Bulgaria in the digital economy: Turning advantages into leadership

The Association for Innovation, Business Services and Technology (AIBEST) is an independent industry organisation dedicated to positioning Bulgaria as a leader in knowledge-intensive products, services and solutions, as well as a global destination for highly educated talent. The association unites companies across all areas of the modern business services industry – BPO, ITO, R&D centres and SSCs (shared service centres).

Yordan Ginev is the Chairman of AIBEST and Managing Director of DIGITALL Bulgaria. With more than 15 years of experience in the technology sector, he is a leading advocate for education reform, innovation and sustainable growth in Bulgaria and the wider region.



What role does AIBEST play in building a future-ready digital economy?
Our role is to be the voice and partner of the industry in its dialogue with the government and the education system. Оver the past fifteen years, Bulgaria has transformed into a hub for high-tech solutions with global reach. In 2023, 817 companies in the BPO, ITO, and R&D sectors operated in Bulgaria, employing more than 104,000 people. This makes the industry one of the strategic drivers of the national economy. AIBEST’s mission is to ensure the sector continues to grow sustainably —with higher added value, more innovation, and a stable contribution to GDP.

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Which digital advantages give Bulgaria competitiveness, and which areas still lag behind?

Our greatest strength lies in people — highly skilled professionals with both linguistic and technological expertise. Bulgaria is increasingly recognised for quality rather than low cost. We are a proven technology destination with a successful track record of more than 20 years. Our geographic location, along with numerous examples of successful international and Bulgarian companies, provides a strong foundation. Bulgaria’s Euro-Atlantic orientation, reinforced by its recent achievements — full membership in Schengen and entry into the Eurozone in 2026 — further strengthens this position.

Yet we face critical weaknesses: the talent shortage is deepened by demographic decline and by the fact that only 2% of adults take part in lifelong learning programmes, compared with an EU average of 11%. Investment in R&D stands at just 0.28% of GDP (vs. the EU average of 0.72%), while support for the private sector amounts to only 0.011% of GDP, compared with 0.204% across the EU. These gaps restrict our potential for innovation and technology transfer.

Has the surge in digitalisation been a short-term effect of the pandemic, or is it now a long-term priority?

The pandemic was a catalyst, but digitalisation has now become a structural priority. Operational revenues grew by 10.8% in 2023 — slower than the record 16.9% growth in 2022, yet still a double-digit increase. This highlights the sector’s resilience. Companies are shifting from efficiency-driven outsourcing to innovation-driven solutions. Digital transformation is no longer optional — it is essential for every industry.

Is local supply sufficient to meet the demand? Are services aimed more at domestic or international markets?

The majority of the sector’s capacity is still export-oriented, serving international clients. However, we are seeing growing domestic demand – particularly in banking, telecommunications and retail. This is a positive sign, as digitalising Bulgarian businesses and institutions creates internal momentum and accelerates economic transformation.

Is digitalisation still constrained by a shortage of talent, and which skills will be most important?

Yes, this remains the most serious challenge. The skills in greatest demand are artificial intelligence, data analytics, cloud technologies and cyber security. At DIGITALL, for example, we invested more than EUR 1 million in 2024 into AI development and staff training. Other AIBEST members also operate internal academies and education partnerships. Yet without a national strategy and comprehensive education reform, the talent shortage will remain a systemic risk.

Which policy changes and investments are most critical to further Bulgaria’s digital growth?

Firstly, a predictable tax and regulatory environment. Secondly, investments in infrastructure – 5G, cloud services and green energy to secure the sector’s capacity. Thirdly, regional development. Currently, 70% of companies are concentrated in Sofia, while cities such as Plovdiv, Varna, Burgas and Ruse have talent and universities but lack targeted incentives for technological investment. With the right policies, we can establish regional hubs and broaden the industry beyond the capital.

ConclusionBulgaria has all the prerequisites to become a leader in Southeast Europe. Yet to remain firmly on the technological map, decisive steps are required – greater investment in education, incentives for R&D and a clear national vision. Digitalisation 4.0 is not simply a trend: it is an opportunity to build an economy with high added value and global recognition.