernaianu, 21, is an example of a deep well of talent in Romania and Bulgaria. They may be the European Union's two poorest members, but their low labor costs, skilled workers and strategic location are underpinning a technology boom.
     
    Multinational companies are using their expertise for customer support, software development and business process outsourcing. Oracle, SAP, IBM, Hewlett Packard and Siemens all have business centers or operations in the region.
     
    Romania-founded GeCaD developed Microsoft's RAV antivirus software and Bucharest-based Softwin created BitDefender internet security technology more than a decade ago, reaching half a billion users worldwide last year.
     
    The expertise is partly accidental — in the 1980s, Romania's communist dictator Nicolae Ceausescu backed computer research and technical education to promote pride in the nation. Piracy flourished after the 1989 revolution as people who could not afford proprietary content bought cheap copies instead.
     
    Exceptional growth

    On the other side of the Danube, Bulgaria's communists focused on hardware, at one point producing and supplying 40 percent of all computers used in the Soviet bloc.
     
    The tech sector accounts for up to 10 percent of the two economies, according to business associations — a rare bright spot in the recession-hit Balkan region.
     
    Growth of the Romanian and Bulgarian IT sectors far outpaced the rest of ex-communist Europe, jumping by 45 percent and 80 percent respectively since their 2007 EU entry. Meanwhile, the tech sectors in Poland, Hungary and the Czech Republic each grew by about 20 percent.
     
    Romania's tech sector achieved year-on-year growth of 40 percent in the final quarter of 2012, which helped the country to avoid slipping back into recession.
     
    Cernaianu, one of the world's most-wanted hackers until his arrest last year after a joint investigation by Romanian police, the FBI and NASA, now has a well-paid job and is co-owner of computer network security company CyberSmartDefence.
     
    But the dirty side of the expertise still lingers.
     
    Working from a tidy desk in a downtown Bucharest office, Cernaianu is from the same generation as the youngsters responsible for the Romanian town of Ramnicu Valcea becoming known as a global hacking hub.
     
    Romanian hackers stole about $1 billion from U.S. accounts in 2012, according to the U.S. embassy in Bucharest. A report by Verizon this week said that Romania is the world's second-biggest hacking center behind China.
     
    The FBI has even set up an office in Romania and helped to train specialist police agents.
     
    Cernaianu says he never attacked a computer to steal money.
     
    "We won't hire thieves," said CyberSmartDefence CEO Madalin Dumitru. "We're not afraid of such people [as Cernaianu]; we use their intelligence and expertise."
     
    Brain drain

    The investment in business outsourcing has created an estimated 15,000 jobs in Bulgaria, where an otherwise depressed economy has sparked nationwide protests that toppled the government in February.
     
    "Why would you choose Bulgaria? Because it offers complex outsourcing and high-end software solutions," said Plamen Tilev, managing director of SAP Labs Bulgaria, which develops core software for the Germany company. "For low-end solutions, like code writing and checking, you'd go to east Asian countries."
     
    The biggest fear is that Romania and Bulgaria become victims of their own success and suffer a brain drain. Tens of thousands of Romanians and Bulgarians have already left to work as IT specialists in the United States.
     
    The populations of the two countries have plunged in the past decade and companies are pushing the governments to improve education, train more engineers and make it easier to bring in workers from neighbors such as Moldova, Serbia, Macedonia and Ukraine.
     
    "There has been zero unemployment in the sector in the past 10 years," said Elena Marinova, who runs software business Musala Soft, which is now struggling to find qualified staff despite salaries about three times the national average.
     
    Bulgarian universities produce about 2,000 IT specialists a year, but the industry says it creates 6,000 jobs a year in the country.
     
    "The software industry is struggling to breathe because of the lack of people," said Petar Statev, head of the Bulgarian business association ICT Cluster.

    You May Like

    Top US General: Turkish Media Report ‘Absurd'

    General Dunford rejects ‘irresponsible' claims of coup involvement by former four-star Army General Campbell, who led NATO forces in Afghanistan before retiring earlier this year

    Video Saving Ethiopian Children Thought to Be Cursed

    'Omo Child' looks at efforts of one African man to stop killings of ‘mingi’ children

    Protests Over Western Troops Threaten Libyan 'Unity' Government

    Fears mount that Islamist foes of ‘unity' government plan to declare a revolutionaries' council in Tripoli

    Featured Videos

    Your JavaScript is turned off or you have an old version of Adobe's Flash Player. Get the latest Flash player.
    London’s Financial Crown at Risk as Rivals Eye Brexit Opportunitiesi
    X
    VOA News
    July 25, 2016 5:09 PM
    By most measures, London rivals New York as the only true global financial center. But Britain’s vote to leave the European Union – so-called ‘Brexit’ – means the city could lose its right to sell services tariff-free across the bloc, risking its position as Europe’s financial headquarters. Already some banks have said they may shift operations to the mainland. Henry Ridgwell reports from London.
    Video

    Video London’s Financial Crown at Risk as Rivals Eye Brexit Opportunities

    By most measures, London rivals New York as the only true global financial center. But Britain’s vote to leave the European Union – so-called ‘Brexit’ – means the city could lose its right to sell services tariff-free across the bloc, risking its position as Europe’s financial headquarters. Already some banks have said they may shift operations to the mainland. Henry Ridgwell reports from London.
    Video

    Video Recycling Lifeline for Lebanon’s Last Glassblowers

    In a small Lebanese coastal town, one family is preserving a craft that stretches back millennia. The art of glass blowing was developed by Phoenicians in the region, and the Khalifehs say they are the only ones keeping the skill alive in Lebanon. But despite teaming up with an eco-entrepreneur and receiving an unexpected boost from the country’s recent trash crisis the future remains uncertain. John Owens reports from Sarafand.
    Video

    Video Migrants Continue to Risk Lives Crossing US Border from Mexico

    In his speech Thursday before the Republican National Convention, the party’s presidential candidate, Donald Trump, reiterated his proposal to build a wall along the U.S.-Mexico border if elected. Polls show a large percentage of Americans support better control of the nation's southwestern border, but as VOA’s Greg Flakus reports from the border town of Nogales in the Mexican state of Sonora, the situation faced by people trying to cross the border is already daunting.
    Video

    Video In State of Emergency, Turkey’s Erdogan Focuses on Spiritual Movement

    The state of emergency that Turkish President Recep Tayyip Erdogan has declared is giving him even more power to expand a purge that has seen an estimated 60,000 people either arrested or suspended from their jobs. VOA Europe correspondent Luis Ramirez reports from Istanbul.
    Video

    Video Calm the Waters: US Doubles Down Diplomatic Efforts in ASEAN Meetings

    The United States is redoubling diplomatic efforts and looking to upcoming regional meetings to calm the waters after an international tribunal invalidated the legal basis of Beijing's extensive claims in the South China Sea. VOA State Department correspondent Nike Ching has the story.
    Video

    Video Four Brother Goats Arrive in Brooklyn on a Mission

    While it's unusual to see farm animals in cities, it's become familiar for residents of Brooklyn, New York, to see a little herd of goats. Unlike gas-powered mowing equipment, goats remove invasive weeds quietly and without adding more pollution to the air. As Faiza Elmasry tells us, this is a pilot program and if it proves to be successful, the goat gardener program will be extended to other areas of New York. Faith Lapidus narrates.
    Video

    Video Scientists in Poland Race to Save Honeybees

    Honeybees are in danger worldwide. Causes of what's known as colony collapse disorder range from pesticides and loss of habitat to infections. But scientists in Poland say they are on track to finding a cure for one of the diseases. VOA’s George Putic reports.
    Video

    Video Wall Already Runs Along Parts of US-Mexico Border

    The Republican Party’s presidential nominee, Donald Trump, gained the support of many voters by saying he would build a wall to keep undocumented immigrants and drugs from coming across the border from Mexico. Critics have called his idea impractical and offensive to Mexico, while supporters say such a bold approach is needed to control the border. VOA’s Greg Flakus has more from the border town of Nogales, Arizona.
    Video

    Video New HIV Tests Emphasize Rapid Results

    As the global fight against AIDS intensifies, activists have placed increasing importance on getting people to know their HIV status. Some companies are developing new HIV testing methods designed to be quick, easy and accurate. Thuso Khumalo looks at the latest methods, presented at the International AIDS conference in Durban, South Africa.
    Video

    Video African Youth with HIV Urge More Support

    HIV, the virus that causes AIDS, is the top killer of teens in sub-Saharan Africa. But many youths say their experience with the virus is unique and needs to be addressed differently than the adult epidemic. VOA South African Correspondent Anita Powell reports.
    Video

    Video Pop-Up Art Comes to Your Living Room, Backyard and Elsewhere

    Around the world, independent artists and musicians wrestle with a common problem: where to exhibit or perform? Traditional spaces such as museums and galleries are reserved for bigger names, and renting a space is not feasible for many. Enter ArtsUp, which connects artists with venue owners. Whether it’s a living room, restaurant, office or even a boat, pop-up events are bringing music and art to unexpected places. Tina Trinh has more.
    Video

    Video Scotland’s Booming Whisky Industry Fears Brexit Hangover

    After Britain’s vote to leave the European Union, Scotland’s government wants to break away from the United Kingdom – fearing the nation’s exports are at risk. Among the biggest of these is whisky. Henry Ridgwell reports on a time of turmoil for those involved in the ancient art of distilling Scotland’s most famous product.

    Special Report

    Adrift The Invisible African Diaspora