Future Trends in the IT Sector in Sofia
Foreign direct investment in the IT sector in Sofia grew considerably after 2011. The total FDI in cumulative terms was 70% higher than the corresponding number as of end-2011. In absolute terms, it reached 261 million euro as of the end of 2015.
The share of the sector in FDA (cumulative by the end of the year) in the municipality as a whole grew from 1.3% to 2.1% and in ICT it grew from 5.9% to 15.2% between 2011 and 2015. There was an analogous growth in FTA expenses: from 0.9% to 1.5% for Sofia as a whole and from 14.4% to 17.6% in the ICT sector.
There is a reason for optimism: almost all indicators considered show that the sector’s development has been stable in recent years and there are no signs that the positive tendency may change in the near future.
The sector’s biggest challenge is the shortage of qualified people, especially for positions requiring high levels of skill and expertise. The problem exists for most sectors of the economy. Unlike most sectors, however, IT has already demonstrated its ability to create alternative opportunities for training its workers.
A potential risk of the sector is its presumptive orientation to more routine activities within the framework of large international companies rather than the creation of innovative products and services. However, if it manages to cope with those threats, there are no signs that the IT sector will show signs of slowing down in the future.
State and Development of the IT Industry in Sofia Report contains data about the share of the IT sector in the economy of Sofia Municipality, the segmentation in the sector, profile of the companies and the employees, average wages and productivity rate, investments in the IT sector and future trends for development of the industry in Sofia.
If you have further questions regarding the report or other data on the investment climate in Sofia, do not hesitate to contact our team at contact@investsofia.com.
