Two weeks ago, the Centre for Economic Development presented its annual report on the competitiveness of the Bulgarian economy. Among the report’s key findings was that the Bulgarian economy would achieve sustainable growth only if investments in Information Technology (IT) accelerated. Perhaps a look at the present state of Bulgaria’s IT sector is in order.
According to the International Data Corporation (IDC), a leading market research firm, in 2001, worldwide IT spending should race past the $1 trillion mark. In the same time, the IDC has estimated that the Bulgarian IT market would reach a minute $200 million.
Comparing Bulgaria to its Central European peers does not provide much encouragement. According to the IDC research, in 1997, the Polish IT market was valued at $1.8 billion, the Czech market was $1.4 billion, the Hungarian market was $1 billion and the Slovak market was $350 million. In 1998, the IDC estimated that the Bulgarian IT market was $136 million.
Part of the problem is that the market here is fragmented. According to an IDC ranking of the major players in 1999, the IT leader was the Bulgarian Telecommunications Company (BTC) with revenues of over $300 million. The remaining firms on the list barely touched the $20 million mark. Although the IDC’s ranking has questionable value in terms of accuracy – it does not include wireless communications companies like Mobiltel and Mobikom – it clearly points to this fragmentation.
Among the smaller companies battling in the IT arena, a company called WizCom is fighting to become a leader.
This privately held Swiss-Bulgarian company was established in 1995. It has focused on the software and services segment of the IT market – offering consulting services and two software product lines: secure messaging and eModules. Since its inception, the company has achieved impressive growth rates. They have become a certified partner of Microsoft, Oracle and IBM, and participated in the Mobile Initiative of Ericsson – a community for discussing wireless standards and exchanging knowledge.
Secure messaging is an area where WizCom has achieved major success. Their software engineers have developed products that allow for the secure delivery of first class business mail to various end-devices, such as cell phones and PDAs. As a result, the leading provider of secure messaging – Tumbleweed Communications (TMWD) – has formed a strategic partnership with the company.
The other product line of WizCom, eModules, represents a comprehensive Internet solution for the building of web portals. The eModules suite contains four major modules – eStore, eCommunity, eAuction and eCRM. EStore is a solution that manages relations with distributors, vendors and resellers. EAuction is an online marketplace that provides a robust auction and bartering environment. It targets industry-specific vertical exchanges, bringing together multiple buyers and sellers for business-to-business, business-to-consumer, or consumer-to-consumer commerce. ECommunity is a module suite that provides the tools to build an online global village. It allows for the setting of calendars, chats, forums, jobs, greetings, yellow pages and other services. Lastly, eCRM is a module that provides tools for customer relations management.
WizCom’s products and services have gained the recognition of some of the top players in the global economy. Major clients that have benefited from their enterprise solutions include BMW, Aonix, and Mercury Interactive. Clients that have benefited from their consulting services include wireless telecom giants like Nokia, Nortel Networks, Siemens, Ericsson and Marconi.
Over the past five years, WizCom has experienced significant growth. The Compound Average Growth Rate (CAGR) of the company’s revenues over the past six years has been, roughly, 200 per cent. In 2000, revenues reached $1.8 million, up 371 per cent from 1999.
An important characteristic of WizCom’s revenues is the fact that they are almost entirely the result of exports. This is in stark contrast to a general trend in the Bulgarian IT industry, where exports account for only 20-30 per cent of total revenues.
And the company seems to be just getting started. Their aim is to become the leader in IT consulting not only in Bulgaria but the entire Balkan region. To this end, in 2001, the Bulgarian branch of the company is planning to increase its staff by 50 per cent – up to 120. Plans for opening branches in other Balkan countries are underway too.
Since maintaining growth requires strong financial backing, the company plans to go public over the next three years. It is currently evaluating the possibilities of listing either on a major European exchange, or the overseas NASDAQ.
According to company executives, Wizcom has begun to find a place within the IT consulting segment. They rank their company fifth in the country, after ProSoft, Rila Solutions, FaData and SmartCom in terms of revenues.
And if growth rates are taken into account, that ranking could change soon.
According to the International Data Corporation (IDC), a leading market research firm, in 2001, worldwide IT spending should race past the $1 trillion mark. In the same time, the IDC has estimated that the Bulgarian IT market would reach a minute $200 million.
Comparing Bulgaria to its Central European peers does not provide much encouragement. According to the IDC research, in 1997, the Polish IT market was valued at $1.8 billion, the Czech market was $1.4 billion, the Hungarian market was $1 billion and the Slovak market was $350 million. In 1998, the IDC estimated that the Bulgarian IT market was $136 million.
Part of the problem is that the market here is fragmented. According to an IDC ranking of the major players in 1999, the IT leader was the Bulgarian Telecommunications Company (BTC) with revenues of over $300 million. The remaining firms on the list barely touched the $20 million mark. Although the IDC’s ranking has questionable value in terms of accuracy – it does not include wireless communications companies like Mobiltel and Mobikom – it clearly points to this fragmentation.
Among the smaller companies battling in the IT arena, a company called WizCom is fighting to become a leader.
This privately held Swiss-Bulgarian company was established in 1995. It has focused on the software and services segment of the IT market – offering consulting services and two software product lines: secure messaging and eModules. Since its inception, the company has achieved impressive growth rates. They have become a certified partner of Microsoft, Oracle and IBM, and participated in the Mobile Initiative of Ericsson – a community for discussing wireless standards and exchanging knowledge.
Secure messaging is an area where WizCom has achieved major success. Their software engineers have developed products that allow for the secure delivery of first class business mail to various end-devices, such as cell phones and PDAs. As a result, the leading provider of secure messaging – Tumbleweed Communications (TMWD) – has formed a strategic partnership with the company.
The other product line of WizCom, eModules, represents a comprehensive Internet solution for the building of web portals. The eModules suite contains four major modules – eStore, eCommunity, eAuction and eCRM. EStore is a solution that manages relations with distributors, vendors and resellers. EAuction is an online marketplace that provides a robust auction and bartering environment. It targets industry-specific vertical exchanges, bringing together multiple buyers and sellers for business-to-business, business-to-consumer, or consumer-to-consumer commerce. ECommunity is a module suite that provides the tools to build an online global village. It allows for the setting of calendars, chats, forums, jobs, greetings, yellow pages and other services. Lastly, eCRM is a module that provides tools for customer relations management.
WizCom’s products and services have gained the recognition of some of the top players in the global economy. Major clients that have benefited from their enterprise solutions include BMW, Aonix, and Mercury Interactive. Clients that have benefited from their consulting services include wireless telecom giants like Nokia, Nortel Networks, Siemens, Ericsson and Marconi.
Over the past five years, WizCom has experienced significant growth. The Compound Average Growth Rate (CAGR) of the company’s revenues over the past six years has been, roughly, 200 per cent. In 2000, revenues reached $1.8 million, up 371 per cent from 1999.
An important characteristic of WizCom’s revenues is the fact that they are almost entirely the result of exports. This is in stark contrast to a general trend in the Bulgarian IT industry, where exports account for only 20-30 per cent of total revenues.
And the company seems to be just getting started. Their aim is to become the leader in IT consulting not only in Bulgaria but the entire Balkan region. To this end, in 2001, the Bulgarian branch of the company is planning to increase its staff by 50 per cent – up to 120. Plans for opening branches in other Balkan countries are underway too.
Since maintaining growth requires strong financial backing, the company plans to go public over the next three years. It is currently evaluating the possibilities of listing either on a major European exchange, or the overseas NASDAQ.
According to company executives, Wizcom has begun to find a place within the IT consulting segment. They rank their company fifth in the country, after ProSoft, Rila Solutions, FaData and SmartCom in terms of revenues.
And if growth rates are taken into account, that ranking could change soon.
