What Mongolian IT Industry Can Learn from Bulgaria?
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The document discusses the growth of the Bulgarian software industry, highlighting its significant number of open positions and professional workforce, alongside its contributions to the national GDP. It contrasts Bulgaria's advanced software sector with Mongolia's emerging industry, which faces challenges in job availability and global competitiveness. Recommendations for Mongolian companies include improving talent development, establishing strong sales teams, and leveraging time zone advantages for outsourcing.
What Mongolian IT Industry Can Learn from Bulgaria?
- 1. The Growth of the Bulgarian Software Industry What Mongolian IT Companies Can Learn from their European Counterparts? Svetlin Nakov, PhD Co-Founder and Innovations Manager @ SoftUni https://nakov.com The Future IT Forum 2022 @ Ulaanbaatar, Mongolia
- 2. The Growth of the Bulgarian Software Industry
- 3. 3 Bulgaria is a small country in Southeastern Europe (SEE) Population: 6.8 M in Bulgaria + 1.5 М abroad (Oct 2022) GDP: 84B USD (2021), GDP per capita: 8293 USD / year Former socialistic republic (dominated by Russia until 1990) Now part of the European Union (EU) and NATO, a modern country About Bulgaria
- 4. 4 5K open positions in the software industry in dev.bg This excludes the broader ICT industry! Source: https://dev.bg 5.1K open IT job positions at jobs.bg Source: https://www.jobs.bg/it 54K professionals have already software-related jobs in BG Source: LinkedIn: People | software | Bulgaria 55K professionals in the BG software industry (108K in the ICT) 4600 software companies (2021) from 20+ countries Source: BASSCOM Barometer; Eurostat Employed ICT Specialists Jobs in the Software Industry in Bulgaria (Oct 2022)
- 5. 5 Software Developers in Bulgaria (2005-2021) 4945 11955 12975 14531 16452 18029 22432 24762 29414 32562 37384 40818 46268 0 5000 10000 15000 20000 25000 30000 35000 40000 45000 50000 2005 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source: BASSCOM Barometers (https://basscom.org/industry/all-barometers) SoftUni starts in 2014 54K devs in Bulgaria in 2022
- 6. 6 Bulgarian Software Industry Revenue (in Mil EUR) 132 400 474 550 612 702 953 1099 1367 1695 2034 2329 2799 0 500 1000 1500 2000 2500 3000 2005 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source: BASSCOM Barometers (https://basscom.org/industry/all-barometers) SoftUni starts in 2014 3.4B EUR dev revenue in Bulgaria in 2022
- 7. 7 Software Industry Share of Bulgaria's GDP 0.57% 1.11% 1.20% 1.47% 1.62% 1.80% 2.04% 2.25% 2.60% 3.00% 3.30% 3.80% 4.30% 0.00% 0.50% 1.00% 1.50% 2.00% 2.50% 3.00% 3.50% 4.00% 4.50% 5.00% 2005 2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Source: BASSCOM Barometers (https://basscom.org/industry/all-barometers) SoftUni starts in 2014 5% of the Bulgarian GDP in 2022 comes from software
- 8. 8 5000+ open dev positions (Oct 2022) Mostly developers Most wanted: Java, JavaScript, .NET, QA, DevOps Still small demand: Data science, mobile dev, ERP The Developer Job Landscape in Bulgaria
- 9. The Mongolian Software Industry
- 10. 10 Mongolia is a small country (as population) in North Central Asia Population: 3.4 M in Mongolia + 7 М abroad (Oct 2022) GDP: 15.1B USD (2021), GDP per capita: 4121 USD / year Former socialistic republic Democratic country (from 1990) About Mongolia
- 11. 11 Disclaimer: Most probably the below data is not quite accurate! I believe the numbers are quite bigger 450 IT jobs in Mongolia (data from Zangia.mn) Source: zangia.mn/job/list/b.4 186 open IT job positions at LinkedIn Source: https://linkedin.com/jobs/search/?keywords=IT&location=Mongolia 3K professionals have already software-related jobs Source: LinkedIn: People | software | Mongolia Jobs in the Software Industry in Mongolia (Oct 2022)
- 12. Perspective for the Mongolian Software Industry Industry Trends
- 13. 13 Software jobs in Bulgaria / Mongolia / US in numbers (Oct 2022): Software Jobs in Bulgaria / Mongolia Metric Bulgaria Mongolia United States Population 6.8M 3.4M 335.4M GDP 84B USD 15.1B USD 24 880B USD GDP per capita 8293 USD 4121 USD 69 288 USD Dev companies 5 000 - 6 000 ? 300 - 400 ? 500 000 - 600 000 Dev jobs (open positions) 5 500 500 1 365 500 Software devs count 54 000 3 000 4 400 000 Devs as % of population 0.795% 0.088% 1.312% Growth potential 1.6x 15x
- 14. 14 This is how the software industry evolved in Bulgaria Software Industry Evolution Focus on the local market Outsourcing for US and Europe US and Europe dominated market 1990-2000 2000-2010 2010-2022 Small companies (5-50 devs) Work mostly for the local market Outsourcing started Mid-size companies (50-250 devs) Work mostly for US / Europe SAP and VMware opened dev centers Big-size: 500-3000 devs Mostly owned by US and EU business Hundreds of EU / US dev centers in Bulgaria: HP, Experian, LIDL, Software AG
- 15. 15 How Mongolian software companies can compete on the global market? Customers from Europe this will work Mongolia is 6-7 hours ahead excellent time difference Good English is a must! Customers from the United States challengeable Time difference will be a problem 9-12 hours behind from US Customers from Japan, Korea, Australia this will work High competition with Vietnam, Thailand, India, Philippines Japanese and Korean software companies are already in Mongolia Mongolian IT Companies on the Global Market
- 16. 16 Several business models for entering the global market Outstaffing (hire remote tech professionals / rent devs) The easiest and fastest model to scale globally You just provide developers for a daily rate (without management) Outsourcing (develop software projects for remote customer) Riskier and slower (needs higher trust with the customer) Product Development (sell own products on the global market) Extremely complex and very little companies succeed Working through partners could be the key to succeed Business Models for the Global Market
- 17. 17 Build / attract / educate talent Build a pipeline for dev talent: educate junior devs integrate them into real-world projects sell them to remote customers Good English on the global market English is a must! Sales team Build a strong international sales team Direct sales in LinkedIn, attend events and expos, build relations Account management team Handle existing customers to ensure you deliver as expected How to Enter the Global Market?