The outsourcing industry in Bulgaria has been experiencing a double-digit growth and this growth will continue over the next several years. These are two of the main findings of the Bulgarian Outsourcing Industry Report 2017*, prepared by the Bulgarian Outsourcing Association (BOA).
According to the report, the outsourcing industry has been one of the fastest developing sectors in Bulgaria for the last 27 years. In 2016 outsourcing contributed 3.6% to Bulgaria’s GDP with a turnover of 1.5 billion euros, and by 2020 it is expected to reach 4.2% of the country’s GDP with a total turnover of 2.5 billion euros. Furthermore, the number of full-time employees, in both traditional business process outsourcing (BPO) and in information technology outsourcing (ITO) services, is expected to exceed 62,500 by 2020.
Statistics show that Bulgaria has become one of the leading outsourcing destinations not only in Europe but also in the whole world. In 2016 the country came in 2nd in Europe and ranked 7th globally among the most attractive BPO pioneering locations in the Business Process Outsourcing and Shared Service Location Index 2016. A number of international companies have already opened offices in Bulgaria and are continuing to expand their businesses.
In 2017 Bulgaria attracted even higher investments in the outsourcing sector compared to 2016, when they totaled 1.0 million BGN. Projects with an overall value of 3.0 million BGN were launched by outsourcing companies in the first half of 2017. Many new investors are entering the Bulgarian market attracted by the favorable outsourcing factors such as perfect geographical location, flat tax, information security, privacy regulations, low labor costs and last, but not least multilingual and well-educated workforce in the field of information technologies.
In addition, the UK-based Global Sourcing Association predicts that UK’s withdrawal from the EU will have a positive effect on outsourcing providers in Central and Eastern Europe, including Bulgaria, in the medium and long-term. This is due to the expected skilled labor shortage in the UK that will result from the limited migration and the ambitions of British outsourcing companies, especially in the ITO field, to keep their existing relations within the EU.
All the above findings and forecasts come to show that the outsourcing industry in Bulgaria has been developing at a steady pace and this process will continue over the next years. This growth also clearly reflects the current market need for companies to outsource some of their business processes in order to reduce costs and focus on their core business.
innotec answers this market need by delivering professional sales and customer services in 28 languages. Our teams are made up of native speakers, and we operate on a global scale with 8 office locations worldwide. For over 20 years, we have completed a number of successful multilingual projects for some leading international companies such as Microsoft and Logica. Our services are tailored to meet the specific business requirements and range from driving Demand Generation and Revenue Growth to Customer Support, Back Office, and Data Services.
If you are interested to find out more about our service portfolio, please contact us or follow the links below:
*The current study illustrates the sector’s development over a five-year period between 2012 and 2016 and is based on data for 389 Bulgarian companies, offering business process outsourcing (BPO) and information technology outsourcing (ITO) services.