Bulgarian EconMin, Business Leaders Optimistic about Services Outsourcing

Bulgarian Economy Minister Traikov (left) with Maria Shishkova, Chair fo the Bulgarian Business Leaders' Forum. Photo by M3 Communications Group, Inc

The development of business services in Bulgaria, including through outsourcing, harbors a great potential for the Bulgarian economy, according to Economy Minister Traikov and the Bulgarian Business Leaders' Forum (BBLF).

Traikov met with leading Bulgarian businesspeople for a working breakfast Monday, organized by the BBLF.

"Each nation in the EU should be a hub in the fields that it has comparative advantage in. For Bulgaria within the EU, for the time being, those are the low taxes, and, unfortunately, the still low salaries," the Economy Minister told the BBLF.

In his words, business services are a great potential source for economic development for Bulgaria. Traikov said Bulgaria's potential in that respect has been assessed highly by independent analysts, largely thanks to its good infrastructure in telecommunications and transport, and because of the intellectual potential of the Bulgarian population.

He pointed out that the outsourcing of business services generated about EUR 150 M per year, and the government expected to see those grow by 50% over the next 2-3 years.

"We think it is realistic to see this figure grow 10 times in several years," Traikov said.

According to Maria Shishkova, Chair of the Bulgarian Business Leaders' Forum, the Bulgarian market is attractive for foreign companies seeking to invest in services but at the same time the government has to take serious measures with respect to problems connected with the demographic crisis and the worsening educational standards.

Both the minister and the business leaders expressed their satisfaction with the fact that in the third quarter of 2010 Bulgaria registered positive economic growth year-on-year for the first time since the beginning of the global crisis.

Traikov said the growth was largely the result of rising exports of metals, oils and oil products, which formed 60% of the growth in exports. He believes, however, that the real takeoff of the Bulgarian economy will happen when the domestic demand recovers.

During his meeting with the BBFL, the Minister of Economy, Energy, and Tourism also hailed the signing of a deal with Gazprom on Saturday during Russian PM Putin's visit to Sofia for the establishment of the joint venture for the Bulgarian section of the South Stream gas transit pipeline.

Traikov said the South Stream pipeline will bring Bulgaria about EUR 1 B in transit fees annually, which is about 3% of the country's GDP.

"South Stream is a project which has all chances to become successful and profitable for Bulgaria, which is why the state is actively committed to it so that it can be structured in a way corresponding to our national interests," Traikov declared.

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