capability creativity maturity

Capability Creativity Maturity

14 September 2011

Sofia, BulgariaBulgarian Association of Software Companies (BASSCOM)

Bulgarian IT Industry Barometer 2011

www.basscom.org www.basscom.eu

IntroductionParticipants

Financial Statistics

Human Resources

Forecasts

Contents

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Overview

Bulgarian IT Industry Barometer 2011• Third edition of the Bulgarian IT Industry Barometer

• Provides statistics for the period 2008-2010, and forecasts for 2011

• Conducted by GOPA Consultants, Germany for the Bulgarian Association of Software Companies (BASSCOM)

• Survey conducted in the period March – May 2011

• Participants: 38 BASSCOM and Bulgarian Web Association (WBA) member companies

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Introduction

ParticipantsFinancial Statistics

Human Resources

Forecasts

Contents

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Participants

Barometer participants represent ~1/3 of the Bulgarian software industry

*Data provided by the Bulgarian National Statistics Institute (NSI) for sector Software development (code 62.01) for 2009

** Data provided by Barometer participants for 2009

NSI* Barometer**Barometer as % of NSI

Total sales (BGN 000s) 428,809

163,313 38%

# Employees 7,955 2,489 31%

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Participants by Stakeholder

• 74% of the companies have a majority of Bulgarian ownership

• 13% of the companies have stakeholder control outside Bulgaria

• The same number of companies (13%) work only for their parent company

Bulgarian74%

Foreign13%

Branch13%

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Introduction

Participants

Financial StatisticsHuman Resources

Forecasts

Contents

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Average Sales

Average sales per company (BGN 000’s):

• 2.6% increase between 2008 and 2009

• 5.3% increase from 2009 to 2010

2008 2009 20100

500

1,000

1,500

2,000

2,500

3,000

3,500

4,000

4,500

5,000 4,548 4,666

4,911

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Average Profit

Average net profit per company (BGN 000’s):

• 3%-increase from 2009 to 2010

2008 2009 20100

100

200

300

400

500

600

366

472486

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Export

Export (% of Total Sales)

• ~ 50% of total sales come from exports

• Distribution between Domestic market and Export is rather stable through the years

20082009

2010

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

ExportExport

Export

DomesticDomestic

Domestic

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Export Destinations

Export destinations (% of exports):

• Approx. 60% to Europe (declining)

• Approx. 35% to North America (increasing)

2008

2009

2010

0% 10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

18

16

16

9

11

11

18

17

17

16

16

12

33

35

36

German speaking countries (Germany, Austria, Switzerland)Scandinavian countriesUKRest of Western EuropeCentral and Eastern EuropeNorth America (USA, Canada)Rest of the world

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Export by Product/Service

Export Product/Service (% of exports):

• Increasing share of software product exports indicates a mature IT industry

2008

2009

2010

0% 20% 40% 60% 80% 100%

25

26

28

72

73

71

Software productsSoftware servicesHardware products

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Introduction

Participants

Financial Statistics

Human ResourcesForecasts

Contents

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Number of Employees

Number of employees

• NSI – data provide by the National Statistics Institute for sector Software development (code 62.01). No data for 2010.

• Barometer respondents – number of employees remains unchanged from 2009 to 2010.

2007 2008 2009 20100

1,000

2,000

3,000

4,000

5,000

6,000

7,000

8,000

NSI Barometer

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Salary Change

Average monthly salaries change (%) :

• +5.9% (2009/08), +2.3% (2010/09), and +8.1% total2009/2008

2010/2009

2010/2008

0% 1% 2% 3% 4% 5% 6% 7% 8% 9%

5.9%

2.3%

8.1%

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Introduction

Participants

Financial Statistics

Human Resources

Forecasts

Contents

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Sales Projections 2011

Sales projections - expected change in 2011 compared to 2010 (% of respondents)

• Overall positive expectation for sales (domestic market and exports): 81% of companies expect growth in total sales for 2011

• Most (54%) expect a moderate increase of up to 15%

DomesticMarket

Export

Total

0% 20% 40% 60% 80% 100%

19% 19%

18%

15%

31%

50%

54%

23%

18%

12%

8%

14%

15%

-25% or more -10% to -25%Up to -10% Same Level (± 0%)Up to +15% +15% to +50%More than +50%

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Employee Projections 2011

Expected change in number of employees for 2011 compared to 2010 (% of respondents)

• Majority (70%) expect an increase in the number of employees:

• Most (44%) forecast an increase of up to 10%

-50% -25% -10% ± 0% +10% +25% +50%0%

5%

10%

15%

20%

25%

30%

35%

40%

45%

50%

3% 3% 3%

22%

44%

19%

6%

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Salary Projections 2011

Change in average salaries in 2011 compared to 2010 (% of respondents)

• IT Specialists

• 87% of companies expect an increase in the salaries of IT Specialists, ¾ forecast increase up to 10%

• Non-IT professions: companies expect less change

NO company expects decrease of salaries.

-50%-25%

-10%± 0%

+10%+25%

+50%

0%

10%

20%

30%

40%

50%

60%

70%

80%

IT Special-ists

Others

13%

75%

13%

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Expected Impact of External Factors

Most influential factors:

• Economic situation, both global and domestic

• HR Market

Global Eco-nomic situation

National Eco-nomic situation

HR Market

Intensified Competition

Government policy

47%

44%

38%

19%

38%

28%

47%

53%

75%

63%

25%

9%

9%

6%

Negative(-)

Neutral(=)

Positive(+)

Capability Creativity Maturity

Georgi Zahariev

Board Member,

BASSCOM

Thank you for the attention!