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COMPUTERWORLD | Articles | ICT Watch 2016
26 Apr

Bulgarian IT business is shrinking, the fall in the telecom sector continues

2014: still another year in which the cloud and outsourcing services, as well as other activities for foreign customers help the local IT business to survive

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By Vladimir Vladkov

3.82 billion BGN (less than 1.95 billion EUR) was the total telecom and ICT revenue in the 2014 edition of Computerworld Bulgaria ICT Top 100 ranking. The turnover for 2014 of the IT sector reached 1.56 billion BGN (797.6 million EUR) and the telecommunications contributed 2.26 billion BGN more (1.16 billion EUR). Preparing the ranking, Computerworld Bulgaria gathered financial data concerning 2014 from IT 105 companies (versus 106 in 2013 and 126 in 2012), while statistics was available about only 7 telecommunication operators.

The total turnover of the ICT companies in the 2014 ranking is close to 1.56 billion BGN, which is a 0,76% drop compared to the total of 1.57 billion BGN revenue in 2013. For the first time two segments – distribution of IT hardware, software and communication products and outsourcing services (incl. cloud services as PaaS, IaaS и SaaS), have almost equal shares of one fifth in the total revenue.

The other lucrative business – software development, also owes its success to foreign clients, and in 2014 it has generated over 18.2% share in the total IT market revenue.

System integration has regained part of the lost positions, as the income from this project-based business makes up 17,4% of the entire IT market turnover in ICT Top 100 ranking for 2014. Many companies with local expertise start to execute successful projects in abroad – from neighbor countries Serbia, Macedonia, Bosnia and Herzegovina, to Germany and Switzerland and even have reached exotic destinations like Malawi and Mongolia.

The IT export revenue marks a humble rise of 10% in 2014 (versus the 36% jump in 2013), the main drivers of the increase being HP Global Delivery Bulgaria Center and Datecs. These two companies are on top of the IT exports list for yet another year, followed by VMware Bulgaria, CSC Bulgaria, and Fadata which has reached the 5th place in this ranking.

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