IBA Group has opened a second office in Bulgaria, as part of a plan to grow its new product areas. IBA Group is a global IT service provider headquartered in Prague, Czech Republic and the establishment of the new office is a step in the implementation of the IBA Group’s expansion strategy in Eastern Europe. Typically, IBA relies on organic growth rather than on acquisitions. However, in 2007 it purchased a 50% stake in Stone Computers, a Bulgaria-based IT vendor. The deal generated benefits for both companies, it says.

With assistance from IBA Group, Stone Computers is expanding its service and product portfolio. As for IBA Group, it has achieved a local presence in Bulgaria.

The Varna office is the second IBA’s office in Bulgaria and the 17th across the world. To date, IBA Group employs more than 2,000 people. Its development centres are in Belarus and Czech Republic, and its sales offices in the United States, Germany, Cyprus, Russia, and Bulgaria. IBA Group is a multipurpose IT company that operates as an ISV, VAR and OEM (Original Equipment Manufacturer).

IBA Group timed the opening in Varna to coincide with the introduction of its product, the IBA Information and Transaction Terminal (ITT), to the Bulgarian market. The ITT is a self–service device designed for financial transactions and for quick access to reference information. Using the terminal, it is possible to pay by card for public utilities and telephone, Internet, and cable TV services, as well as repay loans. ITTs are typically installed in bank branches, retail chains, commercial areas, airports, railway stations, hotels, tourist centres, and educational institutions.

Commenting on the event, Sergei Levteev (left), IBA Group President, said: “To meet client demands, IBA will proceed with expansion in Eastern Europe. The company will also continue its quest for innovation. The IT market is highly dynamic. It is hard to predict what will be on demand tomorrow and therefore we keep exploring new trends and technologies. When several years ago we unveiled ITTs, nobody understood why. No similar products existed either in the West, or in Eastern Europe. Even banking institutions did not see how ITTs can be used for their benefit. Today, this line of business is showing excellent results.”

Our Analysis

Bulgaria is proving attractive as the South East corner of Europe benefits from incoming Middle East and Russian investment. Increasingly sophisticated technology is proving attractive both to enterprise and small and medium businesses. Now the trend is to move outside capital cities.