Financial, market and digital characteristics of the IT Sector in Bulgaria.
As we look to the year 2022, there is exciting news for the Bulgarian economy. The latest forecasts from Basscom predict a remarkable revenue growth of nearly 26% .
The IT sector is set to play a major role in this growth, with over 80% of the revenue expected to come from export and nearshore services.The software industry, which leads the IT field, has set an ambitious goal to become the top revenue generator in the Bulgarian economy. This drive towards growth and innovation has placed the Information and Communication Technology (ICT) industry in a strong position to continue its impressive trajectory in the coming years.
The Bulgarian IT sector has demonstrated remarkable progress in the last decade, having increased its operating income by over 6 times. This trend is set to continue with the sector rapidly becoming a hub of technological innovation and expertise in the region. Therefore, if you're seeking a reliable and forward-thinking external partner, you should definitely consider the Bulgarian IT sector as a potential partner.
In order to outline Bulgaria’s position on the map of the global economy, Aibest analysed the country’s performance in 20 of the most well-known international rankings relevant to the competitiveness of national economies. Kearney’s Global Services Location Index is regarded as the global ranking that is most relevant to the positioning of countries as tech and knowledge- based economy locations. Bulgaria traditionally holds the top spot among its SEE peers, and regularly ranks within the Top 5 in Europe and Top 20 worldwide. The latest edition of the index, published in 2021, makes no exception with Bulgaria keeping its 17th spot from the previous edition two years ago.
Well-developed it community
Bulgaria has a thriving IT community, with over 1 010 tech sourcing companies operating in the country. Many of these companies have secondary offices located in key cities such as Varna, Plovdiv, Burgas, and Veliko Tarnovo. This extensive network of companies provides a rich source of talent, innovation, and expertise that drives the growth of the Bulgarian IT sector. With a robust IT community, businesses can tap into a diverse range of skills and services, including software development, cybersecurity, cloud computing, and more. This, in turn, can help to attract new investments, foster technological innovation, and drive economic growth in the region.
Suitable tax system
The Bulgarian IT industry is well-positioned for success due to the predictability and sustainability of the tax and insurance framework. The clear and consistent policies surrounding taxation and insurance have allowed businesses within the sector to make informed decisions and plan for future growth with confidence. This has enabled the Bulgarian IT field to cement its position as a hub for technological innovation and expertise in the region, thereby attracting both domestic and foreign investment.
Large and qualified talent pool
The software sector in Bulgaria has seen a significant increase in its workforce, with over 4,000 new employees recently hired in 2022, reaching total number of 70,000 employees in the industry. This growth is partly due to policies aimed at attracting and retaining IT professionals.
Bulgaria is taking important steps to secure a talented workforce for the future. This includes an increase in university admissions for tech-related majors, which will help to create a qualified talent pool with the skills and knowledge needed to succeed in the industry. The government has also implemented radical reforms in education, including the establishment of ten new technological schools, to further support the growth of the IT sector.
Securing talent for the needs of the software industry is becoming a top priority for Bulgaria, and this is reflected in the country's efforts to invest in STEM education. This includes adequate investments in the national recovery and resilience plan, which will help to create a conducive environment for technological innovation and growth. With this focus, the Bulgarian software sector is well-positioned to continue on its upward trajectory and cement its role as significant player on the European market.
The Bulgarian IT sector continues to expand its use of foreign languages, with the number of languages currently standing at 35 as of October 2022. Among these languages, English is by far the most widely used working language, with 628 sourcing companies, or 81% of the sector's total, using it for their operations. German and French are the second and third most commonly used languages, with 17.1% and 10.2% of the companies using them, respectively. This trend highlights the sector's global orientation and the importance of language skills for IT professionals in Bulgaria. By maintaining a multilingual environment, the Bulgarian IT sector can attract international clients, expand its reach, and foster a diverse and inclusive workforce.
The right nearshoring destination summary
Bulgaria has emerged as a leading nearshoring destination, thanks to its talented workforce, favourable business environment, and cost-effectiveness. When you choose a nearshoring partner, you're not just outsourcing your IT needs - you're partnering with a team that is dedicated to your success. Working closely with clients ensures the understanding of their unique needs and providing tailored solutions that meet their specific requirements.
If you're looking for a reliable and cost-effective nearshoring partner, look no further than Bulgaria. Let's work together to build a plan that meets your specific needs and helps you achieve your business goals. Plan A is a leading nearshoring and software development provider in Bulgaria, offering top-tier talent, competitive pricing, and a constantly developing business infrastructure.
Contact us today to learn how we can help your business succeed in the competitive world of software development.