The software business in Bulgaria reached 1.74% of GDP of Bulgaria for 2014. This is one of the fastest growing sectors in the country and has a prominent export potential, it became clear during the presentation of this year's barometer for the software industry of the Bulgarian Association of Software Companies (BASCOM).
In recent years the share of Bulgarian software branch of the country's GDP has increased almost threefold, reveals the study prepared by an independent consulting company CBN – Pannof, Stoytcheff & Co. upon request by BASCOM.
Forecasts for this year are that revenues in the sector will increase by 15 percent and will reach 1.373 billion levs. Compared to last year they amounted to 1.198 billion levs and grew by 11% compared to the previous year and 500% against the level of 2005.
More than 60% of the revenues of software companies in Bulgaria are generated from the export of high technology products and services.
The study shows that the software industry employs some of the most skilled and best paid professionals in Bulgaria. The average wage in the sector is four times higher than the national average. This year it was expected the average gross monthly salary to reach 3,510 levs, which represents 5% annual growth. Last year it was 3,330 levs, 10% higher compared to the previous period.
In terms of total remuneration paid in the software businesses, the sector is the largest technology employer in Bulgaria, ahead of telecom business centers and remote support.
Job in the industry in 2014 are said to reach 17,000. Their number increases annually by 6 to 10 percent. Since 2005 the growth of employment in the sector has come to 334%. IT professionals form 80 percent of all employees in the industry, and one third of them are women. More than 90% of jobs are occupied by young people under the age of 35, it is clear from the study.
The industry continually has new open positions, due to the fact that there is a shortage of IT specialists in the companies. For filling the job positions for software architects, software developers and IT consultants companies need more than 10 weeks on average.
In 2013, the software industry has paid taxes to the treasury, amounting to 205 million levs. Of these 86 million levs were VAT, 15 million levs – profit tax, 57 million levs – social insurance, and 47 million levs – income tax.
The industry has the potential to double the amount of taxes paid over the next five years to exceed half a billion levs. Tax collection is extremely high due to the specifics of the industry and the lack of gray sector, it became more from the survey
About 40% of respondents expect an increase in revenues of the IT industry in Bulgaria of 25 percent in 2015. Some 27% believe that the growth will be 10%, while 16 percent do not think there will be any change. Another 11% of respondents believe that revenue growth will reach 50%, while only 6% expect a decrease in revenue.
Data show that the IT sector is among the most sustainable in Bulgaria and marked an annual double-digit growth in all indicators examined.
The main problem in the IT sector in the country is that its rapid development in recent years led to the fact that its capacity begins to significantly exceed the capacities of the education system in the country. For Bulgaria to continue the development and strengthening of its position as a high-tech hub in Southeast Europe and also as an incubator for innovative start-up companies, the industry must take a few basic steps, it was indicated by BASCOM.
One of them is the issue of so-called "Blue Cards" that would allow attracting qualified professionals from outside the European Union. The move would reduce this deficit in the sector.
In the long run, the industry experts see the need of deep structural reforms in the education system to be tailored to the requirements of the businesses.
Firstly what is needed is to change the concept of the school subject "Information Technology", which is currently "wasted time". The idea of the association is to transform it into an object in "thinking, systems, creativity and design through informatics". To do this, the country will need retraining of teachers. The idea is that the subject may use the school content of all other subjects as a medium for the realization of such thinking.
The second project involves the comparative study of best practices in Bulgaria and the creation of a system of innovation in education. According to Djonev, there is need for a system for evaluating these practices, which to promote the good results and suppress the bad practices.
The third project provides for the reinstatement of the profession option "programmer" for all students from 9th to 12th grade. According to Djonev currently there is a working group that builds the curriculum for this subject.
Fourth, the skill is necessary to change the policy of helping people who want to retrain and switch from sectors with low added value to high added value ones.
