BPO Innovations Conference A Czech Success Story Jan Fried | Director of East Coast Operations, USA New York, November 13 th 2013
BPO Innovations Conference A Czech Success StoryJan Fried | Director of East Coast Operations, USA
New York, November 13th 2013
1. Success Factors
2. Case Studies
3. Incentives and Statistics
Agenda
Success Factors
Source: CzechInvest / Gartner's Leading Locations for Offshore Services in EMEA, 2012
Population 10.5 million
Labor force 5.3 million
Unemployment 7.6 %
GDP growth (2012) -1.0 %
GDP growth (*2013) -1.0 %
Annual inflation 1.8 %
Outsourcing and Innovation
Hub in the Heart of Europe
Czech Republic
Source: CzechInvest, 2013; Czech Statistical Office, May 2013, Czech Ministry of Finance, July 2013
BSS Case Studies
Source: CzechInvest, 2013
Complex expense management and outsourcing services
Ariba Prague offers its services for the companies in EMEA region
using 15 European languages
2004 – Establishment of Ariba in the Czech Republic
2007 – Establishment of Prague BPO office with only 25 employees
2012 – Ariba Inc. became a part of SAP family – Ariba and SAP Company
2013 – Ariba employs 160 employees
Source: CzechInvest, 2013
BPO Center of Excellence in Prague since 2001
Services: Finance & Accounting, HR, Insurance, Supply Chain, Procurement, Business Services, Infrastructure Outsourcing, Application Outsourcing
Banking, Communications, Financial Services, Products, FMCG
The capital and the largest city of the Czech Republic,
Prague, is easily accessible to major cities in Europe
A key business hub and cost-effective market of top technology talent;
25% of the university population are science and technology graduates
Multilingual workforce (23 languages)Source: CzechInvest, 2013
BPO – invoice management, customer support, data management
Established in 2004 in Brno
Number of employees: 550
In 2013 one of the founding members of ABSL in the CR
The Association of Business Service Leaders in the Czech Republic (ABSL) has formed to give the business services industry a common voice to help shape its environment and destiny.
ACCA, Accenture, DHL, Edwards Services, Gardner Denver, Infosys, JNJ, MANN + HUMMEL, Monster, Motorola Solutions, PPG INDUSTRIES CZECH REPUBLIC, Pilsner Urquel, PricewaterhouseCoopers, Process Solutions, Siemens
Source: CzechInvest, 2013
Geographic Location in the Centre of Europe
Well Educated and Skilled Labor Force
Favorable Labor Costs
R&D and InnovationCapabilities
Attractive Business Climate
Why?
Source: CzechInvest, 2013
╌ Corporate Tax (19%) Relief for up to 10 Years
╌ Transfer of a Land at Discount
╌ Job-creation Grants (up to USD 2,500 per employee)
╌ Training and Re-Training Grants
╌ Condition: 100+ new jobs
╌ State Aid Maximum 40 % of Eligible Costs:
╌ Assets (>1/2 New Machinery)
╌ 2-years Gross Wages (New Positions)
Source: CzechInvest, 2012
State Incentives (BSS/BPO)
Source: CzechInvest, 2013
╌ Operational Program Enterprise and Innovation (OPEI)
╌ 15 Grant Programs for the period 2007-2013
╌ ICT and Business Support Services
╌ Shared-Services and Data Centres
╌ Allocation: app. USD 50 mil.
╌ Individual Subsidy: up to USD 7.5 mil. (40 – 60 % of Eligible Costs)
╌ Application Registration: Nov 6 – Dec 17, 2013
╌ Full Application: Nov 6, 2013 – Feb 7, 2014
Source: CzechInvest, 2012
EU Funds
Source: CzechInvest, 2013
╌ Conditions:
╌ Minimum investment: USD 150k (50k for SMEs)
╌ Creation of minimum jobs: 10/20/40 (size)
╌ Eligible costs:
╌ 1) 2 yr Gross Wages + Social-security and Health Insurance
╌ 2) HW/SW
╌ Real Estate Rental + Services of Experts and Consultants
Source: CzechInvest, 2012
ICT and Business Support Services
Source: CzechInvest, 2013
Source: CzechInvest, 2013
Manufacturing 100%
Year 1993Manufacturing
16%
Business Support Services
45%
Technology Centers
39%
Year 2013
Change in the Structure of Investments
Source: CzechInvest, 2013
Ministry of Industry and Trade
CzechInvest AgencyForeign Offices – USA
Jan Fried
USA – East Coast – New York
Mobile phone: +1 (347) 216 9355
E-mail: [email protected]
Roman Horacek
USA – West Coast – California
Mobile phone: + 1 (415) 794 0665
E-mail: [email protected]
Source: CzechInvest, 2013
Thank you for your attention.www.czechinvest.org
Jan Fried | Director of East Coast Operations, USA
[email protected] @jan_fried
USD 2.5milUSD 25mil +
500 jobs
$$
USD 500k + 40 jobs
$$
USD 10mil + 120 jobs
STRATEGIC
40 jobs IT 100 jobs BSS
Incentives
strategic services center5,52% paper, wood processing
1,78%
electronics, electrotechnics
10,92%
plastics, rubber6,25%
chemistry, pharmacy6,33%
IT and software development
19,51%
metal products4,04%
aircrafts0,21%
biotechnology, medical equipment
0,68%
Food Processing0,59%
engineering13,73%
manufacture of motor vehicles16,40%
other14,02%
Sector Statistics 1993 - 2013
Source: CzechInvest, 2013
1999 - Establishment of business entity: AT&T Global Network Services Czech Republic s.r.o. in Prague
2008 - Establishment of Brno Network Operations Centre
2009 - Launch of new AT&T Brno premises in Campus Science Park
2010 - Large Transition Project Bloom (consolidation of Global Customer Service Centres from various locations in Europe to Brno, CZ)
2013 – AT & T in Brno employs more than 1000 people
Source: CzechInvest, 2013
2001 – Establishment of Brno branch with dozens of employees
2004 – Brno branch became a part of strategic locations IBM Delivery Centers – DC
2005 and 2006 – Significant growth – IBM DC employed more than 2000 people
2009, 2010, 2011 – New projects were launched
2013 – IBM DC employs more than 3300 employees
Source: CzechInvest, 2013
╌ BSS / Call Centrum (Italy)
╌ Ostrava, Chrudim (app. 400 jobs)
Source: CzechInvest, 2012
Investors of the Year 2012
╌ IT / SW Development (USA)
╌ Brno (app. 200 jobs)
╌ BSS / IT (USA)
╌ Brno (app. 200 jobs)
Source: CzechInvest, 2013