Outsourcing industry in Bulgaria contributes 3.6% of GDP in 2016

Outsourcing industry in Bulgaria contributes 3.6% of GDP in 2016
Sources of foreign investment in Bulgarian outsourcing companies.
By bne IntelliNews October 24, 2017

The outsourcing industry in Bulgaria posted a two-digit growth in 2016 and contributed 3.6% of the country's GDP, the Bulgarian Outsourcing Association (BAA) said in a statement. In 2015, the industry contributed 3.4% to GDP, while in 2014 its share was 2.8%.

“There are a number of factors for preserving positive trends, but the most important are the availability of skilled labor, active interaction between business, education and the state, as well as the preservation of the flat tax and the expansion of the package to encourage foreign investment,” Svetoslav Ivanov, BAA’s executive director, was quoted as saying in the statement.

According to Ivanov, outsourcing services are being developed in Sofia and other large cities such as Plovdiv, Burgas and Varna, which are attracting big international companies thanks to their human resources, educational institutions, well-developed infrastructure, an appropriate class of office buildings and strategic geographic location.

The business process outsourcing (BPO) segment accounted for 53% of the total turnover of the outsourcing industry in 2016, compared to 47% for information technology outsourcing (ITO), although the ITO segment was more profitable.

UK-based companies were the largest investors in Bulgaria's outsourcing sector, followed by companies from the Netherlands, the US and Germany.