Capability Creativity Maturity 14 September 2011 Sofia, Bulgaria Bulgarian Association of Software Companies (BASSCOM) Bulgarian IT Industry Barometer 2011

Introduction Participants Financial Statistics Human Resources Forecasts Contents

Overview Bulgarian IT Industry Barometer 2011 Third edition of the Bulgarian IT Industry Barometer Provides statistics for the period , and forecasts for 2011 Conducted by GOPA Consultants, Germany for the Bulgarian Association of Software Companies (BASSCOM) Survey conducted in the period March – May 2011 Participants: 38 BASSCOM and Bulgarian Web Association (WBA) member companies

Introduction Participants Financial Statistics Human Resources Forecasts Contents

Participants Barometer participants represent ~1/3 of the Bulgarian software industry *Data provided by the Bulgarian National Statistics Institute (NSI) for sector Software development (code 62.01) for 2009 ** Data provided by Barometer participants for 2009

Participants by Stakeholder 74% of the companies have a majority of Bulgarian ownership 13% of the companies have stakeholder control outside Bulgaria The same number of companies (13%) work only for their parent company

Introduction Participants Financial Statistics Human Resources Forecasts Contents

Average Sales Average sales per company (BGN 000’s): 2.6% increase between 2008 and % increase from 2009 to 2010

Average Profit Average net profit per company (BGN 000’s): 3%-increase from 2009 to 2010

Export Export (% of Total Sales) ~ 50% of total sales come from exports Distribution between Domestic market and Export is rather stable through the years

Export Destinations Export destinations (% of exports): Approx. 60% to Europe (declining) Approx. 35% to North America (increasing)

Export by Product/Service Export Product/Service (% of exports): Increasing share of software product exports indicates a mature IT industry

Introduction Participants Financial Statistics Human Resources Forecasts Contents

Number of Employees Number of employees NSI – data provide by the National Statistics Institute for sector Software development (code 62.01). No data for Barometer respondents – number of employees remains unchanged from 2009 to 2010.

Salary Change Average monthly salaries change (%) : +5.9% (2009/08), +2.3% (2010/09), and +8.1% total

Introduction Participants Financial Statistics Human Resources Forecasts Contents

Sales Projections 2011 Sales projections - expected change in 2011 compared to 2010 (% of respondents) Overall positive expectation for sales (domestic market and exports): 81% of companies expect growth in total sales for 2011 Most (54%) expect a moderate increase of up to 15%

Employee Projections 2011 Expected change in number of employees for 2011 compared to 2010 (% of respondents) Majority (70%) expect an increase in the number of employees: Most (44%) forecast an increase of up to 10%

Salary Projections 2011 Change in average salaries in 2011 compared to 2010 (% of respondents) IT Specialists 87% of companies expect an increase in the salaries of IT Specialists, ¾ forecast increase up to 10% Non-IT professions: companies expect less change NO company expects decrease of salaries.

Expected Impact of External Factors Most influential factors: Economic situation, both global and domestic HR Market

Capability Creativity Maturity Georgi Zahariev Board Member, BASSCOM Thank you for the attention!