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Business Support Services in the Czech Republic Contents INVESTMENT OPPORTUNITIES Business Support Services in the Czech Republic Contents Sector Overview 1 Education 2 Labour Pool 3 Czech Regions Ready for International Projects 4 Case Studies 6 Business Environment 7 Association of Business Service Leaders 8 in the Czech Republic Last update: April 2015 www.czechinvest.org 1 Sector Overview The Czech Republic is one of the leaders in the business support services sector Specialisation in Business Services in Central and Eastern Europe. The country is ranked as a top location for specialised (Number of companies per 100,000 population) business support services according to Dun & Bradstreet Global Reference Solution. Czech Republic The shared-services centres of DHL, Accenture, ExxonMobil, IBM and more than 200 USA other companies employ over 55,000 specialists in the Czech Republic. Nearly 80% Sweden of these centres are captive, while BPO companies represent about 20% of the market. Slovak Republic The country’s current top BSS locations, Prague and Brno, are now facing competition from other regional centres such as Ostrava, Olomouc and Plzeň, which offer a high-quality, Switzerland loyal and motivated workforce combined with lower costs. Finland The most frequently shared services are finance and accounting, IT services and customer UK support. Rapidly growing shared services include human resources, logistics and legal Hungary services. Germany Poland Reasons to invest in the Czech republic Canada Bulgaria -- More than 72% of Czechs are able to speak at least one foreign language and more than 50% of students can speak at least two foreign languages Romania -- In addition to Prague, the country has several strong hotspots ready for South Korea international projects in regional centres Japan -- Location in the centre of Europe, the six-hour time difference from New York China and seven hours from Tokyo enables SSCs to provide services to the East India and West in parallel 0K 1k 2k 3k 4k 5k 6k 7k -- Excellent office infrastructure Source: fDi Intelligence from the Financial Times based on Dun & Bradstreet -- Sophisticated telecommunications and data networks (fDi Benchmark 2015) -- Creative and experienced professionals at lower costs -- Data protection respecting all EU rules -- Positive approach of the government, financial support for business support services projects -- The Czech Republic’s cosmopolitan society makes it an attractive place to live ABSL estimates that there are BPO 150 + 20% SSC BPO/Captive SSC's present today in Czech Republic, 71% the industry employs ca. 55,000 BPO+SSC Staff 9% Source: ABSL Modern Business Services Market in Czech Republic Survey 2014 2 Education The Czech Republic has a strong education system that is focused on meeting the needs Business Administration, Human Resources and Law Study Programmes of a competitive economy. The country’s 169 finance, economics, law and ICT faculties turn Total Numbers of Students and Graduates out more than 37,000 graduates every year. at Czech Universities Academic Year 2014/15 Currently, the Czech Republic can offer all types of education, including postgraduate and continuing lifelong education funded by the state. All university students are required to study at least one foreign language and at some Prague universities the requirements are set to two languanges. English is the most popular foreign South Moravia language, followed by German and French. Moravia-Silesia Sudents Cooperation between universities and shared-services centres has been expanding in recent years. Companies such as IBM, SAP, Accenture and many others have developed South Bohemia Graduates different types of cooperation and actively approach students during their studies Zlin at university. Olomouc Plzen Usti nad Labem Business Administration and HR Study Programmes at Czech Universities Pardubice Number of Students and Graduates Selected Universities Hradec Kralove Academic Year 2014/2015 Vysocina University of Economics, Prague University of Hradec Kralove VSB – Technical University of Ostrava Students: 1,512 Students: 5,743 Liberec Students: 13,295 Graduates: 3,926 Graduates: 392 Graduates: 1,791 Central Bohemia Czech University of Life Sciences Technical University of Liberec Silesian University Opava Karlovy Vary Prague Students: 1,780 Students: 3,154 0 10,000 20,000 30,000 40,000 50,000 60,000 Students: 10,197 Graduates: 559 Graduates: 1,010 Graduates: 3,263 Source: Ministry of Education, Youth and Sport, 2015 Business Administration & HR Study Programmes Students: 84,260 Graduates: 28,395 Plzen ICT 10.23 % More than Business Others 130,000 Administration University of West Bohemia, Plzen Masaryk University, Brno University of Pardubice 62.47 % 23.28 % Students: 1,426 Students: 3,947 Students: 2,176 students are enrolled in ICT, Graduates: 516 business administration, Graduates: 448 Graduates: 1,438 HR or law programmes HR 0.87 % VSTE Ceske Budejovice Mendel University of Brno Tomas Bata University in Zlin Law Students: 2,143 Students: 3,387 Students: 2,606 3.05 % Graduates: 382 Graduates: 843 Graduates: 847 Source: Ministr of Education, Youth and Sport, 2015 Source: Ministry of Education, Youth and Sport, 2015 3 Labour Pool The Czech Republic’s labour pool is estimated at 5.3 million, supplemented with over 100,000 Number of Foreigners in the Czech Republic secondary-school graduates and roughly 98,000 university and higher professional school Selected Countries, According to the Languages as of 30 December 2014 graduates every year. Multilingual workforce suitable for international services projects -- More than 72% of Czechs are able to speak at least one foreign language -- More than 30% of the population is able to speak two foreign languages 5,587 1,661 Two-thirds of graduates are trained in economics, finance, law or ICT 3,874 -- 1,488 3,810 2,262 2,946 1,517 Currently over 55,000 full-time staff are employed in business support services. 23,711 14,749 Czech employees are seen as flexible, service-oriented, highly motivated and very efficient. Chinese French Italian Dutch The Czech Republic has a substantial community of expats, who often seek job opportunities Spanish Scandinavia Korean Japanese German English in shared-services centres. Source: Ministry of Interior, January 2015 Note: English - Australia, Canada, Ireland, United Kingdom, United States, South Africa; German - Austria, Germany, Switzerland; French - France, Belgium; Spanish – Spain, Mexico, Colombia, Peru, Cuba, Chile The Czech labour market offers a rich source of employees who, Level of Knowledge of Foreign Languages in Population in the Czech Republic thanks to their loyalty and diligence, The Table Below Documents the Replies According to the Socio-demographic Characteristics “ of Respondents are a gaurantee of return on investment greater than that Which foreign English German Russian French Spanish Italian languages can in other countries in Central you speak in % in % in % in % in % in % and to what and Eastern Europe. standard? Fluent Active Passive Fluent Active Passive Fluent Active Passive All All All levels levels levels Rita Cseke, Area Manager – Reed Europe Prague 17,1 33,8 17,4 6,0 12,3 22,8 3,0 13,8 23,4 8,7 5,7 5,7 Central 11,3 19,5 19,5 4,4 10,8 22,4 2,6 9,9 24,4 3,8 4,1 1,5 ” Bohemia South Bohemia 9,9 13,0 16,0 10,5 23,5 28,4 1,2 13,0 30,2 1,9 3,1 1,2 Plzen 9,3 23,3 12,0 3,3 19,3 26,7 0 8,7 29,3 2,0 4,0 1,3 Agriculture Karlovy Vary 5,9 20,0 16,5 8,2 23,5 28,2 0 5,9 30,6 4,7 0 1,2 2,8% Usti nad Labem 7,7 19,0 17,9 6,7 15,4 21,5 0,5 12,3 24,6 3,6 6,2 3,1 Liberec 7,9 19,8 20,8 3,9 13,7 24,5 2,9 6,8 32,0 5,0 3,0 2,0 Hradec Kralove 12,8 28,4 15,6 4,3 12,8 24,8 3,6 11,5 28,8 6,4 2,8 5,0 Nearly Pardubice 7,1 21,4 16,7 5,6 11,2 22,4 2,4 8,8 35,2 4,8 4,0 0,8 Services Industry Vysocina 6,1 18,4 13,2 7,0 9,6 21,1 1,8 12,3 24,6 2,6 0,9 2,6 59,1% 38,1% 3,000,000 South Moravia 11,9 23,9 18,1 3,8 19,8 23,9 1,7 11,7 26,2 4,5 2,1 4,5 8,8 25,0 27,0 3,4 13,4 25,5 4,0 12,1 25,5 7,4 4,0 4,1 people work in services Olomouc in the Czech Republic Zlin 14,5 20,0 20,0 3,4 17,9 22,8 2,1 12,5 27,8 4,8 4,1 4,1 Moravia-Silesia 7,4 22,5 15,8 3,7 8,7 17,8 2,3 11,7 19,8 1,7 3,0 3,0 Note: This presentation details the results of a representative survey carried out by means of face-to-face interviews in three waves during the period from 20 May to 11 June 2014. A total of 2,641 respondents aged 18-59 years participated in the survey. The survey was conducted by experienced interviewers from STEM throughout the Czech Republic. Quota sampling method with criteria of sex, age, education, size of locality and region was used. Basic information on knowledge of foreign languages among the population in the 18-59 age group was measured by means of TWO questions. First the respondents had to state the number of foreign languages in which they are able to read and understand a simple text.
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