Study by the independent agency CBN Pannoff, Stoytcheff & Co.
About the enterprise resource planning (ERP) market in Bulgaria
Launched in not-too-distant 1996, today on the verge of the cloud revolution, the ERP market in Bulgaria enjoys a highly competitive environment. To date, there are over 80 integrators of ERP systems operating on it, representing more than 20 global and over 25 Bulgarian vendors. The actual ERP installations exceeded 2,000 some years ago.
About the target group
In the Bulgarian economy, foreign investors are the most powerful and technologically advanced economic group that introduces speedily digitalization processes into the business. Approximately 2,400 small, medium and large companies (or only around 0.6% оut of a total of over 400,000 nationwide), held by foreign investors, operate on the domestic market. These companies hold an exceptionally high share of the ERP installations among the business customers in Bulgaria – approximately 34%*.
About FTS Bulgaria
FTS Bulgaria (https://fts-eu.com) has been implementing projects with Microsoft and Maconomy ERP software for business customers in Bulgaria for 20 years, and after the acquisition of Dynamic Solutions (successor to the renowned integrators LLP Dynamics and Xapt Solutions) emerges as a leading ERP integrator in terms of numbers of customers among foreign investors operating in the country with a share of 13.5%* of all installations in the segment. The result is impressive indeed given the intense competition – a total of 72 integrators boasts successful projects in the segment.
The business customers of FTS Bulgaria among the foreign investors provided 140,200 jobs in the country and generated operating revenues of BGN 5.24 billion in total, equal to 4.3% of Bulgaria’s GDP for 2020.
FTS Bulgaria with customers – foreign investors by country
The group has realized ERP implementation projects in companies held by investors from 21 countries, including five from the G7, the EU’s four largest economies, from countries neighboring Bulgaria and from the Scandinavian region.
FTS Bulgaria with customers – foreign investors by industry
The group has successful implementations of enterprise resource planning systems in 10* of the industries in which foreign investors operate in Bulgaria. As expected, the largest number of the customers of FTS Bulgaria are foreign investors in the trade and manufacturing industries. Successful projects have been realized in other industries strategic for the investors in the country such as information technology, transport and warehousing, professional and administrative activities, energy, real estate and tourism.
FTS Bulgaria with customers – foreign investors by industry sector
The group has successful ERP implementations among foreign companies operating in 28 industry sectors which are key to the Bulgarian economy. The below table* presents the sectors in which FTS has customers with successful ERP projects in foreign investors. [X] – Shows the ranking of the sector in the Bulgarian economy according to the total revenues of the companies registered in the relevant sector. The sectors in the TOP10 are indicated.
FTS Bulgaria with customers from large, small and medium foreign businesses in Bulgaria
15%* of the projects implemented by FTS Bulgaria in foreign companies in the country represent large companies (249+ employees), the projects being won in competition with more than 30 integrators (mainly representatives of one vendor). Among small and medium-sized businesses (10-249 employees), the group has the highest market share of 14.7%, where 80% of all FTS customers in the segment are, in competition with over 60 integrators*.
* All results are from the XXVII annual study of the business software market in the country “CBN2021_ERP, CRM and BI business in Bulgaria 1996 – 2021_Statistics and Data Base [http://blog.cbn-bulgaria.com/2021/11/cbn2021erp-crm-and-bi-business-in.html]” of the independent agency CBN Pannoff, Stoytcheff & Co.
CBN Pannoff, Stoytcheff & Co. [http://blog.cbn-bulgaria.com/] is the only independent agency in Bulgaria that has been actually carrying out studies on ERP, CRM and BI markets in the country since their outset in 1996. It has its own database with several thousand projects for the implementation of business software. It prepares market overviews for these markets each year.