The software industry continues its double-digit growth, according to Barometer 2017 – the annual survey of the Bulgarian Association of Software Companies (BASSCOM) on the development of the sector. The sector is expected to close the year with revenue of BGN 2.3 billion, which is an increase of 12% compared to last year. More than 90% of the surveyed 3 400 companies expect over 10% growth next year.
Here are the main figures and conclusions by Barometer 2017:
On the back of these results, the software industry has emerged as a powerful determinant of a competitive, high value added economy, as well as the industry that brings young people back to Bulgaria. If it keeps the same growth rates, software industry revenue in the country could reach 3.0% of the GDP by 2020. This would not only rank the IT business among the most efficient but also among the largest in the country. Furthermore, it would have increased its share almost three times to the GDP for 10 years. The main contributors to this growth are the outsourcing companies. For the period 2011 – 2016, the revenue of the export-oriented teams doubled from EUR 312 million to EUR 764 million. This was an increase of 145% or between EUR 500 and 600 million in the country’s current account and capital account balance.
According to the forecasts for 2017,the number of new jobs in the software industry in Bulgaria will slow down its growth to 8% and remuneration will increase by another 9%. The software business will pay about BGN 40 million more taxes compared to the previous year, contributing to BGN 360 million tax revenue in the country’s budget (40 million more than last year).
The report concludes that the IT sector is among the most sustainable in the country. According to the report, the industry has successfully shifted the focus of the companies’ activities from carrying out simple coding work to participation in all phases of software production – analysis, design, architecture, implementation, quality control, maintenance and development. The shortage of qualified specialists, needed to take over the growth of the sector, is a major problem for the companies in the industry. At the same time, that is why many talented young people decide to stay or return to the country with a good standard of living.
All figures and conclusions by Barometer 2017 will soon be available in English on the website of BASSCOM. You can follow the uploaded posts here.