Prognoses for 2015

9% of all the members of BASSCOM who participated the survey expect a rise in their revenue with about 50% in the year of 2016, and 20% foresee a 10 percent growth. 50% of the companies don`t expect any change, and only 12% anticipate that their income will go down.

The figures show that the IT sector is among the most sustainable in the country and marked an annual double-digit growth in all indicators discussed. The trend of refocusing of companies activities from „coding“ at the first years of the development of the sector to participation in all the phases of the contemporary software production – analyses, design, architecture, implementation, quality assurance, support and development, continues.

Фотограф: Computer World

Source: Computerworld.bg

Problems and expected measures for support of the sector

Except the two-digit growth, marked by the software companies in the last few years, there is a visibly increasing interest at Bulgaria as an attractive destination and regional innovation hub for potential foreign investors, thanks to favorable conditions for doing business in the sector.

"The software sector reached 1.86% of GDP of Bulgaria for 2015 and is one of the fastest growing sectors in the country with an expected 12.8% growth in revenues from exports."

In the last few years, the natural growth of the sector was hindered because of the inability of the educational system to ensure the necessary number of qualified professionals, and not just in IT. There is almost not modern business activity which is not connected in one way or another with the introduction and use of high technology. The fact is that one job in the software industry is a factor for the opening of several jobs in other sectors, thereby also affects the reduction of unemployment and the rising of the living standards of employees.

BASSCOM marked as a positive move the partial simplification of the procedure for issuing of the so called “EU Blue Cards “, which would allow the attraction of qualified specialists from EU non-member countries, and thus reducing the current scarcity. However, we expect additional actions at this direction, for example shortening deadlines for issuing blue cards and switch to "one-stop" service.

"The industry provides a quarter of a billion levs tax revenues in the state budget and operating profit in the industry is approximately equal to the gain in sectors such as motor vehicles and Health."

In the long term horizon, BASSCOM works with a number of competent institutions to undertake deep structural reforms in the education system in line with business requirements. The software association insist on the imposition and development of the IT sector as a priority for national policy and in 2015 proposed and started the implementation of five concrete measures.

"20% of companies predict revenue growth of 10% for 2015"

One of them is related to the provision of vocational training "junior programmer" for interested students (grades 9-12) from all schools in the larger cities. BASSCOM believes that this step would have the greatest effect in the medium term to address the problems of the industry and the economy as a whole. Therefore BASSCOM, together with National Agency for Vocational Education and Training (NAVET) started the preparation of the state educational requirements for the profession "Programmer". Subsequently, based on the standard, a curriculum for qualification "junior programmer" will be prepared. With the support of the Ministry of education and Science (MES) BASSCOM anticipates at full development of 20 training centers in the country by 2020, up to 6,000 students to graduate annually.

Except for extremely urgent changes in education, BASCOM continues to push for policy reforms in tax, social, investment and fiscal legislation, the introduction of electronic government, investments and targeting of EU funds.

BASSCOM stated that reforms in these areas are important not only for the sector, but also for the overall economic development of Bulgaria.