Bulgaria is gaining a lot of attention as next BPM destination. According to Colliers International logistics and industrial real estate over view report, the Eastern European country Bulgaria is attracting big corporations to turn their focus to service providers of the country for managing their business processes. It is said that many big names from the production industry have come forward to set up their production facilities in Bulgaria.
Bulgaria has been a favorite IT destination for companies from Western European countries since 2005. With years of experience, the service providers expanded their service portfolio and the number of suppliers has also increased over the last few years.
Now, the Bulgarian BPM service providers offer high-end business process solutions. The services offered include applications support, customer care, data capture integration and analysis, data center support, desktop maintenance, engineering services, finance and accounting services, human resource, procurement, real estate and telecommunication network support.
As per the statistics released by the Bulgarian government, there is a steep increase in the demand for procurement, finance and accounting and customer care services offered by the Bulgarian BPM providers in the global sourcing market.
It is expected that the high performance delivered by the local as well as foreign BPM providers is likely to attract more foreign investments and BPM projects for the country.
What are the competitive advantages of the BPM industry in Bulgaria?
There are several reasons as to why companies prefer Bulgaria over other European BPM destinations for business process management. One of the main and prominent reasons is the low labor cost.
According to a report, Bulgaria has the lowest labor cost when compared to other BPM destination of European zone. The salaries of the Bulgarians are six times lower than the other BPM destination in the European zone. This in turn reduces the operating cost of the business processes. Other advantages include:
- The highly skilled and professionally trained workforce enables the BPM providers of the country to deliver quality services. The multilingual workforce allows the BPM providers to offer services in different European languages.
- The geographical proximity to Western countries and cultural similarity it shares with some of the US countries makes it a favorable destination for the Western European and some US companies.
- A stable political and economic environment attracts foreign players in the sourcing industry to make investment in the country. The government provides incentive and tax concession for the companies that offer BPM services. As part of promoting the industry, the Bulgarian government in 2010 reduced the corporate tax from 19.5% to 10%. Moreover, the membership in the European zone has harmonized the legal framework of the country with that of the EU legislation.
The perfect combination of low cost, skilled and multilingual workforce, cultural and geographical proximity and favorable business environment is likely to attract more foreign investors and shape the BPM industry as highest revenue generator sector for Bulgaria in future.
Some of the major BPM players in Bulgaria are:
- Hewlett-Packard: HP has set the IT service delivery center in the capital city of Bulgaria, Sofia.
- IBM: IBM has also set their IT service delivery center in Bulgaria.
- EXL Service: They deliver finance and accounting services from their delivery center in Bulgaria.
- Plus Server: They offer Linux server help desk and call center services from the delivery center in Bulgaria.
Also see exchange rate of Euro.