Bulgaria is among the top destinations in Central and Eastern Europe with the greatest potential to attract investors in the business process outsourcing (Business process outsourcing – BPO). Sofia and Varna, next to Belgrade, Bucharest and major regional centers Poland (Wroclaw, Katowice, Olsztyn, etc.) are among the major “players” in the regional market and are ideal locations for the construction of new centers for outsourcing, says in a new report of the consulting company Colliers International.
Bulgaria remains relatively strong position in Doing Business ranking by the World Bank for the period 2006-2013, the same time other important regional players who are fighting for the attention of investors in the sector decreased in the rankings (Slovakia, Czech Republic and Romania), indicate in report.
The most visible improvement in business conditions, however, are in Ukraine, which has also emerged as one of the emerging destinations for outsourcing industry as it stands higher in the rankings of the World Bank from countries like Brazil and India – countries with a tradition in the industry .
Experts point out that Bulgaria, together with Romania, Serbia and Ukraine offers companies in the sector access to skilled labor and quality offices at low cost compared to the leading players in the sector in Central and Eastern Europe such as Poland, the Czech Republic, Hungary and Slovakia, for example.
In Bulgaria and Serbia as reported the highest proportion of graduates with technical specialties. This is the basis of the potential of the two countries to develop as the leading destinations in the outsourcing sector.
“As a leading provider of information technology to the former Soviet Union, Bulgaria has a wide range of specialists with technical knowledge. This is the main reason companies like Samsung, SAP and Sutherland to outsource part of their operations in the country, “says the report.
“This is how well a peripheral markets can compete with leading depends not only on their operational capacity and price, but also by the quality of the market by marketing their local agencies to invest,” the experts report. So far the most successful practice demonstrates the Polish State Investment Agency, which stands out as the most proactive in the region.
Outsourcing industry in Central and Eastern Europe is dominated by the IT and telecommunications sector with a share of 46% of all companies represented in the region. The share of companies in the banking and insurance sector reached 23%, followed by the sector of professional business services (13%). The remaining 20 percent is distributed among the energy, manufacturing and other sectors of the economy.
As a key driver of the outsourcing industry in the region is emerging IT sector. Individual destinations for outsourcing industry seems increasingly successful specialize in attracting companies from certain sectors. In Gdansk as concentrated mainly companies with activities related to life sciences, Katowice attract companies from the manufacturing sector and Poznan – oriented media companies.
“Registering and signs of growth in export operations ancillary sectors for retail and logistics, which we believe is a direct result of the growth of online commerce,” says the report.
The potential for the development of the outsourcing industry in Central and Eastern Europe is huge, says the report. The region present in one third of the world’s leading companies in the sector, according to the company.
However, the new cloud technologies and automation of routine administrative and statistical processes has increasingly changed the industry.
Companies continue to shift to places with lower operating costs. Some experienced operators in the outsourcing and offshoring industry believe, however, that generic BPO processes will be almost entirely automated within the next five years. This could be somewhat reduced demand for office space from companies in the sector, on the other hand will increase the demand for space to open centers for data processing experts predict.