Outsourcing Opportunities in Poland CEEOA Webinar 26th May 2010

Outsourcing Opportunities in Poland

CEEOA Webinar26th May 2010

PricewaterhouseCoopers

Agenda

1. Macro-economic overview of CEE; Introduction to Poland and key BPO/SSC locations

2. Labour market analysis

• Polish Office Market Q2 2010

• Q&A

Damian Scanlon, PricewaterhouseCoopers

Bartosz Wieczorek, AG TEST

Włodzimierz Jędruszak, Fisheye Properties


Macroeconomic situation in the CEE region

• In all of Europe, Poland coped best with the economic crisis: In October 2009, on a map of the European Union on which all the countries with a negative GDP growth were marked in red, there was a single green island – Poland, with its positive GDP growth (with over 1%).

• The economic growth of Poland accelerated, resulting ina targeted GDP growth rate estimated at 2.6% for Q4 2009.

• The consumer and investment demand is growing at a low speed, and the contribution of net exports is positive due to some improvement in export performance.

• With the slowly accelerating domestic demand, the NOBE analysts expect the GDP growth rate to pick up only gradually.


Poland - an introduction

Poland is located in the heart of Europe, close to the economic centre of the continent

The country is a stable democracy, a member of NATO, the European Union, WTO, OECD

Polish economic growth is driven by a dynamic private sector

The currency is one of the most stable in the region

The Polish market is as big as the rest of Central Europe altogether

Poles make up one of the youngest nations in the EU - almost 50% of the population is less than 35 years old

Poland offers a large, educated workforce at competitive prices

• Poland is classified by the World Bank as an upper-middle income economy. With a population of over 38 million, and an average GDP per capita of 9665 €, the total GDP of the country is equal to 368.58 € billion (almost twice as much as Czech Republic, Slovakia and Hungary combined). That makes Poland the fifth-sixth biggest economy in the EU – after Germany, France, UK, Italy, Spain, and very close to the Netherlands.


The environment for inward investment to Poland

The Government of Poland has selectively targeted certain areas of industry, in particular those which produce and manufacture value added products or services. These also offer the best growth potential and the best prospects for the sustainable development of Poland.

The targeted sectors are:

• internationally traded services, including financial services, call centres, shared services centres, information technology centres,

• electronics,

• automotive,

• biotechnology,

• research and development,

• aviation.

• In all the mentioned sectors the world’s top companies are present.

• Only in 2005 and 2006 Poland became manufacturing hub for LCD screens in Europe.

• The offshoring sector is growing at a high rate, R&D related activities are popular as well, so human capital in Poland is being discovered and positively assessed.

• In these sectors companies are engaged in a range of activities from: services in accounting, finance, logistics through networks and software research, engineering systems and automation, pharmaceuticals or computer science in R&D.

• In these sectors growth is primarily related to the quality and accessibility of human capital at a competitive price.


Polish BPO/SSC locations

WARSAW

Population 1 710 076

Labour pool 1 096 000

Unemployment 2.2 %

Number of universities 68

Number of students 350 000

Office space (m2) 3 247 500

Rental cost (EUR/m2 ) 18-25

International Airport Yes

Flight connections (domestic / international)

10/ 64

KATOWICE (SILESIA)

Population309 621

(2 764 000)

Labour pool202 371

(1 236 000)

Unemployment2.9%

(7.1%)



Office space 213 400

Rental cost per square meter (EUR) 14-16



1/ 33



KRAKÓW

Population 756 000

Labour pool 500 000

Unemployment 2.8 %



Office space (m2) 408 000

Rental cost (EUR/m2 ) 13.5-15.5



3/ 32

ŁÓDŹ

Population 744 000

Labour pool 487 000

Unemployment 6,70%







1/ 9



WROCŁAW

Population 635 000

Labor pool 420 000

Unemployment 3.9%



Office space (m2) 327 600

Rental cost (EUR/m2 ) 13-15



1/ 27

GDAŃSK (Tri city)

Population 455 581

Labour pool 296 919

Unemployment 2.5%







3/ 37



GdanskKatowice Warszawa

Wrocław ŁódźKraków

http://www.krollontrack.pl/

http://www.bombardier.com/en

http://www.volvo.com/

http://images.google.com/imgres?imgurl=http://bpo.tcp.in/uploaded_images/Genpact-1-766430.jpg&imgrefurl=http://bpo.tcp.in/2005/12/genpact-launches-campus-training.html&usg=__i8m1WPTa8n6xUCzSZmxjleQ36t8=&h=100&w=230&sz=6&hl=en&start=6&um=1&itbs=1&tbnid=_e3aNAF2q4aMKM:&tbnh=47&tbnw=108&prev=/images%3Fq%3Dgenpact%26hl%3Den%26sa%3DN%26um%3D1

http://www.electroluxusa.com/index.aspx

http://images.google.com/imgres?imgurl=http://aurat.in/news/wp-content/uploads/2009/04/hcl_logo_blue.jpg&imgrefurl=http://aurat.in/news/%3Fp%3D83&usg=__85Ax5z8MGmwkAGk7y2i84ZvCUkI=&h=215&w=787&sz=23&hl=en&start=2&um=1&itbs=1&tbnid=D9r-wCu0hYZeKM:&tbnh=39&tbnw=143&prev=/images%3Fq%3DHCL%26hl%3Den%26sa%3DN%26um%3D1


Labour market analysis


Eastern Europe: population by country


Cities in Poland over 200 000 citizens

Source: Advisory Group TEST Human Resources survey www.testhr.pl


Cities over 200 000 citizens in eastern Europe

Country Number of cities Cities

Ukraine 32 Kiev, Kharkiv, Dnipropetrovsk, Odessa, Donetsk, Zaporizhia, Lviv, Kryvyi Rih, Mykolaiv, Mariupol, Luhansk, Makiivka, Vinnytsia, Simferopol, Sevastopol, Kherson, Poltava, Chernihiv, Cherkasy, Sumy, Horlivka, Zhytomyr, Khmelnytskyi, Dniprodzerzhynsk, Kirovohrad, Rivne, Chernivtsi, Kremenchuk, Ivano-Frankivsk, Ternopil, Lutsk, Bila Tserkva

Poland 17 Warsaw, Krakow, Łódź, Wrocław, Poznań, Gdańsk, Szczecin, Bydgoszcz, Lublin, Katowice, Białystok, Gdynia, Częstochowa, Radom, Sosnowiec, Toruń, Kielce

Romania 11 Bucharest, Timişoara, Jassy, Cluj-Napoca, Constanţa, Craiova, Galaţi, Braşov, Ploieşti, Brăila, Oradea

Bulgaria 4 Sofia, Plovdiv, Varna, Burgas

Czech Republic 3 Prague, Brno, Ostrava

Hungary 2 Budapest, Debrecen

Lithuania 2 Vilnius, Kaunas

Slovakia 2 Bratislava, Košice

Latvia 1 Riga

Estonia 1 Tallinn



Student population in Poland - main cities

Number of students in Poland – 2 million


Student and Graduate specialisations - Warsaw



Student and Graduate specialisations - Kraków



Student and Graduate specialisations - Katowice



Student and Graduate specialisations - Poznań



Student and Graduate specialisations - Wrocław



Student and Graduate specialisations - Łódź



Availability of foreign languages

Language B1 - B2 C1 - C2 Language B1-B2 C1-C2

1. English 50,26% 22,97% 15. Swedish 0,07% 0,05%

2. German 6,19% 2,77% 15. Bulgarian

0,06% 0,06%

3. Russian 3,39% 1,63% 16. Lithuanian

0,04% 0,04%

4. French 1,99% 1,14% 17. Hungarian

0,04% 0,04%

5. Spanish 1,09% 0,55% 18. Turkish 0,03% 0,03%

6. Italian 0,84% 0,45% 19. Portuguese

0,03% 0,02%

7. Ukrainian

0,35% 0,38% 20. Norwegian

0,03% 0,02%

8. Czech 0,15% 0,09% 21. Romanian

0,02% 0,03%

9. Belorussian

0,12% 0,11% 22. Greek 0,02% 0,02%

10. Croatian

0,09% 0,06% 23. Slovene 0,02% 0,02%

11. Serbian 0,09% 0,06% 24. Danish 0,02% 0,01%

12. Slovak 0,08% 0,06% 25. Latvian 0,01% 0,007%

13. Dutch 0,08% 0,04% 26. Finnish 0,008% 0,007%Source: Advisory Group TEST Human Resources survey www.testhr.pl


Salaries - SSC Finance sector


Salaries - IT sector


Salaries - HR sector


Polish Office MarketQ2 2010


Office stock share in major Polish cities


Office stock share in major Polish cities


Prime rents and vacancy


Warsaw office market

Warszawa

Population 1 711 466

Total stock 3 247 500

Available space 250 000

Vacancy rate 7,6%

New supply in 2009 266 000

Rental Rates (A & B class buildings) 14,00 € - 25,00 €

Planned supply

2010: 125 000

2011: ca. 130 000

Rental rates (estimated, in new projects) 14,00 € - 25,00 €


Kraków office market

Kraków

Population 756 267

Total stock 408 000


Vacancy rate 8,4%



Planned supply

2010: 73 000

2011: ca. 95 000



Wrocław office market

Wroclaw

Population 632 240

Total stock 327 600


Vacancy rate 6,7%



Planned supply

2010: 35 400

2011: ca. 20 000



Katowice office market

Katowice

Population 309 724

Total stock 213 500


Vacancy rate 7,5%



Planned supply

2010: 51 500

2011: ca. 20 000



TriCity office market

TriCity

Population 743 338

Total stock 290 000


Vacancy rate 5,9%



Planned supply

2010: 26 000

2011: ca. 60 000



Poznań office market

Poznan

Population 556 022

Total stock 200 000


Vacancy rate 10,7%



Planned supply

2010: 38 000

2011: ca. 8 000



Łódź office market

Lodz

Population 744 541

Total stock 190 000


Vacancy rate 23,6%



Planned supply

2010: 51 000

2011: ca. 25 000


Presented by:

Damian Scanlon

Senior Associate – Advisory

[email protected]

About Advisory Group TEST Human Resources

Recruitment & HR Consulting company operating since 1991.

Specialized in establishing shared service centers and business process centres in Poland.

Employment - 60 employees

Locations in Poland – Krakow, Warsaw, Wrocław, Wałbrzych

Range of HR services

Recruitment campaigns for newly established SSC / BPO

Executive search for top and middle level management for SSC / BPO

Recruitment of specialists and graduates for SSC / BPO

Salary Surveys Poland – including SSC / BPO

Assessment /Development centers dedicated to SSC / BPO specifics

HR Consulting: 360 degree feedback, appraisal systems, remuneration systems; satisfaction surveys, training & development

Presented by Bartosz Wieczorek AG TEST HR Consultant

[email protected]

+48 12 350 56 33

FISHEYE Properties Establishment is a Kraków based real estate broker and consultancy company specializing in the commercial property market. We are active throughout Poland, with particular focus on Southern Poland and Warsaw.

Presented by: Włodzimierz Jędruszak

Head of Commercial Agency:

[email protected]

FISHEYE Properties Establishment Sp. Kom.

31-158 Kraków, ul. Krowoderska 52

tel. 12 630 93 00

fax 12 630 90 68

www.fisheyeproperties.pl

http://www.fisheyeproperties.pl/

Contact

[email protected]

Members

Q&A

Members

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Outsourcing Opportunities in Poland CEEOA Webinar 26th May 2010