Adastra is one of the mature foreign service providers active in our markets and we have had the chance to interview the CEO, Mr. Ovtcharov, talking about nearshoring models, total cost of ownership, destinations and some thoughts about differences between markets.
Mr. Ovtcharov, you are coming from Bulgaria, a market and sourcing destination that has seen in recent years a rapid development. What were from your inside experience the main drivers for this development?
Before I answer the question ‘Why Bulgaria’, let me first briefly address the main drivers behind the IT off- shoring. Typically, the companies are seeking to attain one or more of the following business benefits: reduction of operational costs, faster time-to-market, access to talent, access to technological and business know-how, and improved quality.
The outcome of an offshoring initiative depends on the extent to which these goals have been achieved and the choice of the de- livery location contributes significantly to the failure or the success of the initiative. Important country selection criteria are country risk, labor, tax, and regulatory costs, telecom infrastructure, skills and availability of IT resources, cultural compatibility, and last, but not least intellectual property security.
So how does Bulgaria fit into that picture? The country is part of the EU and NATO which guarantees a stable business environment. Due to the flat 10% corporate and personal taxes, Bulgaria is one of the EU countries with the lowest operational costs. The telecom infrastructure is fast and reliable.
Strong information security and privacy regulations are in place in accordance with the EU legislation. The country is also known for the well-educated and highly-skilled talent pool with strong IT and language skills. And not to forget, the Bulgarian currency is pegged to the Euro which eliminates any foreign exchange risks.
I don’t want to get into general benefits of nearshoring, but at least in our markets people still need to be convinced to look over the border, be more practical and less reserved towards the idea of using the opportunities provided by outsourcing models. In a meeting with an IT executive, …