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IT Industry in Bulgaria

One of the most stable sectors in Bulgaria in times of financial crisis is the IT sector. It is sometimes called the most optimistic one because when the whole economy is in decline it continues to grow steadily. The reason for that is it is export oriented. There is a huge demand for software products worldwide which drives the rapid expansion of that sector in Bulgaria as well. One of the difficulties for the companies here is the deficit of qualified engineers.

Many International companies are expanding their R&D activity in centers in Bulgaria. This speaks of the fact that Bulgaria is developing an increasingly highly quality IT activity and underlines the evolution of the sector. Only a few years ago, the majority of growth in the technology sector was mainly related to product support for big multinationals and outsourcing centers.

In line with the development of the outsourcing industry in Bulgaria in recent years, the country has become a hub for digital services. The majority of companies offer services, and only around 20% develop digital products of their own.

NSI data from 2017 reveals that 12,600 companies operate in the segment of Micro, Small or Startup companies

According to the IT association in  annual Barometer, businesses with main revenue from software development are about 3,000.

As for start-ups, one of the top global databases shows that there are 415 start-up companies in Bulgaria, with 219 of them dedicated to digital product development or offering digital services.

Оver 96% of respondents in these sectors are micro or small companies. Out of these, 4% have between 11 and 49 employees and the rest operate with a team of up to 10 people, according to NSI data