Outsourcing & Offshoring @ Bulgaria
The CIO Weblog has a Global Outsourcing Guide (PDF) that covers most of the top outsourcing locations.
Here’s the entry on Bulgaria, if you decide to fast-forward to it:
Oh, in case you’re wondering, the average salary is estimated to be in the $5,000 – $10,000 range. Pretty much dead on accurate.
This week’s article in Capital (Bulgaira’s leading business weekly) analyzes Macedonia’s efforts to attract foreign investments, specifically in the high tech area.
The Macedonian government has announced five high tech parks (following on Vietnam’s success), the only operational is the one next to the capital Skopje.
These are the advantages offered by Macedonia:
As of today, a full six million euro need to be invested in terms of infrastructure by the government in order to make the first tech park fully functional. There has been some investor interest already but the only company that has committed to building a small manufacturing facility is Johnson Controls.
Compared to its neighbors, Macedonia’s IT industry is very small (the smallest in Eastern Europe). The turnaround is about 80 million euro with about 2,000 people directly employed. Romania and Bulgaria remain the preferred locations for call centers or IT centers.
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Ubisoft has announced it’s going to double its internaltional team from 1,600 to more than 3,000 developers.
Ubisoft Bulgaria has been founded in 2004 after the success the company had with its Romanian subsidiary. The small Bulgarian studio has already released one game in Ubisoft’s signature Rayman series.
Here’s what the corporate info page states about outsourcing their production studios.
The company’s 15 in-house production studios are located in 11 countries. The choice of China, Canada and Romania as host countries for its major studios offers Ubisoft competent, trained people as well as tax benefits or a lower cost structure.
I think they’ve pretty much summed up the benefits of outsourcing (see italics). This isn’t to say this is the only viable model. At the other extreme, Blizzard Entertainment has focused solely on it’s US-based development studio (working secretly on Diablo 3 / Starcraft 2) and a marketing organization sprawling the world.
Just a note to people interested in outsourcing/offshoring, BBC is currently running a special series on India and approximately half of it is dedicated to India’s knowledge industry, including software outsourcing.
You can get it on your radio – tune in to BBC World Service or go to their website. They have some of the highlights as podcasts.
While you’re at it, check out last week’s Global Business – it had a special on Vietnam and its outsourcing industry.