Bulgaria Information Technology Report 2013
Business Monitor International, January 2013, Pages: 77
Executive Summary
BMI View: Bulgarian IT spending is estimated by BMI at around US$1.0bn in 2013, with single-digit growth in U.S. dollar terms from US$1.0bn in 2012. Bulgarian IT spending is forecast to record low single-digit growth in 2013 as businesses and consumers remain cautious due to the economic situation.
Trading conditions are still challenging for IT vendors, as consumers and businesses remain under pressure. There should still be areas of opportunity however, as despite budgetary stresses, government spending on ICT will continue in areas such as healthcare and e-taxation, supported by EU programmes.
Headline Expenditure Projections
Computer hardware sales: US$696mn in 2012 to US$713mn in 2013, +2% in US dollar terms. Forecast in US dollar terms upwardly revised due to macroeconomic factors but strong tablet sales will constrain sales of traditional notebooks.
Software sales: US$113mn in 2012 to US$120mn in 2013, +6% in US dollar terms. Forecast in US dollar terms upwardly revised due to macroeconomic factors and closer ties with EU partners and clients should increase demand.
IT services sales: US$195mn in 2012 to US$206mn in 2013, +6% in US dollar terms. Forecast in US dollar terms downwardly revised due to macroeconomic factors but EU funding should drive IT services spending, particularly from government.
Risk/Reward Ratings
Bulgaria's score was 43.5 out of 100.0. Bulgaria ranked last in our latest Europe RRR table, behind regional peers Serbia and Croatia. The market has potential to rise up our rankings over time, as suggested by its relatively higher Country Rewards score.
Key Trends & Developments
- In recent years, as much as 40-50% of Bulgarian IT spending has been generated by the government sector. However, some manufacturing enterprises and private companies,
particularly from the trade and tourism sectors, represent growing sources of demand, as do municipalities, water and power suppliers. After the Bulgarian government, among the largest end-user groups of ICT products and services come telecoms operators BTC, MobiTel and Globul, followed by big commercial banks and large private enterprises.
- Basic services such as hardware and software support and installation still account for about 50% of Bulgarian IT services spending. IT outsourcing and managed services is a growing opportunity, however, and BMI forecasts annual growth of around 20% over the forecast period.
One driver is the significant number of foreign companies that have established facilities in Bulgaria since EU-entry, as the country's low labour costs help it move up the rankings of European offshoring destinations.
- 2013 should see further growth of tablet sales in the Bulgarian market. The Multirama chain of stores forecast that sales of tablets would comprise around 25% of its nationwide mobile PC sales in 2012. More attractive data plans and subsidised devices from broadband service providers, and more localised content, are factors that could boost tablet adoption.
Executive Summary 5
SWOT Analysis 7
Bulgaria IT Sector SWOT 7
Bulgaria Telecoms Industry SWOT 8
Bulgaria Political SWOT 9
Bulgaria Economic SWOT 10
Hungary Business Environment SWOT 10
Europe Risk/Reward Ratings 11
Table: Europe Risk/Reward Ratings 13
Europe IT Markets Overview 14
IT Penetration 14
Sectors And Verticals 19
Market Overview 23
Government Authority 23
Hardware 25
Software 28
Services 29
End-User Analysis 32
Industry Developments 32
Healthcare IT System 33
Industry Forecast 36
Table: Bulgaria IT Industry - Historical Data And Forecasts (US$mn unless otherwise stated), 2010-2017 38
Industry Forecast Internet 39
Internet 39
Table: Telecoms Sector - Internet - Historical Data & Forecasts 39
Competitive Landscape 41
Hardware 41
Software 42
IT Services 43
Macroeconomic Forecast 45
Table: Bulgaria - Economic Activity, 2011-2016 47
Company Profiles 48
IBM 48
Microsoft Corporation 53
Hewlett-Packard 58
Dell 64
Country Snapshot 69
Table: Bulgaria's Population By Age Group, 1990-2020 ('000) 70
Table: Bulgaria's Population By Age Group, 1990-2020 (% of total) 71
Table: Bulgaria's Key Population Ratios, 1990-2020 72
Table: Bulgaria's Rural And Urban Population, 1990-2020 72
BMI Methodology 73
How We Generate Our Industry Forecasts 73
IT Industry 73
IT Ratings - Methodology 74
Table: IT Business Environment Indicators 75
Weighting 76
Table: Weighting Of Components 76
Sources 76
Company Profiles
IBM
Microsoft Corporation
Hewlett-Packard
Dell
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