Outsourcing Destination BulgariaIglika Yordanova, Managing Director, Colliers Bulgaria

October 30, 2014

BPO/ IT/ SSC Locations in Bulgaria

BPO/ SSC Total Take-up Evolution

Bulgaria, 2007- 2017 (sq m)

*Source: 2017 take-up projections based on the Bulgarian Outsourcing Association prospects

Outsourcing business in Bulgaria is expected to double over the next 3 years

BPO/ SSC Transaction types

2007 2008 2009 2010 2011 2012 2013 20140

5000

10000

15000

20000

25000

30000

35000

Bulgaria, 2007-2014 (sq m)

New entry Expansion Relocation Renewal

Source: Colliers International

Secondary Cities – Potential to Grow

Secondary cities - Opportunities

• Untapped talent pool • Undergraduate/ Graduate

specialization opportunities (Universities)

• Lower operational costs

Sofia – Challenges

• Vacancy in class A office space dropped to single digit

• Rental levels have increased• Growing competition for talent

recruitment in Sofia

Source: Colliers International

2007 2008 2009 2010 2011 2012 2013 20140

500

1000

1500

2000

2500

3000

3500

4000

Secondary cities, 2007-2014(sq m)

BPO/ SSC Total Take-up Evolution

Source: Colliers International

BPO/ SSC Total Take-up Share

Burgas9%

Plovdiv51%

Varna36%

Veliko Tarnovo3%

Secondary cities, 2007-2014 (sq m)

Source: Colliers International

BPO/ SSC Business Impact on Real Estate

Other 76%

BPO 26%

Industry Share Take-up in the Office Segment (sq m)

Source: Colliers International

BPO 61%

Other39%

2013Q1-Q3 2014

Business Impact – What’s next?

Source: Colliers International

Convert Existing Properties into Office Space (Change in Purpose of Use)

Upgrade Current Office Stock

New Development – Speculative and Built-to-suit

Thank you!Colliers International

October 30, 2014