Outsourcing Opportunities in Poland
CEEOA Webinar
26th May 2010
Agenda
1. Macro-economic overview of CEE;
Introduction to Poland and key BPO/SSC
locations
Damian Scanlon, PricewaterhouseCoopers
2. Labour market analysis
Bartosz Wieczorek, AG TEST
•
Polish Office Market Q2 2010
Włodzimierz Jędruszak, Fisheye Properties
•
Q&A
PricewaterhouseCoopers
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.
PricewaterhouseCoopers
Poland - an introduction
• 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.
 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
PricewaterhouseCoopers
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.
PricewaterhouseCoopers
• 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
Labour pool
Unemployment
Number of universities
Number of students
Office space (m 2)
Rental cost (EUR/m2 )
International Airport
Flight connections (domestic / international)
PricewaterhouseCoopers
KATOWICE (SILESIA)
1 710 076
1 096 000
2.2 %
68
350 000
3 247 500
18-25
Yes
10/ 64
Population
Labour pool
Unemployment
Number of universities
309 621
(2 764 000)
202 371
(1 236 000)
2.9%
(7.1%)
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
Polish BPO/SSC locations
ŁÓDŹ
KRAKÓW
Population
Labour pool
Unemployment
Number of universities
756 000
500 000
2.8 %
25
Population
Labour pool
Unemployment
Number of universities
744 000
487 000
6,70%
21
Number of students
210 000
Number of students
116 200
Office space (m 2)
408 000
Office space
190 000
Rental cost (EUR/m2 )
13.5-15.5
Rental cost per square meter (EUR)
11-14
International Airport
Yes
International Airport
Yes
Flight connections (domestic / international)
3/ 32
Flight connections (domestic / international)
1/ 9
PricewaterhouseCoopers
Polish BPO/SSC locations
WROCŁAW
Population
Labor pool
Unemployment
Number of universities
GDAŃSK (Tri city)
635 000
420 000
3.9%
27
Population
Labour pool
Unemployment
Number of universities
455 581
296 919
2.5%
19
Number of students
170 000
Number of students
100 000
Office space (m 2)
327 600
Office space
290 000
Rental cost (EUR/m2 )
13-15
Rental cost per square meter (EUR)
14-16
International Airport
Yes
International Airport
Yes
Flight connections (domestic / international)
1/ 27
Flight connections (domestic / international)
3/ 37
PricewaterhouseCoopers
Polish BPO/SSC locations
Wrocław
Kraków
Łódź
Katowice
Gdansk
Warszawa
PricewaterhouseCoopers
 Labour market analysis
PricewaterhouseCoopers
Eastern Europe: population by country
PricewaterhouseCoopers
Cities in Poland over 200 000 citizens
Source: Advisory Group TEST Human Resources survey www.testhr.pl
PricewaterhouseCoopers
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
PricewaterhouseCoopers
Source: Advisory Group TEST Human Resources survey www.testhr.pl
Student population in Poland - main cities
Number of students in Poland – 2 million
PricewaterhouseCoopers
Student and Graduate specialisations - Warsaw
PricewaterhouseCoopers
Source: Advisory Group TEST Human Resources survey
www.testhr.pl
Student and Graduate specialisations - Kraków
PricewaterhouseCoopers
Source: Advisory Group TEST Human Resources survey
www.testhr.pl
Student and Graduate specialisations - Katowice
PricewaterhouseCoopers
Source: Advisory Group TEST Human Resources survey
www.testhr.pl
Student and Graduate specialisations - Poznań
PricewaterhouseCoopers
Source: Advisory Group TEST Human Resources survey
www.testhr.pl
Student and Graduate specialisations - Wrocław
PricewaterhouseCoopers
Source: Advisory Group TEST Human Resources survey
www.testhr.pl
Student and Graduate specialisations - Łódź
PricewaterhouseCoopers
Source: Advisory Group TEST Human Resources survey
www.testhr.pl
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%
PricewaterhouseCoopers
Source: Advisory Group TEST Human Resources survey www.testhr.pl
Salaries - SSC Finance sector
PricewaterhouseCoopers
Salaries - IT sector
PricewaterhouseCoopers
Salaries - HR sector
PricewaterhouseCoopers
Polish Office Market
Q2 2010
PricewaterhouseCoopers
Office stock share in major Polish cities
PricewaterhouseCoopers
Office stock share in major Polish cities
PricewaterhouseCoopers
Prime rents and vacancy
PricewaterhouseCoopers
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
PricewaterhouseCoopers
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
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
PricewaterhouseCoopers
2010:
73 000
2011:
ca. 95 000
Rental rates (estimated, in new projects)
13,50 € - 15,00 €
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
PricewaterhouseCoopers
2010:
35 400
2011:
ca. 20 000
Rental rates (estimated, in new projects)
12,50 € - 14,50 €
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
PricewaterhouseCoopers
2010:
51 500
2011:
ca. 20 000
Rental rates (estimated, in new projects)
13,00 € - 15,00 €
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
PricewaterhouseCoopers
2010:
26 000
2011:
ca. 60 000
Rental rates (estimated, in new projects)
13,50 € - 15,50 €
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
PricewaterhouseCoopers
2010:
38 000
2011:
ca. 8 000
Rental rates (estimated, in new projects)
14,00 € - 16,00 €
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
PricewaterhouseCoopers
2010:
51 000
2011:
ca. 25 000
Rental rates (estimated, in new projects)
11,00 € - 14,00 €
PwC
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.pl
www.aspire.org.pl
Members
Q&A
Members