Bulgaria, One of the Most Attractive Outsourcing Locations
The global real estate adviser Cushman & Wakefield reported Bulgaria as the world’s third most attractive outsourcing location in 2015. Bulgarian companies in the outsourcing sector have moved eleven positions up, from last year’s 14th place. The report takes into account the costs, risks and operating environment that successfully influence the business process of the outsourcing companies.
The business process outsourcing industry in Bulgaria
This year’s Cushman & Wakefield report placed Bulgaria on the 3rd place in the world as an outsourcing location, right after Vietnam and the Philippines and the first in the European Union. The report also shows that almost 50% of Bulgarian graduates obtain diplomas matching the business process outsourcing sector. Universities release over 60,000 students suitable for the BPO industry on the Bulgarian labor market each year.
Contributing to the Bulgaria’s high ranking in the Cushman & Wakefield report is also the strong international language base, as 98% of students in secondary school learn one foreign language and 73% - at least two foreign languages.
The report notes that Bulgaria has one of the lowest tax rates and labor costs, that is what delimited it from other countries in the EU.
Bulgaria, preferred outsourcing destination in Europe
The BPO industry has developed a lot during the last years enabling Bulgaria to become the most attractive destination in Europe for outsourcing companies. Bulgaria’s turnover from the outsourcing industry, in 2013, was one billion BGN and increased by 60% in the last four years, since the industry has started developing in Europe. Over 20,000 individuals are hired in BPO companies in Bulgaria every year and their number will most likely increase four times in the years to come.
Among the factors influencing the BPO sector are the Bulgarian business environment and the skilled and educated labor force. According to the World Bank and the Economist, Bulgaria ranks second in the world in IQ tests. Competitive labor costs and innovative solution also play a key-role in the development of this industry. The Bulgarian legislation harmonized with the EU regulations allows companies to thrive within a low-tax European country. Bulgarian professionals in the software industry keep attracting IT multinationals that open outsourcing centers.