In the wake of the current global stagnation, businesses are searching for innovative solutions to navigate the uncertain economic landscape.
As supply chains and international collaborations face unprecedented challenges, one strategy that has proved itself a good solution is nearshoring. By bringing operations closer to home, nearshoring offers a range of benefits that can help businesses react swiftly and effectively to market disruptions, ensuring continuity and resilience in these turbulent times.
In recent years, the main challenge in the software development industry was the sourcing of talented personnel. One of the primary driving factors was the large amounts of funding pumped into the economy. The budget was distributed for financing projects that are boosting the adoption of the Green Deal. Additionally, governments have been investing massively to recover the economy post-COVID. All these factors combined with low interest rates made the price for good development talent less relevant. Businesses needed people immediately so that they could make use of the received investments.
The eruption of the war between Russia and Ukraine led to a massive increase in global prices. Russia being a major energy supplier for the European economies has been sanctioned by the US and EU, which led to a decrease in the supply of Oil & Gas. As the demand for energy remained the overall same, global energy prices have increased. Additionally, both countries Ukraine and Russia are leading producers of crops. The conflict between them has severely limited the export of crops.
The increased cost of energy has impacted all businesses. Additionally, the increased spending on energy in combination with high prices for food has increased the average cost of living for regular people. This leads to a drop in consumption, which again negatively affects business.
Currently, companies have to keep an eye on their spending. Budgets need to be optimized, in order to continue improving and adding more value for their clients, to differentiate from competitors.
One strategy that has proved successful over the years is nearshoring. In general, the easiest function that can benefit from near-shoring is IT. Bulgaria’s working culture is dynamic and open-minded, embracing global influences with ease. An impressive 90% of young Bulgarians are proficient in English, which allows them to integrate into multi-cultural teams easily. The aftermath of COVID-19 has seen a shift towards remote, project-based work, demonstrating adaptability. This makes Bulgaria an attractive destination for outsourcing and nearshoring projects, offering a skilled workforce that’s ready to collaborate on a global scale.
To do so efficiently, many companies are turning to nearshore software development – a practice in which companies contract software development services to companies in nearby countries or regions. One of the most popular regions for nearshore development, and for good reason, is Bulgaria. Here are just some of the advantages of establishing a nearshore software development center in Bulgaria.
Here is a list of the benefits that make Bulgaria a very attractive nearshore destination.
Talent Pool: Bulgaria features a large pool of skilled and experienced IT professionals who can deliver high-quality software development services. According to the eEurope Report, Bulgaria has the highest number of IT specialists per capita in Europe, and these specialists are well-educated, fluent in English, and highly motivated. This deep talent pool means you can quickly build a team with the expertise you need to take your software project to the next level.
Time Zone: Bulgaria is in a similar time zone to most of Europe – just a few hours ahead of the UK. As a result, you can set up overlapping working hours with your nearshore development team in Bulgaria, making it easier to collaborate and communicate effectively. Moreover, you can expect faster turnaround times, as your developers are just a quick train or plane ride away.
Cost Savings: Bulgaria is a cost-effective location for nearshore software development, with hourly rates averaging one-third or even one-fourth of what one might pay in the US or Western Europe. By leveraging a nearshore team in Bulgaria, you can achieve significant cost savings while still maintaining high-quality standards.
Cultural Compatibility: Bulgaria is a European country with a rich and diverse history and culture. Many Bulgarians have traveled extensively and are familiar with Western styles and cultural norms. Additionally, Bulgaria’s business practices are compatible with Western standards, so you can expect shared values and a similar working style.
Secure and Stable Environment: Bulgaria is one of the most stable and secure political, legal, and economic environments in Europe, with a well-established legal framework for investment, easy access to financing, and a business-friendly tax system. Additionally, Bulgaria has invested in cybersecurity measures in recent years, making it a reliable location to store and manage sensitive data.
Stanga1, a leading provider of nearshoring solutions with its headquarters in Bulgaria, successfully partnered with Imperva, a global leader in cybersecurity. Recognizing the need for accelerated product development within Imperva, Stanga1 assembled a team of senior experts who specialized in complex cybersecurity solutions.
This team, operating from Bulgaria, integrated seamlessly into Imperva’s existing processes, enhancing their product development and helping unlock the company’s potential. The strategic geographic location of Bulgaria, its dynamic ICT market, and its highly educated multilingual workforce make it an appealing choice for IT companies worldwide.
This team, operating from Bulgaria, integrated seamlessly into Imperva’s existing processes, enhancing their product development and helping unlock the company’s potential. The strategic geographic location of Bulgaria, its dynamic ICT market, and its highly educated multilingual workforce make it an appealing choice for IT companies worldwide.
