IT Services - Bulgaria

Bulgaria

Revenue in the IT Services market is projected to reach US$428.70m in 2024.
IT Outsourcing dominates the market with a projected market volume of US$162.70m in 2024.
Revenue is expected to show an annual growth rate (CAGR 2024-2029) of 6.47%, resulting in a market volume of US$586.60m by 2029.
The average Spend per Employee in the IT Services market is projected to reach US$143.20 in 2024.
In global comparison, most revenue will be generated in the United States (US$522.00bn in 2024).

Key regions: United States, China, India, Japan, Germany

Definition:
The IT Services market encompasses a wide range of services used by organizations to create, manage, and deliver information, and it includes services that provide assistance with various other business functions. The primary goal of IT services is to ensure that information technology infrastructure, applications, and systems are effectively implemented, operated, and optimized to support an organization's business objectives and requirements. The specific range of services offered may vary depending on the service provider and the client's requirements.

Structure:

IT Services contains four distinct markets that are based on different services:

IT Consulting & Implementation covers advisory services that help businesses evaluate their technology strategies and align them with their business strategies or internal processes.
Business Process Outsourcing (BPO) refers to the transfer of entire business processes or individual activities from a company to a third party and is often IT based. BPO covers a wide variety of business processes, usually either in the back office (e.g., human resources) or in the front office (e.g., customer service in call centers).
IT Outsourcing refers to the external contracting of all IT-related services instead of relying on company-owned resources. In an IT context, these activities include IT administration, IT application, and web hosting services.
The Other IT Services market covers revenues for areas that are not specifically mentioned in the other markets, such as system integration, software installation and support, and IT education and training.

Additional Information:

The IT Services market comprises revenues, revenue change, average spend per employee, and a list of the key players in the market and their consolidated revenues. Market values represent revenues that are generated by primary vendors either directly or through distribution channels at the manufacturer price level (excluding VAT). Reported market revenues include spending by enterprises (B2B) and governments (B2G). Detailed definitions of each market can be found on the respective page where the market data is displayed. Key players in the market include IBM, Cognizant, Hewlett Packard Enterprise, and TCS.

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Market

Region

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Analyst Opinion

The Bulgarian IT Services market has been showing steady growth in recent years, with a range of factors contributing to its development.

Customer preferences: Bulgarian customers are increasingly looking for IT services that are tailored to their specific needs, with a focus on flexibility, reliability, and cost-effectiveness. There is a growing demand for cloud-based solutions, as well as for services related to cybersecurity, data analysis, and software development.

Trends in the market: One of the key trends in the Bulgarian IT Services market is the rise of outsourcing, with many companies looking to take advantage of the country's highly skilled workforce and favorable business environment. This has led to the development of a number of IT outsourcing companies in Bulgaria, which are able to offer a wide range of services at competitive prices. Another trend is the growth of the startup ecosystem, with a number of innovative companies emerging in the country in recent years.

Local special circumstances: Bulgaria's location and proximity to major European markets make it an attractive location for IT services companies looking to expand their operations. The country also benefits from a highly skilled and educated workforce, with a large number of graduates in IT-related fields. In addition, the Bulgarian government has implemented a range of measures to support the development of the IT sector, including tax incentives and funding for startups.

Underlying macroeconomic factors: The Bulgarian economy has been performing well in recent years, with steady GDP growth and low levels of inflation. This has created a stable business environment, which has helped to attract foreign investment and support the growth of the IT Services market. In addition, Bulgaria's membership of the EU has helped to facilitate trade and investment with other European countries, providing further opportunities for companies operating in the IT sector.

Methodology

Data coverage:

The data encompasses B2G, B2B, and B2C enterprises. Figures are based on enterprises' technology spending on products, consulting, and outsourcing services.

Modeling approach / Market size:

Market sizes are determined through a combined top-down and bottom-up approach, building on a specific rationale for each market segment. As a basis for evaluating markets, we use annual financial reports of key players in the industry, Statista's primary research and surveys, and IT associations. In addition, we use relevant key market indicators and data from country-specific associations, such as GDP, internet users, and telecommunication. This data helps us estimate the market size for each country individually.

Forecasts:

In our forecasts, we apply diverse forecasting techniques. The selection of forecasting techniques is based on the behavior of the relevant market. For example, the exponential trend smoothing method is used based on the market data characteristics. The main drivers are the GDP and its sector composition, internet penetration, the level of digitization, and the attitude toward IT security.

Additional notes:

The data is modeled using current exchange rates. The market is updated twice a year in case market dynamics change. The impact of the COVID-19 pandemic and the Russia-Ukraine war is considered at a country-specific level.