1. Business / Shared Service Sector in the Czech Republic
Ota Kulhánek
Chairman of the Board of Directors, Association of Business Service Leaders
Senior Manager, SSC Location lead, Accenture

2. Agenda Association of Business Service Leaders
Business / Shared Service Introduction
Development of the Industry
Location Strategy a Selection
18 June 2014

3. ABSL Introduction Membership Data & Business Insight PR & Awareness
Collaboration within the Business Service Community.
Better business environment for our members and ensure sustainable and long term development of the industry
Putting the Czech Republic on the global map for Business Services
Membership
Data & Business Insight
PR & Awareness
People & Education
Authorities
Business Partners
18 June 2014

4. What is Shared Service Center?
Countries / Business Units
Centralized Operation
F&A, Procurement
Business / Share service centers
20-25 years history
It is really GLOBAL
Human Resources
IT Support
Type of
Service:
Outsourcing Centers
Internal Centers
Legal, Facilities
Local
Near Shore
Off Shore
Customer Care
Locations:
Other business services
18 June 2014

5. Global Facts 17. Prague 29. Brno Global: 5000 Europe: 2000 CEE: 1000
Business Centers
Global:
Europe:
CEE:
People
Global: 2000k
CEE: k
Future: 1400k
TOP Cities (Tholons survey)
1-8 India & Philippines
9 Krakow, 10 Dublin
17. Prague
29. Brno
18 June 2014

6. ! 150 2-3% of global scope 1.4 M -> 40.000 jobs to come (or more)
APPROX.
150
BUSINESS CENTERS
We are HUGE in this country and growing at around 20pc per year. We expect another 40-50k jobs to come in next 5 years BUT we will need to chase them and compete with other destinations who are VERY good at selling themselves in this market. We are not just Prague but even bigger in Moravia ! New centres open up in Plzen, Pardubice, Hradec Kralove, Liberec and Ceske Budejovice. This is a truly CZECH success story and expect a LOT more growth OUTSIDE of Prague. !
2-3% of global scope
1.4 M -> jobs to come
(or more)

7. Status of SSC Development
Past …
Now and Future ….
Transactional Processing
Data Entry & maintenance
Call Center
Complex processes
Data Intelligence, Insight & Advice
Innovation & Continuous Improvement
Wage arbitrage
Business value / Added value
Service provider / SLA
Business Partner , Business Outcomes
Function / Process Centric
Integrated Services
We are ALL growing in complexity – from the basic to the advanced. We start simple and clever Czechs then build capability and move up the ‘ Value Curve’ ie sorting out more complex, analtytical , valuable tasks. Result – centres grow ! Typically start with 50 and many centres are now in the hundreds and even thousands of employees. Many of them are also rated consistently as the BEST places to work in the country – including many of our members. Here to stay and here to grow is the common story.
„Came for cost stayed for quality“
Annual General Meeting 27 May 2014

8. Criteria to select SSC location
Czech Republic Value Proposition
Well Educated workforce
European language coverage and availability
Competitive Salaries
Physical proximity and same time zone in Europe
Stable Economic Environment & EU Membership
Good Infrastructure
Cultural fit
BUT….
Source: PwC, SSC Survey 2014
18 June 2014

9. CR: Focus on future growth
But E verybody can do it now…
Well Educated workforce, European language coverage and availability
Focus on languages, languages, languages ….
Improve technical skill ( IT / admin tools)
Focus on analytical skills and creativity
Competitive Salaries
One of the most expensive labor cost in CEE
Incentives for creating new jobs
Physical proximity and same time zone in Europe
Keep improving the country infrastructure
Cities need to be mobilized
Cultural fit
International business; support expats
….. and we need ABSL
18 June 2014

10. ABSL Introduction
Putting the Czech Republic on the global map of Business Services
Establish in October 2013 by 16 members
1st Conference in October 2013
Currently 36 members
Represent more than employees
1st AGM in May 2014
2nd Conference in October 2014
18 June 2014

11. ABSL Introduction Membership Data & Business Insight PR & Awareness
Collaboration within the Business Service Community.
Better business environment for our members and ensure sustainable and long term development of the industry
Putting the Czech Republic on the global map for Business Services
Membership
Data & Business Insight
PR & Awareness
People & Education
Authorities
Business Partners
18 June 2014

12. Thank you.
Association of Business Service Leaders in the Czech Republic
Hvězdova 1734/2c, Prague 4, Czech Republic |
18 June 2014