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Business Services Centres in Hungary 7 BUSINESS SERVICES CENTRES IN HUNGARY HUNGARY SMART. AMBITIOUS. COMPETITIVE. BUSINESS SERVICES CONTENT CENTRES IN HUNGARY 6 ABOUT HUNGARY BUSINESS SERVICES CENTRES 14 IN HUNGARY 20 LABOUR FORCE 26 LANGUAGES 28 LOCATION Published by the Hungarian Investment 34 HUNGARIAN INVESTMENT Promotion Agency, HIPA All rights reserved © HIPA, 2018 PROMOTION AGENCY (HIPA) www.hipa.hu Business Services Centres in Hungary 7 ABOUT HUNGARY MAIN FIGURES CURRENCY FORM OF GDP (PPS) GDP GROWTH GOVERNMENT FORINT EUR 192,855 4.0% PARLIAMENTARY (HUF) MILLION (2017, HCSO) REPUBLIC (2016, HCSO) AREA TIME ZONE 93,023 m2 GMT + 1 HOUR INFLATION 2.4% (2017, HCSO) HUNGARY OTHER MAJOR CITIES POPULATION POPULATION CAPITAL Debrecen (201,981) BUDAPEST Szeged (161,137) 9,797,561 POPULATION Miskolc (157,177) (2017, HCSO) 1,752,704 Pécs (144,675) (2017, HCSO) Győr (129,301) CLIMATE RISK OF NATURAL TEMPERATE DISASTERS (similar to the rest of VERY LOW the continental zone) MEMBERSHIP IN INTERNATIONAL ORGANISATIONS EU, UN, OECD, WTO, NATO, IMF, EC EU member since 2004 (Source: HCSO = Hungarian Central Statistical Office) Business Services Centres in Hungary 9 ABOUT HUNGARY Melanie Seymour Managing Director and Head of BlackRock FDI IN FOCUS Budapest "We chose Budapest to open our first global Technology and Innovation centre because of the quality of talent – the core skill sets as well as the behaviours and mindsets that support or principles. 12 months on we have hired close to 300 people across 14 different functions that are already having impact within the broader BlackRock. We have attracted a diverse workforce including attracting Hungarians living abroad to come back home." YOU CAN COUNT ON THE GOVERNMENT’S 66% COMMITMENT 62% TO FURTHER 51% IMPROVE THE 40% 32% Inward FDI stock BUSINESS CLIMATE amounted to 66% of the GDP (2014) the highest ungary is an open economy where particular ratio in the region. emphasis is placed on encouraging foreign direct investment (FDI). Partnership with HUNGARY CZECH SLOVAKIA POLAND SLOVENIA Source: wiiw FDI Database H REPUBLIC potential investors is a national priority; special atten- tion is paid to the needs of companies already settled in Hungary, and to the further improvement of the business climate. Business Services Centres in Hungary 11 ABOUT HUNGARY ...has modified its taxation and incentive BUSINESS ENVIRONMENT system related to R&D activities to make Hungary the innovation hub of CEE. ...offers companies a …is committed to strategic partnership, further reduce taxes and provides them on employment. with fast access to the Government. IN ORDER TO IMPROVE ...is helping THE BUSINESS CLIMATE companies to function THE HUNGARIAN reliably by providing a clear agenda on economic GOVERNMENT... development and FDI strategy. ...further improved INVESTMENTS IN FOCUS INVESTMENTS the practice-based dual education system built on industry needs. ...has created ...has introduced its ...has introduced a the most competitive unique economic new incentive scheme CIT in the EU development plan supporting with 9% flat rate. based on Industry 4.0 technology intensive requirements. investments. Business Services Centres in Hungary 13 HUNGARIAN EXPLORE THE COUNTRYSIDE ABOUT HUNGARY PARLIAMENT Hungary’s diverse countryside offers a wide QUALITY OF LIFE BUILDING ranked range of outdoor activities: 11,000 kilometres th of hiking routes; more than 4,000 kilometres of 10 cycle paths; 14 golf courses; 10 national parks; in world's top 10 and many protected nature reserves for those landmarks for 2018 in love with fresh air. The protected Puszta- by TripAdvisor region, the Great Plain, the romantic Danube Bend with its historic sites, and pretty baroque towns, such as Eger, attract visitors all over the year. Lake Balaton, the largest fresh water lake in Central Europe, is a perfect holiday resort. HUNGARY ranked among the TOP 5 COUNTRIES in the BOCUSE D'OR INTERNATIONAL SCHOOLS competition Expatriates looking to stick with the curricula in 2017 of their home countries can choose from a range of private international schools for their children. There are also many English, German or French public and private pre- schools for children aged from three to six. The school year starts in September and ends in June, and school buses are usually available at private schools. There are many opportunities to study in a foreign language at universities too. GASTRO STORY The dining scene in Budapest is livelier Did you know that… than ever, practically you can find the EXPATS LIKE HUNGARY …the kindergarten and the elementary cuisines of every culture in the capital, Budapest is a city full of surprises and school division of the International School of from high-end Michelin-star restaurants wonders, with its lively centre, pretty parks, Debrecen will start to operate in September to no-frill eateries, small bistros and majestic river, tall church spires, and lavish 2019 and its upper school education starts must-try food trucks. spas. One of the most exciting cities in the running from September 2020? world, Budapest is full of secrets, hidden spots to explore, and old favourites to revisit. This is the city where being bored is not an option. Business Services Centres in Hungary 15 any companies have chosen to offshore, or BSCs IN HUNGARY rather nearshore, finance, accounting, human Mresources, customer service, and IT to Hungary because of the technological skills and business knowledge of the local workforce; the experiences of these firms are extraordinarily positive. The first regional service centres appeared in Hungary in the 1990s. To date, almost 110 companies have established BSC sites here, employing more than 46,000 people, mostly young professionals speaking multiple languages. Bjorn Bergabo General Manager, GE Global Operations, Europe “Europe is a strategic region for many GE businesses, including several business headquarters and when we decided to create a shared service organization for GE, we chose Hungary for establishing a multi- functional center in the region. GE’s long history of doing business in Hungary and significant industrial presence were key reasons to choose this location. The Global Operations Center, inaugurated in HUNGARIAN WINNERS February 2014, is one of the four world-class centres AT THE MOST SIGNIFICANT and the biggest in terms of number of people. REGIONAL SSC EVENT The Center in Budapest, Hungary provides multi- functional captive shared services to GE businesses Hungarian nominees have won in four categories at in over 30 countries throughout the region and also the Central Eastern European Shared Services and hosts teams with global responsibility. Outsourcing Awards gala event in Warsaw. The availability of skilled workforce, developed Avis Budget Group, British Telecom (BT ROC), infrastructure, central location and time-zone – all Harman's Székesfehérvár centre and EPAM Systems within the European Union were some of the key were awarded this year at the most important regional elements in favor of our choice.” event of the shared service sector. Business Services Centres in Hungary 17 Norbert Fogarasi BSCs IN HUNGARY General Manager Morgan Stanley Budapest lobbying activities to improve the legal and administrative environment “Morgan Stanley’s Budapest office has been an for the business services important technology, finance and business center for and outsourcing the Firm since its opening in 2006. Having opened our industries information network office in Hungary with just a few employees, today we promoting the benefits take pride in the diversity and quality of our workforce. and positive impact When Morgan Stanley moved to Hungary, above a forum for members to maintaining contacts with of outsourcing anything else the Firm was attracted by the highly skilled discuss business services foreign and international workforce and outstanding talent. The past 12 years sector and outsourcing business services have proven that we made a good decision bringing this related issues and outsourcing center to Budapest. Morgan Stanley’s Budapest office is (best practices, techniques, organizations closely linked to the company’s global network through market developments, technology and as a financial & risk analysis center etc.) collection complemented by other important business services. & distribution We are committed to building on our strong foundation of market and are proud of the important role the Budapest information office plays in Morgan Stanley’s global operations.” THE HUNGARIAN SERVICE AND ompanies gradually build up and expand OUTSOURCING ASSOCIATION their operations with new, high value-added (HOA) Cactivities. The workforce comprises mainly of HOA was established by leading Hungarian and fresh graduates and speakers of foreign languages, multinational companies in 2005 to promote and and the sector has created hundreds of new jobs. support activities in the business services sector. Companies establish a BSC in Hungary to serve their Based on its strategy, HOA has started in 2018 its own subsidiaries or to provide outsourced services 3 workgroups to support the represented sectors with for other companies. Most Hungary-based regional dedicated task forces delegated by our members. BSCs are involved in finance, accounting, IT, customer The main focus is on: Industry Branding (to promote service, HR and other back-office activities. and improve the awareness regarding the industry In addition to these, early positive experiences at all levels of the national economy and education); have led to the
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