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Bulgarian Outsourcing Association Publishes its Annual Industry Outsourcing Report

 

The Bulgarian Outsourcing Association (BOA) published its 2018 Annual Industry Report on the development of the outsourcing sector in Bulgaria. The results are based on data about 477 Bulgarian companies engaged in business process outsourcing (BPO) and information technology outsourcing (ITO).

According to the report:

▪  In 2017, the sector boosted its revenues growth to 18.2% y/y and the total operating revenues came in at EUR 2.1 bln. Outsourcing services accounted for 4.8% of Bulgaria’s GDP.

▪   In 2017, BPO generated 58% of the total outsourcing industry turnover. ITO companies, however, registered a higher profitability.

▪ In 2017, the registered net profit is lower compared to the previous two years – EUR 117 mln (down from EUR 124.6 mln in 2016 and EUR 138.4 mln in 2015)

▪ The sector accounts for some 2.4% of the labor market in Bulgaria, employing 67 300 at the end of last year (71.6% in the BPO segment, and the ITO segment accounting for the remaining 28.4%)

▪ The sector is expected to double its turnover and generate EUR 4.0 bln and contribute 7.9% of the national GDP by 2021

▪ Despite the slight decrease in paid taxes to EUR 15.5 mln, the outsourcing industry is among the leading taxpayers in Bulgaria – in 2017, it accounted for 1.3% of all taxes paid in the economy.

▪Outsourcing generated 7.9% of the total salary costs and accounted for 6.2% of all social security contributions paid in the economy in 2017.

▪ Investors from the UK, the USA, the Netherlands and Germany are shareholders in more than half of all foreign-owned Bulgarian outsourcing companies.

Among others things, the report concludes that there is a tendency of diminishing boundaries between ITO and BPO due to the increasingly offered complex services in the industry. Most companies in the sector are concentrated in Sofia but more and more companies tend to become active in other big university cities, such as Plovdiv, Varna, Veliko Tarnovo and Burgas.

 

 

The Annual Industry Report of the Bulgarian Outsourcing Association includes data on 244 BPO companies and 233 ITO companies. The analysis reveals the main trends and regularities in the development of the outsourcing industry in Bulgaria from 2013 to 2017.

More highlights from the report of the Bulgarian Outsourcing Association and a link to the full document in English can be found on the website of the organization.

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