Revenues of the companies operating in Bulgaria’s outsourcing sector rose by an annual 22.4%, which is almost a double increase compared to the previous year, the annual report by Bulgaria’s Association for Innovation, Business Excellence, Services and Technology (AIBEST) and SeeNews says. The industry has added a record 10,000 new jobs, and thus the number of employees in the sector reaches nearly 90,000. The most active investors in ITO and BPO companies in our country are Great Britain, the USA, Germany and the Netherlands, and 81% of the central offices of such companies are concentrated in Sofia.
The data was presented at an event at the Grand Hotel Millennium Sofia. AIBEST announced key highlights from the report days before the official release of the full edition. In addition to presenting findings from the study, part of the event were also a panel discussion and a networking session, in which our colleague Viktor Gousev, Head of Investment Analysis Department at Invest Sofia, took part.
More key findings for the sector
For the 2021 survey, data from 774 companies with activities in the field of business services and technology were analysed. For the first time, the report features R&D centers as a separate subcategory. The other two categories are ITO (outsourced IT services) companies and BPO (business process outsourcing) companies.
Operating revenues for 2021 reach 4.225 billion euros and the industry contributed to the country’s GDP nearly 6%, with the Association expecting it to rise to 9% by 2025.
So far, the number of employees has grown by an average of 3,000-4,000 people per year, while in 2021 a new 10,000 positions were added, which is a record increase. According to AIBEST, the industry has the potential to attract more workforce and the professional opportunities in the sector are still one of the main incentives for young people returning to Bulgaria. Another factor that has a bearing on the number of employees is the hybrid and remote work model, which expands the opportunities for employers to hire people outside the cities where companies have operational offices.
Salary expenses increased by an average of 22% and reached a value of 2.1 billion euros, 11.4% of the total salary expenses in the Bulgarian economy and 8.6% of social security contributions.
Bulgaria is strengthening its image as a center for high-tech added value services in Europe.
We expect more data within days when AIBEST will
The team of Visteon Electronics Bulgaria discussed specific funding opportunities with EU Commissioner for Innovation, Research, Culture and Education Mariya Gabriel during a meeting organized by Invest Sofia. The CEO of the Agency PhD Maria Hristova, and the Head of the Investment Analysis Department, Viktor Goussev, also took part. The company received a “Green Card” from Invest Sofia at the beginning of November. It is one of the global leaders in the design and development of high-tech products and systems for the automotive sector. Visteon is creating in Sofia a new laboratory for innovative products in the field of car electrification and driving safety. An expert Bulgarian team will be dedicated to the R&D activities. At the meeting with Ms. Gabriel, Visteon’s management presented its plans and latest development. The European Commissioner discussed with Visteon current funding programmes and open calls that may help the company find additional investments for its future plans.
In Sofia, Visteon Electronics has an engineering center – the leading and largest for the company in Europe, and the expertise of the local team ranks it not only among the most trusted tech hubs of Visteon but also globally. With a team of over 700 engineers, Visteon in Bulgaria manages the entire product cycle. Currently, over 250 global and regional high-tech projects are locally designed, developed, and tested for world leaders in the automotive industry.
The “Green Card” received by Visteon Electronics Bulgaria is the 11th since the beginning of the year when Invest Sofia launched its new initiative in support of investors and start-up companies in the city.
For the fourth time, Biotech Atelier organized a special edition event on the topic “Water and Biotechnologies”. At the invitation of the organisers, Kristin Dermendzhiev, Chief Expert at the Investment Analysis department of Invest Sofia, attended the event along with more than 270 participants from 110 companies and 16 speakers.
This year’s focus fell on Antimicrobial Resistance, Water Treatment, and Water reuse.
On 15th November 2022 lecturers with different expertise gathered to speak on these
important topics in the water sector, with experts from companies and institutions joining to listen from all over the world.
By this, Biotech Atelier continues following its goal to bring start-ups, innovative companies, and
larger businesses in biotechnological development to share details about innovative
technologies and best practices that can be applied in the water sector. The satellite
event “Water and Biotechnologies” is growing with each following edition. We are glad we had the chance to be an institutional supporter of the event.
The speakers presented keynotes on topics such as Water and antimicrobial resistance,
Water use, management and challenges in urban areas, Antimicrobial resistance in water: explore, measure and monitor, Wastewater treatment and water re-use, The Digital Watershed™ and Watershed Health: Corporate water strategy and digital innovation for impact, Residual antibiotics in water, Water and EU Regulations, Closing of Water & Biotechnologies and more.
Video recordings from all the sessions will soon be available on the YouTube of Biotech Atelier here.
A series of meetings for the participants in the Bulgarian delegation to Poland have just started. The Bulgarian delegation will visit institutions, organizations, and companies in Warsaw and the Polish city of Bialystok. The Chief Executive Director of Invest Sofia, Dr. Maria Hristova, is also part of the delegation. She will present the economic profile of Sofia, the opportunities for business in the city, and the services and incentives we assist foreign investors.
The meetings will last until November 25 under the organization of the Bulgarian Chamber of Commerce and Industry in cooperation with the Regional Chamber of Commerce and Industry (CCI) of Bialystok. So far, we have visited Medgal – a Polish company that designs, manufactures, and sells medical products for bone surgery and orthopedics. We visited the R&D and production site of the company. AC S.A. is yet another company we visited. It develops innovative products and energy management solutions for the electromobility sector.
We also spoke with representatives of the Bialystok Regional Chamber of Commerce at an official meeting at the Chamber and attended a seminar on topics related to resolving conflicts between entrepreneurs through economic arbitration.
In the upcoming days, we will visit the University Cultural Center in Białystok, the Polish Chamber of Commerce in Warsaw, and the Embassy of the Republic of Bulgaria in Poland. Part of the agenda is a discussion on possible cooperation between Poland and Bulgaria in the field of vocational training to improve the professional competencies of adults working in Polish and Bulgarian enterprises.
Together with us in Poland are experts from BCCI, representatives of the Arbitration Court at the Chamber, heads of business associations, and Bulgarian companies.
Invest Sofia is on a visit to Poland as part of a business delegation organized by the Bulgarian Chamber of Commerce and Industry between 21-25 November 2022 in the capital Warsaw and in the Polish city of Bialystok.
The bilateral meetings and networking events are co-organised by the Regional Chamber of Commerce and Industry (CCI) of the city of Bialystok. The agenda includes meetings with local partners, including institutions and companies according to the areas of interest of the participants in the trade mission.
Dr. Maria Hristova, CEO of Invest Sofia, is part of the Bulgarian delegates. Experts from the BCCI, representatives of the Arbitration Court at BCCI, presidents of business associations, non-governmental organizations and Bulgarian companies interested in business opportunities with partners from Poland are also part of the mission to Poland.
According to the preliminary programme, during the four days in Poland, we’ll visit the University Cultural Center in Białystok, attend a seminar on the topic “Economic arbitration – a method of resolving disputes between entrepreneurs”, meetings with Polish companies organised by CCI in Bialystok, a discussion on the topic “Organization of the international Academy of Vocational Training to improve the professional competences of adults working in Polish and Bulgarian enterprises”, as well as meetings at the Polish Chamber of Commerce in Warsaw and the Embassy of the Republic of Bulgaria in Poland.
The autumn afforestation season of the New Forest of Sofia – 2 in the village of Negovan has begun. Saplings, shovels, and gloves are provided on-site. Citizens of Sofia who want to get involved in afforestation activities can do so during the weekdays and on weekends until November 20. The new forest near Negovan is the second afforestation initiative of the Sofia Municipality that aims at creating a green belt in the city suburban areas. Find out more about the initiative here.
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Citizens and guests of Sofia now have access to new free wi-fi zones in three of the city’s parks. Two of the zones are in South Park – next to the entrances from Byala Cherkva Street and Nishava Street. The other two are in Borisova Garden and the Doctorska Garden. After logging into the wi-fi zone, users will see a webpage with upcoming cultural and sports events across the city. In addition, an innovative solar wi-fi bench has been installed in South Park with smartphone chargers w and free access to wireless internet while walking or working outdoors near the bench.
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The restoration of the mineral bath in Bankya has been completed and the building has opened its doors to visitors. Its authentic appearance has been preserved and the thermal and wellness areas are now available for the citizens and guests of Sofia. Its authentic appearance has been preserved and the thermal and wellness areas are now available for the citizens and guests of Sofia. In October, the building received the Grand Prize in the fourth edition of the Bulgarian Architectural Awards 2022, organized by the Chamber of Architects in Bulgaria (CAB). The award is for the preservation of cultural and historical heritage.
The central mineral bath “Bankya” was designed by a Munich architect. For a long time after its construction in 1911, it was the most modern spa building in Bulgaria and one of the most remarkable baths in Europe. The Sofia Municipality started its restoration in 2018. The bath is open to all who wish to visit it every day from 9:00 a.m. to 8:00 p.m.
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According to Cushman&Wakefield Forton, the share of employees who returned permanently on-site remains smaller than expected. A balance between remote and on-site is expected only in mid of 2023. In Sofia, there is an increased interest in shared office spaces. The supply in the segment exceeds
The Sofia-based agrotech Nasekomo is now part of the NetZero Future50 report for CEE prepared by PwC. Produced in partnership with Wolves Summit, the report highlights the next generation of climate technology startups that have the potential to help reduce emissions. The Bulgarian agrotech utilizes the incredible biological abilities of the larvae of black flies (the so-called Black Soldier fly) to turn organic waste into protein animal food. So far, Nasekomo has received several investments for growth: from two of the fund managers of the Fund of Funds – Morningside Hill and New Vision 3, the European Investment Bank, the European Bank for Reconstruction and Development, Innovation Norway, and others.
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The tech sales development company Out2Bound has announced its acquisition by the US B2B company MarketStar. The terms of the deal have not been disclosed. The new company will operate under the name MarketStar Bulgaria. All four Bulgarian founders will continue to manage the local operations, and the team in Sofia will increase significantly. MarketStar was founded in 1988 in Utah, USA, and has a European hub in Dublin, Ireland. Sofia is the second destination for the company in Europe and will provide MarketStar with the opportunity to further expand its operations. MarketStar Bulgaria will further development of Out2Bound’s SalesPro educational programme, which trains young sales experts. The new American owner will also upgrade the Bulgarian company’s software product to optimize its services to customers across the world.
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Equity investment company BlackPeak Capital will support the telecom services provider Telelink Infra Services with EUR 8 million. Telelink is present in markets such as the United Kingdom, Germany, and many countries in Central and Eastern Europe. With the investment, the company will continue its rapid growth rate and allocate the funding towards M&A deals with smaller competitors across Europe. The rapid digitization in the EU countries has for several years already resulted in an increase in the demand for telecommunications services, and infrastructure players such as Telelink are some of the biggest investors in the construction of new infrastructure.
During an official delegation visit to Sofia, led by the Mayor of Sejong, Mr. Choi Min-ho, an official Cooperation Agreement between Sofia and the South Korean city was signed. The two cities thus entered a city-to-city partnership for activities in urban management and urban development.
‘We are pleased that the collaboration between our cities so far has led to this official agreement. Sejong has become a model city throughout Asia for a municipality with a long-term vision of digitalization and the application of new smart city technologies from scratch. Their experience is impressive and I am glad that we have the opportunity to learn from their know-how and apply best practices here. We are happy that our innovative city policies in mobility and transport, data collection and evidence-based decisions, the digital city twin are topics on which the two cities will partner actively in the future” – Mayor Yordanka Fandakova said.
“Long-term collaboration with Sofia is a priority for Sejong and South Korea. We see in you a promising ally in areas such as smart city, business and economic development, mobility, urban planning, and many other areas related to urban environment. In Sofia, you have an impressive and recognizable startup and business ecosystem. I’m excited about everything new we can bring into action together,” said Minho Choi, Mayor of Sejong. “I would also be very happy, in your honor, to make a garden with Bulgarian roses in Sejong named after the city of Sofia. Rose oil is a symbol of prosperity and a high standard of living in Korea, and it will be an honor for us to tribute in this way our successful work,” added the Mayor of Sejong.
Our team participated in the meeting at the invitation of the Deputy Mayor for digitalization and Innovative Sofia – the digitization and innovation department of Sofia Municipality. We presented economic data about Sofia and Bulgaria, the local investment profile, and business opportunities to the South Korean delegation, and discussed possible synergies.
The areas in which Sofia and Sejong will partner are:
* Business and economy
* Smart sustainable cities
* Mobility and transportation
* Urban planning and development
* Startup and SME support
* Science and technology
* Culture
* Innovative, sustainable, and carbon-neutral ecosystems and strategic sectors
The Bulgarian capital and Sejong entered into city-to-city partnership activities under the EU International Urban and Regional Cooperation Programme 2021-2023 (EU IURC).
Bulgaria will now issue a Startup Visa for quick access to long-term residence in our country to entrepreneurs from third countries who want to develop high-tech and/or innovative projects in our country. Thus, our country joins a large part of the EU countries that have established regulations for the procedure.
“The certificate provides foreign citizens the opportunity to start and develop projects involving high-tech and/or innovative activities in the country, and is one of the mandatory documents for obtaining a long-term residence permit”, states the regulation.
According to our partners from the Bulgarian Startup Association – BESCO, the regulation will help the companies that will come to Bulgaria to develop here for the benefit of the Bulgarian economy, accelerate growth, pay taxes in our country, attract foreign investments, attract experts from abroad who will bring new skills, technologies and practices, enrich our business ecosystem and create new jobs.
The Startup visa is a certificate for a high-tech and/or innovative project that helps foreign founders (citizens of non-EU countries) to set up and develop their startup company in Bulgaria. The visa application is submitted electronically to the Ministry of Innovation and Growth. Among the required documents are a business plan, a document for a valid patent (if applicable), an investment contract for a minimum of BGN 100,000, etc. The projects are reviewed within 30 days, evaluated according to six criteria and, upon approval, a Startup Via is issued with a validity period of 1 year.
A detailed explanation of what the Startup visa is and what it is for can also be found on the BESCO website here.
The Bulgarian VC fund Eleven Ventures launched Eleven Alpha – a three-month program for startup companies from South-Eastern Europe. Applications are open until November 19 for young organisations with daring ideas, a prototype or an active on the market product or service. Approved ideas will receive a €300,000 investment for growth against a 10% equity stake, as well as a mentoring programme between January and April 2023. Eleven Ventures guarantees an easy and fast application process and has made the application procedure as clear as possible, including by publishing the preliminary term sheet directly on the programme website at: https://www.11.vc/alpha/
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SMEs in the manufacturing industry can apply for the accelerator program by the ADMA TranS4MErs consortium – a €5.6 million project funded by the EU’s Horizon 2020 Research and Innovation Program involving 38 partners from the 27 Member States. The programme will provide services, tools and funding to approved entreprises for their digital transformation. SMEs with manufacturing activities are invited to apply for Innovation Vouchers, which will provide them with one-on-one support from a certified Trans4MEr expert who will help them develop a personalized plan for transformation. The call for applications is open until 14 December 2022. See details here.
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On November 29 and 30, 2022, the Kocaeli Convention Center in Izmit, Turkey will host the Match4Industry event, which provides an opportunity for bilateral business meetings for companies in the sectors: automotive industry (suppliers), metals and machinery, plastics and rubber, tires, chemicals (automotive paints and coatings, automotive care products), building materials, energy, environment, electrical equipment and electronics, and IT technology. The deadline for registration is November 22. Details, expense coverage, and all other necessary instructions can be found here.
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An event with B2B meetings is also coming up on November 17 and 18, 2022, when the Smart Manufacturing Matchmaking 2022 forum will be held virtually. The event is suitable for companies and research centers with projects in Industry 4.0 and Smart Manufacturing Solutions. Participation is free. Click here for more information and registration link.
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The Bulgarian Small and Medium Enterprises Promotion Agency (BSMEPA) organizes the participation of Bulgarian companies in a trade mission with a visit to the international exhibition Cosme Tokyo 2023. The event is suitable for companies from the cosmetics and perfumery sector, manufacturers of essential oils, cosmetic products producers, etc. and includes B2B meetings with distributors, a rich program of symposia
The ninth international innovation forum Innovation Explorer will be held on February 23, 2023, in the John Atanasoff Forum in Sofia Tech Park.
The ‘23 edition will be dedicated to innovation for social growth. Invest Sofia is an institutional partner of the forum. We will also take part in the conference program with the participation of our Chief Executive Officer, Dr. Maria Hristova.
The topic “Innovations for social growth” was chosen in the context of everyday life in Bulgaria, which distracts us from world achievements in science and deep technologies. Key topics will also be social inequality and division. The forum aims to provoke businesses, the public sector, and start-up companies to reflect on how easily we forget that Bulgaria and the rest of the world only need better education, science, and imagination, to overcome today’s crises.
Dr. James Beacham, particle physicist at the Large Hadron Collider at CERN, to open Innovation Explorer 2023. Entrepreneurs, innovation consultants, discoverers, and social movement founders from around the world are part of the speakers’ list. Well-known Bulgarian journalists to moderate the panel discussion – Lyuba Kulesich, Mirolyuba Benatova, Mario Gavrilov, Flora Stratieva, Venelin Petkov, and others.
Find out more about Innovation Explorer 2023 from the official website of the event: innovationexplorer.bg
