Reality Check. How to Adapt to Changes in the Bulgarian IT Market 2024

The IT market in 2024 is constantly evolving and changing, which requires up-to-date information on trends and challenges, and adaptation to those changes. As more projects are cut short and people are laid off, understanding the current problems and prospects is crucial for recruitment consultants, job seekers, and companies that need qualified personnel. In this article, we will discuss the main challenges of the IT market in 2024, the current situation, and recommendations for adapting to these changes, which were also addressed in the “Recruitment Conference III,” where the Talent Hunter team participated.

What We Notice?

From our work with people from different technologies and companies, we can look at problems and changes from various angles. In this rapidly developing market, it is essential that each of us has the ability to adapt quickly. In this article, we can give some starting points based on which everyone can plan their career development.

• Over the past ten years, the market has seen significant growth with many outsourcing companies entering our market, but now there has been a significant reduction in the number of open IT roles and projects.
• Few new companies are entering the Bulgarian market, and existing companies are laying off staff.
• A series of consecutive events and economic processes over the past few years have changed the candidate-centered market and turned the poles.
• Competitive conditions for candidates have led to changes in working conditions such as budgets and office work models.
• Candidates must be flexible in their preferences for work to remain competitive in the hiring process.
• The B2B model of work and outsourcing is losing popularity when it comes to cooperation between companies in the country.

Main Challenges of the IT Market in 2024

The decrease in available specialists and the shrinking of work projects in the IT industry are growing due to a series of consecutive events and economic processes over the past few years. There is a reduction in investments, unclear company development directions, and optimization of costs that many companies apply, regardless of their size. Compared to 2022, there are currently about 2,300 open IT roles, down from around 5,600.

The changes in the previously candidate-centric market, where companies competed for specialists, have led to a shift in power and increased competition for available jobs. This also leads to a potential slowdown in salary growth rates.

More and more companies are encountering difficulties in retaining highly qualified people and resort to layoffs. The shrinking of projects, and restrictions imposed, significantly affect not only the balance of power between candidates and employers but also the profiling of specialists in a specific technological direction.

Increasingly, companies are taking enough time to meet more candidates to choose the best possible combination of experience, knowledge, and financial expectations, leading to longer selection processes. With the shift in the labor market, companies are gradually reintroducing the office work model, sometimes gradually, by adopting a hybrid work approach, and remote work is less common.

The merging of several positions into one is already visible. In the coming years, this trend is expected to intensify, leading to the blurring of the clear distinction between IT infrastructure, frontend, backend, and QA roles, and eventually leading to a full-stack role. The merging of QA, product, and development roles will follow Western trends for full-stack development positions.

Skill gaps in the experience of specialists in the country compared to those in countries like Poland are also becoming apparent. In addition, statistics show that the IT market in Poland has around 500,000 specialists, while in Bulgaria there are around 70,000 specialists, so to stay competitive, constant professional development is necessary.

Unlike Western markets, the B2B model of work has been less popular in the last two years in the country. There is a need for a change in mindset among companies, as well as certain policies that would strengthen such market relationships. This could contribute to the increase in new projects and companies in the country.

Recommendations for Future Trends and Adaptation

• The decrease in the need for data centers. Everything moves to cloud services, meaning that companies rely more on external and fast solutions. Technological profiling of specialists in the country in the direction of cloud technologies is strongly recommended.
• The demand for consulting services will increase as companies strive to adapt their business models to rapidly changing technological landscapes.
• The introduction of European regulation for wage transparency in 2026 will require companies to disclose their remuneration policies, promoting fairness and transparency in the labor market.
• The use of artificial intelligence (AI) will play an increasingly important role in many industries and will lead to transformations based on AI, including in HR, involving tools such as chatbots and automated selection processes, and optimizing workplace environments. With the advent of tools like ChatGPT and BGGPT, companies will focus on integrating AI into their processes and systems.
• Due to the increasing awareness of the need for investment in cybersecurity and the numerous threats, the search for qualified professionals in this field will continue to grow.
• We encourage people to assess their skills and contribute to closing the skillset gap that is becoming apparent.

Conclusion

In conclusion, adapting to the constantly changing IT market is essential for all participants – from recruitment consultants to candidates and companies. By understanding the current challenges and predicting future trends, they can make informed decisions about their careers and business strategies. This includes acquiring new skills, being open to change, and using modern technologies such as artificial intelligence. At Talent Hunter, we research the changing requirements, conditions, and needs of companies, as well as the continuous development of specialists from various technologies, and their criteria and needs. Our consultants are available for a Reality Check, which everyone needs.