Bulgaria

Basic information

Capital: Sofia
Population: 7.7 mio.
Large cities: Plowdiw
Currency: Lew
Language: Bulgarian
Government: Republic
Time zone: UTC+2, UTC+3 summer
GDP: $ 32,788 bn.
Dialling code: +359
Internet TLD: .bg

Overview Bulgaria

Bulgaria comprises portions of the regions known in Classical Greece as Thrace, Moesia, und Macedonia. Proto-Thracian-culture started to produce golden artefacts around 5000 B.C.. The country keeps up the traditions of the First Bulgarian Empire (632 - 1018), which at times covered the entire Balkan and spread its culture and literature among Slavic nations in Eastern Europe.

At present, Bulgaria is a parliamentarian democracy under a unitary constitutional republic. A short while ago, the country joined the EU. Bulgaria has a population of around 7.7. mio., and the largest Bulgarian city, which is at the same time its capital, is Sofia. 

In recent years, Bulgaria has made impressive progress towards long-term stability. The country has been able to stabilize its economic growth on a good level. As a consequence of the sound macro-economic policy and in-depth structural reforms, an average growth rate of around 5 % p.a. has been esablished.

Overview IT provider market

As Bulgaria is centrally situated, disposes of highly qualified staff, presents a stable macro economy, an increasing domestic market, and well-trained employees, the country offers excellent conditions for high-technology and telecommunication-oriented industries and services. In addition, the country’s solid education system provides for a broad basis of young and highly qualified emplyoees. Moreover, the large number of staff who have a good knowledge of German can be regarded as a speciality of the Bulgarian market. 

In Soviet times, Bulgaria delivered numerous scientific research instruments for Soviet space flight. In 1979 and 1985, Bulgaria also sent two cosmonauts into space. Bulgaria was one of the first European countries to enter into the mass-production of personal computers (Pravetz series 8) and is experienced in pharmaceutical research and development.

Bulgarian IT companies are usually medium sized companies with 100 to 500 employees. The services offered by these companies usually comprise all current technologies, processes and systems. In addition, there is a good chance to also find developers who are familiar with legacy systems.

SWOT analysis

Strength

• EU membership
• Highly qualified employees.
• Near-Shoring. Low travel expenses
• The prices for software development are still very compatible in comparison with prices in Germany.
• Good knowledge of English, knowledge of German can be found even more frequently.

Weakness

• Prices are higher than in other, non-EU, outsourcing countries
• Companies are relatively small and specialized

Opportunities

• The companies’ specializations can be used in particular for the client’s own special needs.
• Flexible interactive development processes

Threats

• Price increase as the country joined the EU – similar to Poland
• Brain-drain in the direction of well-paid jobs in Western Europe