The outsourcing industry in Bulgaria has the potential to generate 5.0% - 6.0% of the country’s gross domestic product (GDP), the chairman of the Bulgarian Outsourcing Association (BOA) said on Tuesday.
Outsourcing generates nearly 3.0% of the country’s GDP, Stefan Bumov said at an industry event in Sofia, without specifying to what period the figures refer.
“In order to continue to grow as a business, [the outsourcing industry] needs to tap the potential of cities outside Sofia,” he added.
Outsourcing is one of the fastest-growing sectors in Bulgaria, currently employing over 20,000. Bulgaria has a population of some 7.3 million.
However, lack of qualified staff, including mid-level managers, hinders the industry's development, as do cumbersome labour regulations, Bumov noted.
Still, Bulgaria ranked the second most attractive outsourcing destination in Europe and the fifth one globally in a recent research by international consultancy A.T. Kearney.
Bulgaria’s EU membership, the stable currency board, low budget gap, low taxes, geographic location and multilingual population are among the top factors influencing foreign companies' decision to invest in the country.
Some 90% of Bulgaria's outsourcing industry is export-oriented.
BAО is the first Bulgarian business association in knowledge economy outsourcing. Its founders are AII Data Processing, Atos Bulgaria, Bulpros, Coca-Cola Hellenic IT Services and Sofica Group.