site.btaBulgaria Digitizing Rapidly in Recent Years – Independent Report

Spending on information technology in Bulgaria's public and private sectors in recent years shows that the country is undergoing a rapid digital transformation, according to a report published in April by CBN Pannoff, Stoytcheff & Co, an independent business and market analysis agency.

In the period 2021-2025, a total of 1.578 billion euro was spent on computer hardware, software and IT services in the national economy under 8,801 contracts following bidding procedures conducted in accordance with the Public Procurement Act, the report says.

The contracting parties were in the sectors of government, business, healthcare, education and judiciary, according to CBN's own classification.

The survey shows that 2025 was another year of historical highs in the number of IT deals and their value. The year saw 168 contracting parties awarding a record 2,487 contracts under the Public Procurement Act for the supply of computer hardware and software and the provision of IT services by 356 contractors.

The share of IT services has been decreasing while the percentage of hardware supplies has been growing swiftly. The highest increase in hardware sales is reported in the education system, where STEM projects abound.

The analysis indicates a sharp rise in contracts worth up to EUR 100,000 and a decline in the share of deals priced at over EUR 5 million.

The government sector accounts for a decreasing share of IT expenditures. The opposite trend has been observed for business organizations and the education sector. The judicial system and healthcare are falling tangibly behind.

A steep rise is reported in hardware sales conducted through tenders under the Public Procurement Act as a percentage of the total domestic hardware market. In 2025, the rise was by almost 80% compared with 2023, CBN says.

In 2025, the largest contracting party for IT hardware, software and services as per the Public Procurement Act was the government, which spent EUR 96.977 million in taxpayers' money under 50 contracts.

Overall, the largest contractor won 59 deals throughout the year, totalling EUR 61.388 million.

The five largest system integrators earning income under the Public Procurement Act began a process of market redistribution in 2024, which deepened in 2025. The gap between the top two and the next three became considerable last year.

Between 2023 and 2025, the value of digitization contracts implemented under the Public Procurement Act as a percentage of GDP grew by one-fourth, which is a clear sign of expanding investments in the digitization of Bulgarian society, CBN concludes.