Post on 11-Jan-2016
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
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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.
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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.
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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.
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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%)
Number of universities 24
Number of students 200 000
Office space 213 400
Rental cost per square meter (EUR) 14-16
International Airport Yes
Flight connections (domestic / international)
1/ 33
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Polish BPO/SSC locations
KRAKÓW
Population 756 000
Labour pool 500 000
Unemployment 2.8 %
Number of universities 25
Number of students 210 000
Office space (m2) 408 000
Rental cost (EUR/m2 ) 13.5-15.5
International Airport Yes
Flight connections (domestic / international)
3/ 32
ŁÓDŹ
Population 744 000
Labour pool 487 000
Unemployment 6,70%
Number of universities 21
Number of students 116 200
Office space 190 000
Rental cost per square meter (EUR) 11-14
International Airport Yes
Flight connections (domestic / international)
1/ 9
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Polish BPO/SSC locations
WROCŁAW
Population 635 000
Labor pool 420 000
Unemployment 3.9%
Number of universities 27
Number of students 170 000
Office space (m2) 327 600
Rental cost (EUR/m2 ) 13-15
International Airport Yes
Flight connections (domestic / international)
1/ 27
GDAŃSK (Tri city)
Population 455 581
Labour pool 296 919
Unemployment 2.5%
Number of universities 19
Number of students 100 000
Office space 290 000
Rental cost per square meter (EUR) 14-16
International Airport Yes
Flight connections (domestic / international)
3/ 37
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Polish BPO/SSC locations
GdanskKatowice Warszawa
Wrocław ŁódźKraków
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Labour market analysis
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Eastern Europe: population by country
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Cities in Poland over 200 000 citizens
Source: Advisory Group TEST Human Resources survey www.testhr.pl
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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
Source: Advisory Group TEST Human Resources survey www.testhr.pl
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Student population in Poland - main cities
Number of students in Poland – 2 million
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Student and Graduate specialisations - Warsaw
Source: Advisory Group TEST Human Resources survey www.testhr.pl
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Student and Graduate specialisations - Kraków
Source: Advisory Group TEST Human Resources survey www.testhr.pl
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Student and Graduate specialisations - Katowice
Source: Advisory Group TEST Human Resources survey www.testhr.pl
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Student and Graduate specialisations - Poznań
Source: Advisory Group TEST Human Resources survey www.testhr.pl
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Student and Graduate specialisations - Wrocław
Source: Advisory Group TEST Human Resources survey www.testhr.pl
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Student and Graduate specialisations - Łódź
Source: Advisory Group TEST Human Resources survey www.testhr.pl
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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
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Salaries - SSC Finance sector
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Salaries - IT sector
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Salaries - HR sector
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Polish Office MarketQ2 2010
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Office stock share in major Polish cities
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Office stock share in major Polish cities
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Prime rents and vacancy
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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 €
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Kraków office market
Kraków
Population 756 267
Total stock 408 000
Available space 40 000
Vacancy rate 8,4%
New supply in 2009 98 000
Rental Rates (A & B class buildings) 13,50 € - 15,50 €
Planned supply
2010: 73 000
2011: ca. 95 000
Rental rates (estimated, in new projects) 13,50 € - 15,00 €
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Wrocław office market
Wroclaw
Population 632 240
Total stock 327 600
Available space 30 000
Vacancy rate 6,7%
New supply in 2009 27 200
Rental Rates (A & B class buildings) 13,00 € - 15,00 €
Planned supply
2010: 35 400
2011: ca. 20 000
Rental rates (estimated, in new projects) 12,50 € - 14,50 €
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Katowice office market
Katowice
Population 309 724
Total stock 213 500
Available space 24 000
Vacancy rate 7,5%
New supply in 2009 17 800
Rental Rates (A & B class buildings) 14,00 € - 16,00 €
Planned supply
2010: 51 500
2011: ca. 20 000
Rental rates (estimated, in new projects) 13,00 € - 15,00 €
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TriCity office market
TriCity
Population 743 338
Total stock 290 000
Available space 23 000
Vacancy rate 5,9%
New supply in 2009 31 000
Rental Rates (A & B class buildings) 14,00 € - 16,00 €
Planned supply
2010: 26 000
2011: ca. 60 000
Rental rates (estimated, in new projects) 13,50 € - 15,50 €
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Poznań office market
Poznan
Population 556 022
Total stock 200 000
Available space 21 000
Vacancy rate 10,7%
New supply in 2009 26 500
Rental Rates (A & B class buildings) 15,00 € - 17,00 €
Planned supply
2010: 38 000
2011: ca. 8 000
Rental rates (estimated, in new projects) 14,00 € - 16,00 €
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Łódź office market
Lodz
Population 744 541
Total stock 190 000
Available space 43 000
Vacancy rate 23,6%
New supply in 2009 40 500
Rental Rates (A & B class buildings) 11,00 € - 14,00 €
Planned supply
2010: 51 000
2011: ca. 25 000
Rental rates (estimated, in new projects) 11,00 € - 14,00 €
Presented by:
Damian Scanlon
Senior Associate – Advisory
damian.scanlon@pl.pwc.com
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
bartosz.wieczorek@testhr.pl
+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:
wlodzimierz.jedruszak@fisheyeproperties.pl
FISHEYE Properties Establishment Sp. Kom.
31-158 Kraków, ul. Krowoderska 52
tel. 12 630 93 00
fax 12 630 90 68
www.fisheyeproperties.pl
Contact
aspire@aspire.org.plwww.aspire.org.pl
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Q&A
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