Outsourcing Industry Grows by 18.2% Last Year

ESD 13:27:01 30-10-2018

Outsourcing Industry
Grows by 18.2%
Last Year

Sofia, October 30 (BTA) - The outsourcing industry in Bulgaria grew by 18.2 per cent in 2017, generating 4.8 per cent (2.1 billion euro) of the country's GDP and paying 7.9 per cent of the wages in the national economy, Bulgarian Outsourcing Association President Ivailo Slavov told journalists on Tuesday.

In 2017, the country's outsourcing industry employed 67,000 people in 477 companies. The number of employees is expected to reach 70,000 in 2018.

These are mainly people aged under 30 and earning a monthly wage of between 1,500 and 2,500 leva, Slavov said. Other speakers at the news conference said the average monthly wage in their companies exceeds 4,000 leva.

Only 16 per cent of the work of outsourcing companies in Bulgaria is related to telephone services. The remaining 84 per cent of their activities generate higher added value by creating knowledge products and database management output, Slavov said.

Back in 2013, the sector generated 2.9 per cent of GDP. By 2021, it is expected to produce almost 8 per cent (4 billion euro) of GDP by using a workforce of 80,000 people.

According to Slavov, the outsourcing industry is working very well with the local authorities, and the companies are setting up offices on the local level. The main problem is finding skilled workers, which applies to the whole national economy.

The politicians' decision to raise the maximum contributory income in 2019 came as a surprise to businesses and they find it difficult to calculate this new expenditure item, Slavov noted.

The future growth of the outsourcing industry depends on the talent of employees and the ability of their managers to sell that talent in the best possible way, economist Luchezar Bogdanov said. The industry expects a 30 per cent increase in employees, which is a great challenge, Bogdanov said. With other businesses paying larger and larger wages to skilled workers, the outsourcing sector has to compete with other industries in recruiting staff.

In order for outsourcing companies to be able to recruit staff in Bulgaria, they should let young people know that the industry will stay here and will develop, Bogdanov advised. LN/VE

Source: Sofia