Katowice Agglomeration Business Services Powerhouse This report has been prepared for Katowice City Hall by the Association of Business Service Leaders (ABSL) in cooperation with JLL and HAYS Poland Project Coordinator: Janusz Górecki, Head of Research, ABSL e-mail: [email protected] Graphic layout and typesetting: www.ponad.pl Cover picture: Katowice City Hall ® ABSL 2014 ABSL owns all copyright to this paper. Unless otherwise defined by legal provisions, the use, access, processing, copying, adaptation, modification or retransmission of this work in part or in full in any form and without ABSL's written consent shall constitute a breach of copyright. Table of contents 1. Why Katowice? 4 Business service centres in Katowice 2. 10 and Katowice Agglomeration 3. Labour market 26 4. 1HƓEGOCTMGV 32 5. Companies tell their success stories 38 6. Quality of life 40 7. Support for investors 42 8. Poland – key information 46 4 Katowice Agglomeration. Business Services Powerhouse Why Katowice? 1 | Why Katowice? Katowice is a dynamically developing city of more than 300,000 inhabitants, located in the southern part of Poland. Katowice is also the capital of the Katowice Agglomeration1 with a population of almost 2 million people and is an important educational, cultural and economic centre in Poland and in Central and Eastern Europe. Katowice regularly hosts the European Economic Congress, the biggest business event in this part of Europe. Thanks to suitable human TGUQWTEGUUEKGPVKƓECPFTGUGCTEJHCEKNKVKGUCPFVJGDGPGƓEKCNNQECVKQPCPF exceptional nature of this area, both Katowice and the Katowice Agglomeration are perfect places for the development of outsourcing centres (BPO/ITO), shared service centres (SSC) and research and development centres (R&D). 1QHLJKERXULQJFLWLHVLQFOXGH%\WRP&KRU]µZ'ÇEURZD*µUQLF]D*OLZLFH-DZRU]QR.DWRZLFH0\VĄRZLFH3LHNDU\ĜOÇVNLH 5XGDĜOÇVND6LHPLDQRZLFHĜOÇVNLH6RVQRZLHFĜZLÛWRFKĄRZLFH7\FK\DQG=DEU]H Photo: Katowice City Hall Katowice Agglomeration. Business Services Powerhouse 5 Why Katowice? KATOWICE KATOWICE AGGLOMERATION 2̪FHVSDFH(September 2014) 337,000 m2 440,000 m2 Population (2013) 304,000 1,904,000 16% of the population of Katowice Agglomeration nearly 5% of the population of Poland Students (2013/2014) 58,000 107,000 Graduates (2012/2013) 18,000 32,000 Number of universities 15 26 Figure 1 Katowice and the Katowice Agglomeration in numbers Source: ABSL's proprietary analysis 6 Katowice Agglomeration. Business Services Powerhouse Why Katowice? )FCɧUM A1 Szczecin $KC[UVQM Bydgoszcz Berlin A2 2Q\PCɧ Warsaw A2 ȡFʛ A4 A1 / DK1 Lublin Dresden 9TQECY Katowice Prague A4 4\GU\ȡY Ostrava -TCMȡY Lviv Brno Kosice Vienna Bratislava Figure 2 Table 1 Location of Katowice and the Katowice Agglomeration Distance and estimated travel time to selected cities Source: ABSL's proprietary analysis Distance Travel time from Katowice By car By train By plane Location Warsaw 290 km 3h05min 3h00min 0h50min Katowice is located in the central part of Europe between Berlin and Kraków and between Warsaw and Vienna. Berlin 515 km 4h30min 8h03min 3h40min* 7KHFLW\KDVHDV\DFFHVVWRWKUHHLQWHUQDWLRQDODLUSRUWV that is: Katowice Airport (30 km from the city centre) as Vienna 385 km 3h50min 5h06min 4h00min* well as Kraków Airport and Ostrava Airport (both within Frankfurt NP 7KHURDG KLJKZD\ DQGUDLOZD\QHWZRUNLVYHU\ 901 km 8h15min 13h49min 1h30min DP0DLQ well developed. Source: Google Maps, Deutsche Bahn, Google Flights * indicates flight with a stopover Katowice Agglomeration. Business Services Powerhouse 7 Why Katowice? Katowice Airport 78 DK1 A1 94 2KGMCT[ɹNȰUMKG 86 &ȰDTQYC)ȡTPKE\C Bytom Zabrze 5KGOKCPQYKEGɹNȰUMKG ɹYKɂVQEJQYKEG Gliwice &6ɹ %JQT\ȡY 94 Sosnowiec A4 4WFCɹNȰUMC &6ɹ Katowice Jaworzno 78 44 /[UQYKEG 86 A1 A4 Tychy 44 DK1 Figure 3 Map of the Katowice Agglomeration Source: ABSL's proprietary analysis Driving forces The strengths of Katowice Human capital Transportation Openess and support *RRGDYDLODELOLW\DQGTXDOLW\RIKXPDQ infrastructure Local authorities favour investors resources Developed transportation system Support for development of the business (highways, railway transportation) infrastructure Katowice Airport is the fourth largest .DWRZLFH6SHFLDO(FRQRPLF=RQH Investments airport in Poland in terms of the number of Dynamic growth in the number of passengers new investors in the business service 1HƓEGURCEG sector .DWRZLFHLVWKHͤIWKODUJHVWRͦFHPDUNHW %32,7266&5 'FHQWUHVWKDWUHQGHU Attractiveness in Poland with resources of services for many global corporations and and quality of life 2 large Polish enterprises 337,000 m International cultural and sport events, entertainment and recreational areas 8 Katowice Agglomeration. Business Services Powerhouse Why Katowice? Research and development facilities (3.0 WKDWVHUYHVVPDOOHUEXVLQHVVDQGUHJLRQDO ͥLJKWV7ZRRWKHULQWHUQDWLRQDODLUSRUWV.UDNµZ 7KHUHDUHXQLYHUVLWLHVZLWKLQWKHERUGHUVRIWKH Airport and Ostrava Airport in the Czech Republic, Katowice Agglomeration, characterised by different are located approx. 100 km from Katowice. HGXFDWLRQDOSURͤOHV7KLVHQVXUHVDFFHVVWRJUDG- Katowice is located at the crossroads of two impor- XDWHVIURPYDULRXVVFLHQWLͤFGLVFLSOLQHVLQFOXGLQJ tant international transportation routes: from Berlin those essential for the development of the business *HUPDQ\ WR/YLY 8NUDLQH DQG*GDĆVN 3RODQG VHUYLFHVHFWRULHWKHHFRQRPLFͤQDQFLDOEDQNLQJ WR9LHQQD $XVWULD 7KHFLW\HQVXUHVFRQYHQLHQW DQGHQJLQHHULQJDQGWHFKQLFDOͤHOGV7KHPDMRU railway connections with other important centres: universities include the University of Silesia in :DUVDZ:URFĄDZ2SROH.UDNµZ*GDĆVNDQGWKH .DWRZLFHWKH6LOHVLDQ8QLYHUVLW\RI7HFKQRORJ\LQ capitals of Poland's neighbours: Berlin, Prague, *OLZLFHWKH8QLYHUVLW\RI(FRQRPLFVLQ.DWRZLFH Vienna, Bratislava and Kiev. Katowice's internal DQGWKH0HGLFDO8QLYHUVLW\RI6LOHVLDLQ.DWRZLFH transportation network is very well developed Nearly 10% of Polish research and development thanks to highways, major roads and railway trans- potential is located here, creating the second largest portation. Due to investments in the transportation research centre in Poland (after Warsaw), with more infrastructure, the city's transportation accessibility WKDQVFLHQWLͤFDQG5 'XQLWV is improving every year. Transportation infrastructure Investment incentives Katowice and the entire Katowice Agglomeration are .DWRZLFH6SHFLDO(FRQRPLF=RQH .6(= JLYHV VHUYHGE\.DWRZLFH$LUSRUW .7: ORFDWHGNPWR WKHLQYHVWRUVWKHSRVVLELOLW\WREHQHͤWIURPSXEOLF the north of the city centre. It is the fourth largest assistance in the form of tax exemptions (for large airport in Poland in terms of the number of passen- enterprises it is 25% of the costs of incurred), when gers (more than 2.5 million in 2013). Katowice Airport they make investment expenditures and create new JXDUDQWHHVTXLFNDFFHVVWRLPSRUWDQWWUDQVIHU jobs. By the end of 2013, 246 companies invested FHQWUHV HJ)UDQNIXUW0XQLFK'¾VVHOGRUI WKHUHE\ LQ.6(=LQFOXGLQJFRPSDQLHVIURPWKHEXVLQHVV enabling easy and fast travel, for instance to the US. service sector. 7KHUHLVDOVRDORFDODLUSRUW.DWRZLFH0XFKRZLHF Katowice: space for success Awards for Katowice In 2014, during the 5th ABSL Excellence Award, Katowice was 7KHUDQNLQJOLVWRI7KH(XURSHDQ&LWLHVDQG5HJLRQVRIWKH SUHVHQWHGZLWKWKH$%6/([FHOOHQFH$ZDUGLQWKH&,7<FDWHJRU\ )XWXUH̹RII'L0DJD]LQH.DWRZLFHZDVFRQVLGHUHGto Currently, Katowice is the leader when it comes to the percentage be the best city of the Central and Eastern Europe in terms of its growth of employment in service centres with foreign capital in strategy to attract foreign direct investments, and it also took Poland. VHFRQGSODFHDPRQJWKHFLWLHVLQ(XURSH0RUHRYHU.DWRZLFHZDV FODVVLͤHGDVWKHWKFLW\LQ(XURSHZLWKUHJDUGVWRLWVLQYHVWPHQW attractiveness. First place in the category of "Newcomer City of the Year” for HPHUJLQJVWDUVRIWKHEXVLQHVVVHUYLFHVHFWRULQ7KH$ZDUG granted during the celebration entitled Poland Outsourcing and 7KHFriendly Commune 2013 title in the competition organised Shared Services Awards Gala. E\WKHHGLWRURI)RUXP%L]QHVXXQGHUSDWURQDJHRIWKH0LQLVWU\ of Regional Development was granted at the conference HQWLWOHG&RPPXQH)ULHQGO\IRU,QYHVWRUV,QKDELWDQWVDQG 7RXULVWV̹LQ0D\ Katowice Agglomeration. Business Services Powerhouse 9 Why Katowice? Figure 4 Map of Katowice's airline connections Source: www.katowice-airport.com/pl/passengers/destinations-map Katowice Airport 2,544,000 number of passengers served in 2013 Bergen Oslo Stockholm Stavanger Glasgow Belfast Malmö Dublin &QPECUVGT5JGHƓGNF Birmingham London Eindhoven Dortmund Warsaw Maastricht Dˀsseldorf Cologne / Bonn Frankfurt Katowice Kiev Frankfurt (Hahn) Paris Kutaisi Grenoble Milano Burgas Barcelona Roma Alicante Naples Tel Aviv Crete / Chania 10 Katowice Agglomeration. Business Services Powerhouse Business service centres in Katowice and Katowice Agglomeration 2 | Business service centres in Katowice and Katowice Agglomeration Katowice enhances its position as one of the leaders of business service centres in Poland. The dynamic growth of this sector in the Katowice Agglomeration is attracting the attention of global leading brands that have decided to locate their investments in the city. The high potential of the region also translates into the develop- ment of BPO, ITO, SSC, R&D and Contact Centres already operating in this market. Photo: Katowice City Hall Katowice Agglomeration. Business Services Powerhouse 11 Business service centres in Katowice and Katowice Agglomeration Growth of employment in the business service centres { 20% in Katowice and Katowice Agglomeration (09.2013-09.2014) Katowice Katowice Agglomeration ¥ 10,000 ¥ 15,000 number