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The IT Outsourcing Sector In Eastern Europe brings 1.5 Billion Euros annually

28.10.2014 | Blog

The sector can further develop through geographic expansion outside Sofia and changes both in the educational and the legislation systems, according to an analysis provided by Industry Watch.

The fastest growing industry in Bulgaria – the outsourcing of IT and business processes – has grown at double-digit rates over the past four years and has exported over one billion euros per year in revenues.

Parallel with that, Bulgaria has moved up in the latest edition of the most prestigious ranking for outsourcing destinations and it has become Number 1 in Europe and Number 9 in the world, announced Industry Watch.

According to Industry Watch estimates, the outsourcing industry is concentrated mainly in Sofia, Burgas, Varna – with more than 85% of all employees working in the sector. According to data from the Bulgarian Outsourcing Association, approximately 22,000 employees work in the sector up to this date. The growth opportunities are related to several factors:

Firstly, there is the potential for geographic expansion outside Sofia, Bulgaria and taking advantage of the workforce in other large cities, especially university ones. Burgas is the second most important city in Bulgaria, according to its demographics, with nearly 40 000 students making it the second largest attractive center for the outsourcing sector. The expected growth in the city’s work sector, over the next five years, is between 100 and 150 percent.

Secondly, there is a need for more active connection between the industry and education system, as well some necessary changes in the education sector. According to various industry representatives, the educational process is too archaic, noting that just between 10 and 15% of all graduates from technical disciplines are specialists at an adequate level.

The average age of employees in the industry is usually about 25 years. Some of the companies offer the possibility of working in shifts as well as working from home. However, a main problem is the inflexible law regulations that coordinate the recruitment and selection process of the employees.

In order to provide better solutions for their development, the industry organizes an all-day business forum called Outsourcing Destination Bulgaria on October 30, 2014 in Plovdiv, where alongside the administration and the academic leaders, changes in the labor law and education system areas will also be discussed.