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
- 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.