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The IT market in Romania is forecast to decelerate in local currency and US dollar terms in 2025 but will continue to be a regional outperformer because of a strong domestic digital transformation trend and Romania's role as key IT outsourcing hub in Europe. The local market will continue to grow and become more sophisticated over the medium term, with demand for cloud and AI services set be a powerful growth engine over 2025-2028. There is further upside if advances in AI accelerates digital transformation by lower costs for digital projects, though AI poses a threat to some business models in Romania's IT outsourcing industry.