The Bulgarian Association of Software Companies (BASSCOM) has presented its regular annual report on the state of the software sector in Bulgaria – BASSCOM Barometer. The key findings from this report indicate that 100% of software companies in the country have adopted artificial intelligence. The data for 2024 were presented to leaders of BASSCOM member companies and partner organisations at a special conference.
Highlights from the BASCOM Barometer
The software sector in Bulgaria is experiencing growth that surpasses the overall economy. This is evident in several impressive statistics: In 2023, the industry reported a 16.5% growth in total revenues against a forecast of 12%. For 2024, software companies’ revenues are expected to increase by another 12.4% and reach BGN 9.7 billion, with over 80% coming from exports.
In addition, the sector is growing, with 451 new software companies established and 2,675 jobs created over the past year. The software industry leads in research and development (R&D) investment and contributes most to Bulgaria’s service exports. Furthermore, software companies pay more than three times the national average in taxes and social security contributions.
Notably, 100% of software companies nationwide have adopted artificial intelligence. These highlights are featured in the BASSCOM Barometer | Annual Report on the State of the Software Sector in Bulgaria, conducted for the 16th consecutive year. The data for 2024 were presented to leaders of BASSCOM member companies and partner organisations, with Ekaterina Zaharieva, the European Commissioner for Start-ups, Research, and Innovation, as a special guest at the event.
Financial results and forecasts
In 2023, Bulgaria’s software industry generated revenues exceeding BGN 1.23 billion, reaching a total of BGN 8.7 billion. The forecast for 2024 anticipates a growth of 12.4%. Investors support the sector from 34 different countries, with the most significant contributors being R&D centres from the USA, the UK, Germany, France, and the Netherlands. In particular, nearly one-third of Bulgaria’s total service exports originate from software products and services, which account for 85% of the sector’s revenues.
Support from the European Commission
Ekaterina Zaharieva discussed the Commission’s current focus on enhancing competitiveness through innovation, particularly within innovative sectors like software companies. She announced that she would present a new European Innovation Act to improve the framework for innovative companies and make it easier to attract capital and talent. A European Innovation Council has also been established to fund European innovative companies during their growth phase. Next year, the funding ceiling will increase from €15 million to €30 million.
Visa policy and talent
Ekaterina Zaharieva emphasized the significance of a unified European visa for attracting highly qualified specialists, essential for the sector’s growth. She stated that enhancing competitiveness cannot be achieved without training and retaining talent.
Educational initiatives
The Chairman of the BRAIT Board, Dobroslav Dimitrov, emphasized the need for educational reform and the establishment of at least ten technology schools. These schools will focus on various fields, including IT, energy, mechatronics, and space. The goal is to invest in children’s talents and develop the skills needed for the future.
Bulgaria’s software sector continues to grow and plays a key role in the country’s economy. Support from the European Commission and efforts to reform education are essential for its sustainable development.
About BASSCOM
The Bulgarian Association of Software Companies (BASSCOM), established in 2001, represents over 150 software firms, including educational institutions and innovative startups. Bulgaria’s software industry boasts global competitiveness and offers significant professional growth opportunities. BASSCOM aims to promote the industry, enhance the educational system, implement e-governance, and establish Bulgaria as a high-tech destination for developing valuable software products. Sirma Group Holding is among the association’s founders.
Read the BASSCOM Barometer presentation here (available in Bulgarian).
