Business Services Investment outlook Salaries report Local insights

Transcription

1 Business Services 2017 Investment outlook Salaries report Local insights POLAND

2 Read this report to know: salaries for over 120 managerial positions in the Business Services sector; comments from institutions providing local support for new investments; cases from international companies established on local markets. Our report contains useful information for: business centre management staff; new investors; organisations supporting investments and associations of business entities; HR divisions; sector employees and candidates.

3 TABLE OF CONTENTS Introduction... 7 Polish Business Centres Market: late 2016 status and 2017 forecast... 8 Locating business centres: the real estate market Salaries Local markets

4 BUSINESS SERVICES markets across CEE Poland employed 930 centers czech republic employed 180 centers slovakia employed 48 centers hungary employed 90 centers Source: Grafton Recruitment own analysis

5 17 % Business Services market in CEE has expanded rapidly over last 5 years 17 % of unified growth in CEE CEE Business Services are maturing key trends Competency Growth more advanced processes serviced in CEE Centers Robotization and automation growing level of tdchnological advancement Human Capital development seasoned management and advanced expertise

6 It s been a long way since our first Business Services permanent placement in 1996! Yes, we are proud of those 20 years on your side recruiting the best candidates who enable your dynamic and demanding industry to grow and to evolve in Poland, Czech, Slovakia and Hungary. We hope this snapshot of the market will help you to put things into perspective and to take the right recruitment decisions. Wishing you a successful year 2017, Thibault Lefebvre CEO Grafton Recruitment Group Jerome Lafuite COO Grafton Recruitment Group

7 Introduction Agnieszka Kaczmarczyk Regional Director, Northern Poland Joanna Wanatowicz Regional Director, Southern Poland Rafał Glogier-Osiński Regional Marketing & Digital Manager, Poland & Hungary Dear Reader, The market for business service centres in Poland is one of the fastest-growing in the whole of Central and Eastern Europe. Organisations monitoring its growth have been reporting an increase in hiring and in the number of businesses operating in this segment year to year. In 2017, Grafton Recruitment Polska will be celebrating the 20th anniversary of its operations on the Polish market. Since 1997, we have been supporting organisations in building their human capital; the segment of business service centres is one of the key fields of our operations. Across Central and Eastern Europe, we are operating at a scale allowing us, every month, to recruit employees for three full business service centres employing from 100 to 150 people. Based on our scale of operations and experience, we would like to present to you one of the most comprehensive and exhaustive studies regarding salaries in the business services segment on the Polish market. In it, we quote the results of a study on the salaries earned by sector employees in basic as well as advanced processes, divided by Poland s chief locations. In our study, we present an approach combining several different perspectives: comparing the salaries of employees in this market segment, divided by locations and supported business services, comments from experts supporting investments or operating in this sector, a comment on the real estate market in the context of growth in the business centre sector. The study was prepared in Q based on a comparative analysis of market salary rates offered by employers, versus the salaries of employees and candidates divided by processes and locations. The total data sample comprised 3,781 records. The study takes into consideration our projection of salary rates in 2017, in order to provide you with valuable and useful data. We would like to thank the Experts who expressed their views in the Report and hope that we are providing you with an interesting mix of opinions and information. Have a good read! 7

8 Polish & CEE Business Centres Market: late 2016 status and 2017 forecast Polish Business Centres Market 1. The supply of qualified personnel and economic conditions Poland as a diversified Talent market vs CEE Main economic growth factors across CEE Poland s academic & language potential Over 190,000 employees and over 930 centres, including 676 foreign ones; these are the dimensions of the Polish market of business services centres in Only five years ago, the Business Services sector in Poland employed approx. 85,000 employees in around 340 centres with foreign capital. The rapid increase in the number of centres (by over 50%) and in employment (44%) has been followed by the expansion and advancement of the processes they support. As a company that has been co-creating the Business Services market in Poland for many years, we have determined the main questions addressed to us by organisations planning to launch their operations in Poland, or to expand their current business to a new location. Average employment in the Polish BSS sector amounts to approx. 220 employees per centre. The inquiries we hear the most often during our consulting sessions concern businesses hiring up to 200 employees. A similar trend has been observed in talks with companies planning their expansion. As we are currently conducting at least four such parallel projects, we predict that this trend will continue in On the one hand, the growth of the Business Services sector gives rise a constant demand for employees, while on the other it generates a sufficient population of available staff willing to develop within the sector and seeking new challenges. We find investments of up to 200 employees, as well as expansions of already operating companies of a similar scale, to be feasible practically on every one of the larger local markets. Naturally, a specific set of competences necessary to support the processes in planned centres is a decisive issue in assessing the difficulty and feasibility of the recruitment process, but the Polish market offers probably the best entry conditions in terms of the size and diversity of the labour market in CEE. 8

9 Main macroeconomic conditions IN CEE. Population, GDP growth, unemployment rate, inflation. Population Density above 3 m 2-3 m 1-2 m 0-1 m zachodniopomorskie 1,71 lubuskie 1,02 dolnośląskie 2,90 wielkopolskie 3,47 pomorskie 2,31 kujwasko-pomorskie 2,09 opolskie 0,99 łódzkie 2,49 śląskie 4,57 warmińsko-mazurskie 1,44 mazowieckie 5,35 świętokrzyskie 1,26 POLAND podlaskie 1,19 lubelskie 2,14 Population Density above 3 mln 2-3 mln 1-2 mln 0-1 mln Karlovarský kraj 0,30 Plzeňský kraj 0,58 mln Ústecký kraj 0,82 Praha 1,27 Středočeský kraj 1,33 Jihočeský kraj 0,64 Liberecký kraj 0,44 Královéhradecký kraj 0,55 Kraj Vysočina 0,51 Pardubický kraj 0,52 Jihomoravský kraj 1,18 CZECHIA Olomoucký kraj 0,63 Moravskoslezský kraj 1,21 Zlínský kraj 0,58 Polish Business Centres Market Key indicators % of GDP growth unemployment rate inflation % 11.4 % 0.1 % % 9.8 % -0.7 % ,1 % 8,5 % -0,5 % małopolskie 3,37 podkarpackie 2,13 Key indicators % of GDP growth unemployment rate inflation % 7.7 % 0.1 % % 6.5 % -0.1 % ,6 % 5,3 % 0,6 % Population Density Population Density above 3 mln above 3 mln 2-3 mln 1-2 mln 0-1 mln Nyugat-Dunántúl 0,99 Közép-Dunántú 1,09 Dél-Dunántúl 0,94 Közép-Magyarország 2,97 Dél-Alföld 1,31 Észak-Magyarország 1,19 Észak-Alföld 1, mln 1-2 mln 0-1 mln Bratislava 0,60 Trnava 0,55 Trenčín 0,60 Nitra 0,71 Žilina 0,69 Banská Bystrica 0,66 Prešov 0,80 Košice 0,77 Key indicators % of GDP growth unemployment rate inflation % 8.3 % 3.2 % % 7.8 % 3.0 % % 6.0 % 3.0 % HUNGARY Key indicators % of GDP growth unemployment rate inflation % 13.2 % -0.1 % % 11.5 % -0.3 % ,7 % 9,4 % -0,8 % SLOVAKIA Source: Grafton Recruitment own analysis 9

10 academic potential in Poland Compared to the markets of Czechia, Slovakia, and Hungary, the Polish market is the largest and the most diversified. It offers a large selection of locations in the main provincial cities and large emerging cities. Each of the main local markets forms de facto a separate ecosystem of the labour market, characterised by its own demand for candidates, the supply of candidates on the market, flows of employees between regions, and individual trends in terms of salaries. Compared to its peers, Poland shows positive mac- Polish Business Centres Market roeconomic figures, especially given its territorial diversity and the objective size of its labour market, including but not limited to the market of business service centres. The population of students and graduates is a huge pool of human resources potential; for them, the Business Services sector is a natural first step on their career path. STUDENTS ABSOLVENTS Source: Central Statistical Office of Poland 10

11 The cost approaches adopted by potential investors in terms of surveying salaries in the segment before deciding to locate their business are a noteworthy aspect of our study. Mapping salaries in a given market segment and location is a standard element of the recruitment feasibility study. When the discussion comes down to such issues as choosing between countries, investors display two approaches to projecting employment costs: The scenario method: the investor analyses the minimum and maximum values of salaries, building minmax cost scenarios. Next, the recruitment stages and project waves are planned. In this approach, the first waves of recruitment are the most reliable, as they adjust the salaries to the conditions prevalent in the given individual organisation, taking into consideration very specific market feedback. The median method: the investors analyse the salary framework but adopt the median as the normative C M value, internally devising deviation models versus the Y median, and thus also arriving at min-max cost scenarios. This approach is observed more frequently at very CM MY early stages of market analysis, when the discussions CY CMY still focus on issues such as choosing the country. K courses of study in Poland Economy Business and administration Management and administration Finance and accounting Polish Business Centres Market Information technology Engineering Source: Central Statistical Office of Poland 11

12 Labour costs and minimum wage: Czechia, Hungary, Poland, Slovakia Full employment cost simulation for a position with a salary of 1000 labor cost full employment cost Polish Business Centres Market Irrespective of the scenario adopted by investors, our recommendations involve an in-depth analysis of recruited profiles and a review of assumptions using a proactive analysis of the candidate market at the given location, as well as a regular proactive review of assumed rates versus salaries on the given market in respective position segments. A common feature of our recruitment clients is their fast rate of reaction to changing trends in salaries, as they proactively analyse salaries in respective market segments. A very important element of the processes we conduct involves notifying clients proactively (outside the regular reporting cycle) about any observed changes and fluctuations in salaries; this helps maintain the continuation rate of processes and ensures the effective recruitment of specific profiles. CZ HU SK PL 34,0% 28,5% 33,0% 22,0% Source: Grafton Recruitment own analysis 12

13 ENGLISH Students and graduates Around 70% of Under200 business service centres in Poland involve Under200 foreign capital. They pursue an ongoing process of recruit1 FRENCH Polish Business Centres Market WYŻSZYM 2. JĘZYKI OBCE Level and appraisal of languagew SZKOLNICTWIE competences in poland WYŻSZYM language proficiency spread across Poland language premiums OBCE E LNICTWIE YM DUTCH FRENCH SCANDINAVIAN RUSSIAN ORIEN SPANISH SCANDINAVIAN SPANISH ORIENTAL APPLIE LINGUIST Students and graduates Under200 GERMAN Abov RUSS Students and graduates Above Above 500 ing employees who are fluent in foreign languages by tap- ping both into the population of already professionally active ENGLISH employees, and into the group of students and new gradu- ITALIAN GERMAN ates. The Polish labour market has very good foundations for locating business service centres operating in foreign languages, as it ensures an annual constant inflow of students and new graduates with knowledge of key languages sought after on the market. On the Polish market, we are observing a great interest in FRENCHwho are fluent in German, and a RUSSIAN candidates high demand for ITALIAN GERMAN FRENCH candidates speaking Scandinavian languages, French, Italian SPANISH DUTCH RUSSIAN and Spanish. The interest in Russian-speaking candidates is Foreign languages in Academic centres also on the rise. In 2017, these trends should only intensify. Naturally, English is the most common foreign language, and JĘZYKI OBCE W SZKOLNICTWIE WYŻSZYM is also statistically the most frequently sought after. SCANDINAVIAN DUTCH 1. Source: ABSL and PAIiIZ ORIENTAL SCANDINAVIAN APPLIED ORIENTAL LINGUISTICS Students and graduates Under Above 500 APPLIED Source: Central Statistical Office of Poland LINGUISTICS 13

14 We have identified the following brackets of increasing an employee s basic salary on account of mastering a given language at B2 level: The Polish market has at its disposal a large group of candidates fluent in foreign languages, though the demand is so high that, for at least three years now, we have observed a trend of placing satisfactory knowledge of a foreign language above professional know-how. Many of our clients and partners prefer to train candidates in areas such as customer service and transactions, but demand language skills at B2-level as a condition precedent for hiring a given candidate. 2 French German Italian Spanish Portuguese Polish Business Centres Market 2. A person using the language at the B2 level can understand the main ideas of complex text on both concrete and abstract topics, including technical discussions in his/her field of specialisation. They can interact with a degree of fluency and spontaneity that makes regular interaction with native speakers quite possible without strain for either party. They can produce clear, detailed text on a wide range of subjects and explain a viewpoint on a topical issue, giving the advantages and disadvantages of various options Swedish Danish Norwegian Dutch Czech Slovak Hungarian Romanian Russian Source: Grafton Recruitment own analysis 14

15 3. Advanced skills & processes & their management evolution of processes leads to improvement of competencies on the market We have been following two trends demonstrating the maturity of the Polish market for business services. The level of process advancement has been growing: both existing and newly opened centres have been implementing increasingly advanced service processes. Both new investors and organisations discussing expansion with Grafton have been focusing on the dual importance of business centres: both as a target point for transferring processes, and as a way to seek competitive advantage through optimising and increasing the advancement level of back office. This policy has taken the form of adapting and developing more complex support processes and systems, ranging from a more common application and search for such things as VBA skills in the automation of transaction and accounting tasks, to developing IT systems used at the centres and the parent organisations. Among other things, we have noted a high demand for experts in SAP development and maintenance, growing requirements in the field of mobility, and an ongoing increase in and demand for R&C competences in the IT segment as a whole. The increase in the advancement level of processes is followed by an increase in the level of competences and competence requirements asked of employees and employee candidates on the market. One of the strategic issues discussed during the process of designing recruitment waves upon establishing a new centre is the selection of staff to manage it. It is with a high degree of confidence that we can recommend recruiting managerial staff for business centres from the pool of candidates available on the Polish market. Very dynamic growth and a quality increase in this sector have resulted in the emergence of a competent pool of managerial staff, specialising both in building start-up structures and in stabilising and optimising processes in managed centres. Polish Business Centres Market 15

16 4. Building THE EMPLOYER BRAND Polish Business Centres Market EVP - importance maintainng integrity - one of key challenges across BSS sector building start-up: challenge but advantage Building real EVP (employer value proposition) is growing in importance. It comprises the whole remuneration policy, managing skills and abilities, the individual corporate culture, and the dialogue conducted with employees and the market. The issue of corporate identity is one of the key nuances in this respect. The consulting projects that we conduct in the field of Employer Branding, as a supplement to our recruitment operations, show that the gap in perceiving one s impact on the actual process of product manufacturing or service provision by a given company is the main problem in building a desirable mental contract between business centre employees and their parent companies. This is a two-way problem: business centre employees experience difficulties in finding a connection between their jobs and the operations of the main organisation, while employees directly involved in products or services find it hard to recognise the significant role of centre employees as equal members of the organisation. If we transplant this issue to the environment of a single organisation, it will be possible to find an analogy with the natural conflict between the production segments of the organisation and its back office, i.e. all ancillary functions. The smallest corporate identity problems connected with staff recruitment are experienced by organisations establishing captive shared services centres or centres of excellence/r&d as entities directly supporting their parent companies; they are easier to combine with the rest of the organisation. Meanwhile, the largest problems and the highest employee rotation are observed at BPO centres due to the fact that services are provided to various customers. Involving Employer Branding aspects in the processes of designing new investments and in planning investments that take into consideration the costs of employer branding creation on the local market is a symptom that confirms beyond any doubt the maturity of the Polish business centres market. The challenges connected with building an unknown brand on the Polish market are among the most frequent investor inquiries. Our project experience allows us to state that the Polish market of service centre employees appreciates new investments. Moreover, co-creating a new business on the market is a source of motivation, especially for experts and managerial staff. Naturally, an employer founding a new service centre must compete with existing organisations, but such competition gives rise to more possibilities than threats, assuming a thorough analysis of the market; the proper preparation of the EVP and market communication based on an analysis of existing competition, professional and life aspirations of employee candidates, as well as a correctly devised communication process. 16

17 celebrating 20 YEARS EXPERTISE IN BUILDING BUSINESS SERVICE CENTERS IN CEE 489 Clients in the sector in CEE Permanent roles placed in the last 3 years SPECIALIZED SECTOR CANDIDATES IN OUR DATABASE 106 Complete BSS startups set up 156 BSS expansions supported WE HAVE RECOGNIZED CEE CAPABILITIES IN MULTILINGUAL AND BUSINESS SERVICES RECRUITMENT: every month we hire enough people to fill 3 Captive Shared Services centres, 100 employers each only in last year we have performed more than 230 investment studies for new businesses in BSS sector for inquiries contact us: E: BSC@grafton.pl T:

18 Locating business centres: the real estate market Polish Business Centres Market Dorota Osiecka Colliers International Poland Sp.zo.o. Director I Workplace Innovation Working space must be user-friend ly and flexible, adapted to the diverse and continuously changing requirements of the employees. Trends in selecting locations and office space availability The volume of available office space on the market has been growing year on year, along with the growing awareness of the tenants. We have seen a lengthening of corporate decision-making processes that has translated into longer and better conducted negotiations over leasing office space. Company managers are becoming increasingly aware of how employee commitment and satisfaction are important to the organisation, and how employees must be given appropriate conditions to achieve their full potential. Investing in these aspects may significantly influence employee productivity; every increase in that respect, even by one per cent, can have a significant impact on the organisation s financial performance. Managers have realised that people work more efficiently if they are placed in aesthetic, modern surroundings adapted to the specific nature of their tasks. Today, most companies relocating their offices hire workplace strategy specialists and architects, tasking them with designing office space to reflect the nature of the organisation and optimally support its business processes. Next to the costs of lease and building location, space efficiency and layout flexibility are becoming the key selection criteria. Tenants are using workplace strategy tools to adapt their new offices to their corporate culture and employee expectations. Desks dedicated to individual employees are slowly becoming a thing of the past, making way for Activity-Based Working environments where workstations are shared and employees can choose from a wide range of available space types and pick one that corresponds best to the nature of their current tasks (e.g. focus rooms, project space for teamwork purposes, break-out rooms for informal cooperation, etc.). Modern technologies make it possible to work from home, from the client s facility or even from town. Working space must be user-friend- ly and flexible, adapted to the diverse and continuously changing requirements of the employees. A modern office comprises both open space, focus rooms, telephone call rooms, larger rooms for internal meetings and group work, and creative work rooms. Large kitchen facilities are becoming a standard: they allow employees to meet and exchange information during meals; the same goes for chill-out rooms where employees can rest. A modified approach to office space layout arises from a greater knowledge of how the human brain operates. It turns out that, in order to achieve a high level of creativity and efficiency, after a long period of exertion the brain must rest. The new generation of employees has also forced the introduction of new trends: young people work differently and expect their environment to inspire them to cooperation and boost their creativity. Employee mobility is also on the rise. All this has influenced the manner of organising office space. Employees select their place to work in different areas, depending on the main form of activity on a given day. The cost factor is also important here: the costs of organising office space according to a flexible model can be lower than in the traditional model. The costs of its potential changes or reconfigurations (resulting, for example, from an increase in employment or organisational changes) are also considerably lower. A trend known as biophilia (introducing natural elements into the working environment) is an increasingly popular solution found in office space managed in a modern way. 18

19 Materials such as wood, stone, concrete or various plants (flowers, grasses, moss, wall-size vertical gardens, or even trees in huge pots) ensure a friendly environment for mental work. Research has shown that contact with nature (even in such a limited scope) improves the satisfaction and efficiency of employees. A few office complexes can even boast internal lakes or green courtyards with landscaping structures for business meetings or employee relaxation. A growing number of office buildings have obtained eco-certificates that guarantee a high technical standard, involving energy-efficient lighting and elevators powered using renewable energy sources, optimum access to daylight, heat comfort, and high-quality interior finishing materials. Support for building employer branding through selecting office space: trends From the perspective of an employee, office space does not play a key role when selecting the employer. More important criteria taken into consideration by candidates include (apart from salary aspects) the corporate culture and brand, possibilities for growth, and the alignment (or lack thereof) between the candidate s personal interests and value hierarchy and those of the organisation. As regards the real estate itself, accessibility, a wide selection of means of transport available in the vicinity, and travelling time are of key importance. Through investing in their office space and making sure that its nature is consistent with the corporate culture and duly expresses the employer s attitude towards employees, companies have a powerful tool to attract and retain talents at their disposal. The reception desk of the building and the office space are like business cards that make a specific impression on the recruited employee. It is chiefly on their basis that a candidate can imagine the office space where he or she will be working. At the recruitment phase, candidates are not given a tour of the offices, though a virtual walk and video materials presenting the offices where the candidates might be working are effective tools to draw their attention. By consciously creating a modern and friendly workspace, the employer shows that the comfort of its employees is close to the company s heart. For current employees, a modern office is also a source of satisfaction, pride and increased loyalty towards the employer who ensures them such comfortable working conditions. Flexibility and a modern and open space layout are valued especially by younger employees of the Y and Z generations. Design and modernity are important to them, as are the employer s commitment to ensuring comfortable working conditions and introducing eco-friendly solutions in office space. Contrary to what may seem, dividing office space into separate zones for focused work, meetings, relaxation, and group work improves cooperation and has a positive impact on interactions within the company, as well as the efficiency of business processes. Modern architectural solutions help minimise the main problems experienced by office staff: noise, insufficient lighting, and insufficient access to fresh air. For employees who spend most of their days inside their office buildings, facilities available within the office complex are an important factor. Popular solutions include cafés, pharmacies, laundrettes, post offices, parcel pickup stations, free Wi-Fi, canteens serving healthy snacks, juice bars, and grocery stores. Infrastructure supporting a healthy lifestyle (such as bike rental, bike racks, showers, courts or halls for team sports, and running tracks) is gaining appeal. Daycare facilities located in office buildings are gaining in popularity on the market, as they enjoy significant interest from parents working in the vicinity. Some building owners enable their employees to rent cars or provide car-sharing platforms. The most interesting ideas include event space (for employees to organise exhibitions of their work), free sports classes, and generally available concierge services. Polish Business Centres Market 19

20 Polish Business Centres Market Office real estate market and the growth of the business centre sector Sebastian Bedekier Colliers International Poland Sp.zo.o. Regional Director Poznan As CEE s most populated market in terms of human cap ital potential and the level of office real estate market growth, Poland is largely outclassing its neighbours. The sector of modern business services has been growing for over ten years in Poland and the number of operating business services centres already exceeds 900. Thanks to that dynamic growth, the Polish Business Services sector has been increasing its significance in Central and Eastern Europe year on year. We have been following the growing activity on the part of foreign investors as well as intensified interest on the part of Polish companies opening their own shared service centres. The quality of human resources, employment costs, and the level of real estate market growth all play key roles in selecting a location. As CEE s most populated market in terms of human capital potential and the level of office real estate market growth, Poland is largely outclassing its neighbours. After an initial stage of concentration around the largest urban centres, foreign investors have noted that smaller regional cities also have significant potential, while at the same time ensure a cost advantage. Expanding road and railroad infrastructure has a positive impact on the improvement in accessibility, both domestically and internationally. As many as 90% of employees in the sector have been hired by companies operating in Poland s largest cities: Warsaw, Kraków, Wrocław, the Tri-City, Poznań, the Katowice Urban Area, Łódź, and Bydgoszcz/Toruń. Kraków is foremost among the largest centres of business; it is in the lead among key business service centres in Central and Eastern Europe. 20

21 Table1. comparison of office space lease conditions on developed markets (EUR / sq.m. / month) Current supply volume (m 2 ) Office space under construction Average rent rates for A-class buildings (EUR / m 2. / month) 14 (budynki poza centrum) 20 (centrum) Kraków ,5 15,5 Wrocław ,5 16,5 Trójmiasto ,5-15,75 Katowice Poznań ,5 15,5 Łódź ,5 Source: Colliers International, H Outside the most densely populated urban areas, however, Poland has a very significant competitive advantage at its disposal in the form of the large number of potential locations for investments in the shared services sector. A network of developed urban areas and emerging regional cities as an alternative location for businesses encompasses 27 centres, mostly with their own universities ensuring access to qualified personnel with diversified educational background (engineers and programmers) and language skills. Twelve Rising Stars include Białystok, Bielsko-Biała, Częstochowa, Elbląg, Kielce, Lublin, Olsztyn, Opole, Radom, Rzeszów, Szczecin, and Zielona Góra. They host over 170 companies employing over 19,000 people, which constitutes 20% of all organisations and 10% of total employment in this sector in Poland. The leaders in this ranking are Lublin, Rzeszów, and Szczecin; for each of these cities, employment exceeds 3,500 people and the number of hosted BPO/SSC companies exceeds 20. An increase in interest on the part of investors translates into growth on the market for modern office space of a specific standard. Urban areas that cannot meet this condition have a slim chance of attracting projects from the business services sector. Table 2. a comparison of office space lease conditions on emerging markets Current supply volume (m 2 ) Office space under construction Average rent rates for A-class buildings (EUR / m 2 / month) Szczecin Lublin Kielce ,5 Rzeszów ,5-14 Olsztyn ,5 12,5 Białystok ,5-10,5 Opole ,5 Radom Source: Colliers International, H Experts claim that the Business Services sector may grow at a rate of approx. 20% y/y. Poland enjoys long-term recognition in this industry. Municipal authorities are aware of their assets and increase commitment to additional initiatives aimed at improving investing conditions and the development of the future employee pool, e.g. through organising dedicated curricula at universities. A growing supply of modern office space goes hand in hand with interest on the part of foreign entities planning their entry or expansion to Poland s Business Services sector. Polish Business Centres Market 21

22 OUR SECTORS EXPERTISE Finance and accounting Customer service Procurement Banking FInance services HR Sales and marketing Compliance Our solutions cover: permanent recruitment temporary recruitment recruitment process outsourcing for inquiries contact us: E: T:

23 Salaries being active on the BSS recruitment markt for 20 years allows us to map salaries with highest accuracy Salary ranges are gross monthly, in PLN. Values presented in the survey include both real market values and prognosis for Salaries in main processes are split into main locations. Salary values in advanced processes are presented as unified values for whole Poland.

24 Banking, Financial & Insurance Services Gross monthly salaries, currency: PLN. Łódź Katowice Kraków Poznań Szczecin Trójmiasto Warszawa Wrocław min max min max min max min max min max min max min max min max Compliance specialist team leader Salaries Banking, Financial & Insurance Services manager Risk specialist team leader manager Financial Reporting and Controlling specialist team leader manager Treasury specialist team leader manager Insurance specialist team leader manager

25 Banking, Financial & Insurance Services advanced processes Gross monthly salaries, currency: PLN. Average in Poland Settlements min max specialist team leader manager Custody specialist team leader manager Factoring specialist team leader manager Average in Poland min Cash Management max specialist team leader manager Capital Markets specialist team leader manager Retail Banking specialist team leader manager Average in Poland min Corporate Banking max specialist team leader Banking specific processes specialist team leader manager Capital market specific processes specialist team leader manager SALARIES Banking, Financial & Insurance Services 25

26 Customer operations, Sales Gross monthly salaries, currency: PLN. Łódź Katowice Kraków Poznań Szczecin Trójmiasto Warszawa Wrocław min max min max min max min max min max min max min max min max Sales&Account management support specialist team leader manager Customer Service in bound specialist team leader SALARIES Customer operations, Sales manager Customer Service out bound specialist team leader manager Technical Support specialist team leader manager Telemarketing specialist team leader manager

27 Finance&Accounting Gross monthly salaries, currency: PLN. Łódź Katowice Kraków Poznań Szczecin Trójmiasto Warszawa Wrocław min max min max min max min max min max min max min max min max Accounts Payable specialist team leader manager General Ledger & Reporting specialist team leader manager SALARIES Finance&Accounting Accounts Receivable specialist team leader manager Travel and Expenses specialist team leader manager Master Data Management specialist team leader manager

28 Finance&Accounting Gross monthly salaries, currency: PLN. Łódź Katowice Kraków Poznań Szczecin Trójmiasto Warszawa Wrocław min max min max min max min max min max min max min max min max Business Controlling specialist team leader manager Billing specialist team leader manager Reporting specialist SALARIES Finance&Accounting team leader manager Cash Collection/Credit Control specialist team leader manager

29 Finance&Accounting advanced processes Gross monthly salaries, currency: PLN. Average in Poland min Risk Management max specialist team leader manager Corporate Accounting specialist team leader manager Management Consulting SALARIES Finance&Accounting specialist team leader manager Tax specialist team leader manager

30 Human Resources Gross monthly salaries, currency: PLN. Łódź Katowice Kraków Poznań Szczecin Trójmiasto Warszawa Wrocław min max min max min max min max min max min max min max min max Compensation & Benefits specialist team leader manager HR Administration & Reporting specialist team leader manager Recruitment, Talent Acquisition specialist team leader manager SALARIES Human Resources Payroll specialist team leader manager

31 Human Resources advanced processes Gross monthly salaries, currency: PLN. Average in Poland Mobility min max specialist team leader manager Talent Management, Learning and Development specialist SALARIES Human Resources team leader manager

32 IT Processes Gross monthly salaries, currency: PLN. Łódź Katowice Kraków Poznań Szczecin Trójmiasto Warszawa Wrocław min max min max min max min max min max min max min max min max Service Desk Technical Support 1st Line Technical Support 2nd Line Technical Support 3rd Line Service Desk Leader Service Desk Manager NOC ( Network Operation Center) Network Analyst Network Engineer Network Support Lead Network Manager SOC ( Secutity Operation Center) Security Analyst Security Application Engineer Network Security Engineer salaries IT Processes Infrastructure Security Engineer Identity & Access Engineer Antyvirus Engineer Security Manager System Administrator Windows System Administrator Linux/Unix System and Infrastructure management

33 Oracle Database Administrator MSSQL Database Administrator Łódź Katowice Kraków Poznań Szczecin Trójmiasto Warszawa Wrocław min max min max min max min max min max min max min max min max System Analyst Database Developer Storage Administrator Backup Administrator salaries IT Processes Team Lead Infrastructure Manager Process Management ( ITIL) Incident Manager Problem Manager Change Manager Service Delivery manager Team Manager Configuaration Manager Capacity/Avalability Manager Project Management PMO Project Manager Program Manager

34 Łódź Katowice Kraków Poznań Szczecin Trójmiasto Warszawa Wrocław min max min max min max min max min max min max min max min max Cross-functional positions Enterprise Solution Architect Solution Architect ( software) Business Analyst Data Center Operation Data Center Engineer VMWare Engineer SAP SAP Funtional Consultant ( FI/CO, HCM, PP, MM, SD) SAP Support Consultant/ Analyst BI/Wharehouse Consultant SAP Basis Consultant ABAP Programmer Integration Consultant (PI) SAP Team Leader SALARIES IT Processes SAP Manager SAP Center Head Applications Support Specialist ( support) Applications Support Engineer ( support/development) Applications Management SharePoint Expert

35 Łódź Katowice Kraków Poznań Szczecin Trójmiasto Warszawa Wrocław min max min max min max min max min max min max min max min max Application Management Lead Application Support Manager Embeded Software Development Engineer ( C/C++) Senior Embeded Software Development Engineer ( C/C++) Java Software Development Engineer Software Development SALARIES IT Processes Senior Java Software Development Engineer Front-end Software Development Engineer Senior Front-end Software Development Engineer.Net/C# Software Development Engineer Senior.Net/C# Software Development Engineer SharePoint Developer Technical Lead Software Development Manager Quality Assurance/Testing QA Engineer ( manual) QA Engineer ( automation) QA Team Lead Test Manager

36 Marketing Gross monthly salaries, currency: PLN. Łódź Katowice Kraków Poznań Szczecin Trójmiasto Warszawa Wrocław min max min max min max min max min max min max min max min max Web designing specialist team leader manager Visual graphic-pp/quality management specialist team leader manager Content management( Web) specialist team leader manager Marketing Analysis specialist team leader SALARIES Marketing manager Pre-press/DTP specialist team leader manager

37 Łódź Katowice Kraków Poznań Szczecin Trójmiasto Warszawa Wrocław min max min max min max min max min max min max min max min max SEM/SEO specialist team leader manager Product managment specialist team leader SALARIES Marketing manager Marketing advanced processes Gross monthly salaries, currency: PLN. Average in Poland min max Employer Branding/Communication specialist team leader manager Pitch/ Visual Graphic specialist team leader manager

38 Proffesional services Gross monthly salaries, currency: PLN. Łódź Katowice Kraków Poznań Szczecin Trójmiasto Warszawa Wrocław min max min max min max min max min max min max min max min max Legal services specialist team leader manager Audit services specialist team leader manager SALARIES Proffesional services Proffesional services advanced processes Gross monthly salaries, currency: PLN. Average in Poland min Chasing terms and conditions of engagements max specialist team leader manager Lateral hires verification specialist team leader Average in Poland min max manager Audit letter management specialist team leader manager Executive Assistant specialist team leader

39 Supply Chain Management, Procurement Gross monthly salaries, currency: PLN. Łódź Katowice Kraków Poznań Szczecin Trójmiasto Warszawa Wrocław min max min max min max min max min max min max min max min max Demand Planning specialist team leader manager Warehouse Management specialist team leader manager Transportation Planning specialist team leader manager Inventory management specialist team leader manager SALARIES Supply Chain Management, Procurement Strategic Procurement specialist team leader manager

40 LOCAL MARKETS investment and local market development trends comments of investment experts and local administrative REPRESENTATIVES Testimonials of organizations active on local markets LOCAL MARKETS 40

41 Tomasz Pisula, President of the Board, Polish Information and Foreign Investment Agency BSS is one of the most technologically advanced and the fastest-growing segments of the Polish economy. The BSS sector was formed in Poland a decade ago and has become a fixed element of the Polish business landscape at a truly express rate. Poland entered this industry as a supplier of call centre services, solving the basic problems voiced by customers from faraway lands through a headset. Much has changed over those ten years; we have used that time well. The Polish economy has matured, and the BSS sector has been closely following in the footsteps of those changes. Today, BSS is one of the most technologically advanced and the fastest-growing segments of the Polish economy, already employing 200,000 people in almost one thousand centres scattered across Poland. Moreover, the image of the industry is no longer shaped by call centres, but by centres for IT support or software development or advanced shared services centres whose number is growing as strong as the quality of the processes they support. Many of them have been awarded the status of Centres of Excellence or Knowledge Process Outsourcing centres, i.e. locations where advanced processes in the field of analysis and expertise are conducted. Instead of merely processing data, the Poles working there are growing increasingly involved in devising the manners of analysing it. At the Polish Information and Foreign Investment Agency, we are working together with investors on implementing a further 74 BSS sector projects in Poland that will involve hiring almost 20,000 people. Furthermore, we can see that, after constructing a factory, some production companies simply want more, whether it is modernising production lines or focusing on establishing local research, analysis or software development centres. They want their new technological solutions to be devised right here in Poland. Allocating capital by reinvesting funds in that kind of project is a sign of the trust in Poland s friendly business environment, and the best recognition of the Poles advanced skills. Skills is one of the keywords necessary to understand the BSS sector. Poland has talented IT specialists, engineers, analysts and specialists in numerous fields, with a fantastic educational background achieved at good Polish universities. If we combine that with Poland s unique feature compared to other countries in the region, namely the possibility to support advanced business processes in as many as 40 languages (even rare ones such as Hebrew, Thai or Urdu), we can understand why Poland is a magnet attracting foreign service sector investors. Another characteristic feature of Poland s BSS sector is its geographic distribution. One can safely say that it is the most equitable sector of the Polish economy in terms of locations. We are observing respective regions achieving a growing influence on the Polish landscape of business support services. Robust BSS centres, distributed literally across the country, perfectly complement the offer of large Polish agglomerations; additionally, the proximity of large urban areas is a guarantee of seamless connections with the whole world. Their well-cut educational offer, the skilful policy of local governments, and the cooperation between the business world, the academic world, and the public sector are proof of the maturity and readiness of the regional markets to accommodate service sector investments. Importantly, service centres with Polish capital are doing just as well as foreign players in smaller cities. They are successfully supporting the most advanced IT and R&D processes. This growth strategy of Polish companies from the BSS sector in smaller university centres is a perfect fit with the Sustainable Growth Plan and has contributed to the growing innovativeness of the Polish economy. LOCAL MARKETS 41

42 LOCAL MARKETS BIAŁYSTOK Tomasz Buczek Strategy and Development Department Director Białystok City Hall Growth of the sector of modern business services will gradually shift in favour of emerg ing markets, and Białystok is certainly one of these now. Białystok is the largest city of north-eastern Poland; it is the capital of the Podlasie voivodship with around 300,000 inhabitants. Białystok s asset is its geographical location: the city lies close to the eastern border of Poland and, at the same time, of the European Union, at the crossroads of strategic communication routes of trans-border significance, forming a natural bridge connecting eastern and western markets. Białystok s continuously improving position on the map of investments for the sector of modern business services is determined by its robust university, infrastructure and increasing availability of office space. It is a city with a large pool of human capital and a significant availability of qualified personnel. Moreover, it is a supra-regional academic and scientific centre. At present, there are 13 universities operating in Białystok, with over 30,000 students. In the academic year 2014/2015, there were 9,263 graduates from the city s academies. The growth of academic entrepreneurship and a closer cooperation between the academic world and the business within the city have been stimulated by the Białystok Science and Technology Park (BPN-T), operating since The availability of qualified personnel at a relatively low cost of labour and, at the same time, characterised by a high degree of productivity, is clearly a significant asset and an advantage distinguishing Bialystok from other emerging business service centres. It is still a new, fresh, and open market. I would also stress that it is still an employer s market. As regards shared services centres emerging in the city, the largest group comprises business services centres of institutions from the financial and banking (BPO) and IT sector. An entity representing foreign capital and providing services in the field of business processes for banks and financial institutions began operating in Białystok in It is planning to hire around 300 employees. Another global provider of outsourcing services will create over 150 jobs by the end of 2016, with the ultimate number exceeding 250. This new employer selected an AA-class office building with office space of approx. 8,000 sq.m. for its registered office. The ongoing strengthening of the modern business services sector is reflected in the constant expansion of office space construction in Białystok, fuelled by a high degree of interest and demand for this type of infrastructure. A premium-class facility is currently being built in the vicinity of the BPN-T. The building will comprise total office space of 13,500 sq.m. Another offer that will be executed on the office space market is real property with a lease area of 11,800 sq.m., located in the very centre of Białystok. The volume of lease transactions concluded in recent years in connection with the growth of the shared services sector is undergoing an uptrend. I think that companies already operating in Białystok, or planning to locate their operations here, are very effective in commercialising their facilities and recruiting employees. According to experts, the growth of the sector of modern business services will gradually shift in favour of emerging markets, and Białystok is certainly one of these now. The investment attractiveness of our city will be supplemented by efficient and fast connections with other regions of Poland and Europe that will be established in coming years. According to both foreign and domestic investors that have invested in Bialystok, the city is perceived as a business-friendly location with a good climate for investments and dynamic growth. The offer of cultural, sports or tourist attractions, along with modern infrastructure, make Białystok the best city in Poland to live in, as proved by the results of a Eurobarometer survey prepared by the European Commission: 96% of the city s inhabitants declared a high degree of satisfaction with being here, in Białystok! 42

43 Edyta Wiwatowska President of the Management Board Bydgoska Agencja Rozwoju Regionalnego Sp. z o.o. Bydgoszcz stands out from the crowd thanks to a dominant share of IT companies in the local structure of the BPO/SSC sector. The BPO/SSC sector is currently the most dynamically growing industry in the city. In 2010, it employed around 1,230 people. According to estimates by the Bydgoszcz Regional Development Agency, by the end of 2016, that number will exceed 9,000. The Association of Business Service Leaders in Poland estimates their number at approx. 7,800 people, i.e. a 4% share of Poland s BPO/SSC labour market (only 1% less than Poznań). New university degree offers and educational projects for personnel, combined with a dynamically growing volume of office space form the foundations for the industry s ongoing growth. Finalising the acquisition of a branch of Alcatel Lucent by Nokia Networks, and commencing the process of recruiting 500 more employees to the Bydgoszcz-based office of ATOS IT Services were a result of the above factors. Bydgoszcz stands out from the crowd thanks to a dominant share of IT companies in the local structure of the BPO/SSC sector. Companies connected with the IT sector employ close to 7,000 people in total. Centres providing financial and accounting services employ approx. 1,000 people; further 1,000 are employed at contact centre-type entities. The potential of local IT personnel is appreciated by global corporations. The group of investors who have already decided to place their key operations in Bydgoszcz includes, among others: Atos IT Services, NOKIA, SDL, Mobica, Genesys, Vivid Games, Oponeo, ASSECO, Sunrise System, iqor, Teldat, Ericsson, Bonair, Bazy i Systemy Bankowe, TEL-DAT, and IT Expert. Bydgoszcz might compete for the title of the Polish IT Centre of Excellence while, according to ABSL, the city has become a hub of large business projects in the IT sector. Last year, over 600 new jobs were created in that industry. This translated into capital expenditure of approx. PLN 30m, incurred by investors to establish or expand existing shared services centres. The stable growth of this sector that has been observed over the last couple of years, has encouraged further international corporations to locate their capital in Bydgoszcz. A well-developed structure of both public and private universities makes close cooperation possible between academic centres and business. Access to over 60,000 students and 20,000 graduates in the region allows a stable growth in pending and new investments attracted to the city. Experience, a high level of personnel specialisation, and almost 9,000 people supporting the business structures of international corporations located in the city: all this is proof of the sector s maturity and its readiness to provide increasingly technologically advanced business processes. Additionally, the city authorities attach great importance to ensuring friendly living conditions through the ongoing improvement of transportation solutions, developing recreation areas and sports infrastructure, and a rich cultural and entertainment offer. All these factors encourage young, talented people to take up jobs in Bydgoszcz. Persisting growth dynamics in this sector bode well for the future. In , Bydgoszcz reported an increase in employment of 70-80% (source: ABSL 2016), while the inflow of young and talented personnel to the labour market ensures appropriate conditions for a further growth of both current and future shared services centres. The Bydgoszcz Regional Development Agency is currently conducting numerous negotiations with potential investors, which may result in more international brands arriving in Bydgoszcz in the near future. We expect that the growth dynamics of this sector will remain at a stable level, while the Agency is taking further steps to ensure that the city remains the location of choice for new projects in the BPO/SSC sector in Poland. LOCAL MARKETS BYDGOSZCZ 43

44 LOCAL MARKETS KATOWICE Mateusz Skowroński Investor Services Division Director Investor Services Division, Katowice City Hall IT services form the main category of services rendered in the centres located in the Katowice agglomeration. Most investors would agree that access to appropriately qualified employees is a key factor in taking decisions on investing on a given market. Access to 9 million people in a 100km radius, 4.6 million people in the Silesian voivodship, and 2 million people in the Katowice Urban Area is one of the main assets of both Katowice and the whole agglomeration. Katowice is a city of young and very well educated people with a solid knowledge of foreign languages. The Katowice agglomeration is one of the main academic centres in Poland, holding 23 universities providing educational services to over 93,000 students and with more than 30,000 graduates annually. Katowice is located in the southern part of Poland. A strategic location, at the crossroads of key trans-european transportation routes (both north-south and east-west), which ensures convenient connections to the rest of Europe and the world. The Katowice International Airport is a gateway to the whole world through the main connecting hubs in Frankfurt am Main, Munich and Düsseldorf. International air access to Katowice is also ensured through two other airports: the John Paul II International Airport Kraków-Balice and Ostrava Airport. Another factor that certainly can be considered to strengthen the investment potential of Katowice comprises the city s philosophy and approach to investors, i.e. various investment incentives. They include, among other things, real estate tax relief or assistance in staff recruitment (the city of Katowice in cooperation with the District Employment Agency offer support in recruiting employees, e.g. through organising job fairs). Additionally, academic career centres are established for students and graduates to improve their chances for employment. In cooperation with City Hall, career centres create dedicated websites and places to post job offers (such as special notice boards). Additionally, career centres maintain databases that significantly streamline the process of seeking appropriate candidates. Another form of support consists in marketing assistance in using OOH and online advertising, as well as ads posted in social media and in the printed press. Investors can also count on temporary office premises for their recruitment teams to hold job interviews or intensive trainings. Moreover, employers can count on City Hall to adapt the public transportation system (i.e. organise additional bus stops or additional bus lines) for future employees of a given strategic investor, as well as on assistance in establishing cooperation with universities. Every investor also enjoys the assistance of the Katowice City Hall Investor Services Division, which provides them with individual professional support in the long term. Additionally, through the District Employment Agency, investors creating new jobs in Katowice are offered various forms of assistance by the city, e.g. internships, assisted employment, reimbursement of the costs of workstation equipment or additional equipment, or grants for creating telework positions. A high quality of life in Katowice is an important aspect for investors. It comprises, among other things, a well-developed social infrastructure, i.e. international educational centres, high-class medical facilities, and sports and recreation facilities. An important factor that influences the high quality of life in the city is the attractive Cultural Zone, comprising the International Congress Centre, the new seat of the Polskie Radio National Symphonic Orchestra, and the Silesian Museum. It should also be stressed that Katowice was declared the Creative City of Music by UNESCO. In additioin, Katowice is considered to be one of the greenest large cities in Poland. Green areas cover around 45% of the city s area. According to the latest report drafted for Katowice City Hall by the Association of Business Service Leaders (ABSL), IT services form the main category of services rendered in the centres located in the Katowice agglomeration. They generate almost 50% of employment in the industry and are provided by over 75% of centres in the analysed area. The other two key processes supported by services centres located in the Katowice agglomeration are financial and accounting services and human resources management. 44

45 KATOWICE The Katowice branch of our company specialises in providing services for German-speaking, Polish, Czech and Slovak clients. We reply to telephone and inquiries submitted by both individual and business clients. Teleperformance chose Katowice for the dynamically growing labour market of the whole Katowice agglomeration, comprising 14 neighbouring towns and cities. Our priorities included also access to German-speaking candidates, a well-organised city transportation network, and access to modern office buildings. We have been operating on the Katowice market for 21 months. During that period, our team has expanded to almost 200 people. We are currently managing three projects, in which our clients are serviced in five foreign languages. More projects are about to be launched. LOCAL MARKETS Katowice Anna Stolecka-Chmurawa HR Manager We have been operating on the Katowice market for 21 months. During that period, our team has expanded to almost 200 people. Teleperformance is the world s leader in contact centre outsourcing. At present, we have 270 customer service centres in 62 countries, with over 182,000 employees. We provide services to our clients in 75 different languages and dialects. We represent the largest international enterprises from various industries. The unemployment rate on the local market is negligible; this is why there are few candidates available at a moment s notice. Given the multitude of job offers, we are increasingly often faced with job hoppers, i.e. employees who move between competitive companies every couple of months. They change their jobs frequently to take advantage of additional bonuses, higher salaries or different working hours. They never remain anywhere for a longer period of time and the quality of their work is very low. As our company is growing very fast and is looking for competent staff, this phenomenon might prove very disadvantageous for us. At present, our branch in Katowice occupies two floors in a six-storey building. The other four remain to be adapted and potential clients have already been inquiring about cooperation. 45

46 LOCAL MARKETS Kraków Rafał Kulczycki City Development Department Director Municipality Of Krakow Total annual value of the sector of advanced technologies and business services for Kraków s economy amounts to USD 2bn. Well-qualified personnel fluent in foreign languages and good availability of candidates are among the key assets that give Kraków its reputation as a good place to invest and pursue business operations. Kraków s intellectual potential comprises: 23 universities, academic staff (over 12,000 people, including 1,400 professors) and students (approx. 179,000 students, including post-graduate, PhD and extra-mural students), and alumni (53,000 people). Kraków s economic importance is further supported by the demographic potential of both the city and the entire region: the city itself has around 760,000 inhabitants, and there are 8 million people living in a 100km radius from Kraków. It is a powerful consumer market and a tremendous reservoir of personnel. Kraków s additional asset lies in the fact that 60% of its inhabitants are below the age of 45. Krakow is one of the leaders of the BPO/SSC sector, both in Poland and in Europe. At the end of 2015, the total pool of modern office space in the city amounted to approx. 770,000 sq.m., of which 688,000 was built for lease purposes. As a result, Kraków holds a leading position among regional markets. In 2015, five new office projects were completed in Kraków, expanding the pool of available office space by 44,600 sq.m. At the end of December 2015, around 210,000 sq.m. of office space was under construction on 21 different projects, both in individual office buildings and large office complexes. Approximately 152,000 sq.m. will be completed by the end of 2016, while the remaining 59,000 sq.m. will be placed on the market in The demand for office space is driven mailny by companies from the business services and IT sectors. The volume of lease contracts signed in Kraków in 2015 reached a record-breaking level of 156,000 sq.m. It was 34% higher than in 2014, and 65% higher compared to the average annual volume of transactions recorded over the last five years. One of important factors of Kraków is the special economic zone (SEZ) organised in the city, offering a number of investment incentives. The SEZ is managed by the Kraków Technology Park (KTP). By the end of December 2015, KTP issued 208 permits, while businesses declared capital expenditure of PLN 3.88bn. Almost 21,000 jobs were created within the Zone. Public assistance on account of investing within the special economic zone took the form of income tax exemptions. The amount of public support varies by the size of the company. Small companies are granted the highest level of public assistance (55%), medium-sized can count on 45% and large ones on 35%. In addition to tax exemptions, another incentive to invest within the SEZ is the intellectual and human capital. As regards greenfield investments, the zone can be created at the location selected by the investor. Furthermore, for investors interested in leasing office space, it is possible to establish a SEZ especially for the purposes of a given investment at a particular location. There are over 100 SSC/BPO companies operating in Kraków in the modern business services industry. They mostly offer business process services or operate in the technological industry, i.e. they are IT and R&D centres. They deal primarily with services in the following fields: IT Processes; Finance & Accounting (F&A); Banking, Insurance, Financial Services (BIFS); Customer Operations; HR Processes; Supply Chain Management (Plan to Deliver); Project Management; Marketing; Document Management and Procurement. According to this year s data of the Aspire association, the total annual value of the sector of advanced technologies and business services for Kraków s economy amounts to USD 2bn (the annual value of every full-time job in that industry contributes USD 37,000 to the local economy). The capital volume of foreign investments in the Business Services sector is undergoing an uptrend. Kraków is an ever bigger magnet for advanced processes, knowledge-based services, technologies and companies specialising in research and development. The most basic tasks and services are taken over by other locations, while the advanced processes are being migrated to Kraków. This trend has been recently confirmed by our city being selected for the seat of such companies as CH2M (Global Engineering Centre in Kraków), Guidewire Software (Programming Centre), Cisco (Network Operations Center), Epam Systems, Grid Dynamics (R&D centre), Solar Winds (R&Ddivision), GlobalLogic (engineering centre) or by the expansion of Comarch within the scope of the SEZ. 46

47 KRAKÓW Dariusz Pastuła HR Director If I were to establish a Centre of Excellence today, Kraków would definitely be my choice. I would not consid er this city in terms of a low cost centre. Aon Poland forms part of the global Aon group. It has been operating on the Polish market since 1992, and in that period assumed the leading position in the field of risk management, insurance and reassurance intermediary services, as well as human capital management consulting and outsourcing. We employ almost 1,500 people in Warsaw, Gdańsk, Katowice, Kraków, Poznań, Szczecin, and Wrocław. Our largest branch is located in Kraków where, at the end of 2016, we have almost 1,200 employees. The company s operations in Kraków began back in 2005 under the name of Hewitt Associates. Since then, we have been increasing their number every year by several dozen per cent. At present, that growth remains at a stable level of around 20% per year. In 2015, our company created close to 200 new jobs in Kraków. This year, that number will reach approx In 2005, there were two or three companies with a similar scope of operations (SSC/BPO) on the Kraków market. It was the very beginning of our industry in Poland in the form that we experience today. Back then, the market was completely different from what it is now. Kraków had everything that a company like ours might need: infrastructure, office space, and great human capital with language skills. It is becoming increasingly clear that new players entering the market do not choose Kraków because of operating costs. However, it is the human capital that makes this city an attractive place for new investments. Krakówbased companies are aware of all the risks of this phenomenon, such as the increase in salaries, a competitive labour market, and limited office space. Additionally, the dominant Y generation might prove to be another challenge. The average age in our industry currently amounts to 29 years. Newly established foreign corporations in Kraków might find that surprising, given that the average age of employees in Western countries is Employing modern human capital has become a necessary feature of the local market, but requires a change in management style. Innovative HR measures that are applied in Kraków today in relation to Y generation representatives will become a general norm in the decade or so to come. Kraków s potential is undoubtedly huge. Today, it is a mature market where advanced business processes are supported. If I were to establish a Centre of Excellence today, Kraków would definitely be my choice. I would not consider this city in terms of a low cost centre. There is no one perfect place for business. Everything depends on the need for a given language, the size of the established company, its budget, or the support afforded by the city or the State (e.g. in the form of tax exemptions). For our company, Kraków has proven to be an excellent choice. Kraków s labour market has been invariably difficult for several years now. Recruitment divisions are forced to adapt very fast to the new situation. Today, it is the fastest-changing HR function that is also under the biggest pressure. Employer image management function has never been as crucial as it is today. It is a very broad topic that can be analysed from two perspectives: externally and internally. If a candidate can choose between two similar offers differing only through the employer or the brand, image will play a key role. Our perception by our employees is also important. Are they proud to be working in the given company? Will they be willing to recommend it to their friends as a great place to work? Aon is Manchester United s global partner. In Kraków, we are visible on city bikes, on the sides of trams and inside trams. All this is very helpful in building a brand of a preferred employer; what we care the most about, however, is feedback; especially from the employees themselves. Every year, Aon conducts an employee engagement survey. The results of the survey help us assess numerous aspects of work, such as the atmosphere, superiors, and working space organisation and location, and thus allows us to modify the style of managing a given organisation. Next year, we are going to move to a new office at the Enterprise Park in ul. Powstańców Wielkopolskich. From that time, our company will have a single location for all employees to be together. This will make further growth possible. LOCAL MARKETS Kraków 47

48 LOCAL MARKETS LUBLIN Mariusz Sagan Director, Lublin City Hall Strategy and Investor Services Division The growth dy namics of Lublin s ICT sector is huge. Thanks to a well-developed ICT ecosystem and the availability of office space, Lublin is currently perceived as a key destination for the sector of modern business services in Eastern Poland. It is one of the largest IT ecosystems in the country, and one of the most promising Polish cities in terms of BPO operations. There are several hundred IT companies and several dozen shared services centres operating in the city. Lublin boasts the highest accumulation of modern office space and investment real estate in the eastern part of Poland, and ranks among Poland s leading cities in terms of the dynamics in office space growth. Its cumulative supply amounts to almost 200,000 sq.m. and new investment projects will double the current resources over the next couple of years. Lublin s advantages include office space lease costs and considerably lower values of space acquisition transactions. Neither does the city lack well-educated personnel for BPO/SSC organisations. The Business Services segment in Lublin comprises companies from IT, BPO, SSC, and R&D sectors. Among the largest organisations, 41 are IT companies, 12 operate in the SSC sector, eight in the BPO sector, and three in the R&D sector. Customer relations, finance and accounting, and IT are among the business processes supported by the highest number of business centre employees in Lublin. Business processes are supporting a very wide spectrum of foreign languages. They employ close to 7,000 people, 3,500 of whom are working for entities servicing foreign markets. Genpact and Orange, Coltel, Convergys, EOS KSI, RTV Euro AGD, MTBC Europe, OEX Voice CC, Open Finance, Pekao Factoring, PhlexGlobal, PKO BP, Generali, SST, and Warta, have set up their operations in Lublin. There are numerous innovative companies operating in Lublin, as proven by the establishment of research and development centres of Simple, Comarch, and eleader. Lublin was picked for the registered offices of such companies as CompuGroup Medical or SoftSystem. Over the last three years, many companies dealing in IT outsourcing have come to Lublin. That group includes BL Stream, Billennium, Britenet, DataArt, Edge One Solutions, Impaq, Mobica, Sii, Sollers Consulting, Trimetis, and Team International. The city has attracted foreign capital companies primarily from the following countries: Germany, France, the USA, Switzerland, the UK, Japan, Italy, and Austria. The last 12 months have featured the launch of operations by, among others, Phlexglobal (UK), Team International (USA), News Hub Media (USA), EOS KSI (Austria), Impaq Sp.z.o.o. (Switzerland), KS Engineering Technology (IBS GmbH) (Germany), and MTBC EUROPE Sp.z.o.o. (USA). The growth dynamics of Lublin s ICT sector is huge, as envisaged by the above-average increase in the number of the companies operating in that sector (the highest in Poland among cities of a similar size). Lublin is the largest academic centre in eastern Poland, with nine universities (including five public and four private ones). The total number of students amounts to 68,500, with around 5,600 foreigners. This places the city second in Poland in terms of the number of foreign students. Every year, over 20,000 graduates leave the universities. Lublin s universities offer 39 majors and over 121 various specialisations, including majors particularly valuable to companies operating in the modern business services industry. Lublin is a city of the active and the ambitious. People aged comprise as much as 71% of the city s total population, and 27% of the inhabitants have university-level education. According to statistics, the local market is characterised by a low employee churn factor. The ongoing information and promotion measures taken by Strategy and Investor Services Division of Lublin City Hall are assisted by such organisations as JLL, Cushman & Wakefield, PAIIZ, and other associations of such entities like ABSL or ProProgressio. According to the Lublin s Growth Strategy , one of the city s economic growth pillars consists in the expansion of the service sector in several specialties, such as business outsourcing, public outsourcing, e-services, and IT. The main activities are focused on creating institutional and spatial conditions for the development of the service sector, supporting the creation of a modern service sector in Lublin, and promoting the economic potential of the service sector in both Lublin and the Lublin Urban Area. There are also plans to attract at least four new investors from the BSS sector. 48

49 dertaken. Supported by State authorities, Poland (as a BIE member) will be lobbying to organise EXPO 2022 in Łódź. Additional funds that would fuel the city s coffers thanks to this undertaking would make it possible to consider realistically achieving ambitious goals. All of these measures will help Łódź join the group of Poland s top cities. Meanwhile, the main consequence for the SSC industry might be an inflow of employees from external locations. It is very important in light of the reality of the industry s functioning (a systematic inflow of new projects into Poland and a parallel demographic low). This is because the growth of respective centres in the long-term perspective will be determined by the result of competing for employees. When asked for their reasons for picking Łódź as a location for their offices, SSC industry organisations named, among other things, low operating costs compared to cities of a similar profile. Today, in the context of expanding operations in the city and the local SSCs being given ever more complicated tasks, it is the quality and diversity of talents in a wide range of competences that come to the foreground and form the main assets of Łódź as an investment destination. Finance & Accounting, HR, Data & Document Management, Procurement, Tax, Payroll, Supply Chain, R&D, Research & Analysis, Payment Transactions: these are the key processes that have been successfully supported by Łódź-based SSCs. In the past, when Łódź was hard pressed to retain the alumni of the local universities in the city, a joint programme Młodzi w Łodzi (Youth in Łódź) was organised in cooperation with universities and employer organisations. Młodzi w Łodzi is a tool that has turned the city into a unique location in terms of support offered by the local government. Under this project, grants are awarded to especially talented undergraduate and PhD students. Other initiatives Adam Pustelnik Director Investor Services and Foreign Cooperation Division The quality and diversity of talents in a wide range of competences form the main assets of Łódź as an investment destination. On the map of Polish SSCs, Łódź is a special place. It is already one of the largest centres of companies from that sector and its position will certainly be enhanced in the future. This comes indirectly from the fact that there have been numerous public investments in recent years, and many more in the years to come: Łódź will see the construction of the New Centre; large blocks of 19th century buildings will be revitalised; and numerous projects improving the work-life balance, which is such an important aspect today, will be unhave included a website with internship and training offers, organised training sessions, and open-door days at Łódźbased organisations. The programme also features the Młodzi w Łodzi JĘZYKOWZIĘCI. The competition award consists in co-financing two semesters of learning one of nine foreign languages that are currently the most sought after by BPO sector employer organisations, and that are at the same time less popular among students and graduates. They include Danish, Finnish, Dutch, Portuguese, and Swedish. Over 100 Łódź-based companies, as well as three of the largest public universities in the city, are currently proactively cooperating in the project. Positive forecasts regarding the expansion of the SSC sector in Łódź are not only the wishes of the local government; they are proven by the analyses conducted by office real estate developers. The volume of available highest-quality space is expected to double by 2022; in Łódź, it is occupied chiefly by companies from the SSC sector or affiliated industries, tapping into a similar pool of talent. As regards the growth dynamics in terms of hiring in the sector, given the attractiveness of Łódź and the mentioned objective signals coming from industries connected with the BSS sector, we might expect them to reach at the very least the average domestic ratio of 25% (1 April April 2016). Łódź can certainly find its niche in the segment of domestic projects since, beyond any doubt, it constitutes the best location for shared services centres that do not require foreign language skills. The offer of the local labour market for people who have an educational background similar to that of employees of centres operating in foreign languages but lack a similar asset is still small. This is best demonstrated by the fact that relatively few of the largest Polish companies have established offices in the city. LOCAL MARKETS ŁÓDŹ 49

50 LOCAL MARKETS ŁÓDŹ Łódź Piotr Trzeciak, Global P2P Process Lead, Management Board Member Barry Callebaut SSC Europe The Łódź-based centre has every chance of becoming our company s key investment, following in the footsteps of our dynamically growing factory in Łódź. Barry Callebaut is the world leader in the production of high-quality cocoa and chocolate products. The group owns 53 state-of-the-art production plants around the world, selling its products in over 100 countries and employing 9,000 people. The Barry Callebaut plant in Łódź was established in The Polish branch of the company is one of the fastest-growing in the whole Group, in terms of both employment and investments. The modern Shared Services Centre in Łódź is an integral part and the main support of the Barry Callebaut Group. Thanks to its dynamic and effective growth, the Centre has been supporting transaction processes in all Europe- an countries and many global functions in such fields as: Finance, IM/IT, Master Data, Customer Service, and Logistics. We are continuing the best traditions of Barry Callebaut in Łódź and our operations are conducted in line with the principles of ethics and respect for every employee and client, and on the basis of our corporate values: customer focus, passion, entrepreneurship, teamwork, and integrity. Our growth and success are based on four pillars: expansion, innovation, cost management, and sustainable cocoa production. Leading the global chocolate market is our ambitious goal. We were considering several locations in Europe. We wanted our shared services centre to be placed in a country where our position was already strong and where it would be possible to find qualified, talented employees. Łódź enjoys a great location, while the costs of leasing high standard office space in the very centre of the city are competitive compared to other Polish cities. Additionally, Łódź is an important university centre and has a rich pool of well-educated graduates in fields sought after by employers. What is more, labour costs are still competitive here, compared to other large Polish cities. This is why Łódź proved the best choice for us. Our Centre was founded over a year ago. Today, we are focusing on standardising and increasing the competitiveness of our transaction processes performed in Europe (including global functions) so that the Barry Callebaut Group can keep growing. Our office in Łódź has become an integral part of the Group s European business operations as a modern and cost-competitive Shared Services Centre. The Łódź-based centre has every chance of becoming our company s key investment, following in the footsteps of our dynamically growing factory in Łódź. That factory is currently one of the largest in Europe and could become the world s leading factory over the next couple of years. In recent years, Łódź has been one of the fastest-growing regions of Poland. Among other things, this was due to significant infrastructural investments undertaken both in the city itself and in its vicinity. These measures have attracted many investors from the SSC/BPO sector in search of highly qualified employees with foreign language skills, and have considerably improved the competitiveness of the local labour market. Despite growing competition, we have not experienced any difficulties with finding appropriate candidates. This remains Łódź s advantage over such cities like Kraków or Wrocław, where the market in the SSC/BPO sector is more saturated and recruitment is more difficult to conduct. Following the situation and trends on the labour market in our region, Barry Callebaut is focusing on building both its employer branding, by supporting desirable relationships within the company, as well as the commitment of its employees, by offering them a friendly working environment and a competitive package of salaries and benefits. Our organisation also supports local initiatives and cooperates with Łódź-based universities. We are planning to expand our centre further, by migrating to Łódź other processes currently supported in other European countries. Ultimately, the Barry Callebaut Shared Services Centre is scheduled to employ over 200 employees over the next years. 50

51 Barbara Tuńska Ekspert pro-biz FDI Expert Investors and Exporters Service Centre Olsztyn is a young city with ambitious and highly qualified young people as an important asset. Olsztyn is one of the largest university, cultural and economic centres of north-eastern Poland. This modern agglomeration is characterised by unique natural environment conditions, a high quality of life, and competitive conditions of pursuing business activity. All these factors contribute to building an image of a city focused on the work-life balance. Olsztyn is open to local, domestic and foreign capital alike. The presence of foreign companies from numerous sectors is proof of the city s investment possibilities. Michelin, Tetra Pak, and Schwarte Milfor are just some examples of organisations that have been successfully operating here. The key industries that Olsztyn s growth is focused on are modern business services, IT/ICT, and high-quality foodstuffs. Shared service centres (including the largest among them, namely the Citi Handlowy Regional Clearing Centre) and modern business service centres (including Transcom, which has been in Olsztyn the longest) have been operating here for over 15 years. The centres support a wide range of processes, including in particular Customer Services, IT Services (IT help desk, data centre, software development, and application administration), as well as Financial Services and R&D. In total, Olsztyn-based BSS sector centres employ close to 1,900 people. After RCR Citi Handlowy, Citi International Plc, and Transcom (which jointly employ almost 80% in the sector) the remaining employer organisations are small companies predominantly with Polish capital. At present, there are 10 BSS sector investments operating in Olsztyn, five of which are owned by foreign capital. All of them meet the criteria of modern business centres for the BPO and SSC sector, as they support external entities (BPO) or the headquarters/other entities from the given group (SSC) outside Poland. Olsztyn is a young city with ambitious and highly qualified young people as an important asset. In the academic year 2014/2015, there were a total of 28,400 students at the city s six universities. In 2015, almost 8,000 graduates left their walls. At Olsztyn s three largest universities, over 3,000 people followed economy-related majors (economics, management, and production management and engineering), while 1,300 students chose IT majors (general IT, IT system engineering, designing IT systems and computer networks). Olsztyn also hosts the robust Olsztyn Science and Technology Park, which is of key importance to the economic growth of both the city itself and the whole region of Warmia and Mazury. LOCAL MARKETS Olsztyn 51

52 LOCAL MARKETS POZNAŃ Marcin Przyłębski Head of Investor Relations Department Poznań City Hall, Investor Relations Department Human capital remains the first and foremost among the city s assets: investors planning more specialised projects will find specialists in Poznań in virtually every field. Poznań s main investor magnets are, above all, the availability and quality of the candidate pool, the city s economic growth, high-quality technical infrastructure and accessibility, and a developed business environment. The city s high level of business attractiveness, especially in terms of highly-developed investments, has been confirmed by numerous studies and rankings. For example, according to a ranking of voivodship attractiveness conducted by the Institute for Market Economics and published in 2015, Poznań ranked third in Poland in terms of attractiveness for technologically-advanced organisations, and fifth for service-oriented operations. Human capital remains the first and foremost among the city s assets: investors planning more specialised projects will find specialists in Poznań in virtually every field. Poznań-based universities ensure a high quality of education and the local Adam Mickiewicz University has a place among Poland s top three universities, while the Poznań University of Economics ranks second among economics-oriented academies. In addition to purely economic aspects, the quality of life in the city (including the condition of the natural environment) is an important asset supporting Poznań s position. The city offers a European standard of living to its inhabitants and guests. Further improvement of the respective quality of life aspects is a priority for the city s authorities. There are currently over 70 shared services centres and outsourcing centres in Poznań. A numerical superiority of shared services centres and a primary focus on medium-size and small centres are characteristic features of the Poznań market. In terms of supported processes, Finance and Accounting and IT prevail at Poznań-based centres, though most centres are now fully multifunctional. Poznań centres also support other, more specialised functions, such as Business Analysis, Controlling, HR, Marketing, Logistics, and others. In 2015, nine new investors decided to establish their service centres in Poznań. The existing companies also make a significant contribution to the market growth, as almost all of them keep growing and hiring. Poznań s Business Services market is growing in a relatively balanced and sustainable manner, which means that we have not noticed any overheating that could impede recruiting new candidates. As regards language skills, the Faculty of Modern Languages at the Adam Mickiewicz University in Poznań ranks among the largest and most robust in the country, educating students in 40 specialisations. An additional factor distinguishing Poznań from other cities is the number of German-speaking candidates. It should be noted, however, that candidates with these qualifications are much sought after also by other branches of the economy. The city s potential in terms of IT is another important asset. The IT Faculty of the Poznań University of Technology ranks among the best in the country; additionally, future IT experts are being educated also at the Adam Mickiewicz University, the Poznań University of Economics and private universities. Game development is the latest educational specialisation implemented in Poznań. Specialists in that field are educated at the Poznań University of Technology. The Business Services industry is expected to continue growing at the current rate; the opening of several new centres is planned for both this and next year, as suggested by the incoming investment inquiries and pending negotiations. The city is invariably taking intensive measures to attract new investors from the Business Services industry. 52

53 POZNAŃ Olav Petersen Director Competence Center Accounting Our employees are the best example of recruitment opportunities afforded by the local labour market. The availability of high-stand ard office space is yet another of Poznań s important as sets. AutoVision GmbH Sp. z o.o. Poland branch began operating on 22 February 2016 and currently employs 25 people (data from 15 August 2016). The goal of the company s operations comprises combining, unifying, and providing high-quality support of accounting processes within the scope of its Centre of Competence for the greatest possible number of accounting services of Volkswagen brands and companies across Europe, taking into consideration services pertaining to liabilities, receivables, general ledger, and tangible assets. in Poland, with extensive infrastructure and in close proximity to the organisation s parent company Volkswagen (of which AutoVision GmbH sp. z o.o. is a fully-owned subsidiary). Combined with high efficiency and a high level of candidate education, we hope to contribute to an increase in competitiveness on the accounting services market. We are looking for committed employees with experience in the field of accounting (receivables, liabilities, general ledger, and tangible assets) and familiar with the SAP system. Candidates are expected to understand the needs of our customers and be solution-oriented. Since we communicate closely with our parent company s international organisations, candidates should have a good knowledge of English, German, Spanish or Portuguese, and potentially other languages. Poznań has at its disposal a large number of highly qualified employees that are accounting specialists while also having good foreign language skills. Our employees are the best example of recruitment opportunities afforded by the local labour market. The availability of high-standard office space is yet another of Poznań s important assets. We are planning to expand the scope of services rendered for the Volkswagen Group companies, and to supplement them, for example, by services in the field of Logistics, Engineering, or Business Administration. Thanks to the 15-year experience of AutoVision GmbH in the automotive industry, we hope that a wider range of competences and projects in that field can be transplanted to and implemented in Poland. LOCAL MARKETS POZNAŃ The choice of Poznań as the location for AutoVision GmbH Poland branch was determined by the fact that the city is one of the key industrial, commercial and service centres 53

54 LOCAL MARKETS RZESZÓW Przemysław Stolarz Investor Services Department Rzeszów City Hall Rzeszów has the highest number of educated specialists at its disposal in the whole of Poland. Rzeszów s uniqueness and competitiveness is largely due to its young inhabitants. According to Eurostat surveys, Rzeszów s universities educate the highest number of students per inhabitant in the whole of the European Union (in total, 353 students per 1,000 inhabitants). Almost 40% of the city s inhabitants boast university-level education. The average age of Rzeszów inhabitants is 39 and the percentage of people of working age amounts to 67%. Rzeszów has one of the highest natural increase rates in the country and its population keeps growing. It is due to both these statistics and a number of other factors that Rzeszów has assumed a place at the very top of the Schuman Foundation Ranking of Learning Cities. The capital of the Subcarpathia voivodship ranked second among 66 Polish cities with district rights, only slightly lower than Warsaw. Ranking authors have noted that Rzeszów has the highest number of educated specialists at its disposal in the whole of Poland. In its recent report, Industrial Market in Poland 2015 Summary, Cushman&Wakefield estimated the stock of modern warehousing space in the capital of the Subcarpathian voivodship at 224,000 sq.m. In 2015, the city s stock of warehousing space increased by a further 75,000 sq.m., with an additional 35,000 sq.m. of modern warehousing space currently under construction. Rzeszów is undoubtedly a significant IT centre in Poland. Asseco, one of the largest IT companies in Europe, chose it for its headquarters. There are also other well-known IT brands operating in Rzeszów, such as SoftSystem Sp. z o.o., OPTeam S.A., PGS Software S.A., G2A com., Ideo Sp. z o.o, Comarch S.A., Ailleron S.A., Mobica Limited Sp. z o.o., JCommerce S.A., CI Games, Primebit Studio Sp. z o.o., and ZETO Rzeszów Sp. z o.o. Next to the aviation industry, the IT sector is a dominant branch of Rzeszów s economy. The high quality of its IT specialists is ensured by innovative majors offered by Rzeszów s, constantly adapting to the current demands of the labour market. Rzeszów has proved to be an attractive location for the Polish Space Agency, which has established here its second branch in Poland. On the other end of the economic spectrum, the industry connected with supporting financial processes is growing dynamically too. Deloitte launched its Central Europe Business Services Centre in Rzeszów (an SSC for branches in18 countries, which will ultimately employ over 300 people). Meanwhile, PwC has established another regional branch here and is currently recruiting staff to man it. The R&D sector is also blooming. Rzeszów s potential in this respect is looking very impressive indeed. R&D operations conducted at state-of-the-art and fantastically equipped centres of such companies as Pratt&Whitney Rzeszów, MTU Aero Engines Polska, Borg Warner Poland, Pratt&Whitney Aeropower, ML-System, D.A. Glass, Fibrain, Nestle (NQAC), OPTeam and Elmak, contribute significantly to boosting the city s importance on the economic map of Poland and Europe alike. Rzeszów ranks at the very top of the list of cities whose universities attract students from abroad. In the list of Leading Polish universities by number of foreign students in 2014 (taking into consideration the number of students in the academic year 2013/2014), the University of Information Technology and Management ranked third with 1,535 students. At present, there are over 2,000 students from 23 countries being educated in Rzeszów. Thanks to their knowledge of many languages, the graduates of Rzeszów-based universities are a perfect pool of candidates for potential investors from the sector of modern business services who might be interested in launching operations in Rzeszów. A high degree of employee loyalty towards employers is also an undeniable asset. In Rzeszów, we have not observed any high trend of employee transfer between competitive companies. The relatively low costs of pursuing business in Rzeszów is also a thing to remember. The city s authorities are forecasting further intense growth of the modern business services sector. Given the high number of students and graduates of economics-related majors, as well as F&A, one of the priorities will involve encouraging companies supporting broadly understood financial processes to invest in Rzeszów. We plan to systematically attract further global organisations from the aviation industry (production and R&D) and entities supporting processes aviation companies. Given the continuous interest in Rzeszów expressed by international companies from the IT sector, we are also forecasting further intensive growth of that industry. The ongoing improvement in road infrastructure is coupled with the construction of new warehousing structures of leading international development companies. The construction of new large-format warehouses and intermodal structures is guaranteed by sky-high demand. Our forecasts include also a continued very strong growth of the TSL industry. 54

55 Tri-city Marcin Grzegory Deputy Director Grouping 94% of Pomeranian BSS Market projects in Tri-City, highlights the location as the biggest and most attractive sector s hub in Northern Poland. Among many, there are two main drivers of change make Tri City unique. The first is the location, with its unlimited potential to draw diverse talent in. The other is its approach to attract and assist investors, not only through professional lead conversion, but foremost through shaping the talent pool, and provide all improvements necessary to facilitate growth capacity for even the most demanding companies. Pomeranian BSS market doubled its employment since the beginning of 2013 and Tri City is officially considered as the sector s 4th biggest market in Poland. Invest in Pomerania report depicts 118 projects (11% growth in 2016) and employment increase of 17% across all groups of processes, which almost matched the record year The split between typical SSC/ BPO functions and IT/ R&D remains almost equal in terms of employment, yet 62% of all operations are IT/R&D (although their employment is on average approx.. 35% smaller due to a large share of smaller IT development companies The largest SSC/ BPO process group are F&A and financial services (including KYC processes by PwC and Thomson Reuters), and Customer Services of many kind. The growing opportunities are HR (with RPO) present in most prospective centers, KPO, Logistics & Supply Chain, LPO and Real Estate management. Growth of employment provides diversification and growing complexity of the provided services, which secures talent pools in ever more specializations and influences the education offer among universities, and courses aimed at preparing candidates to change their career paths and join the BSS. The local market is also renowned for Nordic Language speakers, thanks to the biggest and oldest Scandinavian faculty (University of Gdańsk) and traditional/ geographical links to the Nordics (with companies originating from this region also having the biggest number of investments in Pomeranian BSS). Grouping 94% of Pomeranian BSS (94% of projects) in Tri- City highlights the location as the biggest and most attractive sector s hub in Northern Poland, with a huge potential for further growth within its catchment area. The City successfully competes for major brands projects even with Tier1 European destinations (i.e. introduction of Swarovski GBS Hub, February 2nd, 2017) maintaining organic growth of the existing centers (numerous were introduced after 2011 and are still in the ramp-up or expansion phases). Quality of life proves to be a significant factor also for the investors looking to nearshore operations from Poland s South, such as State Street Bank, Alexander Mann Solutions, Schibsted Tech, Luxoft, Epam etc. Tri-City is a typical SSC environment, not having any large BPO operations (despite hosting global providers such as Wipro, WNS or Transcom),and embracing the new wave of high value- added, multiple vertical Global Business Services (such as Staples, Thyssen-Krupp or Sony Pictures Entertainment) as the pursued model. Driving complexity of provided processes helps to prepare for the upcoming process automation evolution. The more high-end positions created, the smaller the impact it will have on employment and career opportunities. The biggest determined potential threat in sustaining the growth, would be dynamics of growth surpassing the tempo of talent pool growth in the region. This being the effect of multiple new entries, and investors reaching for experienced employees (rather than hiring and upskilling juniors, which is more typical for latter stages) to secure the highest process proficiency before their transition to the new site. Unfortunately this also results in enlarging market attrition during set-up periods of the new centers. Therefore the Invest in Pomerania initiative, together with local business partners (investors, ABSL, Academia, RE developers etc.) is focusing most on securing growth capacity for existing and potential investors through creating designated courses and majors in private and public universities, building social awareness of the very young sector of the economy- with emphasis on attractiveness of its career paths, and promoting the region itself both nation-wide and internationally, as a perfect combination of living conditions with great and ever expanding career opportunities. LOCAL MARKETS Tri-city 55

56 LOCAL MARKETS Tri-city Tri-city Marek Nowak Global Competence Centre Director Due to our experience we can be sure that by investing in Tri-City in 2015 we now have the possibility to actively shape and influence the local BSS market and talent pool Staples is the world s top office products company and one of the largest internet retailers. For 30 years, Staples has served the needs of business customers and its vision is to provide everything customers need to succeed. Through its world-class retail, online and delivery capabilities, Staples offers office supplies, technology products and services, facilities and breakroom supplies, furniture, copy and print services and a wide range of other product categories. With thousands of associates worldwide dedicated to making it easy for businesses of all sizes, Staples operates throughout North and South America, Europe, Asia, Australia and New Zealand. In 2015 Staples announced the opening of its Global Competence Centre in Gdansk and in 2016 declared its expansion. We chose Tri-city due to a very attractive and professional business environment and well-developed and mature market for business services. This location offers us the ideal combination of a large resource: a well-developed and extensive education system providing well educated graduates and specialized, experienced workforce. All this from a well-connected, modern urban infrastructure. Our Competence Centre quickly outgrew its primary location, and has now relocated to a permanent premises in the heart of Gdansk s business district. The centre employs experts from a variety of disciplines, including IT, e-commerce, supply chain and telecommunications, and provides strategic, analytical and operational support to Staples offices throughout Europe, as well as telecommunications support globally. We can witness the location grow dynamically- each year a new centres are opened and new strong brands introduced, bringing along new jobs and processes. Therefore we need to be aware of our competitive edge as an employer. However due to our experience we can be sure that by investing in Tri-City in 2015 we now have the possibility to actively shape and influence the local BSS market and talent pool through multiple actions and initiatives, which is a sure asset for the for the future. The rapid expansion of our Global Competence Centre confirms that Tri-city for us was the best business choice. The friendly investment climate and the availability of highly qualified and multilingual staff are some of the biggest advantages of Tri-city. It is also an extremely attractive seaside location which offers the highest quality of life. The Tri-City market is still in the maturing phase, hence some less popular processes are just developing, and it requires time to find some more advanced and experienced professionals. Luckily, sourcing them from other locations proves easy enough, and new ranks are quickly climbing this ladder as well. The strong growth in number of investments and employment brings much attention to this coastal location both from investors and potential staff, but also builds awareness among local academia and authorities (supporting business through the Invest in Pomerania initiative). Summing up, we re also hoping the location s business environment to stay just as cooperative, which becomes very helpful in addressing present and future challenges, and makes this location so unique. 56

57 Warszawa Mariusz Odkala Teleperformance Warszawa Warsaw is primarily an international labour market, with access to a qualified pool of human resources with varied language skills. As a result, we are able to provide multilingual support and customer service of the highest quality to global companies from various sectors. Teleperformance Polska has been operating on the Polish market continuously for almost 20 years. Our company was one of the first call contact centres established in Poland. Today, we employ over 650 people from 30 different countries who render services for our clients in 16 different languages. The scope of our operations covers multi-channel and multilingual customer services, technical support, and telephone sales services rendered for B2B and B2C companies. Our clients operate in numerous industries, such as e-commerce, retail, electronics, banking, financial services, utilities, FMCG, media, automotive, and healthcare. Warsaw is primarily an international labour market, with access to a qualified pool of human resources with varied language skills. As a result, we are able to provide multilingual support and customer service of the highest quality to global companies from various sectors. Warsaw is also frequently the first choice for international investors given its central location offering convenient connections with large cities in Poland and Europe. For over four years now, Teleperformance Polska has been pursuing a multilingual hub strategy that provides for rendering services at a single location in many languages for consumers from all over the world. Our client portfolio comprises global brands that are considered leaders of their respective industries. A significant increase in business over the last six months translated into establishing another branch of our company (our third in Poland and second in Warsaw). The Polish market has become a very developed and mature location in the world of outsourcing services, offering great prospects for continuous growth in the coming years. However, the planned increase in the minimum wage and the potential liquidation of flexible employment options will be a significant threat to our industry. This is especially true in light of the growing competitiveness of such countries like Romania, where labour costs are lower. The continued migration of companies from Western Europe transferring their business to Poland in search of cost optimisation in their operations is an opportunity for the outsourcing industry. The Warsaw market has its advantages, but also its flaws. Warsaw is a city that has been attracting more and more foreigners to work here. This increases the availability of candidates to support multilingual projects, a crucial factor for us in the context of our operations. On the other hand, however, such a candidate profile forces organisations to prepare attractive employment offers which, apart from salaries, must comprise a package of additional benefits (such as medical care, sports cards, etc.), a friendly working environment and atmosphere, and the employer s activity in the field of CSR. The high competitiveness among BPO/SSC organisations on the Warsaw market makes meeting all of these criteria a key success factor in attracting appropriate candidates. Our company s mission for the coming years is to continue improving our potential in the field of multilingual management of customer experience for global companies, as well as expanding our portfolio on the local market. Our priority is also to continue our human resources management policy through ensuring our staff with training, incentive programmes, and career development programmes. We hope that all this translates into building our position of a trusted and recommended employer organisation. By the end of 2017, we are expecting to employ 200 new people for both short-term and long-term projects. LOCAL MARKETS Warszawa 57