Bulgaria has become a hub for software development. In recent times, one could observe how rapidly Bulgaria is catching up regarding technology and innovation with an almost-9% contribution promised by this nation’s thriving IT Industry by 2023. This progress was brought about through measures taken by its government focusing on setting up several IТ-centered locations like tech-hubs and academic centers for supportive purposes transforming it into prime location attracting numerous transnational companies to establish operations in Bulgarian lands.

There are many reasons why Bulgaria has become a popular destination for software development. One of the main reasons is the availability of highly skilled and educated IT professionals, with a strong focus on STEM education. The country also offers a favorable tax environment and relatively low labor costs compared to other European countries.

This has made Bulgaria an attractive location for both large multinational corporations and start-ups looking to outsource software development.

The State of Software Development in Bulgaria

Bulgaria has been making significant strides in the software development industry in recent years. The country has a highly skilled workforce, a favorable business environment, and competitive pricing compared to other European countries.

In this section, we will examine the growth of the software industry in Bulgaria and the advantages of software development in the country.

The Growth of the Software Industry in Bulgaria

The Bulgarian software development industry has been growing at a rapid pace in recent years. According to the 2020 AIBEST Report, the IT outsourcing services in the country will contribute to 8.9% of the national economy by 2022. Since 2010, Bulgaria has been developing IT hubs and tech parks around the country, which has attracted many multinational companies to set up their operations in the country.

Furthermore, Bulgaria has a highly educated workforce, with a large percentage of the population holding degrees in computer science and engineering. This has resulted in a highly skilled workforce that is capable of delivering high-quality software development services to clients worldwide.

The Advantages of Software Development in Bulgaria

There are several advantages to outsourcing software development to Bulgaria. One of the main advantages is the competitive pricing compared to other European countries.

  • According to a Clutch review, it will cost between $25 and $150 per hour to hire software engineers in Bulgaria, depending on the level of expertise and years of experience.
  • In addition to the competitive pricing, Bulgaria also has a favorable business environment.
  • The country has a low corporate tax rate of 10%, which is one of the lowest in Europe.
  • The government has also implemented several initiatives to support the growth of the software industry in the country, such as tax exemptions for IT companies and grants for research and development projects.
  • Finally, Bulgaria has a strategic location in Europe, with excellent connectivity to other European countries.

This makes it easy for companies to collaborate with their clients and partners in other parts of the continent.

Challenges in Software Development in Bulgaria

While Bulgaria has a rapidly growing software development industry, there are still some challenges that need to be addressed to ensure its continued success. Two of the major challenges are:

The Shortage of Skilled Developers

One of the biggest challenges facing the Bulgarian software development industry is a shortage of skilled developers. While there are many talented developers in Bulgaria, there simply aren’t enough to meet the growing demand for software development services.

This shortage is due in part to the fact that many of Bulgaria’s top developers are being recruited by companies in other countries. This has created a brain drain that is making it difficult for Bulgarian companies to find the talent they need to grow and expand.

To address this shortage, many Bulgarian companies are investing in training programs and partnerships with universities to help develop the next generation of software developers. Additionally, some companies are turning to outsourcing to fill the talent gap.

The Language Barrier

Another challenge facing the Bulgarian software development industry is the language barrier. While many Bulgarian developers speak English fluently, there are still some communication challenges that can arise when working with clients from other countries.

To overcome this challenge, many Bulgarian companies are investing in language training programs to help their developers improve their communication skills.

Additionally, some companies are hiring project managers who are fluent in both Bulgarian and English to help bridge the communication gap between developers and clients.

Solutions for Software Development in Bulgaria

Bulgaria has established itself as a hub for software development, with a growing number of companies investing in the country. The government has also been supportive of the IT industry, providing incentives and creating an environment that fosters innovation. However, there are still challenges that need to be addressed to further improve the software development sector in Bulgaria.

Investing in Education and Training

One of the key solutions to improve software development in Bulgaria is investing in education and training. The country has a strong education system, with many universities offering IT-related courses. However, there is a need to further develop the curriculum to ensure that graduates have the necessary skills to meet the demands of the industry.

Companies can also invest in training programs to upskill their employees and keep up with the latest technologies. This can be done through in-house training or by partnering with training providers. By investing in education and training, Bulgaria can ensure that it has a skilled workforce that can compete globally.

Promoting Multilingualism

Bulgaria has a highly educated workforce, with many people speaking multiple languages. This is a valuable asset for the software development industry, as it allows companies to cater to clients from different countries and regions. However, there is still room for improvement in terms of promoting multilingualism.

The government can incentivize language learning by offering language courses and certifications. This can be done in collaboration with universities and language schools. Companies can also encourage their employees to learn new languages by offering language courses and providing opportunities to work with international clients.

By promoting multilingualism, Bulgaria can attract more foreign clients and expand its reach in the global software development market.


Bulgaria has become a popular destination for software development outsourcing due to its skilled workforce, low prices, and high-quality service. The IT industry in Bulgaria is growing faster than the rest of the national economy and is expected to contribute to 8.9% of the national economy by 2022. The country has been developing IT hubs and tech parks around the country, which has resulted in a competitive market for software outsourcing.

Central and Eastern Europe (CEE) provide top-notch talent and high-quality service, which makes them a fast alternative to meet the demand for software development outsourcing. Bulgaria, in particular, has a skilled talent pool and decent English literacy, making it an appealing option for Western investors and entrepreneurs.

When outsourcing software development to Bulgaria, it is important to consider the cultural differences and ensure that communication is clear and effective. It is also important to choose a reputable company that has experience working with international clients and can provide high-quality service.

Overall, outsourcing software development to Bulgaria can be a cost-effective and efficient option for businesses looking to expand their development capabilities. With its skilled workforce, competitive market, and growing IT industry, Bulgaria is a promising destination for software development outsourcing.