Business Services in Szczecin Table of Contents 1 WHY SZCZECIN? 4 Report prepared for the City of Szczecin by the Association of Business Service Leaders (ABSL) 2 BUSINESS SERVICES CENTERS IN SZCZECIN 8 in cooperation with JLL, Randstad and Randstad Sourceright 3 INVESTORS ABOUT THEMSELVES: SUCCESS STORIES 20 Project coordinator: 4 THE LABOR MARKET 24 Janusz Górecki, Head of Sector Research & Analytics, ABSL Interested in cooperation with ABSL? Please contact: 5 THE OFFICE MARKET 30 Paweł Panczyj, Chief Development Officer, ABSL [email protected] www.absl.pl 6 QUALITY OF LIFE AND BUSINESS SUPPORT 36 Investor support in Szczecin: The Department of Project Management Agencja Rozwoju Metropolii at Szczecin City Hall Szczecińskiej 7 INVESTOR SUPPORT 40 Plac Armii Krajowej 1 ul. Niemierzyńska 17A 70-456 Szczecin 71-441 Szczecin +48 91 43 51 164 +48 91 333 97 71 [email protected] [email protected] www.invest.szczecin.eu www.arms-szczecin.eu www.invest.szczecin.eu Layout and printing: www.ponad.pl Praga, Czechy Business Services in Szczecin 5 Why Szczecin? Gdańsk 349 km FIGURE 1 LOCATION OF SZCZECIN A1 S7 Szczecin 1 Białystok Bydgoszcz 257 km S3 S8 Berlin 150 km A2 Poznań 270 km WHY Warsaw 573 km A2 Łódź 480 km Szczecin? S5 S7 S8 A4 Szczecin is the largest city in and capital of A1 Dresden Wrocław 370 km Lublin Western Pomerania province, and one of the largest economic centers in the north of Poland. It is a cultural and academic hub that Katowice 580 km offers a high quality of life. An increasingly Prague 498 km important role is being played by the business Kraków 658 km A4 services sector (BPO, SSC, IT and R&D Ostrava Rzeszów Lviv centers) in the local economy of the area. The city’s attractiveness as an investment location is enhanced by its proximity to Brno Berlin and Berlin-Tegel and Berlin-Schönefeld Source: ABSL own study airports. Koszyce TABLE 1 DISTANCES AND ANTICIPATED TRAVEL TIME TO SELECTED CITIES Wiedeń Bratysława Czas podróży According to a Distance in km By car By train By plane TomTom Traffic Index Berlin 127 1h 30min 1h 50min 4h 00min* ranking, Szczecin Poznań 200 2h 30min 2h 30min 2h 45min* has a low street Copenhagen 280 6h 30min 9h 30min* 1h 00min congestion index Warsaw 450 5h 45min 6h 30min 1h 05min in comparison with Frankfurt am Main 550 8h 00min 6h 40min** 4h 05min* cities of similar size Amsterdam 660 9h 00min 9h 00min* 4h 00min* elsewhere in Poland Paris 990 13h 45min 11h 00min*** 4h 10min* and Europe. One asterisk means one transfer required. Source: City of Szczecin Sources: Deutsche Bahn, Google Flights, Google Maps, PKP PLK. Source: https://www.tomtom.com/en_gb/ trafficindex/ Nowe Warpno 6 Business Services in Szczecin Business Services in Szczecin 7 Why Szczecin? Police Why Szczecin? Port Lotniczy Szczecin-Goleniów Goleniów FIGURE 2 FIGURE 3 ROADMAP OF SZCZECIN AND SURROUNDINGS AIR TRANSPORT Bergen 1h 45min 3 Oslo Gardermoen 1h 30min 3 Oslo Sandefjord-Torp 1h 25min 5 Koszalin / Trójmiasto Stavanger 1h 35min 3 Stockholm 1h 35min 3 S3 Dublin 2h 25min 3 Copenhagen* 1h 00min 5 Ogród Różany Liverpool 2h 10min 3 Filharmonia Rostock Wały Chrobrego Szczecin 10 London 1h 55min 10 Berlin Schönefeld Zamek Książąt Pomorskich Berlin Tegel Warsaw 1h 05min 29 Port Kraków** 1h 05min x Szczecin-Goleniów Airport (sZZ) Distance and travel time from city center 13 A6 30 km (45 min) Destination Flight time Number of flights per week 10 Piła / Bydgoszcz Number of countries served * from 1 April 2019 ** from 2 April 2019 Kołbaskowo Berlin A6 Szczecin is located near the northwest border of Poland, 6 Source: http://www.airport.com.pl/, Google Flights where important European roads (E28 and E65) and rail- Number of flight destinations ways (E59) intersect. Very good access by road is provided Schwedt by the A6 highway, the S3 express way, national roads 10, 13 Within approximately two hours you can fly from Szczecin to either of the two Gorzów Wklp. / A2 / A4 and 31 in Poland, and by the A11 highway in Germany. From 11 Berlin airports: Schönefeld (SXF) and Tegel (TXL). From these airports, which Szczecin there are also direct rail connections: No. 273 (to Total number of passengers served more than 33 million passengers in 2017, there are connections to 56 cities Wrocław), No. 351 (to Poznań), No. 401 (to Świnoujście), around the world. 31 No. 408 (to Lübeck and Hamburg) and No. 409 (to Berlin). 578,700 (2017) Directly adjoining Berlin-Schönefeld, Berlin-Brandenburg Airport (BER) is under 30 km from the city center is Solidarity Szczecin-Goleniów construction; and it will replace the two airports currently in operation. Berlin- Airport (SSZ), with connections to Dublin, London, Oslo and 650,000 (2018) Brandenburg will be very well connected to the road and rail networks. It is S3 Stockholm and other destinations, including to Copenhagen scheduled for opening in 2020, and by 2030 should be serving 55 million passen- as of April 2019. Szczecin-Świnoujście Port, a maritime port Airlines providing scheduled gers annually, making it Europe’s 5th-largest airport. that, together with Świnoujście, forms one of the largest connections: universal port complexes in the Baltic Sea region. LOT Polish Airlines, Norwegian, Ryanair, SAS, and Wizz Air. Source: https://www.berlin-airport.de Kostrzyń nad Odrą G r y fi n o Business Services in Szczecin 9 Business services centers in Szczecin FIGURE 4 BUSINESS SERVICES SECTOR IN SZCZECIN – KEY INFORMATION The number of employees working in Szczecin business 2 services centers providing services in foreign languages 5,600 (as of Q1 2019). The number of business services centers in Szczecin (Q1 2019). Foreign entities own more than half (56%) BUSINESS 41 of Szczecin’s centers. The number of countries where the headquarters of SERVICES companies with business services centers in Szczecin are located. 80% of those centers are entities from Poland, the CENTERS 11 Nordic countries and Germany. The growth in employment in business centers in Szczecin IN SZCZECIN since the beginning of 2016. This means an absolute increase % in the number of jobs by almost 2,000. The Compound Annual 47 Growth Rate (CAGR) in the period under analysis was 14%. Szczecin is one of the ten largest business The number of new business services centers established services locations in Poland. Forty-one since the beginning of 2015. Those companies have created centers operate here, and employ 5,600 7 more than 700 new jobs. people. The city is a dynamic center of competences across a broad spectrum of Employees in Szczecin business services centers forecast business processes and new technologies, 10,000 for the year 2025. and is building up its position as a provider of business services – which are becoming one of the distinguishing features of the city’s Business services in Szczecin: selected specializations economic landscape. SOFTWARE FOR THE AUTOMOTIVE INDUSTRY In terms of the number of companies that are developing software for the automotive industry, Szczecin is a significant center in Poland and Europe. There are six large companies of this kind and more than a dozen microbusinesses in the city. CUSTOMER SERVICES AND BACK-OFFICE SERVICES FOR GERMAN-SPEAKING CUSTOMERS Among the largest employers in the sector in Szczecin, there are several companies in which an important role is played by German-language customer services and back-office process services for Germany entities. Source: City of Szczecin Source: ABSL own study 10 Business Services in Szczecin Business Services in Szczecin 11 Business services centers in Szczecin Business services centers in Szczecin FIGURE 5 SELECTED CHARACTERISTICS OF SZCZECIN AS A LOCATION FOR BUSINESS SERVICES CENTERS ABSL chapter in Szczecin Strong position Services center The Szczecin chapter of ABSL is the youngest in Poland, and comprises SSC/BPO/IT/R&D centers located in Szczecin. Its main task is to promote local companies belonging to the chapter, the city of Szczecin and the BSS industry. ABSL’s of IT sector success stories activities here include regular meetings devoted to key sector issues, such as talent management, the development of technology – including automation, robotics and artificial intelligence – and the problems of management and building IT centers employ a total of 2,500 people In recent years, a large majority a strong brand. The chapter runs joint campaigns with the authorities of Szczecin on training and informing elementary in Szczecin, which accounts for a 45% of business service centers have and high school students about the job opportunities awaiting them in the sector in Szczecin, and about the potential share in the employment structure of expanded both the scope and sophis- of the city itself. the business services sector in the city tication of their activities. These two (12 percent more than in the country as aspects have also been accompanied Kamil Pilarski Chapter Leader, ABSL a whole). In Szczecin, there are many by an increase in employment. Engineering Director, GlobalLogic active IT centers whose profiles are connected with the development of a wide range of new technologies. Embeddedness Attractiveness of REPORT CONCEPT AND METHODOLOGY the city for Nordic of business services This report adopts a broad definition of the business services sector to include the activities of business processes country companies centers outsourcing centers (BPO), shared services centers (SSC), IT centers, and research and development centers (R&D). The results of the studies concern the activities of business services centers whose parent companies have their headquarters Szczecin features Poland’s highest The majority (83%) of new jobs created since in Poland (Polish centers) and abroad (foreign centers). Each entity was assigned to one of the primary types (BPO, SSC, IT, the beginning of 2016 were generated by R&D), taking into account the dominant profile of its operations.