Transcript Colour palette – RGB values

ICTalent in Bulgaria
Software partnership opportunities for German companies
SYSTEMS, Munchen
October 2004
InvestBulgaria Agency
www.investbg.government.bg
The ideal near-shore investment destination
MARCH 1, 2004
… Hundreds of small software companies
do contract programming for some of the
largest customers in the world, including
Boeing, BMW and Nortel. Other giants
such as SAP and Computer Sciences
have local labs in Sofia…
…It was access to nearby talent that
convinced SAP to set up its Bulgarian
outpost…
…There is an exceptionally high level of
talent in Eastern Europe (Kasper Rorsted,
Managing Director HP EMEA)…
InvestBulgaria Agency
www.investbg.government.bg
Bulgaria is positioned to enter the EU in 2007 as
the Southeastern Europe’s hub for developing
sophisticated products and solutions in ICT

Bulgaria: a 2007 EU accession country with strongest track record in stability

Deutsche Bank Eurasia Group Stability Index: Bulgaria ranks 5th ahead of India, China,
Turkey, Russia

A NATO member, Bulgaria closed ALL EU chapters, ensuring legal system compliance

Bulgaria has gained sustainable economic position as EU business gateway:

GDP growth of above 4% in 7 consecutive years and a privatized economy

Currency board with € peg, 0% budget deficit, 3% av inflation and 60% of exports to EU

Record FDI of $1.4 bn in 2003, driven by pre-EU attractive investment opportunities

1st half 2004 FDI amounted to $1.2 bn, telecom FDI shares 14% of the total FDI 98-04

Low taxes ranging from 0% to 19.5% (15% in 2005)

Robust, foreign banks dominated financial sector and modern telecom infrastructure

No VAT for software export

ICT legislation is well in place

S&P and Fitch investment grade ratings as of June-Aug 2004
InvestBulgaria Agency
www.investbg.government.bg
Record FDI inflow in Bulgaria
FDI inflow in Bulgaria 1995-2004F, EUR m
1800
1,103
1000
980
903
USA
Austria
4%
755
800
13%
Cyprus
539
600
525
4%
Switzerland
400
138
5%
Italy
Belgium &
10%
217
Luxembourg
0
1995
1996
1997
1998
1999
2000
2001
Greenfields, additional FDI, reinvestm ents
2002
Privatisation
2003
7.1%
7%
6%
2004E
Hungary Germany
6%
7%
Netherlands
9%
Expected
FDI as % of GDP, 2003
8%
16%
1,254
1200
200
Greece
Other
20%
1400
EUR m
Total EUR 6.9 bn
1,650E
FDI reached € 1,343 in July 2004
1600
FDI stock by country 1998 - H1 2004
FDI stock by sector 1998 - H1 2004
Total EUR 6.9 bn
6.9%
Other
6%
Industry
9%
5%
25%
Utilities
4%
3.0%
3%
2.9%
2.0%
2%
2%
Tourism &
2.7%
Finance
21%
1.8%
Real estate
0.7%
1%
6%
Trade
0%
Bulgaria
Croatia
Hungary
Czech Romania Poland Slovakia Slovenia
18%
Republic
Sources: BNB, WIIW – “Foreign Direct Investment in South East Europe in 2003-2004”, InvestBulgaria Agency
InvestBulgaria Agency
www.investbg.government.bg
Telecom
19%
Steadily growing ICT sector
ICT market in Bulgaria, EUR million
2,500
2,223
1,992
2,000
1,764
1,539
1,301
1,500
1,835
1,637
1,452
1,265
1,055
1,000
500
355
312
274
246
388
0
2001
2002
2003
IT market
Telecom
2004F
2005F
Total
Source: EITO, 2004
 € 1.8 billion investment in ICT sector in 2003
 ICT is expected to continue growing although at a declining rate of some
11.6% in 2005
 Telecom will keep developing faster than IT
InvestBulgaria Agency
www.investbg.government.bg
Fast growing IT exports
IT exports by year, € million
40
35
30
25
20
15
10
5
0
over 55% average
yoy growth
2001
2002
2003
Source: IDG Bulgaria
 More than 50% of the exporting companies are software developers
 Electronic assembly and specialized hardware manufacturers account for the
lion’s share of the revenues from exports
InvestBulgaria Agency
www.investbg.government.bg
Bulgarian software industry review
•
Bulgaria is the leader in the field of outsourcing among the countries in
East Europe ← Latest research of CIO and Meta Group
•
Bulgarian software companies develop the expert specification together
with the client, provide smart solutions and meet the deadlines within
the initial budget
•
Bulgarian software developers have a wide expertise in:

Sophisticated information systems

Gaming solutions

Industry knowledge and solutions

Web design

Network security services & solutions

Complex B2B solutions

E-business and wireless applications

Embedded software

Geographic Information Systems

CAD/CAM

Rapid Prototyping Systems

Multimedia
•
Key markets of the Bulgarian software industry – the US, Canada,
Germany, France, UK, the Netherlands, Austria, Italy, Japan, China
•
ESI Centre in Bulgaria since 2003
InvestBulgaria Agency
www.investbg.government.bg
Software development: skills availability
 More than 40 years of experience in the development of hardware, software and
electronic products
 Well educated, talented and committed workforce
 Very good language skills
 Large talent pool

More than 15% Bulgarians have higher degrees (3rd in the EU)

More than 20% speak a foreign language

More than 5,000 university and college students enrolled in IT degree programs annually

Bulgaria employs more than ICT 20,000 professionals

Bulgaria ranks 3rd in world for certified IT professionals per capita and 8th in the world in terms of
absolute numbers

5th in the world in sciences

11th in mathematics

2nd in world based on Scholastic Aptitude Test scores

2nd in international IQ tests (MENSA International)

1st in Tokyo math Olympics 2003
 110 CISCO academies in the country – in 2003 Bulgaria won 2 of 6 world CISCO annual
awards: “Best project” and “Best student”
InvestBulgaria Agency
www.investbg.government.bg
Salary levels for software industry
Monthly gross salary comparison 1 (June, 2004) for software development companies (€)
Country
Junior
software
developer
Senior
software
developer
Project leader
Social
security, %
Social
security
contribution
Company
cost, 50jobs office 2
Bulgaria
300 to 600
600 to 1,000
1,000 to 1,500
32.2%
9,878
52,378
Romania
300 to 600
600 to 1,000
800 to 2,500
38% to 45%
18,050 to
21,375
65,500 to
68,875
Hungary
900 to 1,000
1,350 to 1,500
1,750 to 2,150
29%
19,068
84,818
Company information, June 2004:
 Data for Sofia; salary levels in the countryside of Bulgaria are around 20% lower
 Data for Bucharest
 Data for Budapest; salary levels in other Hungarian regions are 15 to 20% lower
2 Assuming the office has 25 junior developers, 20 senior ones and 5 project leaders and
develops 10 projects at a time; highest salary bracket used for calculations
1
InvestBulgaria Agency
www.investbg.government.bg
Key IT players expand
SAP:
 180
people in Sofia R&D office
 Innovative
software for J2EE SAP Web Application Server for SAP sites worldwide
 Infrastructure
 Web
for portal, warehouse, exchange, and all application components
services in J2EE and ABAP through open standards
 Fastest
 June
growing subsidiary of SAP worldwide
2004 SAP Labs Bulgaria have announced expansion
Tumbleweed Communications (NASDAQ:TMWD):
 Since
2002: leading provider of enterprise solutions in the areas of anti-spam, anti-virus, e-mail
filtering, and e-mail encryption
 more
than 600 enterprise customers
 Announced
selling Indian (Bangalore) operation to expand the existing business operations in
Sofia, Bulgaria by 50% by the end of 2004
 Employs
approximately 60 people, to recruit 30 more by Dec 2004
InvestBulgaria Agency
www.investbg.government.bg
Foreign companies using services of
Bulgarian software developers …
Acsior
IBM Global Services; SIEMENS Dematic AG
Bianor
A.T.Kearney; Framfab Germany; IBM Austria; InTime; UPS
Eastisoft
eBility, Germany; Sauer Danfoss Inc., USA; Bach-Harrison Ltd., USA; FingerPrint Checks, USA; Parker International, Inc., USA
Interconsult
Kongsberg, Rosengrens Clausen (Norway); Advanced Computer Solutions (UK)
MPS
Siemens AG L&A Postal Automation; Schauenburg Consulting GmbH; Uhle & Gerock Ltd.
Musala Soft
IBM; British American Tobacco; ScaleTools, Switzerland
Nemetschek
Germany – Nemetschek AG, DocuWare AG, Henke & Partner, S3 AG, Maxon, MyBau AG, Valley Forge
UK – BuildOnline; Mantis; USA – VectorWorks; Austria – Strabag AG
Sirma AI
IntelliSync Corp; Transport Canada; Library of Parliament, Canada; Elections Canada
Webgate
Global Market Institute, USA; USA; Ton und Tronic, Germany; SUN TV, Germany; BRC GmbH, Germany; E-WebDesign,
Netherlands; KFM Inc, USA
Wizcom
Aonix; BMW; Boeing; Credit Suisse Danzas/Deutsche Post; Ford Group; General Motors; Goldman Sachs; Lockheed Martin;
Nortel Networks; Swiss Federal Railways
InvestBulgaria Agency
www.investbg.government.bg
Thank you for your attention!
Contact:
InvestBulgaria Agency
Polina Valcheva
[email protected]
InvestBulgaria Agency
www.investbg.government.bg