Technology destination PLOVDIV – R&D, Startups, Outsourcing
International recognition
Bulgaria is transitioning away from customer support services and moving towards more knowledge-intensive activities, such as financial consulting and reporting, R&D, technical data analysis and interpretation:
- 3rd MOST INNOVATIVE UPPER MIDDLEINCOME COUNTRY IN THE WORLD
Global Innovation Index,
Cornell, 2023 - 1st MOST GOLD MEDALS IN INTERNATIONAL LINGUISTIC OLYMPIAD
ILO - 4th MOST MEDALS IN INTERNATIONAL MATHEMATICAL OLYMPIAD
IMO - 5th MOST MEDALS IN INTERNATIONAL OLYMPIAD IN INFORTMATICS
IOI
Plovdiv presents ideal environment for the establishment of product development companies, fintech and blockchain startups, global business service hubs, and companies specializing in financial outsourcing.
- Finalist In the “PROSPERITY” category for its digitalisation of education in municipal schools Emerging Europe Summit and Awards, 2023
- 1st SMART 50 international award for the successful digitalization of the local education system
- 3rd Best FDI strategy among small European cities Financial Times, fDi Intelligence, 2022/23Smart Cities Connect, 2021
- 4th Best cost-effectiveness among small European cities Financial Times, fDi Intelligence, 2022/23
Why Plovdiv?
- Over 200 it companies, shared service centers and tech startups have chosen plovdiv as their investment destination;
- More than 8500 jobs in the booming it&bpo sector;
- The it&bpo sector more than doubled its share in the total value added in the last 7 years;
- Strong growth potential of about 5000 jobs in the it&bpo sector in the next 5 years;
- Leading university center with 8 universities and over 33 700 students;
- A vibrant expat community in the city, that consists of 32 000 foreigners;
- Time proximity and cultural similarities with target markets;
- European capital of culture 2019 and european best cultural destination 2022, plovdiv is a great place to live, study and work.
NURTURING TALENT LEADER IN INNOVATIVE EDUCATION AND DIGITALIZATION OF SCHOOL PROCESSES
⧘More than 15 300 students are in advanced or intermediate study of English language, followed by 1900 in German, 900 in French, 500 in Spanish and 400 in Italian and other languages
⧘The first municipality in Europe to partner with Intel Corporation on the implementation of Intel’s STEM program “Skills for Innovation”. The lessons include learning through AI, machine learning, 3D modeling and creating computer simulations
⧘Plovdiv is recognized by Google as a role model for its digitalization of the educational process. There are 7 Google reference schools in Plovdiv, as well as 360 Google certified teachers
⧘Over 215 teachers work daily with 2300 children in Montessori groups in preschool and primary education
⧘11 600 students are enrolled in STEM programs, with more than 2/3 of them just in the city of Plovdiv
⧘All 52 municipal schools have fully integrated cloud platforms, where all learning content is readily available through any device
⧘Оver 100 classes use the 1:1 technology in the classroom, where every student has their own personal device
⧘26 schools in the city and 17 other schools in the district are part of the Innovative Schools Program of the Ministry of Education
⧘Plovdiv is one of the pioneers in dual education in Bulgaria and Southeast Europe. 1200 students are enrolled in 57 dual education classes in the city
UNIVERSITY EDUCATION A REPUTABLE CENTER FOR THE TRAINING OF IT&BPO PROFESSIONALS
⧘Plovdiv stands as the secondlargest university hub in Bulgaria, home to 8 universities and a student population exceeding 33 700
⧘The city is known for the training of specialists in information technology, finance, accounting, legal and language studies. The number of students in IT&BPO related fields exceeded
11 000 during the 2022/23 academic year
⧘The high-quality training is a result of the collaboration between universities and businesses already operating in the outsourcing sector, as well as the fast pace of its development in the region
⧘The city hosts 12 applied science institutes and labs, working in close cooperation with the local universities
⧘Plovdiv is an attractive education destination for foreign students. Almost 10% of all students in the city are foreigners
⧘In 2022 alone the local universities brought over 7600 university graduates to the labor market
⧘There are close to 95 000 people in the district, aged 25-64 years, with university education
⧘Plovdiv actively supports the practice of lifelong learning and is the only Bulgarian city in the UNESCO global network of learning cities
LABOR COSTS ATTRACTIVE ENVIRONMENT FOR HIGHLY SKILLED PROFESSIONALS
⧘Plovdiv provides a skilled workforce for more than 200 IT&BPO companies, that have selected the city as their investment destination
⧘Bulgarian ICT labor remains costeffective by international standards. In 2022, labor costs in the sector are 38% lower than those in Czechia and 13% lower than those in Poland
⧘The IT&BPO sector provides attractive wages for local talent and highly skilled workers from other regions, surpassing labor costs in other business services sectors. Hiring labor for the outsourcing sector imposes close to 3 times higher labor costs than the average for the rest of the business services in the region
⧘Labor costs in the local IT&BPO sector grow with 12% annually on average for the past 7 years, accompanied by a steady growth of labor productivity
⧘Despite a high wage growth rate, wages in absolute terms in the sector are with close to 10% lower than the country average for the sector
⧘Many of the companies operating here provide training and career development opportunities to employees in the early stages of their higher education, whose wages are below the indicated average
IT&BPO ZOOM A PLACE FOR INNOVATIVE COMPANIES TO SCALE AND THRIVE
⧘With over 8500 employees spread across IT companies, tech startups, customer support centers and shared service centers, Plovdiv has solidified its position as the largest IT&BPO centre in the country, next only to the capital Sofia
⧘Modern business services have been enjoying rapid expansion over the past few years, as Plovdiv has become an IT&BPO centre preferred by domestic and foreign investors alike
⧘Experiencing a substantial annual average growth in value added at 21.7% over the past 7 years, the IT&BPO sector in Plovdiv has more than doubled its contribution to the total value added in the local economy
⧘With its universities, large number or students, R&D capacities and infrastructure, Plovdiv has gradually developed into a real knowledge economy, that attracts innovative IT companies and startups
⧘Due to its success in attracting investors, in 2022 the city was ranked 3rd best European small city in terms of FDI strategy and cost-effectiveness by Financial Times.
⧘The 7-hour time difference from New York and the 6-hour time difference from Tokyo enable outsourcing companies to provide services to the East and West simultaneously
Major companies
Software Support and Consultancy
The IT sector has been one of the fastest growing in the local economy. Plovdiv is a preferred investment destination by many service-based Bulgarian and foreign IT companies, providing software support, consultancy, and software systems integration, among others. They serve clients all over the globe, including many Fortune 500 companies.
Financial Services Outsourcing
More than 2800 high school students and 4700 university students study finances, accounting and business administration. With its well-developed educational network, the city provides a good supply of high-skilled professionals, readily available for companies specializing in more complex financial activities as credit management, financial reporting, forecasting and budgeting.
Product Development
With its high quality of life and work-life balance, Plovdiv has attracted 32 000 expats, as well as many digital nomads and small startup teams, that develop niche solutions in areas such
as fintech, blockchain, AI and data analytics. The number of product-based companies is rapidly increasing and the portfolio of their activities is becoming more complex and advanced.
Global Business Services
The sector is transitioning from predominantly managing transactional processes to engaging in more intricate operations, characterized by higher value-added services and an increased
emphasis on service quality.
Knowledge-Based Process / Outsourcing
The city already hosts companies that have outsourced their R&D, analytics and insight activities. Plovdiv Municipality, in close cooperation with the private sector and educational and science institutions, is creating a suitable environment for knowledge-based process outsourcing.
Smart Factory & Industry 4.0 / Solutions
With 16% of all manufacturing jobs in Bulgaria and many high-tech mechatronics & automotive companies, Plovdiv has a significant potential for process innovations and
implementation of the latest Industry 4.0 solutions.
Source: invest.plovdiv.bg