Software industry in Bulgaria expected to grow 10.5% in 2015

Software industry in Bulgaria 2011 – 2015

Software industry in Bulgaria 2011 – 2015

Software industry in Bulgaria continues to be one of the fastest growing sectors: revenues up 12.6% in 2014 and expected 10.5% in 2015, according to data by the Bulgarian Software Association (BASCOM).

Industry revenues expected to reach almost EUR 820 m, of which EUR 550 export-driven, or 1.86% of GDP, says BASCOM report.

Some 16,100 employees were employed in the industry in 2014 and expected to grow 8% to 17,350 in 2015.

Software industry in Bulgaria – driver for growth

The software industry remains the most profitable within the ICT sector, with operating profit of EUR 107 m for 2014, and expected 6.7% growth for 2015 to EUR 115 m.

Low average wage cost per hour (EUR 36, excl. VAT) continues to be a key driver for industry growth. Average annual revenue per employee is to grow 2% to EUR 87 k for 2015, while average annual wage per employee to grow 1% to EUR 20 k.

Key challenge remains lack of efficient mid-level management and the presence of political risk, according to BASCOM.

Largest Bulgarian ICT company – to ring the opening bell on the Bulgarian Stock Exchange in December

The biggest IPO on the Bulgarian Stock Exchange since 2008 took place in September-October 2015 and the largest Bulgarian ICT company – Sirma Group Holding – will have a start of trading in December. The IPO raised BGN 11.5 m with about 400 investors participating. Market capitalization of Sirma Group Holding by IPO price is over BGN 71 m.

In October one of the major companies in the group, EngView Systems, announced expansion in India.

All about Sirma IPO