The Annual Industry Report includes data about 583 Bulgarian companies engaged in business process sourcing (BPO) and information technology sourcing (ITO)
- In 2018, sourcing contributed 5.2% to Bulgaria’s real GDP, or EUR 2.4 bln;
- If the trend is kept by 2022 the industry turnover will almost double both in terms of value, to EUR 4.8 bln, and as a share of the economy, to 9.2%.
- In 2018 the growth of the SSC doubled compared to last year. Due to the high number of employees (close to 20% of the total industry) and the high value added services provided from Bulgaria to the mother-companies, this sub-sector forms the biggest contribution to the country in terms of labor and social security taxes.
- The sourcing industry employed 73,694 end-of-year (EoY) employees and 66,565 full-time employees (FTEs) – more than 9% higher than previous year. By 2022, the number of FTEs in sourcing is expected to reach 80,000.
SALARIES AND TAXES
- The industry in among the top tax payers in the country. In 2018, it paid EUR 24.2 mln in taxes or by EUR 8.6 mln more than in the previous year. The industry’s tax contributions accounted for 2.1% of all taxes paid in the economy.
- Sourcing companies continued to raise salary expenses in 2018 and accounted for 8.5% of the total salary costs in Bulgaria, up from 8.1% in 2017.
- The industry’s social security contributions followed the trend, accounting for 7.0% of the national total.
- The Bulgarian sourcing providers performed impressively as the industry’s growth rate in 2018 reached 19.5%, compared to the 15.8% forecasted in the last year’s edition of our report. This result is due to the high-technology services, based on knowledge and high value-adding products.