BPO and IT in Bulgaria are Growing

The past year in the IT sector was characterized by maturity and growth. Almost all large companies have grown, the number of employees is gradually rising; They are close to 20,000 in the software and over 40,000 in the outsourcing sector. Revenues are over BGN 2 billion (2.25% of GDP at about 0.8% of Bulgaria’s employees) and over BGN 3 billion (3.41% of GDP in a little over 1.7% of the employed in Bulgaria), and taxes and social security contributions paid Over BGN 300 million from the software and nearly BGN 200 million from the outsourcing industry. Export accounts for over 75% of revenue. The big startup boom passed, they survived a little, but most of them — with good prospects. Decreases the number of new companies. Go on the path of focusing and consolidation. Increasingly, industrial practices are the basis for further growth. IT continues to work from “smart and beautiful” — open to the world, mobile, solvent, high standard of living — more than four times higher than the average for Bulgaria, and analysts say it not only equals but goes beyond Countries such as Germany, England, and the United States.
In 2017 we are waiting for an intelligent, digital, dynamically connected year.

IN THE INTELLECT CUT

we will see:
Development and Upgrading of Artificial Intelligence and Machine Self-Learning, emergence and rapid development of the concept of Assisted Intelligence. There will be more and more systems that learn, adapt and act autonomously, based on large volume analyzes, structured and unstructured data, advanced algorithms and predictions. Applications are from the banking sector and corporate governance to healthcare and the environment.
There will be massive smart applications — virtual assistants at a personal level, but with even greater impact will be corporate intelligent systems — strategic planning, marketing and ERP to client experience — everything will be based on artificial intelligence that will manage analytics, Autonomous business processes and “human” interfaces to users.
Intelligent “things” — robots, drones, and autonomous vehicles will evolve rapidly and will cover an ever larger segment of the market. The available smart devices (IoT) will become intelligent, communicate with each other and better serve homes, offices, production, healthcare, and so on. Technology will move ahead and the brake will continue to come from regulatory, legal and ethical issues that will not be resolved in 2017.

DIGITAL AND PHYSICAL WORLD

will continue to emerge, and this will lead to the emergence of new business models. Virtual reality and augmented reality will change the way people communicate with each other and with software systems. A whole generation of virtual reality natives will be born, but traditional activities will merge with the virtual (a typical example being home workers who superimpose their schematics on real objects).

Digital twins are a concept that has emerged recently, but in the coming years will experience a boom and billions of things will begin to have digital twins — a dynamic software model of physical things or systems. For example, in the automotive industry, each car now has its own digital twin to the smallest particle — so, on the one hand, real situations can be analyzed and simulated and, on the other hand, responding to the most adequate, fast and efficient manner Problems in the real world, such as withdrawing from the market a certain defective part. And if in this respect 2017 will only lead to the dissemination and improvement of an existing concept, it is more interesting that the path that will start in the change of attitudes to be ready for the next step — a joint work of technicians who understand the real World, with IT professionals and data analysts (increasingly demanded on the labor market) to meet the digital twins of everything — physical objects, industry, environment, businesses, processes, people, and turn them into a real world simulation , Which can be analyzed and controlled Wound.

The blockchain is an idea that has been around and hot for some time, but no one has ever made a real breakthrough in its implementation. Put simply, a blockchain represents a grouping of transactions in blocks and their distribution and overlay. The concept is gaining momentum because of the expectation that it will fundamentally change the way the finances work (including BattleKnight and other crypto looks), distribution of music, identity verification, etc., providing transparent access to information and thus creating transaction security In a precarious environment.
DYNAMIC CONNECTION (MESH) is the way people, processes, things, and services will communicate with each other, forming intelligent digital ecosystems. As the mesh evolves, the user experience changes, and hence the requirements of technology architectures, security, and platforms.
Chat systems, which we now know as bi-directional text or voice.

DYNAMIC CONNECTION (MESH)

is the way people, processes, things and services will communicate with each other, forming intelligent digital ecosystems. As the mesh evolves, the user experience changes, and hence the requirements of technology architectures, security, and platforms.
Chat systems that we now know as bi-directional text or voice conversations in which people adapt to the computer will evolve to adaptive devices and systems that will communicate with text, voice, but also with sight, sound, touch, gesture.
Intelligent dynamic connectivity will require changes in architecture, technology, and decision-making tools. This creates a mesh app and service architecture (MASA) that requires a change in the concept of development and the creation of modular, flexible and dynamic multi-user solutions in multiple roles that use multiple devices and communicate over multiple networks.

Digital technology platforms are the building blocks of the digital business. Each organization will have a mix of five digital platforms: information systems, consumer experience, analysis and research, the Internet of Things, business ecosystems. The digital transformation will go beyond 2017, but organizations will have to plan and start implementing it now.
Architecture with adaptive security will be the answer to the requirements of the evolution of intelligent dynamic digital connectivity, platforms and architectures. Security is particularly challenging in the world of the Internet of Things.

Social entrepreneurship will gain momentum with more and more save-the-world causes that create sustainable business models but, again, with the active involvement of technology to get better coverage, distribution, cost-effectiveness, and speed.

EVERYTHING WHO SPEAKS THE WORLD

will be a topic in Bulgaria — the technological trends will soon enter the service companies, then through the startups. Ways will be sought to expand business positions in hotspots. The good news is that in some of them the lack of experience is not an obstacle, as demand is huge and the supply is disproportionately small — examples are block and biotechnology. Sometimes, however, the combination of chance and accumulated experience leads to the potential for significant breakthroughs — for instance, at the end of 2016, the team of the small Russian company “Varbanov Soft” joined the “Musala Soft”. Under the circumstances, Varbanov Soft after two consecutive acquisitions by larger players of his client turns out to be the supplier of one of the largest biotech corporations in the world — Perkin Elmer; Combined with Musala Soft’s experience in augmented intelligence healthcare projects based on IBM Watson, both teams create a powerful field for development.
The IT sector in the country will continue to grow at two-digit percentages in export revenue and significantly less on the domestic market. However, as far as over 75% of the proceeds come from exports, the overall growth will again be double-digit. With GDP growth rates (around 3% per year), the IT sector’s share of GDP will continue to grow, with a tendency to become a two-digit share of GDP over the next 5–10 years. In the software sector, the number of employees will exceed 20,000, while in outsourcing — 50,000. Wages will continue to rise but smoothly. The average net monthly salary in the software sector for 2017 will remain around 3,000 leva (slightly over 2,750 leva in 2015 and estimated below 3,000 leva in 2016).

The IT sector in the country will continue to grow at two-digit percentages in export revenue and significantly less on the domestic market. However, as far as over 75% of the proceeds come from exports, the overall growth will again be double-digit. With GDP growth rates (around 3% per year), the IT sector’s share of GDP will continue to grow, with a tendency to become a two-digit share of GDP over the next 5–10 years. In the software sector, the number of employees will exceed 20,000, while in outsourcing — 50,000. Wages will continue to rise but smoothly. The average net monthly salary in the software sector for 2017 will remain around 3,000 leva (slightly over 2,750 leva in 2015 and estimated below 3,000 leva in 2016).

In 2017 we will see growing players, but with more realistic plans and announcements of growth than both current ones and those who are yet to come — and such will continue to exist. Because of the political problems in Ukraine, more companies will continue to enter, which, on the one hand, will lead to additional labor market tensions and, on the other hand, will give Bulgaria more and more visibility vis-à-vis clients, especially from Western Europe. After years of experiencing the soil, it may be possible in 2017 to see a particular interest from Asia — India and China. There will also be external investments through funds. There will be mergers and acquisitions that will lead to consolidation. In search of growth new locations will appear in and outside Bulgaria, there will be a more significant increase in attracted professionals from abroad. In short, there will be little to go so that IT business continues to grow and take on more and more stable positions on the global IT market, and, albeit slowly, up the food chain.
Entrepreneurship will become more mature. After the drunken climb to the top positions by the number of startups and the sobering downswing to the census of the survivors, after something like a “zero year” in replenishment of Jeremie funding and building new funds comes a wave of more moderate investments into more promising and more developed Ideas. We will see much more internal entrepreneurship, somewhat stimulated by innovative European funds, but mostly due to maturity, accumulated capital and the need to experiment with IT companies. There is money, there are ideas, the more meaningful will happen, and the scattering will be reduced.

In the past few years, money, hopes and a lot of words have been invested in the park — where good, where not so much. As if 2016 had depleted the desire of business to try to help build a community center there, too many political changes took place and, ultimately, the trend was to see in 2017 a transformation from their park into a business park and migration The entrepreneurial spirit of the growing shared space and more innovative and open large companies. The fact that the centrally planned hub for events and the exchange of ideas so far does not work as expected does not mean that the interesting IT events have suffered. The trend is quite opposite — especially in Sofia, but more and more cities have a huge choice of conferences, seminars, meetings and training courses. In 2016, they were literally hundreds, the trend is steadily upward, and in 2017 the quantity will increase, but the quality will be because of the experience gained and the strong competition.
Specifics of BPO and the software sector

Business Process Outsourcing (BPO) in Bulgaria literally exploded for 10 years from practically zero to 40 thousand employees. And if the interest originated in the knowledge of many languages ​​at first, then it comes to the realization that people here in addition to languages ​​have a much higher level of intellect than the average in the world. Accordingly, we observe a smooth shift towards higher quality services with higher added value and a gradual overflow between BPO and ITO. The drawbacks turned out to be an advantage. Unlike other destinations, such as Manila, which works at night to the extent and the malls have a working time, in the United States, the time zone workers are not that much. We are also a small country and we can not count on a large volume. That is why Bulgaria, in search of a niche, turned to the higher segment of services.

The software has no surprises and sharp turns — just stable steady growth. And “white kahirs” — a greater customer demand than supply. One challenge brought about by the rapid creation and dismantling of teams and the need for more and more intelligence, combined with the trend of more and more remote work and distributed teams, leads to hunger for technologies to compensate for the inability to meet the need for Concentration of knowledge and skills.