Business Services Sector in Poland Gaining momentum
2016 ABOUT US CONTENTS
ThePolishInformaionandForeignInvestmentAgencyisfocusedonsupporing Sector in numbers 4 foreigninvestorswhowishtoconductbusinessaciviiesonthePolishmarket. Introducion 5 TheAgencypromotesPolandasthedesinaionforinvestors,providesbusiness Analysis of the Business Services Sector in Poland 7 locaionadvisoryservices,helpscompaniesattheiniialinvestmentphasesand The Database and the methodology 8 renders atercare services.Agency’s employees also help shaping compeiive Business Services Sector companies – number, size, types 10 investmentincenivespackage. Locaionofthebusinessservicessectorcompanies 12 Maturity of BSS centers 16 Country of origin of Business Services Sector companies 17 IndustriesservedbytheBSScenters 24 Foreignlanguagesinbusinessservicessectorcompanies 26 ThebiggestservicecentersinPoland 28 UntappedPotenial 30 TrendsintheBusinessServicesSector 31 BSSprojectsassistedbyPAIiIZin2015andQ1of2016 37 CompletedprojectsassistedbyPAIiIZ 38 SupportgrantedtoBSScompaniesundergovernmentgrantsschemein2015 41 InvestmentprojectsservicedbyPAIiIZ 42 CasestudyofF5Networksinvestmentproject 46 UniqueSellingPointsofciies-leadersintheraceforBSSinvestments 51 Conclusions 67
2 3 SECTOR IN NUMBERS INTRODUCTION
Weareplacinginyourhandsthesecondediionofthereportonthebusinessservicessector (BSS)inPoland.2015markedanotherrecord–theemploymentinBSSexceeded193thousand inover850companies.Theyearfeaturedfurtherdynamicdevelopmentoftheindustrythanks 193 500 Total employment in BSS tobothnewinvestmentsthatwerelocatedlargelyinmanyPolishciies,aswellastheconsistent employmentgrowthwithinexisingcenters.Thesectorisontherisefromtheperspeciveofits sizemeasuredbythegrowingquanityofdiferenttypesofcentersandtheincreaseinnewjob openings.BSShasalsobeenchangingintermsofthequalityofdeliveredservicesanditsgradual 227 Average employment in BSS center disseminaionacrossthecountry.TheimportanceofthebusinessservicesindustryforthePolish economycannotbeoverlookedbecauseofitsinluenceonthelabormarket.Infact,thesector hasbecomeoneofthelargestemployersinthecountry.Theimpactontheemploymentofthe Total number of best-educatedstafprovidingthemwithstable,high-incomejobshasneverbeenclearer.However, 1 454 000 academic students in 2015 whatthesectoroferstopotenialemployeesgoesfarbeyondtheregularpermanentemployment contractorsalaryabovethenaionalaverage.Aclearcareerpathandgreatopportuniiesforfur- therdevelopmentareinvolved,too. Number of languages in which 40 services are provided This report consists of four parts. The irst is an analysis of BSS companies appearing in the Database—bothofPolishandforeignshareholding—operainginourcountry.Inthesecondpartof thedocument,wehavemadeanatempttocharacterizethemaintrendsobservedintheindustry inaverybroadsense,takingintoaccountinparicularthreeaspects:changeintheexisingmodels of the setup of centers as a response to global trends; the impact of companies from the sector on 852 Business Services Centers thelabormarketandrealestatesector,aswellasinvolvementoftheindustryinotherimportant iniiaivesofsocialandeducaionaldimensions.Thethirdchapterofthereportisasummaryof thesectorfromtheperspeciveofinvestmentprojectssupportedbythePolishInformaionand Polish ciies with total Foreign InvestmentAgency (PAIiIZ). BSS investments assisted by theAgency represent almost 7 employment in BSS of 10 000+ halfofallcompletedprojects.Inthissecionyouwillalsoindinformaionaboutcompaniesthat applied for grants under the government Programme for supporing investments of major importance to the Polish economy for years 2011–2020.Thelastpartofthereporthasbeenhandedovertoour Total number of regionalpartnerswhowereinvolvedintheacquisiionandservicingofBSSinvestments.Thesyn- 1 701 groups of processes handled theicsummarypresentscomparabledatamostrelevanttoinvestorsontheciiesthatwerethe mostsuccessfulinatracingBSSprojects.TheemploymentinBSScenterslocatedinsevenmajor ciiesaccountsforalmost90%ofalltheemployeesintheindustry.Eachcityalsohadtheopportu- 36 Centers with employment 1 000+ nitytohighlightitsuniquesellingpointthatmakesitstandoutcomparedtootherlocaions.
4 5 ANALYSIS OF THE BUSINESS SERVICES SECTOR IN POLAND
THE DATABASE AND THE METHODOLOGY
AllanalysescoveredinthischapterwerepreparedbasedontheDatabasecovering852centers Moreover,whileupdaingtheDatabase,thefollowingmethodologicalassumpionswereadopted: with foreign and Polish shareholding. The total employment in all companies included in the Database amounts toalmost 193.5thousand employees.The Database comprises informaion • eachnewcenterofthesamecompanyinanotherlocaionisconsideredasaseparaterecord in the Database, validasoftheendof2015. • theDatabaseofcompaniesdoesnottakeintoaccountSSCandBPOcentersthatprovide Justlikelastyear,theupdateoftheDatabasewasenabledbytheinvaluablecontribuionofour servicesonlyinPolishtothecustomersoperainginPoland.Thisappliesparicularlytocen- regionalpartners:investors’servicingunitsinciieshosingBSSprojects,associaionsandinsi- tersestablishedbyinancialinsituionssuchasbanksorinsurancecompanies.Thecriterion tuionsrepreseningthesector—Aspire,BizPoland,ProProgressio,ABSL,andHRagencies—Hays, isnotrelevanttoITandR&Dcenters,typicallydealingwithsotwaredevelopment.This kindofprocess,asarule,requiresthecreaionofa‘product’inEnglish, Antal,AGtest,Randstad.ThedatawerealsogatheredbyPAIiIZrepresentaivesthroughdirect interviewswithinvestorsduringpost-investmentcare.Inordertohaveascompleteapictureof • BPOcategoryalsoinvolves,apartfromtheback-oicefuncions,thefollowingtypesof thesectoraspossible,thenumberofpartnerswhohavesupportedPAIiIZinthecollecionand centersoferingservicestoexternalclients:callcenter,contactcenterandcustomerservice, veriicaionofdatahasincreasedsigniicantlyincomparisonto2014.Thishashelpedtogainmuch • ITcenterisanenityprovidingoutsourcingservicesinIT(system,applicaions,infrastruc- moreaccuratedataontheindustryintermsofnewbusinessesthatappearedonthemarketin turemaintenance,technicalsupport),creaingandselling(implemening)sotwareforexter- 2015andthegrowthinexisingcenters.Ithasalsoenabledustoidenifycompaniesthat‘fellof nalclients.OneofitsmainlinesofbusinessisInformaionTechnologyOutsourcing(ITO) theradar’lastyearandthuswerenotincludedintheDatabase.Consequently,basedonasimple services, comparisonofthelastandcurrentyears’data,itwouldbediicult,ifnotimpossible,toprecisely • therefore, the category of IT centers addiionally includes large Polish providers of both assessthegrowthofthesector.Nevertheless,onthebasisoftheiguresregardingnewcomerson implementaion/integraionservicesandsotwaredevelopers.Sinceitisalmostimpossible themarketlastyearandemploymentgrowthincompaniesthatwerealreadyintheDatabase,it toextractthesotwaredevelopmentunitfromthewholecompany,totalemploymentwas waspossibletoesimatetheBSSevoluionintheyear2015. shownastheITcategory,despitesomeofthembelongingtoR&D,
• theDatabaseconsistsofcentersemployingmorethan25people.Theruledoesnotapply Companies described in the Database have been divided into four main categories in terms of to companies that are in the process of establishing centers and that foresee employment servicesprovided: higherthan25people.ThiscriteriondoesnotapplytoR&DandITcenters.
• BusinessProcessOutsourcing(BPO)vendorsandthirdpartyprovidersofservicesforexter- nalclients,mainlyininanceandaccouning,customerservice,humanresources(HR)and payrollservices,andback-oicesupportrelatedtotheprocurementprocess;
• InformaionTechnology(IT)vendorsandprovidersofITservicesforexternalclients(domes- ic and foreign) - IT outsourcing of hardware, infrastructure, sotware maintenance and development,implementaionandintegraionofsystems,includingsotwaredevelopment centerswhichalsosell/integratethesotware;
• SharedServicesCenters(SSC)–capiveSSCsoperaingwithinonecorporaionandprovid- ingservicestocorporatebranchesacrossaspeciicregion(Europe,EMEA,global)mainlyin thefollowingareas:inanceandaccouning(F&A),HR,procurement,ITsupport,markeing, internalclients’needs.Thiscategoryaddiionallyincludesoperaionscentersfacingcorpo- rateclientsindirectlyanddirectly(mid-oiceandfrontdeskfuncions);
• ResearchandDevelopment(R&D)–companiesconducingresearchaciviiesandproduct development,aswellasdevelopmentofapplicaionsandsotware;thiscategoryincludes internaldepartmentsofcompanieswhoseprincipalacivityisnotbasedonsalesofsotware.
8 9 BUSINESS SERVICES SECTOR COMPANIES – NUMBER, SIZE, TYPES
Attheendof2015therewere852businessservicescentersacrossPoland.Amongthoseeniies, enterprises(Nokia,Intel,GEEDC,Motorola,Samsung),whichsettheaverageat235employees. thelargestcategorywasITsiteswithashareof43%,or368centers.ThesecondplacewenttoSSC Asexpected,thesizeofBPOsisthegreatest,with334employees. witha28%share,or238centers,andthirdplacewastakenbyBPOproviderswitha16%share,or 133centers.R&Dmadeupthesmallestcategorywitha13%share,or113centers. Figure2. AverageemploymentinasingleBSSenterprisebytypesofcentersin2015.
Ifweconsiderthenumberofemployeesworkinginparicularcentertypes,thelandscapeofthe sectorchanges.Asoftheendof2015,therewere193.5thousandpeopleemployedinthebusi- nessservicessector.SSCsemployedthelargestworkforce,providingjobstoover63thousand people, which represents 33% of the total employment in the sector. IT eniies were ranked second,employingalmost59thousandpeopleaccouningfor30%ofoverallemploymentinthe industry.BPOswererankedthirdwithover44thousandemployees,whichis23%oftheenire AVERAGE BSSworkforce.TheR&Dsiteswerethesmallestcategoryagainwith26.6thousandemployees, 334 227 consituing14%oftotalemployment. 268 235 160 Figure1. Employmentandnumberofcentersbrokendownbytheirtype.
SSC BPO IT R&D SSC BPO IT R&D
source: PAIiIZ own analysis, 2016.
EmploymentinR&DisexpectedtogrowfurtherasitisfueledbytheEUfundsforresearchand innovaiveprojects.Moreover,aneconomybasedoninnovaionandknowledgeremainstoppri- 368 orityforthegovernment. 63 697 58 763 238 44 440 BSSisarelaivelyyoungindustry,yetsomeofthecentersstandoutfortheirsizecomparedto 26 597 133 113 otherenterprisesinthewholeeconomy.Thetotalnumberofthecompanieswithemployment exceeding1,000stafinthePolisheconomywas768.BSS,with36centers,makesuproughly5% ofthem.Sill,inmostofthemajorPolishciiesexceptWarsaw,theshareofBSS‘bluechips’goes EMPLOYMENT NUMBER OF CENTERS uptoapproximately10%.TherecordbreakerwasKrakowwithashareofover44%oftheBSS source: PAIiIZ own analysis, 2016. ‘one-thousanders’inthelocaleconomy.ThesecondinlinewasWroclawwith14%,andthird,Lodz, with8%. Theaverageheadcountinabusinessservicescenterin2015was227.Thesizeoftheunitcor- relateswithitstype.ItmaycomeasasurprisethatITsiteswith160stafonaveragearethe smallestones,whichcanbeeasilyexplainedbynumerousPolishcompaniesinourDatabase.R&D sitestypicallywouldbeexpectedtobethesmallestones,yetthereareseveralexamplesofhuge
10 11 LOCATION OF THE BUSINESS SERVICES SECTOR COMPANIES
Thedatabasecomprises852centerslocatedin27ciiesacrossPoland.Fourteenlocaions(upby Figure4. ThenumberandemploymentoftheBSScentersinsmallerciies. 3comparedto2014)listedbelowcanbeproudofhosingmorethan10centers:Warsaw,Krakow, 1 Wroclaw,Lodz,KatowiceMetroArea (KatowiceMA),Tricity(Gdansk,GdyniaandSopot),Poznan, 28 27 Bydgoszcz/Torun,Lublin,Rzeszow,Szczecin,Kielce,BialystokandOlsztyn. 21 Employment Centers
The list of locaions is slightly diferent ifwe consider the number of employees in the sector. 16 Therearesevenciieswhichcountover10thousandemployeesinBSS:Krakow,Warsaw,Wroclaw, 10 10 KatowiceMA,Tricity,LodzandPoznan.Onecouldindbetweenonethousandand10thousand 7 8 9 6 6 employeesintheBSSinthefollowingsevenlocaions:Bydgoszcz/Torun,Rzeszow,Szczecin,Lublin, 5 Bielsko-Biala,KielceandOlsztyn. 2 1 1 3691 3598 2566 1637 1405 1072 980 772 769 694 400 346 160 142 60 n in li
Intermsofthenumberofcenters,Warsawisbyfartheleaderwith160sites,followedbyKrakow Pila szow Kielce Elblag Opole Lub Grojec zczec Radom with119andTricitywith104centers.OthersigniicantlocaionsincludeWroclaw(85),Katowice ze Olsztyn S R MA(72)andPoznan(68). Bialystok zestochowa Zielona Gora Zielona Bielsko-Biala Ostrów Ostrów Wlkp C
Thelandscapeisdiferentwithregardtothenumberofpeopleemployedinthecenters.Inthis case,Krakowleadstherankwith44.5thousandemployees,whichrepresents23%ofthetotal source: PAIiIZ own analysis, 2016. employmentinthesector.Warsawrankssecondwith36.7thousandstaf,accouningfor19%of totalsectoremployment.Wroclawcomesinthirdwith30.3thousand,represening16%ofthe Whenitcomestotheaverageheadcountofcentersbrokendownbyciies,Krakow,beinghome sector’sworkforce. tomanylargeSSCsandIToutsourcingcenters,leadstherankwith374employeesonaverage. WroclawholdsthesecondplacerightaterKrakowwith357employeespercompany.Thethird Figure3. ThenumberandemploymentoftheBSScentersinthelargestciies. placeforthehighestaveragesizeofonecenterisheldbyLodzwith260employees.Incomparison, WarsawandKatowicerankedfourthandithwithaveragesof230and229employeespercenter, duetomanysmallerITsites.Thisisalsoconirmedbythemedian(i.e.theheadcountofthecenter in the middle of the sorted list of other units, that is half of centers being smaller and the other 160 Employment No of centers 119 halflargerthanthemedian)whichforKrakowequals150,forLodz–120,forWroclaw–105and Warsaw–100.Again,staisicaldataindicatesKrakowasbeingthehostformostofthelargestBSS 85 104 centers.Outof36companiesemployingover1,000peopleacrossthecountry,ninewerelocated 71 68 inKrakow,iveinWroclaw,fourinWarsawandtwoinPoznan,Lodz,TricityandKatowiceMA. 56 31
44 460 36 664 30 365 16 234 15 756 14 272 10 907 6 547 Lodz Tricity Poznan Krakow Warsaw Wroclaw wice MA wice zcz/Torun source: PAIiIZ own analysis, 2016. to Ka ydgos B
1 Katowice MetroArea also known as the Upper Silesian urban area (Polish: Konurbacja Gornoslaska or Konurbacja Katowicka), is an urbanarea/conurbaioninsouthernPoland.TheKatowiceMetroAreaisthelargesturbanareainPolandandoneofthelargestinthe EuropeanUnion.Itincludes19followingciies:Katowice,Sosnowiec,Gliwice,Bytom,Chorzow,Zabrze,Tychy,RudaSlaska,Swietochlowice, SiemianowiceSlaskie,DabrowaGornicza,Jaworzno,Czeladz,Myslowice,Bedzin,PiekarySlaskie,Mikolow,TarnowskieGory,Knurow.For thepurposeofthisreport,thenoionKatowiceMAwillbeusedinordertodesignatethisregion/urbanarea. 12 13 Figure5. AverageemploymentandmedianinBSScentersbyciies. Theleaderschangeagainfromthepointofviewofthenumberofemployeesbycentertypeand locaion.ThelargestpoolofemployeesworkingforSSCswasinKrakow(19thousand),Warsaw 400 374 (14.8thousand)andWroclaw(8.7thousand).Tricitycomesinfourthwith4.7thousandemployees 357 350 inSSCs.BPOswereemployingthemostpeopleinKrakow(10.2thousand),Warsaw(7.6thousand) andWroclaw(6.4thousand)again,butLodzrankedfourthwith6.3thousandemployees.When 300 259 itcomestoITcenters,theywereemployinganimpressive10thousandstafinKrakow,9.5thou- 250 231 229 sandinWroclawand8.6thousandinWarsaw.KatowiceMAisnotfarbehindwith7.4thousand employees,andTricityhastakenithplacewith5.5thousand.TricityhasmanymoreITcenters 200 average 150 160 153 thanKrakow,butthenumberofemployeesinthoseeniiesislowerincomparison.Thehighest 150 120 median numberofemployeesinR&DcentersisinWroclawwithover5.6thousand,followedbyWarsaw 105 100 100 80 (slightlylessthan5.5thousand)andKrakow(4.7thousand). 100 60 50 Figure7. TheemploymentintheBSScentersbytypeofcenterandlocaion.
0 15 756 Krakow Wroclaw Lodz Warsaw Katowice Poznan Tricity MA
source: PAIiIZ own analysis, 2016. Tricity 3 598
Interesing conclusions can be drawn based on types of centers in diferent ciies.The largest Szczecin zcz 36 664 groupsofSSCswerelocatedinWarsaw(55),Krakow(48)andPoznan(28).Therewere29BPO 6 547
centersinWarsaw,21inKrakow,and12eachinKatowiceMA,WroclawandPoznan.ITsitesare 10 907 ydgos predominantinWarsaw(64)andTricity(57).Krakow,asthethirdlocaionforIT,hosts36ofthem. B Torun Meanwhile,WroclawcanboastthelargestnumberofR&Dcenters(19),followedbyTricityand Krakow(14each). Poznan 14 272 30 365 Figure6. ThenumberofBSScentersbytypeandlocaion. Warsaw Lodz 200 SSC BPO IT R&D 44 460 n 2 566 160 ubli L 150 119 16 234 104 Wroclaw 100 85
82 MA wice 71 68 56 to
50 Ka 31 28 27 21 3 691 Rzeszow
0 Krakow n er th Lodz ubli Tricity
O SSC BPO IT R&D L Krakow Warsaw Poznan Szczecin wice MA wice Rzeszow Wroclaw zcz/Torun to Ka ydgos
B source: PAIiIZ own analysis, 2016. source: PAIiIZ own analysis, 2016.
14 15 MATURITY OF BSS CENTERS COUNTRY OF ORIGIN OF BUSINESS SERVICES SECTOR COMPANIES
InteresingresultscomefromtheanalysisoftheBSScentersbyyearofestablishment.Takinginto Among852eniieslistedintheDatabase,268werewithPolishshareholding,andthisisbyfar accountalltypesofcenterscombined,themixwasrelaivelyeven.Twenty-sixpercentofcenters thelargestgroupofcenters,makingup31%ofthesector.Thenextplaceswereheldbytheunits weresetuplessthanthreeyearsago,25%betweenfourandsixyearsago,23%betweenseven fromtheUnitedStates(206),Germany(62),UnitedKingdom(61),France(53),aswellasfromthe and10yearsagoand27%wereestablishedmorethan11yearsago.Itshouldbenotedthat53% Netherlands(27)andSweden(27).However,ifwecombinecentersfromtheNordiccountries,this ofcentersolderthan11yearsweresolelyITeniies,whichwereestablishedbythePolishcom- regionbecomesthethirdlargestinvestorinBSSinPolandintermsofthenumberofeniies,with panies.Centersthatwerecreatedinthelastthreeyearsaccountedforasmanyas20thousand 78intotal:27fromSweden,21fromFinland,17fromNorwayand13fromDenmark. newjobssofar. Figure10. The share of the companies from individual countries or regions in the total number of Figure8. BSScentersbyyearofestablishment. BSScenters.
Other; 6% CH; 2% Asian countries**; 3% 0-3 years NL; 3% 27% 26% 4-6 years FR; 6% PL; 31% 7-10 years
11+ years UK; 7%
23% 25% DE; 7%
Nordic countries*; 9% US; 24% source: PAIiIZ own analysis, 2016.
* Nordic countries: Sweden, Finland, Norway, Denmark. While analyzing the age structure by type of center, it is fair to conclude that SSCswere the ** Asian countries: India, South Korea, Japan. youngestgroupofBSSinPoland(63%werelessthansixyearsold).SixtypercentofBPOswere source: PAIiIZ own analysis, 2016. oversevenyearsoldandcanbeconsideredmaturecenters.Only18%ofBPOswereestablished inthelastthreeyearscomparedwith32%ofSSCs.Thiswouldsupporttheopinionthatglobal Theorderofthecountrieschangesasfarasthenumberofemployeesincentersisconcerned. corporaionsaresilllookingtosetuptheircapivecentersasopposedtohavingalmosteverypart WhilethelargestpoolofstafworkedfortheUSeniies,Polishemployerswerehiring21%of ofthebusinessservicesoutsourced. theworkforce,andtheFrenchtookthirdplacewithan11%shareintheoverallheadcountinthe sector.Nordiccountriesrankedfourthwith9%oftheemployment,theUKwasithwith8%,and Figure9. Thepercentagedistribuionofdiferenttypesofcentersbymaturity. Germanyslippedtothesixthplacewitha6%shareinthesectorworkforce.
100% 11% Consideringtheshareofemploymentbycountryoforigininagivenlocaion,itisclearthatUS 34% 31% 80% 34% companiesarespreadrelaivelyevenamongthetopivetosixlargestagglomeraions.French 26% investorshadacertainpreferenceforsmallerciieslikeLublin,Bydgoszcz/TorunandRzeszowor Katowice.ThattrendwasconirmedbymanyexamplesofFrenchcompanieslikeAtosandContact 60% 19% 21% 26% 31% CenterinBydgoszczorSiiandOrangeinLublin. 40% 20% 29% 22% 20% 32% 27% 18% 19% 0% SSC BPO IT R&D
16 0-3 years 4-6 years 7-10 years 11+ years 17 source: PAIiIZ own analysis, 2016. GROUPS OF PROCESSES COVERED BY THE BUSINESS SERVICES CENTERS
Figure11. TheshareofthecompaniesfromindividualcountriesorregionsintheBSSemployment. ThegroupsofprocessescoveredbythecentersintheDatabasewerealsosurveyed.Therewere 15followinggroupsofservicesprovidedbycompanieslistedintheDatabase: Other; 5% NL; 3% • CH; 4% ITHelpdesk/ApplicaionManagement-aciviiesassociatedwithremotesupportofered to users of IT systems (1st line support); Asian countries ; 5% US; 30% • sotwaredevelopment-developmentandmaintenanceofcomputerapplicaions; DE; 6% • datacenter&infrastructuremanagement–servicingofserversandITinfrastructureman- agement(2ndand3rdlinesupport);
UK; 8% • customerservice-remotecustomerservice,bothbytelephoneandwiththeuseofemail, chatandothersimilarcommunicaionmeans;
• telemarkeing–directmarkeing,mostlyoutbound; Nordic countries; 9% • inancialservices-servicesrenderedmainlyforinancialinsituions,suchasoperaions, PL; 21% counteracingmoneylaundering(AML),setlements,etc.; FR; 11% source: PAIiIZ own analysis, 2016. • humanresources-HRadministraion,trainingmanagement,recruitment,etc.;
NordiccountrieshadanoiceablepreferenceforSzczecinandTricity.Thelaterisprobablydue • inance and accouning - aciviies associatedwith accouning, i.a. payables, receivables, tothestrongeconomicandhistoriciesaswellasaccessibilityandgoodavailabilityoftheNordic tangibleixedassets,reporing,generalledger,treasury,etc.; languagesspeakers.Ontheotherhand,GermaninvestorsarepresentinPoznanandSzczecin, • payroll-preparingandmanagingpayrollandrelatedaciviies; wheretheGermanlanguageisrelaivelywidespread.Swissinvestorshavesetupmostlyinthe southern part of Poland, where they have generated signiicant employment. Credit Suisse in • supplychain-aciviiesassociatedwithsupplychainmanagement,fromprocurementto Wroclawemploysover4thousandpeopleandUBSPolandServiceCenterinKrakowemploysover opimizaionoftheoveralltransport; onethousand. • dataanddocumentsmanagement-comprisesservicesinthescopeofdatabasemanage- ment,andadministraionofdocumentaionandknowledgeintheorganizaion; Figure12. TheshareofemploymentinBSSsectorbyinvestor’scountryoforiginingivenciies. • markeing-aciviiesassociatedwiththeplanningandconducingmarkeingcampaigns, reporingtheirresultsandcreaingpromoionalmaterials,pricingstrategiesetc.;
Lublin • researchandanalysis–oneofthemostadvancedprocesses,usuallyassociatedwiththe Szczecin acquisiionofinformaionfromvarioussources,conducingcomplexanalysesandcreaing reportsandrecommendaionsontheirbasis,comprisingalsotheinancialanalysis; Rzeszow • legalservices-allservicesassociatedwithcontractmanagement,preparaionandreviewof Bydgoszcz/Torun agreements,e-discovery,etc.; Poznan • research and development aciviies - research acivity and development, opimizaion, Lodz improvementorcreaionofnewproductsandservices.
Tricity
Katowice MA
Wroclaw
Warsaw
Krakow
0% 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
USA Great Britain France Germany Nordic Asian Switzerland Netherlands 18 19 source: PAIiIZ own analysis, 2016. The852centersthatwererecordedintheDatabasehandledintotal1,701groupsofprocesses. Figure14. ThepercentageofSSCandBPOcenters(treatedjointly)coveringspeciicgroupsof Themostfrequentprocesswassotwaredevelopmentdeliveredby452centers.Secondplacewas processes. heldbyITHelpdesk/applicaionmanagement(208centers)andthirdplacewastakenbyinance Finance&Accouning 52% 38% andaccouning(205eniies).Customerservicewasalsointheleadwith179companiesproviding CustomerService 22% thistypeofservice. IThelpdesk/ApplicaionAdministraion HR 22% FinancialServices 22% GroupofITprocessesisbroadlyrepresentedacrosstheindustry.Therewere554eniiesthat DataCentre/InfrastructureManagement 14% providedsomekindofITservice(sotwaredevelopment,IThelpdesk,dataandinfrastructureman- SupplyChain 14% agement),whichmade65%ofallcenterslocatedinPoland.BesidesITcenters,ITprocesseswere Payroll 14% alsodeliveredby66%ofR&Dsitesand32%ofSSCs. SotwareDevelopment 12% Research&Analysis 7% Figure13. Thenumberofcenters(SSC,BPO,R&DandIT)deliveringagivengroupofprocesses. Markeing 5% Data&DocumentManagement 5% LegalServices 3% SotwareDevelopment 452 R&D 2%
IThelpdesk/ApplicaionAdministraion 208 Telemarkeing 2% Finance&Accouning 205 0% 10% 20% 30% 40% 50% 60% CustomerService 179 source: PAIiIZ own analysis, 2016. DataCentre/InfrastructureManagement 103 R&D 92 CleardiferencesarevisiblewhencomparingseparatelySSCsandBPOs.Asmuchas65%ofSSCs HR 91 andonly30%ofBPOsprovideinanceandaccouningservices.Theoppositeistrueforcustomer FinancialServices 90 service,58%of3rdpartyvendorsoferthiscategoryofprocesseswhileforsharedservicecenters Data&DocumentManagement 62 thisigureisonly28%.Intermsofotherservices,thediferencesbetweenSSCsandBPOsarenot Research&Analysis 59 thatpronounced. SupplyChain 57 Payroll 54 Markeing 26 Figure15. ThepercentageofSSCandBPOcenters(treatedseparately)providingagivenservice. LegalServices 15 30% Finance&Accouning 65% Telemarkeing 8 CustomerService 58% 28% 0 50 100 150 200 250 300 350 400 450 500 19% IThelpdesk/ApplicaionAdministraion 24% 18% FinancialServices 24% HR 21% source: PAIiIZ own analysis, 2016. 22% 8% SupplyChain 16% 9% SotwareDevelopment 13% Data&DocumentManagement 15% LeavingITandR&DsitesasideandconcentraingexclusivelyonSSCsandBPOs,theresultsdifer 13% Payroll 16% 12% signiicantly.Inthiscase,themostpopularservicesoferedwereinance&accouningandcustomer 8% BPO Research&Analysis 7% service,providedby52%and38%ofcentersrespecively.ITHelpdesk/ApplicaionManagement, 5% SSC Markeing 5% 5% HR and Financial services ranked third with 22% of centers supplying that range of services. DataCentre/InfrastructureManagement 5% R&D 2% Obviously,percentagepointsdonotaddto100%asmostoftheeniiesaremulifuncional. 3% 5% LegalServices 2% 4% Telemarkeing 1% 0% 10% 20% 30% 40% 50% 60% 70%
source: PAIiIZ own analysis, 2016.
20 21 Interesingconclusionsalsoarisefromtheanalysisofthenumberofserviceshandledbycom- Figure17. TheshareofBSScentersthathaveaddednewprocessesandtheaveragenumberof panies listed in the Database.As much as 74% of eniies covered a maximum of 2 groups of addedprocesses. processesandonly26%oferedmorethan2.Manyofthecentersthatrendered1or2groupsof processeswereITandR&Dsites.Moreover,itneedshighlighingthatcertaingroupsofprocess- Share of centers that have added new processes 2.8 esmightbedividedintoseveralsub-processes.Forexample,withintheFinanceandAccouning 2.6 Number of processes added on average category,therearepayables,receivables,generalledger,reporing,ixedassetsandanalyics.This meansthatwhenacenterprovidesonly1groupofprocesses,itactuallymaybesupplyingmuliple sub-processeswithinasinglecategoryofservices. 1.5 IfweanalyzeBPOsandSSCsseparatelyfromITandR&Dcenters,theresultsareverymuchdifer- 1.2 16% ent.Thepercentageofcentersthathandledmorethan2groupsofprocessesincreasesfrom26% 13% 9% to38%andshareofthoseoferingonly1or2servicesdecreasesfrom74%to62%.Thismeans 8% thatSSCsandBPOshadamuchmorediversiiedscopeofservicestoofer.84%ofITandR&D centersdeliveredamaximumof2groups. BPO IT R&D SSC
Figure16. Thepercentageofcenters(let)andSSCandBPOcentres(right)deliveringagiven source: PAIiIZ own analysis, 2016. numberofgroupsofprocesses. Theanalysisofcentersthataddednewprocessesisalsostronglycorrelatedwiththeyearofestab- 5+ 5+ 4 lishment.Amongtheeniiesthathaveincreasedthenumberofservicesbetween2014and2015, 5% 4 9% 59%ofSSCsand64%ofITsiteswereestablishedinthepast6years.Theyareyoung,sillrobustly 6% developingandexpandingthescopeofservicesprovided.Quiteanoppositelandscapeemerges 10% 1 3 whenweanalyzeR&DsitesandBPOs.67%ofR&Dunitsand78%ofBPOsthataddednewpro- 15% 39% cessesinthepastyearsweresetupover7yearsago.ThisisalsoduetothefactthatfewerBPO 48% 1 centerswereestablishedinPolandinrecentyearsandgenerallyBPOsinPolandaremoremature thanSSCs(seeFigure9). 3 19%
Figure18. Theaveragenumberofgroupsofprocessesaddedbetween2014and2015bytype 26% ofcenterandbyagegroup. 2 23% 30% 2.8 3.0 2.6 2 25% 2.5
source: PAIiIZ own analysis, 2016. 20% 2.0 1.5 15% 1.2 1.5 TherewereseveralcentersinPolandwhichprovidedasubstanialnumberofservices,namely11 outof15.Thosewere:InfosysinLodz,Ernst&YoungandQiageninWroclaw.TheBombardierSSC 10% 1.0 inKatowicealsostandsoutwith10diferentgroupsofprocessesdelivered. 5% 0.5
0% - WhencomparingthesamelistofcentersthatwereintheDatabasein2014andin2015,the BPO IT R&D SSC numberofgroupsofprocesseshasincreasedby142overthelastyear(75newprocessesinSSCs, 1-3 years old 4-6 years old Average number of added processes 31moreinR&Dcenters,25moreinITcentersand11moreinBPOs).Theigurebelowshows thatasmuchas16%ofSSCs,13%ofR&Dsand9%ofBPOsincreasedthenumberofprocesses. 7-10 years old 11+ years old Theincreasehasbeenquitesigniicant:onaverage2.2newgroupsofprocesseswereadded.IT segmenthadthesmallestshareofcentersthathaveincreasedthenumberofservices(8%)and source: PAIiIZ own analysis, 2016. theyhaveaddedusually1.5processespercenter. Expansion of the scope of services goes hand in hand with increased recruitment eforts and 22 employmentofnewstaf. 23 INDUSTRIES SERVED BY THE BSS CENTERS
TheDatabasealsoprovidesinformaionabouttheindustriesinwhichparentcompaniesofBSS following companies: Procter & Gamble, Ikea, Philip Morris Internaional and Electrolux.Third centersoperated.Thedeiniionisbasedontheparentcompany’sglobaloperaions.Iftheparent placewith6%shareinemploymentwastakenbytheenergycompaniessuchasShell,Veolia,EDF, companyisaciveinmorethanoneindustry,itisdeinedastheindustrywiththelargestshare Schneider-Electric. inglobalrevenues.AnexcepionwasmadefortheGEgroup,whereparentcompanieslikeGE Healthcare,GEAviaionorGEPowerControlaretreatedseparatelyandeachrepresentsadifer- Figure20. TheshareofemploymentinSSCbyindustryoftheparentcompany.
entindustry. Banking,InsuranceandFinancialServices 39% Other industry 13% Ifwetakealookatallcategoriescombined(IT,BPO,SSCandR&D),37%ofemployeesinthe Consumergoods 7% sectorworkedforbroadly-understoodITsectorcompanies.Thesecondwidestrepresentedbusi- Energy 6% nesswasBanking,withInsuranceandFinancialServices(BIFS)accouningfor14%oftheoverall Consuling 6% employmentinthesector.Thethirdplacewasheldbytheoutsourcingcompanies,with13%of Food&Beverages 5% IT 5% employeesintheBSS.TheoutsourcingindustrycameonlyinthirdplacebecausemanylargeBPOs Chemical&Pharmaceuical 4% havetheirparentcompaniesclassiiedas‘consuling’or‘IT.’ThebestexamplesareAccentureBPO Automoive 4% orCapGeminiBPOcentersregardedasconsulingandITrespecively. Logisics 3% Mediaandmarkeing 3% Figure19. TheshareofemploymentinBSScentersbyindustryoftheparentcompany. Telecommunicaion 3% Medical devices 3% IT 39% Banking, Insurance and Financial Services 14% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45%
Outsourcing 12% source: PAIiIZ own analysis, 2016. Other industry* 5% Anotherinteresingconclusioncanbedrawnfromtheanalysisoftheparentcompaniesstanding Consuling 4% Electronics 4% behindR&DcentersinPoland.ThelargestemployersintheR&DsectorwereIT,electronics,tele- Telecommunicaion 3% communicaionsandaerospacecompanies.Thirty-twopercentofemployeesintheR&Dcenters Automoive 3% workedforITcompanies,19%wereemployedbyelectronicsirms,16%hadjobsinR&Dsitesrun Aerospace 3% bytelecomcompaniesand15%workedfortheaerospaceindustry.GoodexamplesoflargeR&D Consumer goods 3% sitesareIntelinTricity,MotorolainKrakow,NokiainWroclaw,SamsungandGEEDCcentersin Energy 3% WarsawandPrat&WhitneyR&DinRzeszow. Chemical&Pharmaceuical 2% Mediaandmarkeing 2% Figure21. TheshareofemploymentinR&Dcentersbyindustryofparentcompany. Food & Beverages 2% Retail 2% IT 32% 0% 5% 10% 15% 20% 25% 30% 35% 40% 45% Electronics 19% *Other industry category includes inter alia automaion, metallurgy, roboics, construcion, packaging, windows manufacturing. source: PAIiIZ own analysis, 2016. Telecommunicaion 16%
Aerospace 15% ThisordershuleswhensolelyanalyzingSSCs.Inthiscase,themostrepresentedindustrywas
BIFSwith39%ofthetotalSSCsworkforceinPoland,whichtranslatedinto24.6thousandemploy- Automoive 9% ees.Theshowcaseisledbymanyexamplesofback-andmiddle-oicesofbanksandinsurance companiesscateredacrossPoland:HSBC,StateStreetorUBSinKrakow,CiiInternaional,RBS Chemical&Pharmaceuical 3% orBNPParibasinWarsaw,CreditSuisse,UBSorCreditAgricoleinWroclaw.Thesecondmost Other 7% representedsectoroforiginwastheconsumergoodsindustry,whichincludedlargeSSCsofthe 0% 5% 10% 15% 20% 25% 30% 35%
source: PAIiIZ own analysis, 2016. 24 25 FOREIGN LANGUAGES IN BUSINESS SERVICES SECTOR COMPANIES
TheDatabasealsocontainsinformaionregardinglanguagesusedinBSS.Serviceswereprovided Seventy-fourpercentofR&Dunitsusedoneforeignlanguage,forthemostpartEnglish.Among in40languages,includinglesscommononessuchasHebrew,Thai,Korean,Catalan,Urduand ITsites,11%providedservicesinPolishonly,and72%oferedservicesinoneforeignlanguage Kazakh.Thehighestnumberoflanguagesspokeninonecenterwas32andthisrecordissillheld, (usuallyEnglish).SixteenpercentofITcompaniesworkedinanotherforeignlanguageinaddiion forthesecondyearinarow,byThomsonReuterslocatedinTricity.Onaverage,however,four toEnglish. languageswerespokeninasinglecenter(Polishincluded). ThereisachangeintheleadwhenanalyzingBPOsandSSCsonly,nottakingintoaccountITand Figure22. TheshareofBSScentersbynumberoflanguagesused. R&Dcentersthatweremostlymonolingual.TheshareofoutsourcingcentersandSSCsusingive ormoreforeignlanguagesjumpsto36%,justliketheshareofBPOsandSSCsusingonlyone language(also36%).AmongBPOsandSSCs,thelanguagediversityisgreater.Ninety-eightpercent 1 foreign language 5% ofthemprovidedservicesinEnglish,64%inEnglishplusoneormoreotherforeignlanguages. 2 foreign languages 18% 3 foreign languages ThemostpopularlanguagesusedinSSCsandBPOs(otherthanEnglish)wereGerman,French, 4 foreign languages ItalianandSpanish.Onaverage,57%ofBPOsandSSCsusedGerman,40%ofthemprovided servicesinFrench,31%oferedItalianand28%usedSpanish.Insharedservicescenters,Nordic 5 and more foreign languages 4% languages(Norwegian,Danish,SwedishandFinnish)havebecomemorepopularthanRussianor 56% No foreign language 5% Slavic(CzechandSlovak)languages.Approximately22%ofSSCsuseNordiclanguages,while18% ofthemuseSlavicand17%usetheRussianlanguage.
12% Figure24. ThepercentageofBPOsandSSCsprovidingservicesinagivenlanguage.
English 98% German 57% source: PAIiIZ own analysis, 2016. French 40% Italian 31% Only5%ofBSScentersinPolanddidnotuseanyforeignlanguageatall,andallofthemwereIT. Spanish 28% Russian In56%ofBSScompaniesonlyoneforeignlanguage,mostcommonlyEnglish,wasspoken.Twelve 19% Czech/Slovak 18% percentofcompaniesusedtwoforeignlanguagesand26%usedthreeormore.Thisincludes17% Nordic 21% ofeniies(153)thatusediveormoreforeignlanguages. Dutch 17% Ukrainian 8% 12% Figure23. ThepercentageofBPOsandSSCsbynumberofforeignlanguagesused. Portuguese Hungarian 11% Balic 6% Turkish 7% 1 foreign language Romanian 6% 2 foreign languages Serbo-Croaian 5% 3 foreign languages Greek 4% 36% Arabic 3% % Average 36% 4 foreign languages Bulgarian 5% SSC BPO 5 and more foreign languages Hebrew 2% Asian 2% African Languages 1% 0% 20% 40% 60% 80% 100%
source: PAIiIZ own analysis, 2016. 6% 7% 15%
26 source: PAIiIZ own analysis, 2016. 27 THE BIGGEST SERVICE CENTERS IN POLAND Bydgoszcz/Torun SDL Tricity OpusCapita TranscomWorldwide AtosITServices BEST Olsztyn Asseco Sii Teldat Atena Transcom Genesys IntelTechnologyPoland AviaionServicesIreland Nokia Szczecin AdvaOpicalNetworking Sprint LivingstonInternaional ContactCenter ThomsonReuters ITM ArvatoServices Geoban CiiInternaionalPLC Unizeto BLStream Tieto BrightOne Bialystok UnicreditBusinessPartner IntrumJusiia ColoplastSharedService CERIInternaional Poznan TransiionTechnologies BIT BertelsmannArvatoServices Qburst ContactCenter Allegro(QXL) GlaxoSmithKlineServices Warsaw Roche Zielona gora HedgePole Lodz ContactCenter FranklinTempletonInvestments Streamsot Lionbridge McKinseyEMEASharedServices MetaPackPoland Infosys InfovideMatrix ADBPolska FujitsuServices Outbox Wroclaw Ericpol SamsungElectronics GFT GEEngineeringDesignCenter Hewlet-PackardGlobaleBusinessOpearaions TomTom CiiInternaionalPLC Kruk Teleca RBSGlobalHubEurope Opole IBMGSDC Nordea Unit4 Opta-Data DHLExpress Nokia Capgemini Lublin OperaSotware FutureProcessing CreditSuisse IFMEcolink Genpact Convergys BankofNewYorkMellon ista Rzeszow CompugroupMedical Katowice MA G2A Britenet Gallup CarlsonWagonlitTravel Ininite ArchiDoc Sotsystem COKOrangePolska SopraSteria Krakow AssecoPoland COIG PekaoFaktoring AonHewit GrupaSanoi Type of a center BombardierTransportaion IBMBTO HamiltonSundstrand MentorGraphics Comarch kielce Deloite BPO PwCServiceDeliveryCentre SabreHoldings Medicover IT INGServicesPoland MotorolaSoluionsSystems UCMSGroup Delphi Infover R&D StateStreetCorporaion Comarch SSC ShellBusinessServiceCentre
28 29 source: PAIiIZ own analysis, 2016. UNTAPPED POTENTIAL
OneshouldnotforgetanimportantfeatureofthePolishBSS:bigpotenialofPolishcenterswork- inginPolish.Accordingtothemethodology,theBPOandSSCcentersthatprovideservicesin Polishonly(servicingthedomesicnetworkofbranchesandlocalclientsonly)werenottakeninto consideraion.Oneshouldneverthelessbearinmindtheirscaleandsizefromtheinternaional BSSsuitabilitystandpoint.Thefactthatcentersdonotprovideserviceinanyforeignlanguage TRENDS IN THE doesnotmeanthatitsemployeesdonotspeakotherlanguages.Theemploymentin75BPOand SSCeniieswasesimatedat22.2thousand.SSCswereprevailingwithover12.2thousandand wereservicingmostlythebankingandinancialservicesindustryandtelecoms.BPOcompanies BUSINESS SERVICES SECTOR wereacivemostlyintelemarkeingandcustomerservicesoperaions.Thebiggesthubsforthe PolishBSSoperaionswereKatowiceMAwithfourthousandemployees(i.e.Ruch,GrupaZywiec), Lublin(OrangeCustomerService,Warta)with3.6thousandemployees,Lodzwith3.4(T-Mobile, BRE)andTricitywith3.3thousand(BPH,PKOBP).Apartfromcapivecenters,inancialinsitu- ionsandtelecomstendtocontracttheirclientacquisiionandcustomerservicestomanyother vendors,too.
Figure25. EmploymentandnumberofPolishcenters(brokendown)bytheirtype.
SSC BPO
13 300 52 47 8 300
EMPLOYMENT NUMBER OF CENTERS
source: PAIiIZ own analysis, 2016.
30 Thebiggestciieslose‘thelicensetothrill’
LastyearclearlydemonstratedthatlocaionpreferencesoftheBSScompaniesunderwentgradual funcions.These days those processes are quite oten handed over to external providers. It is changes.Krakow,WarsaworWroclaw,despiteholdingtheposiionofstrongleaders,fromimeto possiblethankstothegrowthofinternalcompetencesandskillsbuiltontheexperience.Seasoned imehadtogiveplacetodarkhorses.Oneofthereasonswasobviouslythechallengesofsourcing employeespossesssuicientknow-howtobeabletoengageinthemostadvancedtasks,which employees.Thelabormarkethasalreadyturnedfromemployers’toemployees’market.Insome alsoincreasestheirmoivaion.Thistransiiontowardsmorecomplexserviceswouldn’tbepossi- industries,likeIT,weareeventalkingaboutthestudents’market–thecompaniesrecruittheir blewithoutaneicientandtailor-madegovernanceandmanagementmodel. prospeciveemployeesintheirsecondorthirdyearofstudies.Thesearchfortalenthasbecomea compellingreasontostartexploringundiscoveredmarkets.Thisapproachhasresultedinadirect Nowseemstobetheappropriateimetounderlinetheposiionofthecenterleader.Insome increaseofconsideredlocaions.Attheendof2014,thebusinessservicescompanieswereinter- BSSunitsthispostdoesnotexist,andteamleaders(AP,GL,payroll,IT)reportdirectlytotheir estedin23Polishciies.Ayearlaterasmanyas33locaionswereinplay.Anewphenomenonis bosseswhoarelocated,inmostcases,abroad,intheheadquarters.Someofthecenters,however, alsothefrequencyofrequestsconcerningWarsawasaninvestmentdesinaion,mostlyforSSCs doemployageneralmanagerormanagingdirectorofthecenter.Theresponsibilityofthepost andR&Ds.In2014,thecapitalcitywasconsideredby25projects.Oneyearlater,asmanyas35 consistsnotonlyinadministeringa‘businessasusual’status,butalsoincoordinaingopimizaion companiestookWarsawintoconsideraion. iniiaivesandeventransformthenatureofthecenter.
Themulifuncionalcharacterofcenterandcomplexityofservicesgrow AninteresingexampleofthetransformaionwasCBRECorporateOutsourcingEMEAGBS.The centerwasestablishedin2008asatypicalSSCcapivecenter,supporingEuropeanbusinesses The companies, which many years ago started their operaions in Poland and ofered simple of CBRE in just one type of operaions.The local management has been, however, persistent inanceandaccouningprocesses,persistentlyexpandtheirporfolioofservicesbyaddingHR in increasing the scope of aciviies and level of competences,which resulted in doubling the support, supply chain management, IT/tech support and even strategic funcions like manage- headcountinjusttwoyears(2014–2016)andchangingtheimagefromacost-generainginto mentaccouning,analyicsandglobalprojects,processesandknow-howmanagement.Thissortof arevenue-generaingcenter.Currentlythecompanyprovidesservicesmostly(75%)toexternal changeisoteniniializedinternally,inthecenterasaresultofthefollowinglogic:Iperformsimple clients,whichjusiiescallingitaBPOproviderratherthancapive.Atthesameime,thecompany services–yetIdohaveaccesstodata–whydon’tIanalyzeit–andputtogetherareportwith usesthirdpartyvendors,too,contracingitslessadvanced,transacionalprocesses.Thishasmade recommendaions.Thecomparisonofdatabetween2014and2015revealedthatBSScenters itpossibletooferCBREGBSemployeesprofessionaldevelopmentopportuniiesatsophisicated, increasedthenumberofprocessgroupsserviced.ThegrowthleaderswereSSCs–16%ofthe ambiiousprojects. centersthatexistedin2014haveaddedthroughouttheyear2015asmanyasalmostthreenew groupsofprocessesonaverage.Asaresultoftheincreasedscopeofservicesanditscomplexity, Automaion&roboics SharedServicesCentersgainthestatusoftheCenterofExcellence(CoE).Newstandardsandbest pracices,whicharecreatedthere,lateronareappliedthroughoutallthecorporateeniies. Anevenmoreappealingalternaivetothecontracingofrepeatable,non-complexprocessestoa vendorisautomaionandroboics.Theabilitytotapintothoseareascomeswiththeorganizaion- ThistrendisalsowellvisibleinthetypeofprojectsPAIiIZisworkingwith.Polandisalreadycon- almaturityofthecenter.Standardized,well-documentedprocessesandanalyicalexerciseaimed sideredasamaturedesinaionforBSS.Asaresult,adiferentapproachisusedanddiferent atidenifyingthecandidatesforautomaionarethebasisforeicientopimizaionofthecenter. assumpionsaremadeinthecenterplanningphase,i.e.whendesigningasetupofthecenterand AgoodexampleisTricity-basedGeoban,whichhasnotboughtanexternalsoluionfromtheshelf, itsfuncions.Afewyearsagomostofthecompaniesweretakingquiteaconservaiveapproach. buthasengagedinternalresourcesinstead,consisingofthoroughlymappedandtrimmedpro- Themostimportantassumpionwastoplayitsafeandmakeitasmall-scalesuccess(proofof cesses.Toolsweredevelopedtoshortenandsimplifythetasks,whichbroughtsigniicantimprove- concept),andonlythencoulditbeconsideredwhethertomigratethenextprocesses,andifyes,to mentincustomerservicesaisfacion.Automaionandroboicshaveyetanotheradvantage:they whatextent.Thesedays,newlycreatedcenterssillstartwithatransiionofoneprocess,butalso contributetowinninginteresing,challengingprojectsforthecenterandspeeduptransformaion assumeupfrontthatmoreistocome.Mulifuncionalityofthecentercomeswiththeincreased intoaCenterofExcellence. levelofconidenceinmaturityandskillsofprospeciveemployees. Transformaionandchange Hybridmodels TheproacivebehaviorofthemanagementisanenablerfortheSSC–CoEtransformaionand Thehybridmodel,understoodasalocalshitofprocessesandengagementintoanoutsourcing changeinthepercepionofthecenter,seennolongerasacheapserviceprovider,butratheras contract,seemstobeanewphenomenonaswell.Thisislinkedtotheincreasingcomplexityof abusinesspartner.Obviously,thiswillnothappenovernightandissubjecttosomeprerequisites. servicesandchangesintheexisingSSCs.Inthepast,theirstrolloutconsistedofrathersimple Themostimportantistrust-building–thisenablesahandoverofaGlobalProcessOwnershipto 32 33 thecenter.Supervisionoveranend-to-endprocesshelpsgreatlyinsecuringitshighqualitybut ionYfeaturesexcepionalloyaltyandengagementintheirwork,providedthatanemployerisable alsofacilitatesitsopimizaionbycuingoutunnecessary,redundantsub-processes.Thisisexact- tolistentotheirneeds,respectsthework-lifebalance,andknowshowtomoivatethem,remuner- lytheplacewheretheBSSindustrycreatesinnovaionandR&D.Ontheotherhand,interesing aionbeingnotthemostimportantfactor.Theyoungestgeneraionsenteringthelabormarketare projectsincreasetheinvolvementoftheemployeesandactasastrongmoivaingfactor.This demandingindeed,butmostlywithregardtothemanagers’leadershipstyleandprofessionalskills. helpstobreakthestereotypeofa‘cost-generaing,novalueadded’unitandimprovetheevalua- ionoftheworkquality–notmerelybasedonKPIs,butalsoonqualitaiveanddescripivebasis. Demandfortalents,proileoftheBSSemployee,increasingthelevelofcorporatecultureandthe care for the most precious assets – people encourage employers to create a very friendly environ- ChangeoftheproileofBPOvendorsisalsoremarkable.ThirdpartyprovidersbasedinPoland mentfortheiremployees.Forexample,centersensureexcellentcondiionsforyoungmothersto transiionfromtransacionalsupportintocomplexservices,whichsecuresthemhighermargins facilitatetheirsmoothreentryintotheoiceatermaternityleave.Thelistofameniiesincludes andproitabilityontheonehand,andsetsthemonparwithcapiveCoEsintermsofatracive- lexibleworkime(in–outime,partimejob,home-working/telework–whichhasbeensup- nessforemployeesontheother.ThisiswellvisibleinthecaseofLodz-basedInfosysBPO,which portedbyrelevantlegalregulaions),kindergartens/preschoolsonsiteorincloseproximitytothe ofersnotonlyinanceandaccouningservices,butalsoriskmanagement,markeingsupportand oice,ornursing/babycarerooms. strategicconsultancy.AnotherexampleisFujitsuGDC,whichin2008starteditsoperaionsin irstlinetechsupport/helpdeskandlastyearlaunchedRemoteInfrastructureManagementand Theindustry–catalystofthebusiness–academiacooperaion sotwaredevelopmentforPrimergy/Storageplaforms. Companiesundertakefrequentiniiaivestoenhancethecooperaionwithuniversiiesforprag- Businesstransformaion:consuling–outsourcing-technology maic,nottosayselishreasons.Sill,theirinluenceontheshapeofthePolisheducaionalsys- temandcurriculaulimatelymightbeverybeneicial.Inthelightofdeiniteavailabilityofhuman Cross-funcionality,interchangeabilityandexpansionofthescopeofservicesobservedonthe resourcesandcandidatesforthejobswhichskillsdonotalwaysmatchemployers’expectaions, vendors’sideisyetanotherfeaturewhichishardtooverlook.Thecompanies,whichinoriginal thecompaniesareevenmoreeagertoworkwiththeeducaionalinsituionsonnewprograms, businesshasalwaysbeenITOandBPO,tendtoexplorenewareaslikestrategicconsultancyand majors and changes in the curricula. This is a clear win-win situaion: employers broaden the advisory services. The opposite tendency is also there: historically well-established consuling availabletalentpoolmeeingtheirrequirements,anduniversiiesareabletoofertheirstudents companiesreachintothebusinessprocessoutsourcingandtechnologyconsuling.Thisconcerns speciicproileofeducaionwhichgivesthemacompeiiveadvantageinthelabormarket.The virtuallyeverycompanyoftheBigFourandmainBPOs.Theoutcomeiseithernewlegaleniies above-menionedprogramsareinmostcasesfocusedonpracicalandsotskills. forbusinesslines(acquisiionsorGreenieldprojects)oranincreaseintheheadcountandarrayof operaionsintheexisingcenters. ThegrowingimportanceofHRdepartments
BSS – the caring employer HRteamsintheBSShavegainedalotoffocusandimportancelately.Caringaboutemployees isnolongermerelyacatchphrase,whichelevatestheroleofHRfromadministraivesupport StaisicsshowthatanaverageBSSemployeeisfemaleinher30s,withtheexcepionofITcen- tothebusinesspartnercircle.Andwithgoodreason,giventhecompeiionfortalent.Someof terswheregentlemensillprevail.Itisworthnoing,though,thatservicescompaniesthinkboldly thecompaniestesifythatitiseasierthesedaystoatractanemployeethantoretainhimfora abouttappingintoamoreexperiencedandmaturehumanresourcespool.Theemployeesintheir longerperiodofime.Thispointsatthenecessityofightcooperaionbetweentalentacquisiion 40sand50soferagreatdealofexperienceontheonehandandsolidityontheother.Theirsignif- (oneshouldevensay:talentmoivaion)teamsandbusinessleaderswhoareabletohelpdraw icantfeatureisemoionalstability,whichletsthemhandlecasesinanobjeciveandwell-balanced professionalcareer paths.As a result, companies put an efort in making theworkplace atrac- manner,especiallywhendealingwiththeexternalclients.Moreover,thankstotheirrichlifeand ivetoitsemployeesandcandidates.Aninteresingcase(surelynottheonlyone)isthatofthe personalexperience,inmostcasestheyhavebeter-developedsotskillsandusethembroadly MarshEuropeanBusinessSupportCenter,whichappliedthehigheststandardsofthequalityand whencommunicaingwithotherpeople,whichisveryimportantfromtheclients’servicingstand- friendlinessoftheworkingspaceandsupporteditwithalexibleapproachtowardsworkime point.Thebiggestchallengewhilemakingatemptstorecruitthemistheirabilitytospeakmany andhome-workingpossibiliies.Sofartheeforthaspaidofverywell,asevidencedbyaverylow foreignlanguages.Unilthebeginningofthe90s,itwasRussianthatwastaughtpredominately atriionrateandexcepionallyhighinvolvementamongtheemployees. acrossPoland,alanguagenototensought-aterbytheBSScenters.Despitethoselimitaions, morefrequentarecaseswherethreegeneraions,babyboomers(45–65yearsold),generaionX Asfarastheatracivenessoftheworkplaceisconcerned,itisimportanttohavetherightoice (30–45yearsold)andgeneraionY(20–30yearsold),(withgeneraionZknockingatthedoorof locaion(i.e.verywellaccessiblebypublictransport,fairlyclosetoashoppingcenter,butalso theemployers),workhandinhandonthesameprojects.Whatcomesasasurpriseisthatgenera- oferingacertainnumberofparkingplacesforcarsandbikes)aswellasitsinterioranddesign. 34 35 Althoughhotdeskingisquitetempingfromthespaceopimizaionpointofview,oneshouldknow thatemployees(justlikecats)getboundtotheirdesksandpersonalbelongingsdeployedhereand there.Theoiceanditsameniiesdohaveaninluenceonatracingandretainingemployees. Moderninfrastructurelikeafully-equippedkitchen,diningrooms,chill-outroomsandcreaive spaces,evensimplethingslikeilt-and-turnwindowsareverywelcomedbytheemployees.Some BSS PROJECTS ASSISTED BY PAIIIZ companiesgoevenfurtherbyoferingtheirstafoutoftheordinaryfeatureslikepool/snooker tables, table tennis, darts, free lunches, fruits and vegetables available at hand or even providing themwithshortrelaxingmassagesessions.Allofthatsigniicantlyimprovestheworkingcomfort IN 2015 AND Q1 OF 2016 andintheendenhancestheimageofanatraciveemployer.
Foreignnaionals–importantforthelabormarket
2015conirmedwhatwasalreadyvisibleearlier:thereisatrendofhiringforeignnaionalsinthe BSS centers in Poland.Their clear advantage over Polish colleagues is the naive command of theforeignlanguage,plustheybringintotheteamstheknowledgeaboutinterculturaldiferenc- es–inherentknowledgenottobelearnedfromanybook,crucialwhenservicingclients.More importantly,theyareusuallyhiredonlocalcondiions,similartothePolishciizens,maybewithan excepionofthepremiumforlanguages.
Polishemigraion–newprospects
Entrepreneursalsosharetheopinionthatoneofthemosteicientwaystoopenanewsiteand indamanagementteamforagoodstartistorunrecruitmentamongthePolishemployeeslocated intheheadquartersofcorporaions.Poleswhohavegainedexperienceandlanguageskillsquite otendoconsiderareturntoPolandtoworkforthesameemployer.AccordingtotheBriishOice for Naional Staisics, 2015 marked the lowest negaive net migraion in the history (only 14 thousand)withtheUK,whichhastradiionallybeenafavoredPolishemigraiondesinaion.Itis likelythatthenextyearswillbringaposiivemigraionbalancewiththeUK(morePolesarebound toreturnthanleave).
Work&wages
Remuneraionhasbeenshakenofthetopofthelistofkeymoivatorssomeimeago.Thisis paricularlytrueintheITindustry,wherethegapbetweenthenetwagesbetweenPolandand WesternEuropenarrows(thetotalcostis,however,sillmuchlowerinPolandthankstotheben- eicialsocialsecuritycontribuionsandthetotallevelofoperaionalcosts/overhead).Thecom- paniesstressthatitisthequalityoftheworkplace,challengingprojects,trainingprogramsand professionaldevelopmentthatmatersnow.AbitmoreprivilegedarethoseSSCsthatalsohave astrongbusinesspresenceinPolandandEurope.Thisgreatlyexpandsthepossibiliiestoshape careerpathsand,intheend,keepanemployeewiththecompanymuchlonger,byoferingthem transfersbetweenback-oiceandfrontdeskinbusiness,forthosewhoarewillingtotakeonthe challenge.
36 COMPLETED PROJECTS ASSISTED BY PAIIIZ
Overthepast15months(coveringtheyear2015andtheirstquarterof2016)asmanyas71 Figure27. BSSprojectscompletedin1Q2015-1Q2016bytheirtypeandnewjobplaces. companies,bothservicesandmanufacturing,servicedbyPAIiIZdecidedtolaunchnewinvestment 4160 projectsorreinvestinPoland.Thetotalvalueoftheseprojectsamountedtonearly844million Employment EURwhiledeclaredemploymentexceeded12.5thousandpeople.Intermsofthenumberofproj- No of projects 16 ectsmediatedbyPAIiIZ,manufacturinginvestmentsprevailedbyaslendermargin(52%)overBSS. However,whenwetakeintoaccountthenumberofnewjobscreated,itisthebusinessservices 13 industrythatgeneratedasmuchas56%ofdeclaredemployment.
Figure26. TheshareofBSSstafinatotalnumberofnewjobscreatedin2015bycompanies 1319 servicedbyPAIiIZ. 1000 4 531
1
SSC B+R IT BPO
source: PAIiIZ own analysis, 2016. Manufacturing 44% projects InPAIiIZstaisicsregardingcompletedBSSprojects,threecountriesstandout.Theundisputed 56% BSS projects leaderintermsofbothinvestmentdecisionsandemploymentvolumewastheUnitedStates.The UScompaniesdeveloped16investmentprojectsandplantocreatenearlyfourthousandnewjobs, mostlyinSSCs(8projects,2.9thousandnewjobs)andR&Dcenters(8projects,500newjobs). ProjectsfromoverseaswillbeimplementedineightdiferentlocaionsacrossPoland.Thesecond mostaciveinvestorsinBSSwerethosefromtheUK.Briishentrepreneursareintheprocessof seingupivecentersandhiring1.1thousandstaf.Itisworthnoingthatthethirdplacebelongs tothePolishcompanies,withfourinvestments,mainlyR&DandadvancedITcenters.Theseproj-
source: PAIiIZ own analysis, 2016. ectswillcreate400newjobsforhighlyskilledemployees.
Thirty-fouroutof71investmentprojectsannouncedduringthelast15monthswerebusiness Figure28. Thenumberofprojectsandnewjobcreaionbycountryoforigin. servicesproviders.Investorsrepreseningthatparicularindustryplantocreatemorethanseven Employment thousandnewjobsandtoinvestover100millionEUR.Asmanyas18servicesprojectswere 16 reinvestments;theremaining16areimplementedbythenewcomers. No of projects
Amongtheabove-menionedinvestments,researchanddevelopmentprojectsdominated(there were16ofthem).Thesecondlargestgroupofprojects(13)concernedsharedservicecenters, mainlyinaGlobalBusinessServices(GBS)model.SSCshavealsooferedtocreatethegreatest numberofnewposiions—almost4.2thousand. 5 4
3388 1131 405
US UK Poland
source: PAIiIZ own analysis, 2016.
38 39 SUPPORT GRANTED TO BSS COMPANIES UNDER GOVERNMENT GRANTS SCHEME IN 2015
BSSinvestorsservicedbyPAIiIZintendtobasetheirprojectsin12diferentciiesinPoland.As In2015,Polandwassillperceivedbyentrepreneursasaveryatracivelocaionfortheirinvestments. manyasnineprojectsaregoingtoWarsaw,thecitywhich,lastyear,camebacktothechampions Itisnowonderthatlastyearwitnessedmanyreinvestmentsandnumerouscompletelynewprojectsto league of ciies chosen by BSS investors.Thiswas made possible by the deep pool of human beestablishedinourcountry.Formanycompanies,oneoftheimportantfactorsconsideredinthesite resourceswhopossessuniqueskills,and,contrarytopopularbelief,tooperaionalandlaborcosts selecionprocesswasavailableinvestmentincenives.InsomeregionsofPoland,thestateaidforlarge comparabletootherPolishciies.InvestmentsinthecapitalcityofPolandarebringing2.5thou- companiescanreacheven50%ofeligibleinvestmentcosts,thehighestpermitedintheEuropean sandnewjobs.SixprojectsinWarsawareSSCsofcompanieslikeMoneyGramortheproducerof Union.TheincenivessysteminPolandconsistsofmanyappealinginstruments,includingbothtax kitchenandsanitarysystems-Franke.SevennewBSSprojectswenttoWroclaw.Theircontribu- exempionsandgrants. iontothelocaleconomyis700newjobs.Theyear2015wasalsoagoodonefortheTricity,which togetherwithPAIiIZ,wasabletoatractivecompaniesandemploytwothousandpeople.Three TheonlysourceofgrantsforbothmanufacturingandBSSprojectswasthegovernmentalProgramme outofiveprojectsinTricityarereinvestments-Jeppesen,aworld-classproviderofadvanced forsupporinginvestmentsofmajorimportancetothePolisheconomyfortheyears2011–2020.In ITservices,specializingincartographyandaviaion,marineandlandnavigaion,presentinthe 2015thenumberofapplicantswasevenhigherthaninthepreviousyearsbecauseitwastheverylast townformanyyearsnow;AlexanderMannSoluions,acompanythatofersrecruitmentprocess yearofProgramme’savailabilityinthecurrentform.Asmanyas26companiesinterestedingovern- outsourcingservicestoexternalcustomers;andStateStreet,aleadingglobalproviderofinancial mentgrantssubmitedapplicaionsforsupport.Grantsweregivenfor22projectsworth2.1billionPLN servicesforinsituionalinvestors.ThelasttwocompanieshavebeenpresentinPolandforseveral andplanningtheemploymentofalmost6.9thousandpeople.Thebudgetforthesupportofallthese yearsalreadyandhaveruntheirbusinessesinKrakow.Lastyearthetwoofthemdecidedtoset projectsdidnotexceed200millionPLN. uptheirnextcentersinanotherlocaioninPoland.Thelistofcompletedprojectsalsoincludes investmentsinlocaionssuchasthecityofBielsko-BialaandCzestochowa,wheremanufacturing SixteenapplicaionsweresubmitedbyBSScompanies.Declaredheadcountrelatedtotheplanned companiesdecidedtodevelopR&Dcentersadjacenttotheirsites. investmentswas4.8thousandnewjobs,whichrepresents70%oftheheadcountreportedbyallapply- ingcompanies.Itisnoteworthythat94%ofallfutureBSSemployeeswillbedegreeholders.Twotypes Figure29. Thenumberofprojectsandnewjobsbyciies. ofbusinessesdominatedamongtheservicesprojects:R&Dandsharedservicescenters(sixprojects
9 each).SSCsarecreaingthegreatestnumberofjobs-2.4thousand.ForthePolishtreasurythisactually seemslikeatruebargain,asonejobplaceinthebusinessservicessectorwillcostthetaxpayerapprox- Employment imately7.7thousandPLN–analmostnegligiblevalueincomparisontothelong-termbeneits. 7 No of projects
NineinvestmentshavebeendevelopedbycompaniesalreadypresentonthePolishmarket.Three 5 reinvestmentprojectssetupinabrandnewlocaioninPoland.Fiveotherprojectsareimplementedby thecompaniesthatareonlyjustdiscoveringPolandasaplacefordoingbusiness.Amongthemarethe companiesmainlyfromtheNorthAmerica(USandCanada)andtheveryirstBSSinvestorfromEgypt, 3 RayaHolding,whichislaunchingaBPOcenterinWarsaw. 2
Companiesthatappliedforgrantsaredevelopingtheirprojectsinsevendiferentciies.Thegreatest
2501 695 1900 336 300 numberofsupportedinvestmentswillbeestablishedinKrakow(5)andWroclaw(3).Theseinvestments bringasigniicantincreaseinjobsineachoftheseciies,2.1and1.2thousandrespecively. Warsaw Wroclaw Tricity Krakow Poznan
source: PAIiIZ own analysis, 2016. TheexamplesofBSScompaniesthatbeneitedfromgrantsin2015include,forexample,Luxot,which, thankstothegrantsupport,willincreaseitsemploymentbyanaddiional1,350FTEsinKrakowand ManydiferentfactorsinluencethelocaiondecisionofBSScompanies,nottheleastofwhich Wroclaw.AnotherexampleisWroclaw-basedPolishcompany,SMTSotware,whichdecidedtoopen areavailabilityandformsofincenivesinagivencountry/city.Taxexempionsarenotverypopular itsnextbranchinKatowiceandemployatleast70people.DeloitechoseRzeszowtoestablishits forBSScompanies,mostlybecauseofthetransferprices(cost-plusmodel).Itisnosurprisethat CentralEuropeBusinessServiceshub.Theprojectbrings250newjobs. onlytwoirmshavetheinteniontoruntheiroperaionsinthespecialeconomiczonesofering CITholidays.Cashsupportisbyfarthemostpreferredinstrumentofsupportforbusinessservices companiesavailableineveryPolishcity.Thirty-ivepercentofBSSirmssuccessfullymediatedby theAgencyin2015havebeneitedfromemploymentgrantsoferedbythegovernment. 40 41 INVESTMENT PROJECTS SERVICED BY PAIIIZ
AciveprojectsasoftheendofMarch2016 Figure31. ThetypeofBSSprojectsinPAIiIZporfolioasoftheendofMarch2016.
AsoftheendofMarch2016,PAIiIZworkedon179potenialinvestmentprojectswithatotal 11 769 Employment valueofEUR3.7billion,aimingtocreateover40thousandnewjobs.Amongtheseprojects,45%, 42 No of projects or81investments,refertotheBSS(includingR&Daciviies),upby10percentagepointssincethe lastyear.Thetotalemploymentatstakeamountstomorethan20thousandjobs(a50%sharein declaraionsconcerningemploymentwithinallprojectsincludedintheAgencyporfolio).
5 035 Figure30. Ay-o-ycomparison(March2015toMarch2016)ofthenumberofprojectsandjob 19 15 placesintheBSS,intheAgency. 81 1 895 1 350 5
SSC IT R&D BPO 62 20 049 source: PAIiIZ own analysis, 2016.
Thecomparisonoftheaciveprojectsinthelastquarterof2014and2015 Employment 13 301 No of projects ThecomparisonoftheaciveprojectsintheAgency’sporfoliointhelastquarterof2014and2015 bringsinteresingconclusionsaboutthetypeofservicedprojectsandtheirpreferredlocaions.In Q42014,theAgencywasservicing72projectsfromtheBusinessServicesSector.Ayearlaterthe numberofprojectswas88(upbyover20%).ITinvestments,SSCsandR&Dsitesaccountedforthe 300 increase.ThenumberofBPOsslightlyfell. 2015 2016 source: PAIiIZ own analysis, 2016. Figure32. ThenumberofprojectsservicedbyPAIiIZinQ42014and2015bytype.
AmongBSSinvestorsmediatedbytheAgency,thelargestgroupconsidersaset-upofsharedser- 37 vicescenters(42)withatargetedemploymentof11.8thousandpeople.Thesecondmostpopular 31 typeofcenterstobeestablishedisITprojects,accouningforone-fourthofemploymentdeclara- ionsmadebyallBSScompanies. Q4 2014 24 Q4 2015 Americancompanieslead33outof81BSSprojects,and,ifsuccessful,theywouldaddanother 21 19 7.6thousandnewjobstotheeconomy.TheUnitedKingdomrankedsecondwitheightpotenial investments.ThirdplacebelongsexaequotoGermanandSwissentrepreneursintermsofboth 15 theirnumberofprojects(seveneach)andtheiremployment(4.1thousandeach)alike.
7 6
SSC IT R&D BPO
source: PAIiIZ own analysis, 2016.
42 43 AmongtheassistedprojectsthemostacivewerecompaniesfromtheUnitedStates(increase ThegrowthofconsideredlocaionswasthemostvisibleinthecaseofITprojects(from12to18) from26to40)andtheUK(fromsixtonine). andR&D(fromsevento12).Themostplausibleexplanaionisanatempttoincreasetheaccess toatalentpoolthatpossessesparicularskills. Theanalysisoftheconsideredlocaionsalsoshedssomelightontheinvestors’preferences.InQ4 2014therewere139locaionrequestsintotal(thisnumberincludesoverlapfrom72projects). Figure34. ThenumberofciiesconsideredinQ42014and2015bytypeofthecenter. Inthesameperiodof2015,thenumberoflocaionswentupby11%,to156sites.Thenum- berofconsideredlocaionsdidnotincreaseasgreatlyasthenumberofprojects.Theconclusion 18 2014 becomesquiteapparent:theprojectsin2015werecomingtoPAIiIZeitherwithmorespeciic 16 2015 plansregardingtheciiestheywereconsideringorfewerlocaionswereconsidered(companies 14 camewithashortlistoflocaionsratherthanalonglist).Eitherway,itmeansthattheawarenessof 12 compeiiveadvantagesofparicularPolishciieswaspretywellknowntotheinvestors,andthey wereabletopickthosesiteswhichmatchedtheirneedsbeter.Thetotalnumberofsingleciies 10 underconsideraionincreasedfrom23to33,whichpointsatagrowinginterestinthesmaller 8 Polishciies. 6
4 Despitetheabove-menioned,itwasWarsawthatenjoyedthemostdynamicgrowthofinterest. In Q4 2014 the capital citywas considered by 25 projects, and oneyear later as many as 35 2 companies considered Warsaw.This increase can be atributed to several factors. Operaional 0 costsinWarsawarenotmuchhigher(ifatall)thaninotherPolishciies,yetthedepthofthelabor IT BPO R&D SSC
marketandtypesofthecenterswhicharealreadyestablishedprovidecomfortforthesuccessful source: PAIiIZ own analysis, 2016. commencementofprojects,eventhose,thatrequireunique,rareskillsoftheemployeesandhave aggressiveramp-up. Itisworthnoingthat2015wasayearofparicularlydynamicincreaseindiversiiedITprojects, intermsofboththecoreindustriesrepresented(ITsoluionsforinancialservices.FMCG,ITout- Figure33. ThenumberofrequestsconcerningPolishciiesinQ42014and2015. sourcing)andthescopeoftheprojects(design,development,tesingandimplementaionofthe sotware). 35 2014 30 2015 25
20
15
10
5
0 Warsaw Wroclaw Krakow Tricity Poznan Lodz Katowice MA source: PAIiIZ own analysis, 2016.
44 45 CASE STUDY OF F5 NETWORKS INVESTMENT PROJECT
Companyname: Projectparameters:
F5Networks Plannedemployment:70qualiiedemployeeshiredwithin5years Investmentexpenditure:2.7mPLN Aboutthecompany: Locaion:Warsaw
Americanpublicly-tradedcorporaiononNASDAQwithamarketcapof9billionUSDandsubsid- Processescovered: iariesorbranchoicesin26countries.ThecompanyheadquartersislocatedinSeatle,Washington. Theaverageemploymentinthelast12monthswasfourthousandstaf. Product Development –sotwaredevelopment,tesingandsupport.Themaingoalofthissiteisto supplementthecurrentgrowthintheoverallproductdevelopmentfuncionandprovidebackup Services: forEurope,theMiddleEastandAfricateams(EMEA).Thescopeofworkwillcovertestdevel- opment(manualandautomated),execuion,testinfrastructuredevelopmentandalsosotware Leadingdeveloperandproviderofsotware-deinedapplicaionservicesoperaingintheniche developmentandcustomersupportaciviies. technologysegmentwhereinthecompany’scoretechnologyplaformiscalledTraicManagement OperaingSystem(TMOS).ThemaingoalofthisSystemistointegrateservicesthatincludelocal TheServicesDepartmentrequirestheexpansionofitscustomer serviceintheEMEAregionwith andglobaltraicmanagement,networkandapplicaionsecurity,accessmanagement,webaccel- furthergrowthinCentralandEasternEurope.TheaddiionofanewTechnicalServicesdepart- eraionandanumberofothernetworkandapplicaions.Thecompanyalsoofersabroadrange mentwillcontributetoF5’srapid-responsecustomerservicecapabiliies.Theteamhelpsclients of services including consuling, training, installaion, maintenance and other technical support todesign,implement,maintainandopimizeITinfrastructures,complemeningF5’sexisingstrong services,suchasround-the-clockcallcentersupport. teaminChertsey,UnitedKingdom.
Soluions: The SecurityOperaionsCenter(SOC) is planned to set its footprint in Poland to ensure compliance withdataprivacyrequirementsandenhanceimezonecoverage,customerserviceanddisaster Thecompanyprovidessoluionsforanapplicaionworld.F5helpsscalecloud,datacenter,tele- recoverycapacity.TheSOCwillsupportcustomersbyproviding24/7accesstohighlyspecialized communicaionsandsotware-deinednetworking(SDN)deployments.F5soluionsbroadenthe F5securityexpertswhomonitorgloballayer4-7atackaciviiesinrealime.Oneofthefew reachofITthroughanopen,extensibleframeworkandarichpartnerecosystemofleadingtech- faciliies of its kind in Europe, the SOC will comprise a team of researchers and analysts that nologyandorchestraionvendors.Thisapproachletscustomerspursuetheinfrastructuremodel invesigatenewatacksthroughouttheworld,andmaintainup-to-dateinformaiononthelatest thatbestitstheirneedsoverime. malware,zero-dayandphishingatackstargeingglobalenterprisesandoferani-fraudservices.
DescripionofF5newinvestmentproject Tasksperformedatthismuli-departmenttechnicalsitewillbebasedontheTMOSplaformthat integratesbothlocalandglobaltraicmanagementmodules,networkandapplicaionsecurity Purpose of the project: to create a Warsaw TechnicalCenter as a muli-disciplinary site with modules,accessmanagementmoduleandourVirtualEdiionproducts. Product Development, Services and Security Operaions. This new Center is the irst non-US basedSecurityOperaionsandaProductDevelopmentfacility.
Case Study 46 47 Projectgoals: Decisionmakingprocess:
• tohavetheaccesstoaskilled,talentedandmulilingualworkforce, ThedecisiontoconsiderabrandnewsitewasmadeinDecember2014.Ittookthecompany10months • to expand ime zone coverage, eliminate gaps in customer service and improve the disaster ofthoroughanalysestoinallyannouncethattheprojectwouldlandinWarsaw,Poland. recoveryabiliiesintheEMEAregion, Poland,Warsaw speciically,was chosen due to the access to top class, muli-lingual IT talent and • toimplementaseriesofnetworktraicandnetworksecuritylectures,trainingandpracicesfor favorablegeographicallocaion. IT,electronics,mechatronicsandmathemaicsstudentsattheUniversityofWarsawandWarsaw University of Technology, Cashsupportfornewjobcreaionfromthestatebudget • tostartprogramsofproductsceriicaioninclosecooperaionwithuniversiies,
• toorganizestudentcompeiionsinTMOStechnology, 847kPLN-basedontheProgrammeforsupporinginvestmentsofmajorimportancetothePolish economyforyears2011-2020. • toprovideaccesstoadvancedF5technologysoluions,
• toengageinCSRaciviies. Esimatedtaxincomesgeneratedbytheinvestment
26.1mPLNinthenext10years.
ROAD MAP OF F5 NETWORKS INVESTMENT PROCESS Location Criteria
Central or Eastern Europe Timezone Accesstotoptalentandagoodlocal research university Favorableemploymentpracices GoodEnglishlanguageskills Reasonable costs compared to US and Western Europe Solid infrastructure Longlisted locations Site Visits Investment Decision Official Announcement Easeoftransportaionto/fromUSandIsrael Minimal Visa requirements Ireland Site visits at the Investment project Romania Location Assesment shortlistedlocaions ofcialannouncement Corporate Decision Hungary in Warsaw Czech Republic Aterevaluaionthree Bulgaria locaionswereshortlisted: Strategic F5 decision on Poland Soia;Warsaw;Krakow Q1 2015 Jun 2015 further development. Sep 2015 Oct 2015
AUG 2014 Sep 2014 Q4 2014
Market data request Site Visits Grant Procedure Interministerial State aid Investment comittee application form aftercare Requestforinformaion F5 Site visits in Iniiatedbysubmiing senttoPolishInformaion Warsaw and the “informaionabout During the Intermi- Submiingthestateaid MeeingofthePAIiIZ and Foreign Investment Wroclaw - set of the project” and nisterialComitee applicaionformtothe representaiveswiththe Agency(PAIiIZ). meeingsorganized “inceniveefect meeingposive Ministry of Economy to representaivesofF5in byPAIiIZrepresen- analysis” documents. decisionongraning let the company start the company’s HQ in the taives. F5 Warsaw project Warsaw project USA Case Study was made. 48 49 Tesimonial
Last year ater evaluaing muliple sites in a number of countries, F5 Networks decided to open a new, muli-department oice in Warsaw. The efort to select the new locaion was done by a cross-funcional team of F5 staf who had a large set of required selecion criteria. These included the ability to hire technically talented employees, poliical stability, reasonable inancial costs, etc. UNIQUE SELLING POINTS OF As part of the research for this efort, F5 had team members visit locaions within Poland as well as in other countries in Europe. Warsaw impressed all team members with its modern, reliable and eicient city infrastructure. This included the airport, metro, buses, trains, etc. Essenial for a technology compa- CITIES-LEADERS IN THE RACE FOR ny was a large selecion of Class A real estate, fast network connecivity throughout the city and, most importantly, a large pool of talented people from which to hire. Also noted during the search was the fact that Warsaw is a regional technology hub that is capable of atracing talented people from all over the BSS INVESTMENTS country and neighboring countries.
The vibrant business community and growth seen throughout the city made a very posiive impact on the Thebusinessservicessectorwouldnothavegrownsodynamicallyifitweren’tformuliplelocaion search team. The people we met with at universiies, employment agencies, real estate irms and those opions.InPoland,thereare39ciieswithmorethan100thousandinhabitants,whichcertainly from the Polish Informaion and Foreign Investment Agency were all eager to discuss who they were, isadisinguishingfactorinCentralandEasternEurope.ItisnosurprisethatBSScompanieshave what was possible and how to get things done. Ater these meeings the enire team was convinced that theirfootprintsin27locaionsacrossPoland.Thenumberisimpressive,butsillonlysevenPolish we would be able to rapidly get established in Warsaw and that if we did encounter issues there would ciiesaggregate90%ofBSSemployment.Theseagglomeraionsarewell-recognizedanddiversi- be many capable people and organizaions willing to help us resolve them. iedacademiccenters;theyoferhighqualityoflifeandmuchspace(literallyandiguraively)for furthergrowthandreinvestments.Thisparicularsecionofthereportfocusesonbothleaders’ In support of F5’s global business eforts, this investment allows expanded and enhanced ime zone capabiliiesaswellastheiruniquesellingpoints,crucialfordevelopingreinvestmentsandatract- coverage, along with customer service and disaster recovery capacity. Addiionally, Poland was chosen ingfreshBSSprojects. in part due to its strategic geographic locaion and the fact that it has a world-class, adaptable, and muli-lingual group of IT talent.
With new product development resources located in Poland, F5 is rapidly augmening overall develop- ment output and providing backup for EMEA Engineering Services teams. Personnel at the locaion in Product Development include personnel doing development, manual and automated tesing, and infra- structure development.
Warsaw is already proving that F5’s decision last year was solid, and our oice there is rapidly becoming an integral and key part of the F5 family of sites.
ScotHavel Director|TestEngineering|F5
Unique Selling Points 50 51 WARSAW 1.73 m/3.04 m Totalpopulaion(city/metro)1 Tricity 3.4% Olsztyn Szczecin Bydgoszcz /Torun Bialystok Registeredrateofunemployment Poznan Warsaw 249 174 / 49 403 Zielona Gora WarsawisthecapitalofPolandinadministraive,poliical(seatofthegovern- Lodz Lublin Numberofstudentsandgraduates2015 ment,parliamentandcentraloices),andinancial(headquartersofWarsaw Wroclaw Opole Katowice Stock Exchange, Naional Bank of Poland and Polish Financial Supervision University of Warsaw (1) Rzeszow Warsaw School of Economics (12) Krakow Authority) capaciies. More than 400 thousand business eniies, including Warsaw University of Technology (4) prominentlocalandglobalinancial,consulingandlegalcompanies,aswell TopUniversiies2 Concentration of modern office space asavibrantstartupscene,conirmitsimpactandinluenceonthenaional economy. 13.8 m TotalnumberofpassangersatWarsawairports. > 1 m sq m 500 k – 1 m sq m Topdesinaions:Amsterdam,Frankfurt,London,Paris, 300 k – 500 k sq m NewYork,Dubai,Beijing,Tokio3 200 k – 300 k sq m Adeeptalentpoolisanessenialfactorforrobusteconomicdevelopment. 100 k – 200 k sq m The constant injecion of ‘fresh blood’ is promised by 68 public (University 4 700 000 Totaloicespace 4 North ofWarsaw,WarsawUniversityofTechnology,WarsawSchoolofEconomics) 14.8% Vacancyrate4 Central Locaions andprivate(KozminskiandLazarskiUniversiies,Polish-JapaneseAcademyof 9/10 West NumberofHotels*****/**** Upper InformaionTechnology)highereducaioninsituions.AccordingtoFinancial South 21 326 Total number of hotel beds South West I East TimesandPerspektywymagazinerankings,Warsawuniversiiesprovidethe
1 PAIiIZ compilaion based on Central Staisical Oice, South West II best quality of educaion in Poland to 250 thousand students (including a Ministry of Science and Higher Educaion, Urban Audit. February 2016 Lower South dozenthousandorsoforeignnaionals). 2 Top 50 Perspektywy 2015 South East 3 2015 4 Nuvalu Expansion of the Warsaw Chopin Airport (approximately 300 scheduled lightsdailyandover11millionpassengersin2015)alongwiththelaunching The CBRE Global Business Service was established in 2008. Access to highly educated and qualiied talents, easy access, a simply atracive city—these were our primary drivers. As ofWarsawModlinAirportin2012signiicantlyimprovedaccessibilityofthe we all know, in 2011-12 outsourcing industry started speaking a diferent language, i.e. city,includingdirectconnecionstofourconinents.Theagglomeraioniswell from Client perspecive Value add creaion became a priority, plus we noiced increased connectedbyadenseandefeciverailwaytransportsystem,acombinaion readiness to transfer more complex roles. It only enhanced Warsaw Value Proposiion as a locaion to go where our main focus is quality and access to the best-qualiied people ofsubway,tramsandurbanandregionalrailways. across various industries from Poland and Europe. In the last two years, the EMEA GBS business grew from 235 to over 500 people. It was a huge stretch for us, but from a talent availability perspecive, I haven’t noiced any substanial Warsaw market limitaion. In other words, in my opinion, Warsaw is a premier league locaion among other ciies such as Amsterdam, London and Milan. Unique Selling Points MaciejPiwowarczyk 52 Managing Director 53 CBRECorporateOutsourcing|EMEAGlobalBusinessServices KRAKOW 0.76 m/1.38 m * Totalpopulaion(city/metro)1 Tricity 4.5% Olsztyn Szczecin Bydgoszcz /Torun Bialystok Registeredrateofunemployment Poznan Warsaw 167 708 / 39 930 Zielona Gora Thehistoriccapitalcityhasbeensteadilybuildingitsposiionasthenaion- Lodz Lublin Numberofstudentsandgraduates2015 alandEuropeanleaderintheBSS.ConsulingcompanyTholonsonceagain Wroclaw Opole Katowice placedthecapitalofMalopolskaintheninthposiioninitsannualrankingof Jagiellonian University (2) Rzeszow AGh University of Science and technology (6) Krakow thetop100outsourcingdesinaionsworldwide,puingitjustaheadofDublin, Cracow University of Technology (38) iveplacesaheadofPrague,and15aheadofBudapest.Forseveralyearsnow, TopUniversiies2 Concentration of modern office space Krakowhasbeentheundisputedleaderintermsofnumberofemployeesin theBSScenters,which,attheendof2015,exceeded44thousand. 4.2 m TotalnumberofpassangersatKrakowAirport. Topdesinaions:Amsterdam,Frankfurt,London,Munich, Paris, Zurich 3 North 250 600 m2 Krakowhasalottoofer,notonlytotheconstantlygrowinginluxoftourists (around8millionofvisitorsannually)butalsotoprospeciveBSSemployees, 760 000 pace 4 Totaloices 2 Centre 122 400 m whopayateniontothebalancebetweenaninteresingjob,arichcultural 4.0% Vacancyrate4 lifeandentertainment.KrakowHistoricCenter(OldTown,WawelHillwith South 10/28 ***** **** NumberofHotels / Other 227 000 m2 Royal Castle and Kazimierz quarter) is named by the UNESCO as a World 80 000 m2 18 970 Total number of hotel beds HeritageSite.Intermsofculture,thisisanexcellentplacetobe,illedwith
1 PAIiIZ compilaion based on Central Staisical Oice, livelytheatres,plusnumerousmusichallsandgalleries.Inaddiion,Zakopane, Ministry of Science and Higher Educaion, Urban Audit. February 2016 amountaintowninformallycalled‘thewintercapitalofPoland’,islocatedless 2 Top 50 Perspektywy 2015 3 2015 than100kmfromhere. 4 Nuvalu KrakowvalueproposiionforBSScompaniesisenhancedbyinvestmentincen- ives–thepossibilitytobeneitfromtheCITexempioninKrakowTechnology Park–SpecialEconomicZone.KTP-SEZisoneofafewzonesinPolandwith oicebuildingslocatedinthecity,notfarfromtheresidenialareas. Krakow, the second largest city in Poland, is the fourth main hub of the centralised Global Contact Centre network for Cathay Paciic. In this vibrant city where history meets modernity, Cathay Paciic ofers great career opportuniies and self-development possibiliies. We are providing a special place where passion for travel and passion for customer service can meet in a rewarding way.
CathayPaciic Global Contact Centre Unique Selling Points 54 55 WROCLAW 0.63 m/1.05 m * Totalpopulaion(city/metro)1 Tricity 3.4% Olsztyn Szczecin Bydgoszcz /Torun Bialystok Registeredrateofunemployment Poznan Warsaw 125 565 / 28 983 Zielona Gora The capital of the Dolny Slask province is associated with innovaion, and Lodz Lublin Numberofstudentsandgraduates2015 withgoodreason.Modernresearchinfrastructureenablesadvancedworks Wroclaw Opole Katowice inbiotechnology,nanotechnology,materialsscience,ITandelectronics.The Wroclaw University of Technology (4) Rzeszow Uniwersity of Wroclaw (7) Krakow agglomeraiondevelopmentstrategyunderlinestheimportanceofcoopera- Wroclaw Medical University (15) ionbetweenlocalauthoriiesandacademia.AgoodexampleistheResearch TopUniversiies2 Concentration of modern office space CenterEIT+,whichmanages11,000squaremetersofstateoftheartlabora- tories,focusedenirelyonthedevelopmentofinnovaions,newtechnologies, 2.32 m TotalnumberofpassangersatWroclawAirport. Topdesinaions:Frankfurt,London,Munich,Paris3 andindustrialresearchprojects. Other 80 000 m2 WroclawcreatedanITfriendlyecosystem,thecombinaionoftopPolishand 670 000 Totaloicespace 4 foreign companies, dynamic startup environment, modern manufacturing 8.6% Vacancyrate4 sectorand,inaddiion,oneofthebesttechnicaluniversiies,theTechnical Centre 6/12 NumberofHotels*****/**** 122 400 m2 UniversityofWroclaw.Asaresult,areassuchasInternetofThings,Industry West Business Area 8 045 Total number of hotel beds 170 000 m2 4.0., disrupive technologies, big data, cloud and cogniive compuing are
1 PAIiIZ compilaion based on Central Staisical Oice, South Business Axe (almostliterally)shapedinWroclaw. Ministry of Science and Higher Educaion, Urban Audit. February 2016 227 000 m2 2 Top 50 Perspektywy 2015 3 2015 ThegeographicallocaionbetweenPrague,WarsawandBerlin,richhistory, 4 Nuvalu andmorethan125thousandstudents,includingalargegroupofnon-Polish pupils,makeWroclawnotonlyayoungcityopentonewinhabitants,butalso amuliculturalandmulilingualagglomeraion.Thismesheswellwiththeitle UBS started its acivity in Poland in 2007, when the irst center in Krakow was opened. oftheEuropeanCapitalofCulture2016. Currently, UBS in Poland employs approximately 2,000 people. The decision to open a sec- ond center in Wroclaw was made at the end of 2014. One of the reasons was the mutual proximity of these ciies. Addiional decision factors were the availability of qualiied staf in the relevant ields, the presence of other companies represening the SSC / BPO sector, which create well-balanced job market, availability of the top class infrastructure and accessibility of the city (Internaional airport and highway). The city authoriies have also been open and supporive.
Grzegorz Pabian Unique Selling Points GeneralManagertoWroclaw 56 BusinessSoluionsPolandSp.zo.o. 57 TRICITY 0.75 m/1.12 m * Totalpopulaion(city/metro)1 Tricity 4.3% Olsztyn Szczecin Bydgoszcz /Torun Bialystok Registeredrateofunemployment Poznan Warsaw 91 742 / 20 850 Zielona Gora Signiicant infrastructural investments in the past years related to Gdansk Lodz Lublin Numberofstudentsandgraduates2015 beingthehostcityofEuro2012soccergamesboostedthedevelopmentof Wroclaw Opole Katowice Tricity’sagglomeraiontransportaionnetwork.Asaresult,FastUrbanRailway Medical University of Gdansk (10) Rzeszow University of Gdansk (17) Krakow (SKM)bindstheTricitycore,Gdansk,GdyniaandSopot,withregionalciies, Gdansk university of Technology (17) Koscierzyna,SlupskandTczew,aswellastheLechWalesaAirport.Itwould TopUniversiies2 Concentration of modern office space not be possible without excellent cooperaion between mayors’ oices in allthemenionedciies.CompaniesthatconsiderTricityasthelocaionfor 3.7 m TotalnumberofpassangersatGdanskAirport. Gdynia Topdesinaions:Frankfurt,London,Munich,Paris3 126 000 m2 theirprojectscancountontheequallyeicientcooperaionofalltheparies involved.
580 000 4 Totaloicespace Sopot 2 Asaportcityandimportantlogisicshub,Tricityofersaninteresingopportu- 14.3% Vacancyrate4 9 000 m nityforthebusinessservicescompanies.Adeeptalentpoolofspecialistswith Grunwaldzka Avenue 7/11 NumberofHotels*****/**** 196 200 m2 backgroundinmariimelogisics,supplychainorprocurementisreadytotake Gdansk 8 755 Total number of hotel beds Airport area 315 000 m2 upnewprofessionalchallengesintheBSS. 48 200 m2 1 PAIiIZ compilaion based on Central Staisical Oice, Ministry of Science and Higher Educaion, Urban Audit. February 2016 Centre TricitytradiionallyservesasPoland’s‘NordicConnecion’.Thegreatestsup- 2 Top 50 Perspektywy 2015 39 600 m2 3 2015 plyofNordicspeakers(duetotheoldestandlargestScandinavianfacultyat 4 Nuvalu Gdansk University and its newly created Finnish department), plus cultural andgeographicalproximitymakethisareathepreferredpartnerforournorth- ernneighbors. In2015,StapleshasopenedanddevelopeditsGlobalCompetenceCenterin Gdansk.
Gdansk was a natural choice, as you can easily source well-educated graduates as well as experienced experts. We have no doubt that local employees are saisied with the opportuniies provided by Staples while working on pan-European projects in internaional teams.
MarekNowak Unique Selling DirectorofStaplesGlobalCompetenceCenter. Points 58 59 KATOWICE 0.3 m/2.6 m * Totalpopulaion(city/metro)1 Tricity 3.8% (5.8%) Olsztyn Szczecin Bydgoszcz /Torun Bialystok Registeredrateofunemployment(inagglomeraion) Poznan Warsaw 87 737 / 23 672 Zielona Gora KatowiceMetroAreaisoneofthelargestmetropolisesinEurope.Thepopu- Lodz Lublin Numberofstudentsandgraduates2015 laionoftheagglomeraionexceedstwomillion,while4.6millionpeoplelive Wroclaw Opole Katowice inthedensely-populatedSlaskieprovince.Thereareasmanyas11million University of Silesia In Katowice (17) Rzeszow Silesian University of Technology (22) Krakow people living within a 100 kilometer radius from Katowice. A convenient Medical University of Silesia (31) transportaionnetwork(roadsandrailways)ensuresquickaccesstothecity TopUniversiies2 Concentration of modern office space centerforemployees.
3.1 m TotalnumberofpassangersatKatowiceAirport. 3 Investors are encouraged to choose Katowice also thanks to the available Topdesinaions:Frankfurt,London,Paris Gliwice 14 000 m2 Chorzow inceniveofexempionfromtheCITintheKatowiceSpecialEconomicZone. 16 800 m2 Justrecentlyamodernoiceparkhasbeendevelopedwithinthebordersof 430 000 Totaloicespace 4 thezone. 15.1% Vacancyrate4 Other 2 1/6 NumberofHotels*****/**** Katowice 21 200 m Duetoitsindustrialpast,Silesiaisrecognizedasastrongscieniicandindus- 297 000 m2 7 446 Total number of hotel beds trialhub,withaparicularfocusonengineeringandIT.Numeroustechnical
1 PAIiIZ compilaion based on Central Staisical Oice, schools educate future top-class graduates and are highly regarded in the Ministry of Science and Higher Educaion, Urban Audit. February 2016 industrialprofessionsandbusinessservices. 2 Top 50 Perspektywy 2015 3 2015 4 Nuvalu
Sapiens, a leading global provider of sotware soluions for the insurance industry, with a track record of over 30 years in delivering superior sotware soluions to more than 190 inancial services organizaions worldwide, decided to penetrate the Polish market and get closer to exising European customers towards the end of 2015. Ater an extensive search for a strategically-located and convenient business locaion, Katowice was selected as the site for Sapiens’ newest development center. Katowice’s technological and professional resources made it an atracive locaion for Sapiens. We have 180 technical experts and professionals working in Poland, including Katowice, with plans to grow sig- niicantly in 2016 and 2017. The development center is currently seeking experienced professionals across various business lines.
AnatBellucoFeinkuchen Unique Selling VicePresident Points 60 Sapiens|GlobalHumanResources 61 POZNAN 0.55 m/0.96 m * Totalpopulaion(city/metro)1 Tricity 2.4% Olsztyn Szczecin Bydgoszcz /Torun Bialystok Registeredrateofunemployment Poznan Warsaw 122 612 / 28 920 Zielona Gora ThelargestcityofWielkopolskaprovincecanbeproudofitsbalancedeconom- Lodz Lublin Numberofstudentsandgraduates2015 icstructure.ManufacturingplantsofVolkswagen,BridgestoneandNiveaare Wroclaw Opole Katowice bloomingnexttothesuccessfulbusinesscentersofglobalbrands,MAN,Carl Adam Mickiewicz University in Poznan (3) Rzeszow Poznan University of Medical Sciences (13) Krakow Zeiss,IKEA,McKinsey,GSKandRoche.Thankstotheabundanceofvarious Poznan University of Technology (14) industries,awiderangeofprofessionals,fromITsecurityexpertstoseasoned TopUniversiies2 Concentration of modern office space accountantsinFMCGtoinvestmentfundspecialiststoHRadministrators,can besourcedinPoznan. 1.5 m TotalnumberofpassangersatPoznanAirport. Topdesinaions:Frankfurt,London,Munich,Paris3 ThesymbolofPoznanisphilologydepartmentsatAdamMickiewiczUniversity –hardlyanyothercitycanboastcomparablequanityandqualityoflinguisic 380 000 Totaloicespace 4 Centre 4 studies.BSSemployeeseagerlyparicipateinprojectswhereDutch,Nordic, 17.0% Vacancyrate 146 200 m2 ArabicorChineselanguagesareaprerequisite,nottomeniontheobvious West 3/12 NumberofHotels*****/**** 27 200 m2 Malta Lake oneslikeGerman,SpanishorItalian. 47 600 m2 6 465 Total number of hotel beds
1 PAIiIZ compilaion based on Central Staisical Oice, Other Business services sector is doubtlessly one of the priority areas for local 119 200 m2 Ministry of Science and Higher Educaion, Urban Audit. February 2016 authoriies.Theoutcomeisanacivepromoionoftheindustryasadesirable 2 Top 50 Perspektywy 2015 3 2015 employer,withthelagshipprojectslike‘Workgate’-workshopsandjobfairs, 4 Nuvalu ‘BPO/SSCWeek’-promoionofthesectorinschools,or‘StayinPoznan’-a programencouragingErasmusstudentstoworkinbusinessservicescenters.
Ciber has decided to open the Competence Center in Poznan, primarily due to the quality of the labor market and the availability of a well-educated workforce. There are 27 universiies in Poznan, educaing 117,000 students, which makes it one of the biggest academic centers in Poland. Our company employs over 230 IT, inance and accouning and human resources recruitment experts, who provide support to customers all over the world. Therefore, the knowledge of foreign languages, especially English and German, but also rare ones like Swedish or Dutch, is essenial. Poznan ofers the opportunity to study at one of 34 linguisic philology departments, which secures the investors the direct access to mulilingual staf. Unique Selling Points KrzysztofJarosz 62 Managing Director 63 Ciber LODZ
0.71 m/0.94 m * Totalpopulaion(city/metro)1 Tricity 9.5% Olsztyn Szczecin Bydgoszcz /Torun Bialystok Registeredrateofunemployment Poznan Warsaw 80 913/ 18 525 Zielona Gora LocatedintheveryheartofPoland,attheintersecionoftheA1(North-South, Lodz Lublin Numberofstudentsandgraduates2015 Gdansk–Vienna)andA2(East-West,Berlin-Moscow)highways,Lodzispriv- Wroclaw Opole Katowice ileged to have excellent access to major Polish ciies like Warsaw, Poznan, Lodz University of technology (11) Rzeszow University of Lodz (16) Krakow Gdansk,TorunandKatowice.Ittakesnotmuchmorethanonehourtoreach TopUniversiies2 Warsawbycar,and80minutesbytrain,whichmakesthecityinteresingfor Concentration of modern office space businessservices;deinitelymorethanthecapitalcity’ssatellite,itofersa doubleadvantageofhighqualitytalentsalongwithlaborandoperaionscost 0.3 m TotalnumberofpassangersatLodzAirport. Topdesinaions: Amsterdam, London, Munich, Paris 3 arbitrage.
Baluty 320 000 pace 4 Theneedtoadjusttothebusinesses’needsisnowherebetervisiblethan Totaloices 70 000m2 8.2% Vacancyrate4 at the local universiies which recently have launched dedicated faculies: BusinessLinguisics,InformaionintheDigitalEnvironment,FinancialMarkets, 0/5 NumberofHotels*****/**** Centre BankingandDigitalFinance.Localauthoriies,consciousoftheBSSpotenial, 200 000 m2 4 965 Total number of hotel beds stronglysupporttheiniiaive‘YouthinLodz–graspedbylanguages’,targeted
1 PAIiIZ compilaion based on Central Staisical Oice, atretainingyoungtalentsinthecityandincreasingtheirlinguisiccompeten- Ministry of Science and Higher Educaion, Urban Audit. February 2016 cies.Studentsandgraduatesapplyforan85%reimbursementofaone-year 2 Top 50 Perspektywy 2015 3 2015 foreign language course.The ofer covers nine languages highly sought by 4 Nuvalu businessservices,i.e.Dutch,Danish,Finnish,SwedishorPortuguese.
ThechangeofLodz’simage,whichformanyyearshasbeensomewhatindustri- Sustainable development of the Nordea Operaions Center (provider of back-oice and al,isatoppriorityfortheauthoriies.‘OpenCitySurgery’isastrategicconcept clearing services) since 2010 is the conirmaion of sound investment climate in Lodz. The availability of employees with experience in the inancial industry and very good command aimingatmodernizaionandrevitalizaionofthe90hectares(over200acres) of languages has been a decisive factor for us. The city is also an important academic inthehistoricCenteralongwithconstrucionofamulimodaltransportaion center with over 20 higher educaion insituions. Lodz is the third largest Polish city in hubandundergroundrailwaystaion,whichistobecomeaNewCenterof terms of populaion, perfectly located in the heart of Poland and Europe, easily accessible by networks of roads and an internaional airport, just 15 minutes away from the city Lodz. center. NOC has become a signiicant employer with already over 1000 employees – and sill growing Unique Selling Points MikolajLugowski 64 HeadofNordeaBankABBranchinPoland 65 CONCLUSIONS
2015provedtobeyetanotherimportantyearinthedynamicdevelopmentofthebusinessser- vicessector.Theindustryisrapidlymovingtowardsfullmaturityasevidencednotonlybythe numberofoperaingcenters—over850units—butalsobyaproliferaionofpoteniallocaions —27ciiesarehostsofBSSprojectsandahugeimpactonthelabormarket—193.5thousand BSSemployees.Mostimportantly,thekeyfeatureofthesectorisimprovementinthequalityof servicesandmouningcomplexityofprovidedprocesses.Wehavewitnessedinalmostnoimea smoothtransiionfromback-oiceprocessestothemiddle-oicetypeofservicestowards,more andmorefrequently,directcustomerservice.Lastbutnotleast,thegrowingimportanceofPolish centerswithinthestructuresofglobalcorporaionsisworthnoing,too.
ThesummaryisaplacetoevaluatetheprospectsforfurthergrowthoftheBSS.Everyyear,experts heraldthatthecurrent15%growthonanannualbasisisimpressiveyetunsustainableinthelong term.Sill,BSSkeepsonsurprising,growingbyadouble-digitpercentageyetanotheryearinthe row.Keepingthatpaceispossiblebutwillrequireefortonthepartofallstakeholders,business, academia,andauthoriies,targetedatsecuringsteadyinlowofthemostcrucialresourceforthe industry–humancapital.Havingwitnessedmanyefortsofthebusinesses,universiiesandlocal authoriiesputintocreaionoftheeco-system,weremainnothingbutopimisicforthenextyear.
67 THE BUSINESS SERVICES TEAM - Iwona Chojnowska-Haponik Foreign Investment Department Director T:+48223349834 HOW CAN WE MAKE YOUR DAY? [email protected]
The Business Services Team(BST) is one of the two investors’ servicing teams in the Foreign InvestmentDepartmentatPAIiIZ(ThePolishInformaionandForeignInvestmentAgency).Our Rafal Szajewski
groupofexpertsprovidesfreeofcharge,broadsupportforthebusinessservicesprojectsthrough BusinessServices-TeamHead T:+48223349818 (andater!)investmentprocessinPoland. [email protected] Themostvaluablecommodityisinformaion!
Desktopresearch?Thereyougo!Wewillbedelightedtoshareourstrong,in-depthknowledge aboutthePolisheconomy,legalregulaions,andguideyouthroughthedetailsofthePolishcit- iesandtheiruniquefeatures.Availabilityoftalentpoolandtheirskillset,employmentcostsby Jan Kamoji-Czapinski industries,operaionalcosts,BSSlandscapeinPoland–thisismerelyasampleofwhatyoushould BusinessServices-ProjectManager expectwhenreachingouttous. T:+48223349890 Toseeistobelieve! [email protected]
Studyvisit?We’remorethanhappytoarrangeaseriesofmeeingsforyou.Keystakeholdersand businesspartners,includingcentralandregionalauthoriies,representaivesoftheuniversiies, HRagencies,RealEstatebrokers,andlastbutnotleast–referencevisithosts–we’llallteamup Joanna Manikowska tohelpyouunderstandourvalueproposiion. BusinessServices-ProjectManager CredenialspresentedbyothercompanieswhoalreadyhaveinvestedinPoland,do’sanddon’ts, T:+48223349897 [email protected] pifallstoavoid–casestudieshelptomakebusinessdecisions.Countontheirgenuineinsights,as theydidthatexercisebefore.Countonustointroduceyoutothemostinteresingones.
YoucanrelyontheBSTadvisoryregardingavailableincenives,beittaxexempionsorcashgrants, too. Agnieszka Palac Endofthejourney?Noway! BusinessServices-ProjectManager T:+48223349890 Donedeal?Endofourjoint‘businesssetup’journey?Noway!Itwillbeourhonortoorganizewith [email protected] youapressconferenceandhelpinbolsteringyourvisibilityandbranding.
StayingintouchwithcompaniesalreadysetledinPoland,providingpostinvestmentcare,helping youclearday-to-dayhurdles–allofthatliesinourcompetences.Weareyourspokesman! Michal Szaraniec Advising to, working with global corporaions and maintaining network relaions with leading BusinessServices-ProjectManager investorshasenabledustogainaprofoundrecogniionofthebusinessservicessectorrequire- T:+48223349890 ments.TheBSTboastsoveradecadeofproventrackrecord.Theteamonlyin2015successfully [email protected] assistedin25projects,altogetheraimingatthecreaionofalmost5thousandnewworkplaces.
Comeworkwithus!Letushelpyouandmakeyourday!
68 69 CONTACT DETAILS
PolishinformaionandForeignInvestmentAgency
BagatelaSt.12;00-585Warsaw T:+48223349875 [email protected]
paiz.gov.pl
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