site.btaBulgaria's IT Sector Has Considerable Competitive Advantages over Other Countries, Expert Says

Bulgaria's IT sector has considerable competitive advantages over other countries, Viktor Dimitrov, Executive Director of the Eastern Europe Global Delivery Network of US-headquartered information technology company DXC Technology, said in an interview for BTA. His company is one of the largest employers in Bulgaria, providing 5,000 jobs.

Admitting that the Bulgarian IT sector is experiencing a staff shortage, Dimitrov noted that this is not very different from the situation in the most developed economies. He said: "It is true that we cannot measure up to the United States, but we have witnessed intriguing things over the last year. My company, in particular, has managed to attract staff from more developed economies such as Poland and Italy. We have between 15 and 20 Italians and Poles in Varna. They wanted to come to this specific location. Interestingly, they are now encouraging friends, relatives and acquaintances to join them here."

The expert argued: "We in Bulgaria have considerable competitive advantages over other economies in Europe. I am referring to the cost of labour in relation to the quality of our services. This, in itself, attracts quite a lot of foreign investment to the IT sector." Dimitrov called on the government to use its administrative leverage to help the industry avail itself of the interest of potential foreign employees from countries in and outside the EU.

He said his company finds it important to work with universities. Out of more than 800 employees it recruited last year, between 80% and 90% came straight from university. "We are using the 'home office' method of work, which allows us to partner with absolutely all education establishments in Bulgaria. Over the last two years, we have had internship programmes for undergraduates, offering the minimum wage to those who want to work with us and receive training at the same time."

Dimitrov said his company is satisfied with the standard of education provided by universities in Bulgaria.

Discussing the laws governing the business environment, Dimitrov said the authorities have legislated a highly competitive environment for the IT business. "I am talking about the flat tax, which gives us a competitive advantage over other similar locations," he said. According to him, taxation differences make the Bulgarian IT sector more competitive than the one in Poland, although the comparison is between a country of 6-7 million people and a nation of 40 million. The same applies to Bulgaria and Romania. "That is why my company has chosen Bulgaria. Here, we have far more people than in Romania and Poland. But the picture may change abruptly if these conditions are altered," Dimitrov said.

The expert was also asked to comment on the development of artificial intelligence and Economy 5.0. He said progress cannot be stopped. "We should try to be at the forefront in adapting to it," he insisted. There is nothing to fear, he said. "Far from that, I would say that it will lead people to more creative activities, highly intellectual ones, rather than leaving them to engage in manual labour."

Dimitrov said it is not a myth that Bulgarian IT experts are among the best in the world. (As for Bulgarian computer hackers, he is not sure.) He estimated that Bulgaria is among the top three countries in the world for number of IT experts per capita. He noted that people working in other industries often move to the IT sector, where income levels are higher. "This is good both for the business and for the people. It creates a competitive environment which is conducive to raising people's incomes and brings more employees into the business." Dimitrov concluded that the movement of labour across economic sectors is a win-win process.

"Circumstances drive us to do the best for our employees. If the people are not happy, they just quit, and the company has a problem. Therefore, the employers do the best for their employees, which is not necessarily the case in other industries," Dimitrov said.

"Bulgarians who went to work in other countries are coming back. Years ago, they had no career opportunities in Bulgaria and reasons to stay here, but now, they are coming home. EU membership and the flat tax have put Bulgaria at the top," he said.