2014BULGARIAN ICT WATCH
Transcription
2014BULGARIAN ICT WATCH
2014 BULGARIAN computerworld.bg/inenglish ICT WATCH STATISTICS National Statistical Institute: A glimpse into the ICT usage in enterprises in Bulgaria in 2013 The NSI observed enterprise social media usage in Bulgaria for the first time in 2013 I n 2013, the National Statistical Institute of Bulgaria carried out the tenth consecutive survey on information communication technologies (ICT) usage and e-commerce in non-financial enterprises with 10 or more employed. The same survey was conducted in all European Union member states, based on a common methodology, which ensured international comparison of the results. In January 2013, the relative share of enterprises having Internet access reached 89.1%, or with 1.7 percentage points more in comparison with the previous year. There were improvements of the type and speed of connections used – 77.9% of the enterprises were using fixed broadband connection. Mobile broadband connection via a portable device was used by 33.3% of the enterprises. In comparison with 2012, this indicator showed growth of 7.9 percentage points. ICT were the most widely used by the largest enterprises (250 or more employed), 99.1% of them had Internet access, while in small enterprises (10-49 employed) this relative share was 87.4%. In 2013, 27.8% of the persons employed used a computer at least once a week for executing their work duties and 23.9% of the employed have been granted access to the Internet, as there have been an increase in comparison with the previous year, respectively 1.2 and 1.4 percentage points. Small enterprises had the highest relative share of employed who were using computer (30.0%) and the highest relative share of employed using Internet – 26.8%. More than half of the enterprises (52.3%) maintained their own webpage or website. Of the largest enterprises 78.7% had their own website while for the middle sized ones this relative share was 64.7%, and for the small ones it was 48.6%. E-exchange of information and services with the public administration Enterprises intensively used Internet for interaction with public authorities, according to the NSI. ICT Bulgaria 2014 From all enterprises with Internet access, 82.5% electronically obtained information from public authorities and the relative share of enterprises using the possibility to download official forms (tax, accounting, statistics, etc.) was 86.4%. The interest in submitting completed forms electronically increased, and a growth of 2.0 percentage points was registered in comparison with 2012, and the share of enterprises using this service reached 89.0%. There was still a small relative share of enterprises that were using Internet for accessing tender documents and specifications in electronic procurement systems of public authorities. Although there was an increase of 0.9 percentage points in comparison with 2012, only 11.1% of enterprises used such services. Almost all large enterprises used electronic services provided by public authorities – 96.2% returned filled in forms, 94.4% obtained forms and 93.0% obtained information via the Internet. E-invoicing In January 2013, 28.2% of the enterprises sent electronic invoices, and one third of them sent them in a standard structure suitable for automatic processing. Enterprises that received e-invoices suitable for automatic processing were 43.5%, which is with 16.2 percentage points more in comparison with 2011. Social media The NSI observed enterprise social media usage in Bulgaria for the first time in 2013. The research referred to the usage of web-based applications or communication platforms for connecting, creating and ex- changing content online with customers, suppliers or partners, as well as within the enterprise. According to the NSI, every third enterprise (33.4%) maintained some social media presence on networks like Facebook and LinkedIn. The share of enterprises using multimedia content sharing websites (YouTube, Picasa, etc.) was 10.2%, and this opportunity was mainly used by large enterprises (15%). The usage of blogs and wiki based knowledge sharing tools was not as widespread. They were utilized by 5.4% and 4.9% of the enterprises, respectively. Large enterprises were the leaders in social media usage – 15% of them used multimedia content sharing websites, 8% took advantage of blogging or microblogging platforms, and 7.8% leveraged wikibased tools for sharing knowledge. However, they were a little less active than medium enterprises (50-249 employed) in social networking, as the relative shares were respectively 35.9% and 36.4%. A total of 52% of all enterprises used social media to develop their image or for marketing, 42.8% relied on it for interacting with customers, and 18.7% used social media to involve customers in product and service development or innovations. E-commerce More and more enterprises use the Internet to improve their business and to facilitate customers and suppliers, the NSI said. The survey showed that enterprises’ online sales increased their share by 0.2 percentage points in comparison with the previous year, as 8.0% of all enterprises received orders online. The total value resulting from online sales was 4 409 million BGN. A decrease of 0.56 percentage points was observed in the share of those enterprises which made online purchases – 6.8% of enterprises purchased goods or services, but the total value of online purchases increased in comparison to the previous year and was 2 285 million BGN. 3 BUSINESS Bulgarian Small and Medium Enterprises Promotion Agency: The Bulgarian ICT business is poised to grow fast T he information and communication technologies (ICT) sector in Bulgaria is contuning its progress as one fo the most dynamically developing sectors and has a growing share in the state economy. Despite the crisis, it has been performing pretty well and has a serious potential for innovations and export-oriented growth. In this context, the cooperation between state institutions, sector organizations and companies is really important. Supporting the development of Bulgarian companies’ export potential and identifying and reaching new market segments are exatly among the main directions in the activities of the Bulgarian Small and Medium Enterprises Promotion Agency (BSMEPA). The main components of that support are company trainings and organizing: national stands for specialized international fairs; trade missions abroad; and domestic business forums. Such initiatives allow Bulgarian enterprises show the best of their production, create new business partnerships, learn about best practises and strengthen their positions both on the domestic market and abroad, noted Evgeni Ivanov, Executive Director of BSMEPA. The participation of Bulgarian companies in large international fairs, such as CeBIT Bilisim in Turkey, CeBIT Hannover in Germany and Gitex in The UAE ОАЕ, has gradually become a tradition with the help of the agency and the number of domestic firms taking part in them has been growing. Specifically for the companies in the ICT sector, BSMEPA has organized a trade mission to Israel during which the participating Bulgarian companies had the chance to make direct contacts with potential partners and strike new deals. Additionally, in 2014, the agency plans to organize a trade mission to The USA in a cooperation with the Bulgarian Association of Software Companies (BASSCOM). Bulgarian ICT companies, which are mostly small or micro companies, usually have high-level R&D achievements 4 and well educated personnel. Among the more significant of them, some are subcontractors in foreign projects, while others are specialized in importing, assembling, packaging and selling hardware products and solutions, as well as offering and implementing foreign software products and solutions. Most companies that develop software are micro or small sized. The larger companies include: Datecs, Daisy Technology, Tremol, Eltrade, Persy, Dinex, SET PCB Technology, Micron-20 and CKA, which, to a large extent, are in the business of producing own stationery, office and ICT equipment оборудване; JAR Computers and Risk Electronic, which are active in assembling, developing and selling hardware products; Specialized Business Systems, Bianor Holding, Orak Engineering, Latona Bulgaria and MicroAccount, which are specialized in developing both own and other companies’ software. The share of ICT export in total ICT production is higher than the respective ration in Bulgarian manufacturing, which is a clear sign that the ICT sector is strongly export-oriented. The top five countries which Bulgarian ICT companies export to are Germany, France, Italy, Spain and Turkey. Other important markets are Romania, The USA, China (including Hong Kong), Taiwan and Japan. The following ICT products and services are noticeable with their strong business potential and growing exports: educational software; software for insurance companies; ERP software; manufacturing MES software; data processing software; and innovation center set-up services. Another major trend in the ICT business in Bulgaria is outsourcing, which has been gaining momentum in the recent years. ICT Bulgaria 2014 LEGISLATION Invest Bulgaria Agency: FDI are up again, and changes around the Investment Promotion Law will make Bulgaria even more attractive A fter several years of slumps, foreign direct investments (FDI) in Bulgaria finally went up again in 2013 when they totalled 1 092.4 million euro, up from 1 070.3 million euro in 2012, according the latest preliminary data by the Bulgarian National Bank, published on 17 March 2014. It is noteworthy that the FDI 5-year decrease trend did not only cease but even reversed in 2013 and the year was marked by an increase of 22.1 million euro. Only 2-3 years ago, there were slupms of over 40%. The Invest Bulgaria Agency (IBA) expects that the total amount of FDI in Bulgaria will stay relatively flat year-on-year in 2014 and perhaps increase by up to 1015% on the back of the torpid European economies and the competition with our neighboring countries, mostly Romania and Turkey. By countries, the most significant foreign direct investments in Bulgaria in 2013 came from The Netherlands (815.2 million euro), Germany (135.5 million euro), The Czech Republic (80.7 million euro) and Russia (75.9 million euro). The largest net negative flows were from Austria (-58.8 million euro) and Switzerland (-51.5 million euro). By industry, Transport, storage and communication marked a serious net FDI jump in 2013 versus 2012 (412.2 million euro), Manufacturing investments followed with 188.5 million euro, and Mining and quarrying went up by 110.8 million euro. The IBA also saw a high growth in investment activities in 2013. The investment certificates the agency issued increased by 1/2 in comparison with the previous year. The number of these certificates was 15, which corresponded to a total of more than 1 000 new jobs. According to the IBA, in the short term, foreign investments in Bulgaria will mostly be export-oriented and will be in high-tech manufacturing and services, for example automotive production, information and communication technologies (ICT) and electronics, more specifi- 6 changes in the Investment Promotion Law cally medical and electrical equipment, as well as outsourcing. The largest foreign investors in ICT and business process outsourcing (BPO) in Bulgaria in 2013 came from The USA and The UK. The IBA has reported a redirection from IT support and call centers to more diverse services with more highly qualified employees and more added value. The latest successful example for this was the aquisition of Sofica Group by American giant TeleTech, which was aided by the agency. The new owner plans a triple increase of job positions in Bulgaria. Recently, the IBA has issued Class A investment certificates to two companies. One of them is Experian Bulgaria with its project for optimization and development of business processes and high-tech solutions which created 150 new jobs. The other one is IBM Global Delivery Center with a project called Sears that opened 300 new jobs. In ICT and outsourcing, the agency is currently working on five new projects where investments are not very big but only within several months will create over 1 500 new jobs for highly qualified specialists. Service centers in the areas of accounting, finance, human resources and data base processing will open soon. The growing interest of foreign companies to invest in Bulgaria is largely on the back of the new stimuli they got with the in February 2013. These modifications were in several directions: there was a drastic cut on the minimum sums for issuing investment certificates, which are a prerequisite for receiving the benefits of the state incentive measures; new economic activities from the services sector were encompassed by the law, so that they can also reap these benefits. These included releasing program products, accounting and combined office activities and call center services; investors received new options to recover their social insurance costs for a period of two years. Furthermore, very soon the new changes in the Rules for Applying the Investment Promotion Law will enter into force. They are aimed at decreasing the administrative burden for investors applying for certificates for high-class investments or priority projects through relieving the requirements for the applicants, the investment projects and the application documents. Following the changes, there will be a single application form that will include information about the investor, the project and the required declarations. In addition, there will be a new obligation for the IBA to immediately issue a statement that will help investors to get the necessary aid by the executive authorities. Moreover, the minimum investment threshold will be lowered for priority projects in manufacturing and in building and developing industrial zones and tech parks, and the requirements to the applicants with industrial zone projects will also be releived. After these changes enter into force, they will optimize the procedure for issuing investment certificates and will shorten the deadlines for reviewing projects, which even now are shorter than in some countries in Central and Eastern Europe. ICT Bulgaria 2014 – the easy anti-skimming protection In Europe, there is constant talk about a serious problem that affects every user of bank cards. The right word for the problem is bank card skimming. This is the most common offense in transactions and bank cards usage. In practice, it can be carried out quite easily. On the card slot of an ATM, an additional reader can be mounted (skimmer), which can copy the information on the banks cards magnetic stripe. Simultaneously a micro camera or a parallel keyboard will record the PIN number. This is all the information that is required to create a duplicate bank card and use it without the authorization of the real owner. In most cases, such equipment is undetectable by the users and they figure out that they have lost their personal information, only when it is too late. It is important to note that this type of theft can happen only through stealing of the information from the magnetic stripe. Worldwide, transactions occur through bank cards, which have a magnetic stripe or through bank cards, which have a m agn e t i c st r i p e and a chip. In comparison to the magnetic stripe, the Chip is extremely secure and there is no recorded case of the EMV chip being hacked. The two technologies coexist, because there is not a 100% coverage of chip reading hardware on a global scale and until those migrate, the two types of information carriers will exist on the bank cards. Until such time arrives, the unsecure magnetic stripe on the bank cards will continue to exist. For 2013 the estimated losses due to skimming on a global scale exceed 5 500 000 000 USD. The concentration of fraud is dispersed and there is no single country where it is not a problem. In Europe the average loss per skimmed ATM is around 36 000 EUR, while for the US it is around 50 000 USD based SkimProt OOD, Bulgaria, Sofia 1138, Gorublyane, Abagar 16 003592 930 7899 [email protected] www.skimprot.com o n i n fo r m a t i o n from EAST. This is a 20% increase in comparison to the statistics for 2012 for Europe and a 66% increase for the US. On the other hand the ATM Industry Association registered a 50% increase in investments for additional hardware security against skimming, which brings the total amount of equipped hardware to 41% of all machines in Europe. These statistics show a worrying trend and no real solution to the serious and continuous problem skimming. Regardless of all the investments and innovations in the sphere of anti-skimming devices, the battle against skimming is not going in the rights direction, as shown by the statistics. The problem is that all of those solutions are dependable on the hardware that exists and are not universal. This is why SkimProt is a great way to protect your own bank card and all of the control is with the end user, regardless of bank issuer, card type, country or ATM. SkimProt is a protective sticker, which is applied over the magnetic stripe of your bank card and guarantees protection against skimming. This occurs by hiding your personal information encoded on the magnetic stripe and the ATM will only use the information that is encoded on the SkimProt sticker. SkimProt instructs the ATM to use the information on the chip and not to use the one on the magnetic stripe. The information that is encoded on the sticker is absolutely non-personalized and if there is a skimming device, it will record that information, rather than your one. Even with the right PIN number, the information from our product is useless for the vigilantes. SkimProt functions with full transparency, it is absolutely passive and does not alter or change in any way the original information on the bank card. Its effect is instant and it does not require any activation or include any hidden expenses. MARKET OVERVIEW Bulgaria’s ICT business went down 3.6% in 2012 The ICT market heavily relied on export and EU funding for various projects in the private and the public sector T he overall 2012 revenue in the ICT sector in Bulgaria declined by 3.6% year-on-year in to 3.955 bln Bulgarian levs (just over 2 bln euro), according to the financial results of the 126 companies which submitted data for Computerworld Bulgaria’s ICT Топ 100 2013. The drop was on the back of the weakening revenues of all three mobile operators and the decreasing overall revenue in the telecommunication business by nearly 7,1% in 2012. It is important to notice that the results in the telecom sector are influenced by fact that it is devided into two parts – a large group of small businesses with annual revenues of 10-20 mln Bulgarian levs and another group of the leading five telecoms in the country with revenues of over 100 mln Bulgarian levs (BGN). The latter group includes Bulsatcom and Blizoo which have not publicly announced their financial data, nor have they revealed it in Bulgaria’s Trade Register in the last two years. NURTS Bulgaria is another important player whose 50 mln Bulgarian levs in revenue in 2012 is ex- IT Market Segments pected to grow with the start of the TV digitization in the country. At the same time, the information solutions and communication equipment market was marked by a slight growth of 4.3% in 2012 versus 2011. This positive overall result was mostly influenced by the leading 20 players, including ITA Engineering, Asbis Bulgaria, Solytron, HP Global Delivery Center, ITA Trade, Experian Bulgaria, Kontrax, and IBS Bulgaria, which together increased their revenues by over 111 mln Bulgarian levs. From a percentage point of view, ITA Trade achieved the highest growth of 680%, and ITA Engineering’s revenue went up by 609%. High percentage growth were also achieved by Telenova, IBS Bulgaria, Bianor, Balkan Services, Persy, Kontrax, and Methodia (all between 40% and 70%). A total of 71 from the 124 IT companies, which took part in Top 100 2013, managed to increase their total annual revenues in 2012, and the rest suffered declines, including large players, like CAD R&D Progress, Techno Pro, and Vilmat. Unfortunately, big companies, such as Most Computers, Printec, and Smartcom, did not submit data to participate in the ranking. On the other hand, Top 100 2013 saw some newcomers and returning companies, like S&T Bulgaria, ProxiAD, Software AG Development Center, Infragistics, Scale Focus, and Gravis Bulgaria. The telecom sector saw an overall revenue of 2.65 bln Bulgarian levs, or about 3.7% less than in 2011. Like we said, there is no data about Bulsatcom and Blizoo, which occupied the 4th and the 5th place, respectively, in 2010. Megalan and Spectrum Net, which were also among the larger telecom players in the past, are now merged into Mobiltel. The main negative factors on the telecom market in 2012 were the lower rates of interconnection between mobile operator’s networks, which were axed by the regulator, as well as the lower roaming revenues, again affected by regulatory 1,30% 13,48% 15,18% 19,80% 20,64% 2,62% 4,12% 7,06% 1,95% 1,85% 0,75% 1,79% 5,46% 2,58% 0,58% 24,18% 26,36% 23,93% 25,02% 0,80% 0,50% 8 Training&Consulting Hardware sales Software sales E-services Other Software Developers Distribution Telco from ICT Outsourcing SCS System Integration ICT Bulgaria 2014 Scalable IT solutions for small to mid-sized business Founded in 1995 in Varna, Bulgaria, our company has a rich experience in the development and integration of Business software solutions. Our clients rely on the flexible and integrated software, which includes the whole process of marketing, management and control of the organization. The research and innovations in the company have a significant influence on the systems developed through the years. Our latest products target improved efficiency in planning, management and supervision of online stores and the related warehouse infrastructure. The collaboration of ERP EXPERT M and the MAGENTO online store, enable highly effective online trading. Our System for warehouse logistics, control and automation optimizes the process of collecting goods and saves costs and time. It offers management and zoning of storage areas and workers, monitoring for activities and availabilities in real time, optimization of work process and much more. L A G O S W&E MAGENTO Extensions Integrated software solution for warehouse logistics, control and automation. LAGOSW&E is a multilingual software, developed to cover all processes and activities in the manual or automated (robotic) warehouses. All extensions for a successful online store This shop is one of the leading shops for online trading in the global Internet space and the best thing is that this product is OPEN SOURCE solution. We will briefly introduce the most common functionality of MAGENTO, and made further development of our company: Connection to ERP Expert M, send and confirm orders; Additional functionality to products import and export; Module for products attributes translation; Setting and adding supplier companies; Create specific prices for specific customers; Module RMA; Caching and accelerating the system; Module for creating user groups with specific prices and terms of payment; Adjustable content blocks, such as menus, pages, ads, blocks with products, promotions etc; Module allowing customers to change the design of the online store themselves; E-bay § Amazone connector (Afterbuy); EU Compliance & Regulations; Products 3D model display; Additional taxes; Additional modules and customization. Brief description of the main activities and functions: Work process speed up and tasks optimization; Highly parallel and scalable teamwork strategy; Optimization criteria considering the company profile and the goods on stock; Differential task list for each employee; Smart worker control; Automatically compiling and updating the task queues for optimal speed for carrying out the tasks; Fast interface for barcode readers for each operation; Wide range of methods for visualization suitable for different purposes and devices Desktop, mobile; Management and zoning of storage areas and workers; Real time activity monitoring; Real time statistics for every node; Table reports; Chart reports; Different methods for checkin products into warehouses. address: "Angel Kanchev" 11Str., ap. 13A Varna 9000, Bulgaria tel: +359 52 637125, +359 52 979510, +359 52 614777 е-mail: web: [email protected] www.expert-m.net MARKET OVERVIEW interventions. Another negative factor was end users’ and businesses’ weaker consumption. It is important to notice that during 2012 two of the largest telecom players – operators Vivacom and Globul – were in conversations to change ownership. Vivacom changed its owner at the end of 2012, and the management of the company was shaken in the middle of 2013. Globul was acquired from OTE by Norwegian telecom group Telenor. The deal is still pending regulatory approval in both Bulgaria and the European Commission, but no one expects any problems with it. If everything goes as planned, the acquisition will be closed in September and telenor will take over. The Globul brand, however, will not change, at least not in the short or the mid term. Among other telecom players in the chart, NURTS, NET1, Borica-Bankservice, and Cable SAT Zapad had growths. A total of 9,867 employees worked at the companies which were active on the telecom market and took part in Top 100 2013. The average efficientcy in the sector (revenue per employee) was 121,700 Bulgarian levs (62,200 euro), and the average monthly wage remained high at 2,261 Bulgarian levs (1,156 euro), including insurances and bonuses. Since we did not receive any data about the revenues from the different types of services telecoms offered in 2012, we used the report of The Communications Regulation Commission (CRC). It, however, only shows the overall growths or drops in the separate segments and does provide information about where some telecoms do better than others. The electronic communications market in 2012 was 2.822 bln Bulgarian levs, according to the CRC, which calculated the result on the basis of the data of 1,027 companies, or 89% of all registered companies on the telecom market. However, only 869 firms did provide e-messaging services in 2012, or fewer by 4% than in 2011. Some segments, like data transmission and/or Internet access services, packaged services, channel network services, access to satellite systems, and collocation services, enjoyed revenue growths. According to the CRC, the total volume of the electronic communications market was 3.6% of Bulgaria’s GDP in 2012. Voice communication services (fixed, mobile and other telephony) kept their leading share in the e-communications market in 2012. It had a share of 65.2% but suffered a drop of 4.8 percentage points versus 2011. Data transmission and/or Internet access services were the second largest revenue generator on the market in 2012. They had a share of 12.3% and went up by 1.6 percentage points. The third most important segment were packaged services, which made up 11.01% of the e-communications revenue in 2012 and increased by 2.9 percentage points. Radio and TV channel transmission and/or distribution services totalled 235 mln Bulgarian levs and had a 8.33% share. Top 20 Bulgarian ICT exporters by revenue in 2012 № Company 1 HP Global Delivery Center 2 Datecs 3 Stanga 4 Fadata 5 Sirma Group Holding 6 DZU 7 Experian Bulgaria 8 Proxiad Bulgaria 9 Software AG Development Centre 10 Nemetschek 11 Musala Soft 12 LIREX BG 13 Interconsult Bulgaria 14 Seeburger Informatik 15 Solytron 16 APCOM 17 Telelink 18 Scale Focus 19 VALI Computers 20 Microinvest Total ICT export revenue in Top 100 2012 (35 companies) vs the respective total revenue in Top 100 2011 10 2012 export in thousands EUR 117 048 29 728 7 989 7 427 5 741 5 338 5 243 3 800 3 634 3 583 3 467 2 932 2 898 2 388 2 214 1 307 992 757 698 411 €210.0 mln 2012 export in thousands EUR Change 109 648 39 845 7 906 6 977 4 858 6 281 n.d. n.d. n.d. 3 105 2 953 1 559 2 378 2 076 3 110 1 009 1 093 n.d. 549 234 €202.4 mln 6.7% -25.4% 1.1% 6.4% 18.2% -15.0% n.d. n.d. n.d. 15.4% 17.4% 88.0% 21.9% 15.0% -28.8% 29.5% -9.3% n.d. 27.2% 75.8% 3.8% Line lease services generated 42.41 mln Bulgarian levs, down 3.11% on the year. Total IT revenue went up by 4.3% year-on-year to 1.296 bln Bulgarian levs in 2012. This is also higher by 7% compared to 2010. The growth is logical given the slightly better results of the large IT players and the fact that some companies that had a bad year decided not to share their financial data. On the other hand, this year a number of newcomers and returning companies appeared in the ranking, such as ProxiAD, Experian, Software AG Development Centre, Infragistics, etc. They develop software and work primarily on foreign markets by which they leave a positive mark on Bulgaria’s image of a regional software development (and outsourcing) hub, also developed by companies like HP Global Delivery Center, Musala Soft, InterConsult Bulgaria, Nemetschek Bulgaria, Seeburger Informatik, Sirma Group Holding, Scale Focus, and of course Datecs and DZU, which are 100% Bulgarian companies and produce and export a lot of own software and hardware products. The IT firm that reported the highest revenue jump in percentage terms – 900% – is EOS Electronics, followed by ITA Trade, ITA Engineering and several newcomers (see chart on page 70). The average efficiency of the IT companies stayed relatively flat in 2012 compared to 2011 – 96,300 euro versus 97,700 euro revenue per employee, with the top five firms being POLYCOMP, Asbis Bulgaria, APCOM, Solytron, and ITA Engineering. The first four companies are distributors, which is typical in this category. The other firms in top 10 include ITA Trade, CAD R&D Center Progress, Mnemonica, Lancom Bulgaria, and MD Electronics. The overall profit on the IT market was over 102 mln Bulgarian levs in 2012, which means that these companies contributed more than 10 mln Bulgarian levs to the country’s treasury, given the 10% profit tax. Ordered by absolute value, the leaders were as follows: HP GDC, Borica-Bankservice, Datecs, ITA Engineering, ITA Trade, Fadata, Sirma Group Holding, Stanga, Lirex BG, and Global Consulting. Two smaller companies, however, took the lead in terms of having the highest profit marginin 2012 – IPT, Vida Electronics – followed by Global Consulting, and Quality House. Other firms that did well include Mistral Software, BoricaBankservice, ITA Trade, AS Systems, and Lema Trading. The average monthly wage in the IT sector in 2012 was exactly as high as in 2011 – 1,517 Bulgarian levs. ICT Bulgaria 2014 ICT MEDIA EVENTS Business and Technology in One! Save the Date! http://events.idg.bg/en Thursday r Septembe 2014 25 l na o i t a rn te n I 3 1 m Foru ation m Infor ity and r Secu e g Stora ria a g l Bu , a i f So th Thursd Novem ay 2014 ber 6 10th National Conference on E-Education Sofia, Bulgaria Latest Trends Outstanding Keynote Speakers New Contacts Events for Successful Business Octobe 2014 r Intelligent City Transformation Sofia, Bulgaria Thursday r Novembe 2014 20 al n o i t 4th Na ence on er Conf Cloud ologies n Tech aria g l u ,B a i f o S For more information: Yanka Petrovska Business Development Manager, International T.: +359 2 400 10 92; М.: +359 888 499 004; F.: +359 2 988 01 17; E-mail: [email protected] http://events.idg.bg/en HUMAN RESOURCES The winners and the organizers of TOP ICT Employer 2013 Meet Bulgaria’s TOP ICT Employers of 2013 SAP Labs Bulgaria was the best ICT and ITO employer in the country in 2013 I n 2013, for a second consecutive year, ICT Media and carreer web site and HR company JobTiger organized the TOP ICT Employer annual event in Bulgaria. The project, emcompassing a thorough survey, a ranking, a paper-issued annual magazine and a round table, followed the success of the initiative in 2012, and was carried out with the methodological competence of Audit Advice Associates (ААА) and with the assistance of the Ministry of Labour and Social Policy, the American Chamber of Commerce in Bulgaria (AmCham), the 12 Bulgarian Association of IT (BAIT), the Bulgarian Association for People Management, and the Confederation of Employers and Industrialists in Bulgaria (KRIB). velopment category, while Ericsson Telecommunications Bulgaria was announced the best in Telecommunications, Bulpros Consulting won the IT Services category, and 60K became first in IT Outsourcing. The contest had four categories and an overall TOP ICT Employer prize, The 2013 survey covered a total of 26 companies which was won by SAP Labs Bulgaria with a significant lead. The company was also crowned in the Software De- (as much as in 2012), and the number of polled employees went up to 2 151 from 1 771 in 2012. ICT Bulgaria 2014 HUMAN RESOURCES “We are happy that our company won the best employer prize three times in the ranking of Aon Hewitt Bulgaria. Now, for the first time, we have the honor and the pleasure to become a TOP ICT Employer. We represent the ICT sector and this is the greatest recognition we can get, I wish everyone the same,“ said Plamen Tilev, Managing Director of SAP Labs Bulgaria. “I think we offer good IT services and, inspite of being a young company – only three years old that launched with five employees – we are now more than 155,“ said Marin Raykov, Shared Services Manager at Bulpros Consulting. “I am happy to receive this award. It is important to us that this prize will show everyone on the market that everything that is happening is not bothering us, that growth is possible.” “This award is not new to us because we are winning it for a second year in a row,“ commented Georgi Nozharov, HR Manager at Ericsson Telecommunications Bulgaria. “We consider it a very serious prize since we have been trying for many years to position ourselves in this sphere and be a provider of ICT solutions, not just a telecom vendor. The award is the same as last year’s, but the things are not the same because our employees are now twice as more and probably by the middle of 2014 they will triple, as we are developing our team extremely fast. We are successful at this, despite the Bulgarian market, which is rather tough in terms of human resources, and the telecom sector is really challenging. However, I believe the things are positive for us.” “It is a great honor to receive this award,“ said John Gladwish, cofounder and CEO of 60K. “We got this prize thanks to the efforts of our entire young HR management team, as well as due to the culture we have been trying to build in the organization. This year 60K won several international awards, but I think this one here will be the most valuable to us, the entire team of 650 people.” The TOP ICT Employer project aims to identify the preferred ICT employers in Bulgaria, as well as to outline the major trends in HR management and development in the sector and to pinpoint the key zones where managers could improve their employees’ efficiency. In order to take part in the ranking, companies have to permanently employ at least 50 people, and a certain minimum percentage of them have to fill in the survey sheet. The initial methodology in 2012 was based on assessing three key factors and the interconnections they have: company results; the integration of a company’s strategy within its own organization; HR management policies and procedures and employee engagement. In 2013, a fourth key factor was added – the proactivity of a company following the results of the survey. The weight these factors in the final ranking in 2013 was: 1. Employee engagement poll – 45% 2. HRM poll – 20% 3. Company results poll – 10% 4. Follow-up action plan – 25% The best ICT employer of all participants was the one that achieved the highest overall score. The same goes for the winners in the four categories. The award ceremony, which took place in October in Sofia, was preceded by a round table on the topic of “Training, development and communication – the main challenges in the IT sector!“. 2014 Become JobTiger and ICT Media are searching for the leading ICT employers in Bulgaria For more info: topictemployer.bg tel: 02 491 80 14, 02 400 10 90 ICT Bulgaria 2014 Organizers: With the support of: 13 SOFTWARE BUSINESS BASSCOM: Bulgaria’s software industry is prospering but needs more people T he software industry is among the few Bulgarian industries which have a high added value, are competitive worldwide and provide exceptional opportunities for professional development. During the recent years, it has proven itself as one of the most successful industries in the country, recognizable as a reliable partner at an international level and offering high added value to its clients. One of the key trends continuing from 2013 and previous years is increasing the share of the software companies offering their own products as opposed to those working on outsourcing projects. The most successful examples include Bulgarian products in perspective sectors like semantic technologies, mobile apps, business software, e-government, etc. In order to aid the development of this prosperous sector, a Bulgarian Association of Software Companies – BASSCOM – was established in 2001. It is a non-profit industry association representing more than 50 leading companies developing software products and systems and offering comprehensive IT solutions, as well as over 60 associated members, among which universities, foundations, venture capital funds, etc. The main objectives of BASSCOM are to promote the Bulgarian software industry, to develop professionalism and competitiveness, to work for the improvement of the education system and to actively participate in creating and implementing policies for effective IT investments for the benefit of the entire society. Last year, BASSCOM continued its activities focusing on the education system reforms, human resources development in the ICT sector, etc. Further to the „Strategic requirements of the software industry to reform the education system“, outlined in 2012, the association also took part in the execution of three projects, which were funded by the Operational Programme Human Resources Development, co-financed by EU’s European Social Fund. They aimed at improving the quality of education in accordance with the needs of the business: 14 BASSCOM patnered with the Bulgarian Industrial Association (BIA) for the IT sector in a project called „Development and implementation of a competence assessment information system“. Among the main tasks within the project is defining workforce competence requirements in view of the European, national and sector-wide requirements and standards. BASSCOM was also in a partnership with the Plovdiv University „Paisii Hilendarski“ and Varna Free University „Chernorizets Hrabar“ on two projects aimed at creating and implementing a sustainable model for modernizing curriculums and educational programs according to the requirements of the labor market. In addition, in 2013 the association issued its fifth consecutive annual research “Barometer of the Bulgarian IT industry“, covering member companies of BASSCOM and the Bulgarian Web Association (BWA). The main purpose of the barometer was to offer quality and quantity information about the condition and the development of Bulgaria’s IT sector, as well as the expectations and the challenges domestic IT companies are facing. The results of the research outline the trends in the IT sector and allow for better planning. BASSCOM was also involved in a project, managed by the World Information Technology and Services Alliance (WITSA), aiming at the elaboration of a comprehensive concept for the joint development and implementation of an IT industry barometer (ITIB) with a global perspective (harmonized core module) and regional adaptability (additional modules). In this regard, the association’s yearly study of the Bulgarian IT industry was one of the success stories serving as a basis for the development of the concept. Another significant project BASSCOM took part in last year was „FORSEE – Regional ICT foresight exercise for Southeast European countries, co-financed by the EU under the South East Europe Transnational Cooperation Programme. The project, which involved 14 organizations from eight countries, was aimed at reforming R&D policies and in- novation development in the area of ICT in the countries in Southeast Europe. This was accomplished through the first foresight exercize in ICT in the region, during which have been created four scenarios for the development of digital content and information technologies by 2025. They are based on different aspects and factors – from governments and regulations, through technological platforms, to entrepreneurship and innovations – and their common purpose is to reveal the possible future of this industry As a whole, BASSCOM was a partner of all significant events in the ICT sector that were held in Bulgaria in 2013. As for 2014 and ahead, the labor shortage is still one of the most serious problems for the software sector and the most serious issue in the long term. This deficit may doubly limit the business of the companies within the next decade. We expect that in 2015 the sector will need over 20 000 more software specialists than the available ones will be. This means that the annual output capacity of the education system needs to grow to 6000 from the current 2000 university graduates a year (in the sphere of IT). The conclusion of BASSCOM is that there is no connection between the actual needs of the economy and the quality, as well as the quantity of the human resources that the education system produces. The outcome is a situation in which there is simultaneously high unemployment and high deficit of well qualified workforce in some segments, including the software segment. The solution to these problems is in a total educational reform, a significant increase in the quality of education and its targeting at the real needs of the business and the society. The long-term goal of the association is reforming the education system towards meeting the needs of the business, in particular ICT as a fast growing segment with high added value. BASSCOM will also continue its activities in the development of a national ecosystem for encouraging entrepreneurship and innovations and increasing the competitiveness of the sector for the benefit of the entire society. ICT Bulgaria 2014 ISSUES The Bulgarian Association of IT: The problems the IT business had to battle (and still is) T he IT business in Bulgaria was faced with several serious problems in 2013 but was able to get over them and grow further. However, this growth was not easy, especially for the companies relying more or only on the domestic market, including state administration projects, said Petar Ivanov, Chairman of the Board of the Bulgarian Association of Information Technologies (BAIT). There were significantly fewer IT projects by the state in the recent years compared to earlier years, he noted. Moreover, the slow and partial law changes around the Public Procurement Law made many public procurement procedures opaque. This lead to a large number of appeals and slowed down by more than a year the implementation of really imprtant ICT projects in the state administration, Petar Ivanov said. In addition, the hardly exsiting e-government makes the administrative burden even heavier. Another big problem was the bad discipline of the central government and the municipalities with timely payments for orders. This had an impact on yet another issue – intercompany indebtedness, which has been rising, Petar Ivanov added. At the same time, law enforcement is still too slow and ineffective with debt collection, especially in the case of insolvency of a debtor, he stressed. The rise of the maximum social security threshold did not make it easier for the business either, as it effectively moved up the tax burden around the current average wages, Petar Ivanov commented. In addition, the state has not been very conssitent in its approach to communicating new financing oppportunities through EU programs for modernization and innovations. Then there has been another very serious issue in the ICT sector which is apparently here to stay for quite a while – companies have been having a hard time finding enough people to employ. According to Petar Ivanov, right now the sector could employ several tens of thousands of people more, but they simply do not exsist. This is why the state needs to urgently think and act fast by not only making technical education better but also by attracting more students, university teachers and specialists from other ICT Bulgaria 2014 Petar Ivanov, Chairman of the Managing Board of BAIT The two most urgent problems troubling the ICT sector in Bulgaria are the shortage of specialists and the hardly exsiting, unintegrated e-services at a central and municipal level countries to live and work here. Another sphere the state needs to be more proactive now is e-services, according to Petar Ivanov, including e-administration, e-health, e-education, e-procurement, etc. Last but not least, Bulgaria should make more about being part of the single EU market, said Petar Ivanov while mentioning the Single Market Act by the European Cimmission, which lays the foundations of a business-friendly legal and fiscal environment. Since 1992, the Single Market has brought tremendous benefits and created new opportunities. But free movement of goods, services, capital and people does not always happen smoothly. There is no truly integrated European market in some fields. Pieces of legislation are missing. And administrative obstacles and lacking enforcement leave the full potential of the Single Market unexploited. The Single Market Act, presented by the European Commission in April 2011, set out twelve levers to boost growth and strengthen confidence. In October 2012, the Commission proposed a second set of actions (Single Market Act II) to further develop the Single Market and exploit its untapped potential as an engine for growth. 15 OUTSOURCING BUSINESS Bulgarian Outsourcing Association: Bulgaria is becoming a top outsourcing destination D uring the recent years, Bulgaria has risen as a more and more preferred outsourcing destination, and in some segments it has even surpassed large peers, such as China, Egypt, India and The Philippines. Competitive advantages, like the labor quality-payment ratio, our geographical proximity to Central and Western Europe, the highly qualified workforce, Bulgaria’s EU membership, its economic stability and the relatively low infrastructure costs make the country an excellent and preferred outsourcing destination. Due to all these advantages, the number of the people employed in the sector went up to over 22 000 in 2013, according to the Bulgarian Outsourcing Association (BOA). Of them, more than 17 000 work in Sofia. The BOA expects the number of the employed in the sector to more than double to 48 000 by 2018. In Bulgaria, language education is strong, which is a major factor in outsourcing customer care services, as well as in processing data and enabling processes. Right now, services in tens of languages are being offered from the country, which is a major advantage compared to other outsourcing destinations, such as North Africa or Asia. Companies like HP, IBM, Coca Cola, AIG, INGRAM Micro, Experian and many more have global services centers in Bulgaria. People’s high language skills are not their only plus. These centers are usually specialized in specific areas, for example finance and controlling, HR, sales and marketing, etc. Other outsourcing services offered from Bulgaria cover data processing, business content, and media research. Making all that work is only possible with highly qualified workforce. A research made by the BOA in Sofia shows that more than 85% of the population between 19 and 35 has at least secondary or higher education. IT outsourcing (ITO) is another specific area where Bulgaria is a leading market. The country has the highest number of engineers per capita and long engineer- 16 ing traditions. During the recent years, a lot of companies, many of them from Fortune 500, opened research and development centers in Bulgaria. Some of them are SAP, VMware, Cisco and Johnson Controls. Different kinds of IT outsourcing services are offered in Bulgaria. That covers anything from developing products and applications throughout the entire production cycle to taking care of specific sections of this cycle, like design and architecture, development, extended development, QA & testing, etc. There are different models for offering such services which vary according to clients’ needs. A lot of the market players also offer technical support for various platforms, operation systems, apps, etc. The specialists in the area cover all levels of technical support, which requires knowledge, skills and competences in order to solve highly complex problems. The success of all international enterprises with centers in Bulgaria has been attracting more interest to invest in the country as an outsourcing destination. A fresh example is the acquisition of domestic Sofica Group by American giant TeleTech, which was announced at the end of February. A year and a half earlier Canadian TЕLUS had scooped another local company – CallPoint New Europe. In 2013, the BOA was mainly focused on ranking its priorities, enabling a working organizational structure to allow achieving them and starting to act on it. More specifically, the association put the stress on several main directions. The first is influencing the policies and instruments for improving workforce quality and the potential for growth in all segments of the fast developing outsourcing business. This virtually included another aim of the association – researching the market and informing the public. After the members of the BOA calibrated the business needs assessment model, the organization carried out the largest and the most representative research of the sector in Bulgaria. The research was made by SeeNews Research & Profiles, whose job was to identify the condition of the labor market – the supply of qualified human resources that meet the association members’ busines needs. In addition, the BOA was joined by two leading Bulgarian universities – Plovdiv University „Paisii Hilendarski“ and the St. Cyril and St. Methodius University of Veliko Tarnovo. The association concluded that rising the level of education in view of the competences required by the market is a key priority for Bulgaria. Another direction the BOA worked its way in 2013 was proactively presenting Bulgaria abroad as an outsourcing destination. In this context, it sealed a strategic partnership with its German peer Outsourcing Verband. Together they produced a series of articles and specialized researches, including those that were presented in the specialized Outsourcing Journal regarding outsourcing in Southeast Europe. The BOA is also in talks with NOA – one of the globally leading oursoursing organizations – to deepen the cooperation between Bulgaria and the UK. Moreover, in 2013 the BOA organized the first presenting of Bulgaria at the World BPO/ITO Forum in New York. In 2014, the association plans to expand its member network, to organize national conferences and seminars about best practices and know-how, and to participate in international fairs and forums. In addition, the BOA is going to release a series of researches, including one about the separate regions in the country in order to get up-to-date market data that can help making investment decisions on the basis of the pros and cons of these regions, like human resources availability and language and IT competences. Another goal of the association for 2014 is to provoke a change in Bulgaria’s higher education in order to improve the quality, applicability and varierty of the types of knowledge and skills that students get. The BOA plans to organize a series of round tables with higher education representatives from the country. The first of these events has already took place and was followed by the set up of a work group for analyzing and suggesting changes in the new strategy for higher education development. ICT Bulgaria 2014 SECTOR ANALYSIS IDC & KPMG: Where Bulgaria was on the ICT map in 2013 and where it is heading by 2020 T he Bulgarian ICT market in 2013 was marked by several positive growing trends that had been gaining momentum during the previous years, as well as by a couple of serious problems, one of of which will become even more threatening in the future. According to Nikola Nyagolov, Management and IT Senior Manager at KPMG Bulgaria, 2013 was not too different from the several previous years in terms of the ICT trends in Bulgaria. The growth of the IT market was mainly attributable to the software companies, while harware sales suffered. There was a clearly growing trend in outsourcing and shared services centers, the latter being opened by large international companies. This has made Bulgaria a top outsourcing destination both in Europe and globally, and has made the segment the greatest pretender for the fastest growing ICT Bulgaria 2014 ICT segment in Bulgaria, he pointed out, adding that this will be a huge trend in at least the next three years. Offering infrastructure and software as a service in the cloud with local support will also be big, Nikola Nyagolov expects. There is also a hope for considerable development in e-government and e-health, two areas that need a lot of action to integrate all existing systems, as well as to implement new ones. In 2013, there was very high interest towards e-administration projects by the government and the municipalities. The effect of these initiatives is yet to be evaluated. In the meantime, the market will need to pay some serious attention to developing own software products and stimulate that. This perspective could keep and even further boost the market momentum gained so far, according to Nikola Nyagolov. Another positive trend was the growing interest of small businesses to- wards complete technology solutions, he added. Neli Vacheva, Country Manager of IDC Bulgaria, saw 2013 full of contradictions, obscurity and tense for the business, mostly because of the political crisis. The most positive thing seems to be the gradually growing awareness of the corporate segment regarding good IT process organization and looking for more complex solutions for long-term benefits. The mobile hype was also representative of 2013. „Mobile apps development got a big boost in 2013’”, Neli Vacheva said. “The market is still very fragmented though, and the usage of mobile versions of enterprise applications is still low. In the following years, I expect that mobile apps penetration in the enterprise will continue, and more attention will be paid to integrating mobile and existing systems, as well as security. On the other hand, developers will have trouble making enough revenue from mobile apps.“ 17 SECTOR ANALYSIS „Mobile devices – smartphones and tablets – also had a strong momentum on the Bulgarian market in 2013. Despite it had some negative impact over the mobile computers market, I expect the latter will recover along with the improving economy,“ she added. Moreover, in 2013 the financial sector offered various mobile services to its customers, and this will continue in 2014. Content will also play a more significant role in the future. We will see both global and local content creators compete in this race. IaaS, storage, SMB IDC also sees the business with infrastructure as a service growing bigger in Bulgaria. „The IaaS business in Bulgaria doubled and I expect it to grow further in 2014 with the help of new vendors,“ Neli Vacheva noted. Storage was another impotant business, and still is. In 2013, organizations paid more attention to software-based storage/software-designed storage. „It is clear that we are heading to the opportunities to store data on any physical or logical resource, as well as to move it without any effort. IaaS will offer more improvements in terms of creating an abstract layer that can facilitate the management of systems by different providers and will make it easier to scale and dedicate resources according to the current or planned needs,“ Neli Vacheva explained. The storage business in 2013 in Bulgaria was also interesting for the emergence of new solutions targeted at SMBs which come with features that were previously typical to higher-end solutions. This helped vendors increase their sales revenues. Looking fruther into 2020, the Internet of Things will get more important. We need to pay attention to events like Google bying Nest – a deal that will relatively quickly clear the path for home intelligent systems. We cannot expect miracles, but such technologies are very likely to enter our homes by 2020. „I expect that many of these solutions will use geolocation, despite its privacy-related ambivalence,“ Neli Vacheva said. More and more efforts will be put into securing IT resources as well. There will most probably be accidents that will lead to more control over data and system protection. A second line of defense will be continuously developed, which will analyze systems for unusual behavior. Their task will be to shorten the time between problem identification and reaction. Small and medium businesses will feel a higher need to use more than basic de- Bulgarian ICT Watch Managing Director : Nedyalka Yolovska, [email protected] Publisher: Vladimir Vladkov, [email protected] Editor-In-Chief: Konstantsa Grigorova, [email protected] 18 Editors: Tihomir Ivanov, [email protected] Aleksandar Glavchev, aleksandar_glavchev@ idg.bg Sales: Bistra Neicheva, [email protected] Elena Dimkina, [email protected] Petya Lukasheva, [email protected] Tsvetan Hinkin, [email protected] Yanka Petrovska, [email protected] Yordanka Slavcheva, [email protected] fense mechanisms and will more often rely on cloud security services. Mobile security will also be a growing trend, especially in the Android ecosystem. „I would also like to say that smart grid technologies will be among the hits in the near future but the ambiguous signs make me think we can expect some more serious movement around 2020. We must not forget that the real benefit of smart grid technologies is when there is an entire ecosystem, not just isolated smart islands, which means the trend will go along with the usual interests and lobbying,“ Neli Vacheva pointed out. „I also believe more and more companies will take advantage ot analytics technologies, including bid data. In Bulgaria, big data analytics will become a reality within 1-2 years,“ Neli Vacheva added. The two main problems for the ICT sector in 2013 were the political crisis, which nearly knocked the newly elected government down, and the shortage of technical specialists. Now, as the political crisis is moslty gone, the market needs to deal with finding enough good employees. „The ICT market has been suffering from a hunger for qualified people and this issue will become eve more serious in the future,“ Nikola Nyagolov pointed out. Address: Bulgaria, Sofia 1000, 16 Ivan Vazov Str, floor 1 office phone: +359 2 400 1111, fax: +359 2 988 01 17; e-mail: [email protected] Designer: Ira Todorova, [email protected] Proofreader: Tihomir Ivanov, [email protected] Print: Alliance Print Drujba 1, 3A, Ilia Beshkov Str tel.:+35924225938 ICT Bulgaria 2014 SOCIAL MEDIA MARKETING AT SCALE REQUEST A DEMO AT KOMFO.COM WE BELIEVE THAT SUCCESFUL SOCIAL MEDIA MARKETING REVOLVES AROUND 5 IMPORTANT TASKS. OUR SOFTWARE MAKES IT EASIER AND MORE EFFECTIVE TO CARRY OUT YOUR ACTIVITIES. PLAN ENGAGE LISTEN AMPLIFY MEASURE Plan and distribute content of different formats to multiple social media channels. Engage in conversations in your community and find out whether or not to do customer service on social media. Listen to the buzz and track correlations between your activity and conversations about you. Amplify your valuable content to the right social audience by advertising on social media. 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