When a business organization is looking at outsourcing as a solution to in-house deficiencies and strategic-growth needs, the main factors that decision-makers usually consider are expertise, quality of service, and cost-effectiveness. But despite how popular IT outsourcing has become over the past decade, choosing the best outsourcing destination and partner always poses questions and challenges.
Where can I find the most suitable outsourcing solution for my business needs? What is the best offshore or nearshore destination that offers excellent services at a competitive cost?
If such questions have crossed your mind, you will be pleasantly surprised to learn that you can cut expenses without compromising quality when it comes to outsourcing internal IT projects or operations. Moreover, high-class service and cost savings go hand in hand when you select a reputable outsourcing destination along with an experienced and trusted service provider.
Bulgaria as a Leading IT Outsourcing Destination Globally
The ITO sector in Bulgaria has been experiencing dynamic development in recent years and the country has become a globally preferred software development and IT outsourcing hub.
Bulgaria’s outsourcing sector is expected to comprise 8.9% of the country’s GDP by 2022. Outsourcing services providers in Bulgaria employed about 78,000 people at the end of 2019 – 5,000 more than in 2018. At the end of August 2020, the number of employees in the sector reached 81,000 according to AIBEST statistics.
Over the past few years, Bulgaria has established a remarkable reputation in the technology sector as its extensive expertise led to the rapid growth of the industry. This growth can be attributed to the support of highly qualified schools and education centers. Furthermore, Bulgarian companies are constantly expanding their IT departments and heavily investing in their employees. Bulgaria is also an ideal location for operations and is a development center of many multinational technological companies.
What makes Bulgaria a great IT outsourcing destination is its strategic geographic location, its highly educated multilingual experts, the competitive cost of its services, and the special value that the Bulgarian IT specialists add to their offshore/nearshore partners’ organizations. You can learn more via the following information.
Bulgaria by the Numbers
- Year Founded: 681
- Location: Southeast Europe
- Area: 110 993,6 km²
- Population: 6,916,548
- Capital: Sofia
- GDP (PPP): $174.998 billion
- GDP (nominal): $77.782 billion
- EU Membership: Since 2007
- Time Zone: UTC+2 (EET)
Why Choose to Outsource IT to Bulgaria?
The country is recognized as one of the most attractive outsourcing destinations due to the following reasons.
Strategic Geographic Location
The Republic of Bulgaria, the sixteenth-largest country in Europe, is located in the southeastern part of the European continent on the Balkan Peninsula. The current population is estimated at around 7 million citizens. The country became a member of the European Union in 2007, which indicates a stable economy and legal transparency.
Bulgaria is only a flight away from major European capitals such as Berlin, London, Brussels, and Paris. Its strategic location is highly valued both geographically and culturally, enabling local companies to efficiently collaborate with teams from around the world.
The business environment stands out with innovations that transform outsourcing not only into delivering ITO/BPO services but also into a team extension model that today is a fundamental element of remote software product and application development.
Time-Zone Benefits
Foreign business clients and investors are aware that they can count on experienced professionals and trustworthy business approaches in Bulgaria. What is more, the outsourced IT teams offer a highly valuable opportunity for round-the-clock services. The time-zone difference provides remote partners with the advantage of continuously benefiting from the expertise and support of their offshore resources and of achieving a 24/7 operation cycle for their in-house IT departments.
Financial Attractiveness
The Bulgarian government strives to improve the economic situation in the country through tax incentives that stimulate local businesses and foreign investors. Bulgaria also has one of the lowest personal income tax rates at 10% flat tax when compared to other European countries.
Furthermore, Bulgaria is among the countries with the lowest labor costs while at the same time having an extremely qualified workforce. Indeed.com shows that the average base salary of a US developer for 2020 was $127 100. By comparison, the average salary of a Bulgarian developer starts from $25 000 (for junior developers) to $75 000 per year. Of course, the work of senior professionals is never offered at a low cost, but it is apparent that the relative cost difference for projects and salaries would be cost-effective to your business. Therefore, Bulgaria is a dream IT outsourcing destination for foreign companies: here, they find experts with proven skills at a comparatively lower cost.
Highly Educated and Skilled Professionals
Although Bulgaria is a relatively small country, it hosts a decent number of educational institutions that provide tech education in line with global trends in the field. There are 220 high schools providing Information and Communications Technology courses together with intensive language classes, where after the first education year students begin studying core subjects in the corresponding foreign language.
According to statistics, 98% of Bulgarian students speak one foreign language and 78% study at least two foreign languages. In recent years, Bulgarian IT specialists have received global recognition for their professionalism and precision in software development, quality assurance, and support. Even now, in times of pandemic, they demonstrate flexibility combined with competence and high performance.
Reliable Internet Infrastructure
The quality of the internet infrastructure further contributes to establishing quality, long-lasting partnerships. The Bulgarian Association of the Software and Services Industries confirms that the country is ranked among the world’s leaders in terms of internet coverage, speed, and accessibility, making Bulgaria a reliable IT outsourcing location.
Recap
Bulgarian information technology outsourcing services provide nearshore, onshore, and offshore distribution models, enabling customers to select the finest option for their needs. The country is a preferred destination for IT outsourcing services due to its highly educated multilingual workforce, competitive cost, and strategic location.
Nowadays, with remote collaboration more common than ever, outsourcing has been established as a secure and reliable strategy that contributes to rapid business scaling and growth.
Think wisely about seizing the opportunity to leverage information technology within your business organization while optimizing efficiency and reducing cost and avoid the chapter in which many have failed. Download our guide and receive useful, experience-based directions to select the right IT outsourcing model and partner best suited to your specific needs.
Thanks for sharing such an amazing and interesting blog. As a technology expert, I really like it.