Outsourcing IT services to Bulgaria: A note for Nordic Tech

The Nordic region, renowned for its digital literacy and innovation, is at a crossroads due to a significant shortage of IT talent. This challenge has turned the focus towards Bulgaria, particularly its potential to alleviate this issue through outsourcing IT services. Accedia, a prominent Bulgarian software development company, has been at the forefront of fostering strong partnerships with Nordic businesses for over seven years. These partnerships have matured into long-term collaborations, featuring highly complex projects and expanded teams. All this demonstrating the critical role outsourcing IT services can play in bridging the talent gap in the Nordics.

Navigating the Nordic IT skills gap 

The Nordic countries, despite being home to some of the world's most advanced digital economies, face a significant shortage of qualified software developers. Despite high internet usage, the region struggles with a declining number of computer science students over the past decade, leading to a gap in skilled software developers in the labor market. This contrasts with countries like India, China, and the United States, where computer science education is more emphasized.

Sweden enjoys a high standard of living and is ranked 5th on the Human Development Index. According to IBIS World, its software development market size is €16.9bn in 2024, despite a 5.8% annual decline from 2019 to 2024. The industry employs 39,842 people as of 2024, indicating growth in employment within the sector, although it remains highly fragmented with no company holding more than a 5% market share.

Denmark, also ranked 5th on the Human Development Index, mirrors Sweden's challenge in filling programming and engineering roles. The software development market size is estimated €3.2bn in 2024, with a 6.7% annual decline between 2019 and 2024, as reported by IBIS World. It employs 11,398 people in software development as of 2024. The country is predicted to face a shortage of 13,500 engineers by 2025.

Finland experiences a growing demand for software developers, with a notable gap as 66% of IT positions remain unfilled. Annually, around 1100 students graduate in the ICT field, but only 300 specialize in software development. The shortage is estimated at up to 14,000 developers, a need that could potentially be met by Poland's IT workforce, which adds 15,000 new IT workers annually.

Norway, ranked 2nd on the Human Development Index, boasts a thriving economy with at least 80,000 people working in the IT industry. However, a recent study reveals that almost two-thirds of Norway's industrial sector is experiencing a scarcity of skilled professionals. This demand is particularly high for well-educated individuals, especially in Norway's key regions, including Oslo.

Overall, the Nordic countries present a paradox of high digital adoption but insufficient local talent in software development, highlighting the need for educational reforms and international recruitment to close the IT skills gap. By outsourcing IT services, Nordic countries can address their local talent shortages, access a pool of skilled software developers, and maintain their positions as leaders in the global digital economy.

Why should a Nordic company outsource IT services to Bulgaria?

In line with the considerations above, the decision to leverage software development outsourcing is an essential step towards the future success of your organization. You recognize the advantages of scaling, cost efficiency, and focusing on your core business activities. However, the risks of miscommunication, lack of team fit, and quality concerns make it a challenging decision to outsource your IT needs and choose a software development outsourcing destination that aligns with your goals.

Below are several compelling reasons why Nordic companies should consider outsourcing IT services to Bulgaria.

Skilled competitive talent

Bulgaria boasts a rich tradition in computer engineering and is esteemed as the "European Silicon Valley." This reputation is backed by over 70,000 professionals working in the software development services sector and more than 6,000 new IT graduates entering the workforce each year. Additionally, the majority of IT and software development companies in Bulgaria invest in both internal and external IT academies and technology hubs to enhance their teams' skills. Internationally, Bulgarian software developers are highly regarded for their expertise in PHP, Python, Java, Node.js, among other technologies.

Over 50% of the Bulgarian workforce is bilingual, further ensuring effective communication with international clients.

Nearshore destination

For Nordic businesses, Bulgaria represents an ideal nearshore IT outsourcing location. The geographical and temporal proximity facilitates more efficient collaboration. Although the cost of software development services in Bulgaria might be higher compared to other offshore IT destinations, the quality of these services is unparalleled. Bulgaria ranks 17th globally in nearshoring and software development outsourcing excellence.

Cultural similarities

Outsourcing IT services companies in Bulgaria are known for their transparent communication and goal-driven work ethic, mirroring the cultural ethos of Nordic countries. This is particularly true in the relationship between Bulgaria and Finland, where open, semi-formal communication styles prevail. This shared work culture enables businesses to be agile and adapt swiftly to market changes. Nordic companies find it easy to integrate Bulgarian software development teams into their operations, fostering opportunities for long-term collaboration.

Strategic IT Outsourcing: The advantage of Bulgarian custom software development companies

Bulgarian vendors are renowned for their loyalty, with IT outsourcing firms striving to transform project-based engagements into enduring partnerships.

IT infrastructure

Globally, Bulgaria is ranked 11th for mobile internet speed, reflecting its substantial investments in IT infrastructure and technology hubs, such as the Sofia Tech Park. This state-of-the-art facility, alongside significant investments from major tech players like IBM and Microsoft, positions Bulgaria as a leading hub for IT and technology events.

High retention rate

The professionalism and work ethic exhibited by Bulgarian IT outsourcing services companies have led to a high retention rate among clients who value long-term professional relationships. These companies are favored for their consistent delivery of high-quality work, innovative technology solutions, and adherence to timelines, making them a top choice for Nordic businesses looking to enhance operational efficiency and productivity.

What have we learned and developed together with our Nordic clients?

Our collaborations with Nordic clients across various industries, from IT and Software to Logistics and Manufacturing, have evolved from initial consultations to deep, long-term partnerships. Despite challenges, our role as a trusted software development company, efficient communication, punctuality, and professionalism have been key to our success.

4 cases for building a dedicated software development team

From our first project with a Finnish software development company, involving a single consultant and a small project scope, we have expanded to over five complex projects, demonstrating our proficiency in technologies such as Microsoft .NET, React, and Node.js.

Our development solutions for a Swedish manufacturing client in the data analytics domain exemplify our commitment to digital transformation and operational excellence, leveraging technologies like Microsoft IoT Edge and Kubernetes for scalable, efficient management and deployment. The reasons Nordic companies choose us as their technology partner include the quality of our software development services, our technological expertise, nearshore benefits, and cultural compatibility, all of which ensure seamless integration of our dedicated teams into their businesses.

All in all

Outsourcing IT services is a strategic step towards international expansion for businesses. Selecting the right outsourcing destination and partner is crucial.

Bulgaria stands out due to its proximity, cultural alignment, and a long-standing tradition in computer engineering, guaranteeing high-quality software development services. These are just a few of the many reasons our Nordic partners choose outsourcing IT services to Bulgaria. 

On the other hand, choosing the right technology partner is straightforward. The best option is to work with a software development company that understands the Nordic market and work approach intimately.

If you're considering whether our values, work style, engagement models align with your needs, we invite you to reach out to us.