New Horizons for the Bulgarian IT Sector

On March, 26-27th Bulgaria will host the first of its kind IT Hub Connect conference. It will initiate the business exchange of ideas and opportunities among Bulgaria, India, USA.

Bulgaria, India, USA

India is business – its IT industry generates USD 154 mln, and there are 11,5 mln people involved in it.

Bulgaria with its 46 000 people in the IT sector and with 600% growth is the IT Hub of the Balkans. Thus, it is the gateway for Europe and for India.

USA is the biggest player, the largest tech companies are based in the States, and the exhisting opportunities of USA and India are very close.

The Bulgarian Presidency of the EU, as well as its priorities for digitalization, for youth development, and for the West Balkans is a logical platform for IT Hub Connect to happen.

India’s economy grows faster than China’s: in 2017 it has 7,5% growth, and they expect 8% in 2018.

“India is a market economy,” says Peter Ivanov, Executive Director, AmCham Bulgaria. “But why America and India? In the Silicon Valley the Indian community is one of the biggest, and Indians take the leadership in many technological companies. Also, India successfully attracts US tech companies. Besides, Bulgaria has well established traditions with India. So, the parallels in front of the both countries are clear – focus on IT, on people, and on joint opportunities.”

IT Networking

There is some visionary in the basis of the reviving of the Bulgarian-Indian relations in the IT sector. Borislav Boyanov makes parallel with the words of the Indian Prime Ministers Modi who addresses the Israeli Prime Minister Netaniahu: “If we combine our scale and skills with the technological thinking of Israel, than the sky is the limit.” How about if we replace Israeli with Bulgarians? We have very good achievements and we are also called the Silicon valley of the Eastern Europe. It is seen than in the outsourcing sector we have successful presence of companies with Indidan origin and capitals like Sutherland, and others. At the IT Hub Connect the participants can communicate with other potential clients like telecoms, banks, developers, etc.

Opportunities for Bulgaria in the Digital Era

2,5% of the GDP of Bulgaria is generated by the IT industry. The Digital Economy equals big and small countries. It allows to companies from small states in which the government invests in the IT sector, to enter the global market. The borders are diminishing already, and the technologies over pace politics and regulation.

The business aims to have open dialog on the regulation matters that European Commission tries to impose on the digital economy. These are topics that concern both companies that generate trillion dollars and Bulgarian IT firms. Because some research says that in short term the share of the IT in Bulgaria’s GDP will reach 4,5%.

Why not invest in Bulgaria, rather than Asia?

If you remember, back in 2007 The Economist has an article titled “Why not invest in Bulgaria, rather than Asia?” It discusses India, China, and other places, and it points out that if you are looking for quality, your place is Bulgaria. But if you are seeking quantity – than you focus on Far East. If we combine the quality with the quantity, I think we could have one good result, is Mr. Ivanov’s perspective.

The role of the state in the digital economy

The state itself is hardly to regulate an economy with fast growing start-ups and innovations. We expect during the IT Hub Connect to be presented the Israeli experience and model, which we are studying, commented also Petar Ivanov.

It is seen that the IT companies are doing great. If we see the environment that is being created in the US, it is visible the essential role of the state and government there. In such a way they attract talents. I think that our government realizes the role that it should have and could play, emphasized Mr. Boyanov.

Continuity and Decisions

Using the networks of AmChams in Europe, as well as upgrading the recommendations of the AmCham in EU, we aim at making such policies that emerge from the dialog between the business and institutions. That is the way for mutual cooperation between the regulators and the technological companies. Such new policies are to be in favor of the people, and for the industry, concluded Mr. Ivanov.

Organizers’ ambition is to use the facilitation platform of the Bulgarian Presidency of the Council of the EU, in order such a dialog to successfully continue when Austria, Romania chair it.

Highlights of the interview at BloombergTV Bulgaria “Club Investor” show of Peter Ivanov, Executive Director, AmCham Bulgaria, and Borislav Boyanov, IBBC, with Ivaylo Lakov.

Full article can be found here.

Source and Video: BloombergTV Bulgaria