The headcount in outsourcing services and offshoring investments in Bulgaria could grow to 100 000 full time employees within five years, the managing director of Colliers International Bulgaria, Atanas Garov, said.

"There is a huge gap between the current number of employees engaged in the outsourcing and offshoring industry, and what could be realised in the next three to five years. Our belief is that employees in this industry in Bulgaria, at present about 10 000 to 15 000, could reach 100 000 if there are concentrated efforts to attract investors and major service users," Garov said in an interview with SeeNews.

The interview precedes a conference, the first of its kind in Bulgaria, dedicated to outsourcing and offshoring, "Realizing the Potential - Bulgaria on the Outsourcing and Offshoring Map", which will take place in Sofia on November 11 2010. The conference is organised by AmCham Bulgaria, Invest Bulgaria Agency, with the support of Colliers International.  The Sofia Echo and SeeNews are media partners in the event.

Garov identified IT services, engineering services, research and R&D as the outsourcing services and offshoring potential where Bulgaria has a competitive advantage in the context of Central and Eastern Europe (CEE).

"Such industries, which require analytical and mathematical skills, are the ones in which Bulgaria has a talented labour force. Our belief is that Bulgaria has a great opportunity to become a niche player within CEE and to be known for specialised skills adding value to business operations and development," Garov said.

Despite the small size of the Bulgarian market compared to other markets in the region, such as Poland, Romania or Ukraine, Garov believes that Bulgaria has huge potential to boost its outsourcing services and offshoring appeal. The analytical skills, language skills, cultural and geographic proximity to feeder markets, stable business and legal environment, highly advantageous tax rates, are among Bulgaria's attractions and the basis of competitiveness in the context of CEE.
 
"We have to position ourselves as a niche player rather than a mass player - then I believe we will have a very good opportunity to attract investors and have a good standing compared to the other CEE countries," Garov said.

According to Garov, Bulgaria's legislative and tax framework are favourable for the country's outsourcing and offshoring appeal.  Bulgaria's legislation is largely synchronised with the European Union standards, while tax rates are some of the lowest in Europe.

"Most companies searching for outsourcing and offshoring opportunities in CEE are looking at this region dominantly for servicing European customers, therefore Bulgaria being part of the European Union is conducive for this. Of course, there are always areas for improvement in the legislature, but there is no major flaw," Garov said. Bulgaria joined the EU in 2007.

The largest hindrance and main reason why Bulgaria has not managed to realise its potential yet is because there have been no industry-wide concentrated efforts towards positioning the country as an attractive destination for outsourcing and off-shoring, he said.

Furthermore, efforts should be made in education programmes that could source and develop talent, suitable for the outsourcing and off-shoring industry.  Such effort should come both from government and business, preferably both working together, according to Garov.

He said that the outsourcing and off-shoring industry can provide numerous highly skilled job opportunities and appealing career paths to young graduates in Bulgaria.

"Some of the multinational companies in the outsourcing and off-shoring field in Bulgaria have already managed to attract back young Bulgarians from abroad. This is another good pocket of talent, which should be further explored, as the industry grows. These multinationals bring a lot of know-how, and career opportunities," Garov said, adding that he sees the outsourcing and offshoring industry as a key driver of economic growth.

"This industry covers a lot of sectors, such as pharmaceuticals, IT, banking, energy, telecommunications, and others. The industry could turn into an important incubator for new home-grown companies that could one day compete on the global market," he said.

"Investing in positioning Bulgaria on the global outsourcing and off-shoring map, and bringing investments will be an important boost to the growth of the Bulgarian economy, both in the short to medium term, but also in the long-term."