kraków - ASPIRE

The Advanced Business Services & Technology Sector
Overview
!
Romek Lubaczewski
PwC
KRAKÓW is a Maturing Market
S
S
U
B
S
E
N
I
N
E
B
S
T
I
EF
Quality
Cost
•
•
Elimination of
duplicated crosscountry effort.
Reduction in
operating cost by
re-locating to a
lower cost country. Strategic
Benefits
•
The ability to implement
and control change.
•
Management team
focus on strategy and
not daily operational
issues.
•
The ability to implement
best practice standard
processes.
•
Enable “bolt-on”
capabilities for potential,
future acquisitions.
•
Specialisation to
increasing efficiency
and improve service
levels.
•
Easier and cheaper to
roll out ERP.
•
Better service through
unified processes and
technology.
•
Improved control.
Source: PwC SSC Advisory, 2014
Shared services, outsourcing & IT centres in Poland
3k
SZCZECIN
Arvato Services
Coloplast
Genpact
Stream Global Services
Metro Group
Tieto
UniCredit
Unizeto Technologies
WARSAW
GDAŃSK
Acxiom
Arla Foods
Bank BPH/GE Capital
Bayer
Fineos
First Data
Geoban
Kemira
Metsa
Sii
Sony Pictures
Thomson Reuters
WNS
12k
7k
BYDGOSZCZ
Alcatel-Lucent
Atos Origin
POZNAŃ
Amazon
Arvato Services
Carlsberg
Dalkia
Duni
Franklin Templeton
Jeronimo-Martins
Carl Zeiss
GSK
IKEA
WROCŁAW
MAN
ACP
Roche
Alstom
CAN
Credit Suisse
Diehl Controls
Fagor
Geoban
Google SSC
HP
IBM
Irevna
KPIT Cummins
Luxoft
McKinsey
Microsoft
Mphasis
Nokia Siemens Networks
Opera Software
PNC (PFPC)
QAD
Remy International
Ruukki
Siemens
Tieto
UPS
Volvo
Wabco
Whirlpool
ŁÓDŹ
6k
12k
Accenture
Aviva
Avon
CBRE Outsourcing
Citibank
Colgate Palmolive
Elavon
Esselte
Euronet
GE
GSK
Goldman Sachs
Itella Information
Jones Lang LaSalle
Lionbridge
Oriflame
Procter&Gamble
Roche
RBS
RS Components
Schneider Electric
Sitel
Stanley
Symantec
Tchibo
Wipro
Wincor-Nixdorf
9k
LUBLIN
Genpact
Orange
GLIWICE
Ista
Pregis
Saint-Gobain
CZĘSTOCHOWA
TRW
6k
KATOWICE
Capgemini
Grant Thornton
HireRight
IBM
ING
PwC SSC
Rockwell Automation
Steria
DĄBROWA
Alba
Arcelor Mittal
Wipro
BIELSKO – BIAŁA
Fiat SSC
Żywiec
Source: ASPIRE, January 2014
Accenture
Atos Origin
BSH
CERI
Citi Financial
Fujitsu Services
General Electric
HP
Indesit
Infosys
Nordea
PCT
SouthWestern
KRAKÓW
!
!
ABB
Accenture
AMS
Amer Sports
Amway
Antenna
Aon Hewitt
Apriso
Arvato Finance
Assa Abloy
BNP Paribas
Brown Brothers Harriman
Capita
Capgemini
CBB
!
35k
!
!
CH2M Hill
Chatham Financial
Cisco
Clifford Thames
Comarch
Connect2Media
Delphi
Deutsche Telecom
EDF
!
Electrolux
EPAM
Estimot
Ericpol
Euroclear
Euroscript
Farnell element14
FMC Technologies
FQS Fujitsu
GE Healthcare
Genpact
Google R&D
Hays
HCL
HEINEKEN
Herbalife
Hitachi
HSBC
IBM
International Paper
Kenexa
Lastminute
Lufthansa
Lumesse
Lundbeck
Luxoft
Making Waves
Mota-Engil
Motorola
Nokia
Ocado Technology
Oracle
Perkin Elmer
Philip Morris
Rolls Royce
RWE
Sabre
Samsung
Sappi
Serco
Shell
Sii
State Street Services
Stefanini
Tesco
UBS
UPM
Valeo
Vesuvius
Xerox
Leading BRANDS
Top 50 Global Outsourcing Cities 2007-2014
- Top Cities in Central & Eastern Europe
!
Source: Tholons Top 100 Cities for Global Outsourcing
10
Kraków
Prague
20
Budapest
Brno
Warsaw
30
40
Bucharest
50
Bratislava
Sofia
2007
2008
2009
2010
2012
2013
2014
Top 50 Global Outsourcing Cities 2007-2014
- Europe’s Top 2
!
Source: Tholons Top 100 Cities for Global Outsourcing
Dublin
4
5
5
6
7
8
9
Kraków
9
10
11
11
2010
2012
10
Dublin
10
2013
2014
14
15
15
Kraków
16
2007
2008
2009
Evolution of the Business Services Sector...
20%
2015 Forecast
The Old:
!
Basic Accounting
!
Call Centres
!
Payroll
!
Data Processing
The New:
!
Analytics
!
Audit & Compliance
!
Software Development
!
Marketing
!
Investment Fund
Servicing
Kraków 2013 Headlines
New entrants
11
Accenture
Arvato Finance
Herbalife
GE Healthcare
Lundbeck
Ocado Technology
Sappi
RR Donnelley Technology
RWE
Samsung
Stefanini
Tholons Ranking
1st
Companies that added
200-500 jobs
Brown Brothers Harriman
Capgemini
Cisco Systems
Comarch
Euroclear
HEINEKEN
HSBC
Lufthansa Global Services
Sabre Holdings
Shell Business Services
State Street Services
UBS
12
35,000
jobs
Kraków has replaced Dublin as the top ranking
location in Europe.
OUR BUSINESS CREATES JOBS
New jobs in advanced business services and technology, 2000-2015
38 000
Today
20%
50 000
37 500
2015 Forecast
38 000
New jobs created every year
in each of the last 5 years
32 000
27 000
22 500
19 000
16 000
14 000
11 000
12 500
8 000
6 000
3 000
2 000 2 500
1
500
1 000
4 000
2000 2001 2002 2003 2004 2005 2006 2007 2008 2009 2010
Source: ASPIRE Headcount Tracker and AG Test
2011
2012 2013 2014 2015
Headcount
25 000
Our Business supports the development of modern OFFICE SPACE
Companies in the advanced business &
technology services sector are driving the
development of class A office space in Kraków
2015 Forecast
!
•
37%
63%
Advanced business & technology services
Other
•
Centres lease approx. 330,000 square metres
of class A office space out of a total stock of
530,000 square metres!
!
An additional 115,000 square metres of office
space is being delivered in 2014
Transport Strategy
As the sector grows so too does the need for a transport strategy to
accommodate the sector’s commuting needs!
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Source: Knight Frank, 2014
Our Business has significant COMMUTING NEEDS
12,600 people
22,400 people
36%
20%
Public transport
2015 Forecast
64%
Private transport
35,000 people commute to work on a daily basis.
This puts a strain on the transport system, especially between 8-9 a.m. and 5-6 p.m.
Bicycle paths
!
4% travel to work
by bicycle
Parking
!
30% travel to work
by car
Our Success Story is being written by Kraków’s YOUNG PEOPLE
•
The quality and the value of our services stems directly from
the potential of our staff pool
•
The multicultural skills, abilities, the sensitivity to diversity – all
these are the characteristics of our people which are not
widespread in other global locations
•
The industry offers unique opportunities for learning and
development
20%
29
Average age of people working
in Kraków centres
70%
% of staff that are graduates of
Kraków universities
83%
% of staff with a university
degree
7.9
Average Training days
per year per employee
•
Kraków centres provide career
opportunities to Kraków graduates,
keeping the best talent in the city
•
Our centres - like universities aspire to be centres of learning and
excellence
•
We also attract young talent from
across Poland and other parts of
the world
Our Business is dependent on LANGUAGE and CULTURE
Top 10 Languages
1% equals approx. 300 people
86%
94
36
11%
2015 Forecast
15%
14%
11%
5%
4%
3%
2%
2%
1%
Countries served from
Kraków centres
Languages utilised in
Kraków centres
% of foreign nationals
working in centres
Our Business develops MANAGERS & EXPERTS
14% of staff are in
management positions
5,000
Managers
General Management
1%
Operational Managers
3%
Team Leaders
10%
Operational Staff
86%
ASPIRE Market Survey 2014
2015 Forecast
Our Business delivers ECONOMIC VALUE
133k
PLN
Annual value to the local economy
of each job created in the
advanced business services and
technology sector
ASPIRE Market Survey 2014
4 655m
PLN
Total value of the sector annually
to the economy of Kraków
ASPIRE Market Survey 2014
2015 Forecast
● Average gross monthly salary per employee
within SSC/BPO/IT/ITO sector
ASPIRE Market Survey 2014
6 116 PLN
57%
!
!
!
● Average gross monthly salary in enterprises
3 878 PLN
employing more than 9 employees.
Polish Statistical Office, 2012
Shared Service Centres (SSC)
Magdalena Włodek
Philip Morris International (PMI)
Companies
Definition
ASPIRE members representing Shared Services sector are some of the
world’s biggest global brands: Philip Morris, Shell, Heineken, Amway, ArcelorMittal
SSC is a separate organisational entity providing services (i.e. accounting,
IT, payroll, HR, logistics etc.) for internal clients within a geographically
scattered corporation or capital group
Range
Apart from transactional processes, the centres provide more and more
complex added value functions (eg. tax or legal advisory), to improve the
levels of expert knowledge and offer their employees more development
opportunities
People
SSC in Kraków attract not only talented Polish graduates using many
foreign languages, but also young people from across Europe offering
them jobs in multicultural environment, access to professional training and
attractive career paths
Business Process Outsourcing (BPO)
"
Wojciech Popławski
Accenture
Companies
ASPIRE members representing BPO are among others: Accenture,
IBM, Capita, AON Hewitt, AMS, Genpact
Competence
BPO providers are the global corporations operating accross all
continents and typically combine mutliple capabilties from bussiness
process management for the exteral Clients, strategic advisory and
technology solutions.
Range
BPO providers deliver services to the largest international companies
and brands across all industries in the fields of Finance & Accounting,
Human Resources, Supply Chain, Procurement, Marketing and more.
Graduates
Languages
Impact
Companies in this market segment are the largest single employers
of the entry level profiles creating the first time job opportunities for the
university graduates. The comprehensive global and local training
programs help developing the broad range of competences and
BPO sector in Central Europe primarily attracts the multilingual
candidates (including foreigners) and develop highly educated
workforce working for the largest global brands who gain the
international experience without a need of leaving Krakow – very often
being the best City advocates who bring more work to Poland.
BPO providers contribute to attracting a number of new foreign
investors to Krakow, who initially got to know the location and talent
potential thru the cooperation with BPO companies from Krakow.
Financial Services
"
Scott Newmann
State Street
Companies
Range
!!!!
ASPIRE companies representing Financial sector:
HSBC, Goldman Sachs, State Street, Euroclear i Brown Brothers Harriman
Wide range of services being provided incl. Investment Fund Servicing, Hedge Fund
Administration, Derivatives, Portfolio Analytics, Private Banking and Asset
Sector creates high value, advanced products, services and technologies
Growth
Substantial future development plans
Impact
Added value and benefits for the city
Career
The sector attracts industry professionals to Krakow from all over the world
People
Our investment in Training & Development is core to the sector
Technology
"
Wojciech Burkot
Google
Companies
Innovation
Range
People
ASPIRE member companies representing advanced technology sector are
some of the biggest global brands such as: Sabre, Motorola, GE Health,
HCL, EPAM, Ocado, Akamai, Cisco, Google
Technology centres enable the establishment of new innovative start-ups
using open access technologies (API, „open source”). These technologies
are also available for universities through opening of labs, funding research
scholarships as well as providing lectures
Technology centres main business area is software development but they
also provide services complex systems traffic maintenance as well as
training activities
Approx. 6000 employees are solving problems on global scale mainly.
During recruitment process we need to compete with all the attractive
global locations such as Berlin or London in Europe or the Silicon Valley
Vision for Kraków
Our aims
"
We aim to benefit from the out-shoring trend
"
• BPOs, SSC, Financial Services & IT Centers bring organizational and
technological solutions which drive progress and innovation.
"
• We need to attract skilled students and employees to Krakow so we
can climb the value ladder of our parent companies by attracting more
complex work.
Cooperation triangle
Universities
Municipality role:
"
• influencing curricula, promoting climbing
up the value ladder for new centres;
"
• funding diversity programs
the City
Companies
Innovators
Cooperation triangle
• A key for the future city’s development is cooperation within the triangle moderated by the City Council.
"
• Kraków’s development history clearly shows that cooperation between
potential competitors helps to ‘grow the cake’ (and benefits) for all parties
Cooperation
Transport
Innovation
Promotion
Potential
areas of
cooperation
Non-Polish
nationals
Education
Consultation
1
Transport & Infrastructure
"
• Bicycle Paths connecting central transport hubs and housing areas to
major office developments – e.g. Bonarka, Krakow Business Park,
Kazimierz, Bronowice
• Development of a Central Business District (CBD) to better compete
with other cities, rationalize infrastructure development and enable
effective management of zoning with developers
• Transport from the airport to the city centre – e.g. Metro
• Increased availability of parking near to major office locations
• Road repairs and working together to identify and optimized schedule to
avoid significant disruption to roads and the transport network
2
Promotion of the sector
• Work together with ASPIRE to promote the sector and member
organizations and their career opportunities
• Promote the sector outside Krakow in other Polish cities to attract
skilled workers to come and work in Krakow, e.g. develop a relocation
incentive
"
"
3
Support for Foreigners & People from outside Krakow
• Work together to help provide assistance to foreigners to navigate
through local bureaucracy, e.g. registration at the Department for
Foreign Affairs
• Assist foreigners with integration into the local community – e.g. where to go for help and information, documentation in multiple
languages, Web-site for foreigners in Krakow
4
Consultation with the Sector
• Actively collaborate with the sector to consult on policy decisions which
may directly impact the sector and the workforce – e.g. childcare
"
"
"
"
5
University collaboration
• Collaborate to develop curriculums which help students to better
prepare for a career in a multi-national organization, e.g. More
internships, public speaking, project skills, business language classes
6
Innovation
• Stimulating the development of local firms which target their products
and services at the sector (solving communication or parking issues)
• One common list covering the needs of both the city and sector, that
would define the city’s ‘Demand for Innovation’
Projects
Challenge
Aim
Actions
Market saturation create impact location competitiveness
vs. other cities in Poland or CE
Continued employment growth should be synchronised with the
relevant increase of talent supply (nominal increase of the graduates
or the structural change of the profiles / educational steams fitting the
jobs offered by the sector)
Joined analytics program that aims analysing the students/graduates
migrations (in/out) and the alignment of the competences of
graduates to the jobs offered by the sector. The outcomes / insights
should aid the city and universities’ authorities in decision making
around the new sources of talent outside of the near region and
modification of the educational streams / programs including the
hands-on languages skills beyond the typical western languages.
ASPIRE members are interested in participating on the educational
programs and more structured internship projects.
Projects
Challenge
Aim
Actions
Adapting the transportation infrastructure to the sector
requirements
Optimizing the transportation network taking into account the
business service sector requirements improve the workforce mobility
and work life balance what is in the center of core values of business
services organisations.
Joined analytics program to create the interactive comuting routes of
the sector employees (office, schools) to optimizethe public
transportation network in the city, working ours flexibility and
reduction of the cars traffic.
Thank you