1、BUSINESS SERVICES SECTOR IN POLAND 2023 ABSL 2023The economic copyrights hereto are vested in the Association of Business Service Leaders with its registered office in Warsaw(ABSL)and are protected under the applicable copyright laws.Any dissemination or copying of this work,in whole or in part,in a

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3、he need for a broader use of the work than personal use,please email us at abslabsl.plCiting excerpts from the report of appropriate length is permissible,provided that:(I)such citation is made available free of charge and for non-commercial purposes,(II)the Association of Business Services Leaders(

4、ABSL)is provided as the source of the citation,(III)any excerpt from the work is cited in its original form or such that the content and sense of the work are not altered,and(IV)the qualifications contained in the work are provided.This consent to quote the work does not allow any material portion o

5、f the work to be incorporated into any other work or publication,whether in hard copy,electronic or any other form or for any commercial purposes,unless the statutory requirements for permitted use regarding the right to quote are met.Layout and printing:www.ponad.pl Honorary Patron of“Business Serv

6、ices Sector in Poland 2023”is The Polish Investment and Trade AgencyReport prepared by the Association of Business Service Leaders(ABSL)in cooperation with Colliers,Mercer,Randstad and Randstad SourcerightOur substantive partner in the publication“Business Services Sector in Poland 2023”within the s

7、cope of preparing data on the academic and higher education sector is the National Information Processing Institute National Research Institute.Cooperation with ABSL:ABSL Business Intelligence Unit:researchabsl.plPawe Panczyj,Strategy&Business Development Director ABSL pawel.panczyjabsl.plDariusz Ku

8、backi,Vice President ABSL (Project Sponsor)Bartosz Szary,Member of the Management Board,ABSL Tomasz Brodzicki(PhD),Chief Economist,ABSL Stanisaw Umiski(PhD),ABSL Senior Analyst Pawe Szudra(PhD),Business Intelligence Coordinator,ABSLIndustry insights:Agnieszka Belowska-Gosawska,Head of Compliance Off

9、ice,Nordea&Vice President ABSL Dominika Kaczorowska-Spychalska(PhD),Director of the Centre for Intelligent Technologies Faculty of Management,University of LodzAndrzej Sobczak(PhD),Associate Professor,Chief of IT Management Centre Institute of Information Technology and Digital,Economy Warsaw School

10、 of Economics Sebastian Kondracki,Chief Innovation Officer DevinitiArtur Kuliski,Customer Engineer Security Specialist,Google CloudFOREWORD5EXECUTIVE SUMMARY6EXECUTIVE SUMMARY OF THE ABSL STRATEgIC FORESIgHT REPORT14MACROECONOMIC TRENDS AND OUTLOOK18CONCEPT AND METHODOLOgY OF THE REPORT22POLAND KEY

11、FACTS251 STATE OF THE BUSINESS SERVICES SECTOR IN POLAND AT THE END OF Q1 202326OVERALL CHARACTERISTICS OF THE SECTOR26THE NUMBER OF CENTERS AND STRUCTURE OF NEW INVESTMENTS30FOREIgN TRADE IN KNOWLEDgE-INTENSIVE BUSINESS SERVICES33FOREIgN-OWNED INVESTMENTS,COUNTRIES OF ORIgIN37SERVICES PROVIDED AND

12、OPERATINg MODELS42STRUCTURE OF CLIENTS SUPPORTED BY INDUSTRY43GEOGRAPHIC SCOPE OF SERVICES DELIVERED44CATEGORIES OF PROCESSES SUPPORTED47SOPHISTICATION OF BUSINESS PROCESSES49BACK-OFFICE/MID-OFFICE/FRONT-OFFICE49LANGUAGES USED AT BUSINESS SERVICES CENTERS50EMPLOYMENT IN THE SECTOR54WORK FROM HOME55C

13、ONTRIBUTION TO THE LABOR MARKET IN POLAND AND REGIONALLY56EMPLOYMENT FORECAST57EMPLOYMENT IN THE LARGEST CENTERS60AVERAGE HEADCOUNT61EMPLOYMENT BY AGE GROUP,JOB POSITION,AND BUSINESS PROCESS63SHIFT WORK64FOREIGNERS IN BUSINESS SERVICES CENTERS65EMPLOYEE TURNOVER67WOMEN IN THE SECTOR67NON-PAYROLL BEN

14、EFITS68DIVERSITY,INCLUSION&BELONGING70LOCATION OF BUSINESS SERVICES CENTERS71KNOWLEDGE-INTENSIVE BUSINESS SERVICES INDUSTRY AS A LOCAL SPECIALIZATION80ASSESSMENT OF LOCATIONS AS A PLACE FOR DOING BUSINESS82CITY PROFILES852 TECHNOLOGY AS A DRIVER OF CHANGE IN THE SECTOR96USE OF PROgRAMMINg LANgUAgES,

15、IT TECHNOLOgIES,METHODS,AND MODELS97PROGRAMMING LANGUAGES97CLOUD TECHNOLOGIES99DATA&BIG DATA100IPA,RPA&PROCESS MINING102ANALYTICS,ADVANCED ANALYTICS&VISUALIZATION103SPECIALIZED MODELS,METHODS,AND TECHNIQUES105INTELLIgENT PROCESS AUTOMATION106UTILIZATION OF CLOUD TECHNOLOgIES117CYBER SECURITY CONCERN

16、S120THE IMPACT OF AI ON THE BUSINESS SERVICES SECTOR IN POLAND IN THE NEXT 5 YEARS1243 THE OFFICE MARKET1304 THE LABOR MARKET AND SALARIES1585 INNOVATION,BUSINESS TRANSFORMATION PARADIGM,INVESTMENT PLANS,AND ESG DOMAIN188CONTENTSForeword5Business Services Sector in Poland 2023FOREwORDDear Readers,We

17、lcome to the ABSL Annual Report 2023.In this report,we explore the key developments and trends that have shaped the dynamic landscape of the business services sector in Poland over the past year(2022Q1-2023Q1).A year which saw global economic instability,the war in Ukraine,an energy crisis and post-

18、pandemic challenges.The business services sector continues to be a vital contributor to the companies growth and transformation.As we examine the developments of 2023,several key points emerge that demand our attention and understanding.The report delves into these areas,shedding light on the transf

19、ormative forces at play.Technology remains a driving force in shaping the future of business services.The rapid adoption of automation and artificial intelligence continues to revolutionize industry practices,enhancing operational efficiency and creating new opportunities for growth.Our report highl

20、ights the ways in which organizations are leveraging these technologies to optimize processes,improve decision-making,and deliver exceptional client experiences.Another important issue is the necessity for a deeper analysis of Talent which remains the most important driver and enabler of change.Sust

21、ainability and social responsibility have also gained significant traction within the business services sector.Organizations are recognizing the importance of integrating Environmental,Social,and Governance(ESG)principles into their operations.Our report examines the adoption of ESG by companies to

22、promote sustainable practices,foster social impact,and contribute positively to the communities they serve.In conclusion,the ABSL Annual Report 2023 provides a condensed yet illuminating overview of the sectors key developments and trends.By offering these insights,we invite you to explore the compl

23、ete report,which this year is complimented by the ABSL Strategic Foresight Report,which explores possible future scenarios for the sectors development.I encourage you to immerse in the reports pages and leverage its findings to gain a deeper understanding of the evolving business services industry i

24、n Poland.Whether you are a business leader,an investor,or a professional in the field,this report offers valuable insights that can inform your decision-making and consequently drive success.Kind regards,Dariusz KubackiDariusz Kubacki ABSL Vice President Business Intelligence and Thought LeadershipE

25、xECUTIVE SUMMARYTHE GLOBAL INDUSTRYThe ABSL 2023 report is based on a unique,comprehensive,and systematically updated database of business services centers in Poland,run by the Association of Business Service Leaders(ABSL),and the results of a CAVI survey conducted among the sectors leaders in Janua

26、ry-February 2023.We received 205 responses from managers,representing 49.0%of total employment in the sector in Poland at the end of Q1 2023.The report is supplemented by materials from ABSLs strategic partners,focusing on the office market in Poland(Colliers),and the labor market and talent pool di

27、mensions(Randstad,Mercer and OPI.)This years edition of the report focuses on what impact technological change has had and is having on the industry.To cover the longer-term perspective and more qualitative aspects,ABSL conducted an industry foresight exercise with a panel of experts.The executive s

28、ummary of the ABSL Strategic Foresight Report 2023 provides additional long-term perspective and outlook.Grand View Research(April 2023)estimates that the global BPO market size was USD 261.9 billion in 2022 and is projected to expand at a compound annual growth rate(CAGR)of 9.4%,reaching approx.USD

29、 525.2 billion by 2030.The outlook for the global industry in 2023 is generally favorable but some uncertainties exist due to the dependence on the global macroeconomic cycle.The global industry has proved its resilience during the pandemic crisis.Its robustness is greater than that of most manufact

30、uring and services sectors,with the industry being one of the critical drivers of recovery and growth in the post-pandemic era both in Poland and around the world.It has operated efficiently in the WFH/remote mode.Furthermore,it is set to work effectively in the hybrid mode(with a partial return to

31、offices)as it reaps the benefits of accelerated digital transformation.Competition from emerging outsourcing destinations(e.g.,Romania.Malaysia,South Africa,Egypt)and an emphasis on cost optimization will be the driving forces behind accelerating growth.The industry is expanding and transforming.The

32、 pace of transformation has quickened due to the pandemic,and the complexity of processes on offer is on the increase.The trend towards higher-value-added operations and the upgrading of processes requires accelerated upskilling and reskilling.The competition for talent is on the increase both natio

33、nally and internationally.IPA/AI could provide a partial solution to the problem of increasing labor costs and potential shortages in the labor market with regard to low skill,as well as high labor-intensive,routine,and scaled processes.The introduction of IPA will further increase the demand for a

34、skilled workforce,amplifying the competition for data and analytics as well as IT competencies.With more complex tasks and processes,the generative AI/human interface is becoming increasingly relevant.Executive summary7Business Services Sector in Poland 2023The rising demand for a skilled workforce

35、has led to the emergence of a hybrid workforce partially in the WFH mode and partly working from offices.As a consequence,offices must be adjusted to this new working environment.The next step the virtualization of work(e.g.,shift towards Metaverse),will be even more demanding.Over the years,the glo

36、bal industry has provided businesses with cost-effective solutions.As cost efficiency is very much valued by clients,it will still be the essential driving force in the sector.However,clients expect the industry to help them with more complex processes.Rising labor costs and growing talent scarcity

37、will induce the wide-scale use of emerging technologies,such as cloud computing,moving beyond RPA towards IPA and AI in order to maintain or further reduce costs and increase growth.Factors driving the growth and transformation of the industry include:the globalization of economic activity and the r

38、ising internationalization of firms,the increasing popularity of outsourcing,due to associated benefits provided by the industry,a shift from offshoring towards back-shoring,nearshoring,and to a larger extent,friend-shoring(regionalization of VCs),accelerated digital transformation,tectonic shifts i

39、n work patterns post-Covid(hybrid work,WFH,WFA),growing demand for different types of technological knowledge,especially related to new technologies(IPA/RPA/ML/DL/AI),a growing demand for specialized knowledge of social,administrative,and regulatory issues,an increasing emphasis on service and intan

40、gible elements of production and products in the knowledge-based economy.THE INDUSTRY IN POLAND OVERALL PERFORMANCEDespite global challenges,uncertainty,and economic headwinds,2022 proved to be another good year for the sector in Poland.Employment at the end of Q1 2023 exceeded 435,300 jobs,and more

41、 than 32,000 jobs have been created YoY(a growth rate of 8.0%).In terms of employment,the industry has grown slower than in the previous year(12.4%).Nevertheless,its share in Polands overall employment in the enterprise sector increased to 6.7%.There are more than 1,800 business services centers ope

42、rated by 1,106 companies.The YoY employment growth rate exceeded ABSLs previous expectations.2022 proved to be a record year for exports with the value of the industrys exports estimated to be USD 30 billion for the year.Exports per worker,an indirect measure of the industrys productivity,exceeded U

43、SD 53,000 per annum and have grown by more than 21%since 2016.Exports increased by 13.7%YoY(imports by 16.3%YoY).The surplus in KIBS trade surpassed USD 12.5 billion(USD 11.3 billion in 2021).A surplus has been generated regularly since 2008 and has constantly grown over the last 14 years.Executive

44、summary8Business Services Sector in Poland 2023The condition of the sector in Poland is related more to the state of the global economy than the condition of the local economy.Poland is one of the leading markets for KIBS in both the EMEA region and globally,quickly closing in on the global technolo

45、gical leaders through straightforward upgrading and upskilling.The prospects for further growth are positive.We believe the forthcoming years will see employment peak,while in the long-term an unprecedented development in technology and AI will probably slow this expansion of the workforce as techno

46、logy replaces peoples roles in some processes.However,predicting the future of the KIBS industry is particularly challenging.There are a lot of questions related to how AI will change business models as well as the demand for employee skills.Several scenarios are possible they are presented in the A

47、BSL Strategic Foresight Report 2023.The estimated number of foreigners employed by centers in Poland now stands at 76,700 people,representing 17.6%of the industrys total employment.It reflects a YoY increase in both absolute and relative terms.Employment in centers operated by foreign investors in P

48、oland exceeded 363,900 people(83.6%of total employees working in the sector).Investors originate from forty-seven countries,with US firms employing more than any other country(in excess of 120,900 jobs created).Most centers support global reach or specific countries or regions;only 2.2%of respondent

49、s declared that they solely focused on Poland.The scope of processes serviced from Poland is gradually increasing,with mid-office processes slowly pushing out back-office operations.This aligns with the upgrading and upskilling development paradigm that we have stressed for several years.In Q1 2023,

50、knowledge-intensive work represented 56.9%of the processes serviced by the centers located in Poland(50.8%in 2022 for comparison purposes,thus increasing by 6.1 p.p.),with transactional services gradually being reduced.These qualitative aspects of changes should attract more attention in the discuss

51、ion about the industrys performance and its future,with the focus not merely on head-count dynamics per se.The growth of the sector in Poland has been driven by access to a talent pool with considerable linguistic skills.The most popular foreign language is English(used by 93.6%of centers).However,t

52、he industrys needs have gradually shifted to a mixture of linguistic and programming/IT technology skills.Women are playing an even more prominent role in the sector.Their share in total employment at business service centers in Poland now stands,as it did last year,at 53.0%.However,women are under-

53、represented in management with the situation even more acute in senior management.The sector takes diversity and inclusion very seriously and,as a consequence of the COVID-19 pandemic,takes belonging as a new and important dimension.Highly skilled workers are the most critical asset.The industry off

54、ers competitive salaries with a range of non-payroll benefits,which go beyond the Polish labor law standard and is perceived as a trendsetter in this respect.Executive summary9Business Services Sector in Poland 2023TECH TRENDS IN POLANDTechnology is the major driver of change in the sector.The most

55、popular programming languages in the industrys centers in Poland include SQL,Python,VBA,Java&Javascript followed by the C#/*.net/C/C+language family.Despite the complex nature of large-scale cloud transformation initiatives,cloud transformation is gathering pace.As for cloud technologies,centers in

56、Poland utilize the whole spectrum of available technologies led by Microsoft Azure(used by 70.8%of firms)and followed by Google Cloud and AWS.The significance of data in different forms and types,structured and unstructured,and the amount of data collected are all increasing.The most popular technol

57、ogies,platforms,and tools related to data currently include Microsofts SQL Server followed by SAP/Hana and MySQL.Data visualization is becoming increasingly popular;it enables managers and clients to inform strategic decision-making and allows data to tell a story,including creating manager dashboar

58、ds.As was the case last year,PowerBI maintains a dominant position over Tableau and other available solutions.The trend toward implementing IPA that includes both RPA and AI solutions is also on the increase(with generative AI likely leading to disruptive change.)The most popular solutions in this d

59、omain include Service Now,SAP,and Microsoft Power Platform with UI Path and Chatbots completing the top five.Furthermore,cybersecurity threats are continuing to increase and fueling firms investments in this area.EMPLOYMENT FORECASTAs has already been mentioned,the dynamics of the sectors growth dep

60、end more on the global economic situation than the economy in Poland.Taking the global slowdown into consideration,we predict that employment in Polands KIBS sector,until Q1 2024,will increase to 465,000 people(6.9%).74.0%of respondents envisaged employment increases,10 p.p.lower than in the previou

61、s year.However,we must consider the more complex,VUCA(volatile,uncertain,complex,and ambiguous)economic environment in which the sector operates globally.Adaptability is a natural part of doing business.The sector in Poland is performing well.It passed the pandemic stress test with business continui

62、ty plans working effectively.The sector has proved its resilience;its employment growth significantly surpassed the headcount dynamics in Polands economy.However,the character and scale of the challenges the sector is confronted with are considerable.The new reality is still influenced by the conseq

63、uences of the COVID-19 pandemic,the WFH challenge,Russias invasion of Ukraine,macroeconomic instability as well as global tensions.The most significant knock-on effects that the sector is faced with include deteriorating access to the talent pool(see Polands worsening position in the global talent p

64、ool ranking World Talent Ranking),as well as the uncertainty and investment risk caused by Russias invasion of Ukraine.We therefore believe that jobs will continue to be created primarily in centers already operating in Poland,possibly reducing the inflow of new investments.According to the responde

65、nts declarations,destabilization of macro fundamentals(inflationary pressure and global stagflation)was seen as the factor that could have the most adverse effect on centers Executive summary10Business Services Sector in Poland 2023THE LABOR MARKET&THE TALENT POOLAfter the last few years,when the wo

66、rld of work has been transformed by the COVID-19 pandemic,firms face new challenges in building effective teams.At the same time,there are new opportunities to evolve their talent strategies,adapt to the current landscape and be better prepared for what lies ahead.Despite the recent disruption,busin

67、ess services companies are primed for strong and continued growth,as the industry has proven its resilience and ability to transform.According to the ABSL survey,employers were optimistic about the future,with nearly three-quarters planning to increase employment.However,one must bear in mind talent

68、 pool availability,with the talent shortage still a serious challenge for the business services sector and across industries worldwide.According to the IMD World Competitiveness Centers World Talent Report,Poland was ranked 50th out of 63 countries in its 2022 World Talent Ranking a measure of how d

69、ifferent markets develop,attract,and retain talent.This is down from 45th in 2021 and 35th in 2020,emphasizing the challenges of Polands long-term ability to provide high-quality talent for the business services sector.However,this years respondents to the ABSL survey perceived the talent pool short

70、age as a less significant barrier to operation and growth than the participants in the previous years survey.To some extent,they acknowledged the fact of the talent pool shortage employing more foreigners and seeing the 35+age personnel share increase.Additionally,in the longer term,WFH and work-fro

71、m-anywhere,accompanied by the development of technology and AI,is expected to reduce the severity of the talent pool shortage.Still,40.0%of the employers surveyed see the availability of talent in Poland as a fundamental challenge to their centers growth and future prospects.Meanwhile,the majority(5

72、5.7%)expect talent shortages will be significant in the next five years,driving the need to adapt how they find and develop talent.The pandemic has changed recruitment patterns,with hiring from anywhere on the rise.Only 28.5%of respondents stated that it is still important that employees live in or

73、near the city where their center is situated.On the one hand,locations are still perceived by many investors as offering idiosyncratic talent pool competencies,which stem from local business culture and tacit knowledge of organizations(and their interactions).On the other hand,the sectors growth,dem

74、and for talent,and talent pool scarcity are forcing organizations to source personnel from anywhere.According to Randstad,the growing challenge is to retain people with the right skills.This is why more companies are providing enhanced benefits and focusing on employee well-being to better attract,r

75、etain and engage talent,such as offering remote work as an incentive.Randstad points to a particular shortage of specialized talent,with IT and digital skills becoming very costly to obtain.Given the economic uncertainty in Poland as well as ongoing skills shortages,it is more important than ever fo

76、r companies to leverage talent intelligence and unlock workforce potential with internal mobility.As shown by Mercer,salaries in Poland are still competitive in comparison to Western European countries.The pay gap is significant,especially at lower job levels.It is worth pointing out,however,that re

77、latively activity in the forthcoming year.The escalation of the military conflict beyond Ukraine and the global talent shortage rounded off the top three concerns.We also put forward two possible scenarios for employment growth.In an optimistic scenario,9.5%employment growth is envisaged,while in a

78、pessimistic version,would be no lower than 4.2%.Executive summary11Business Services Sector in Poland 2023high salaries are offered in the sector compared to other industries in Poland,and value for money is perceived as competitive.IT is the best-rewarded job grouping,while jobs in Finance&Accounti

79、ng,Contact Center,and Content Development are the lowest.Regional pay differentials within the industry in Poland persist,and compensation levels vary,with the highest in Warsaw(8.6%above the Polish average).The current economic climate is marked by a high Consumer Price Index(CPI),which presents ch

80、allenges for both employers and employees.According to Mercer,just over half of companies have decided to implement extra measures,and partially reimburse their employees due to increasing inflation.EDUCATIONAL POTENTIAL The largest cities in Poland,including agglomerations,represent the most import

81、ant academic centers,and account for most of the best public and private universities.Tier 1 locations account for 42.0%of students overall and 39.0%of available graduates.The availability of universities and the quality of education are the most crucial determinants of the development of the sector

82、 offering modern services for business.The number of universities is constant(225 in 2022),with the number of students and graduates having stabilized after falling in previous years(data provided by National Information Processing Institute at the National Research Institute).It is mainly related t

83、o the demographic decline,but also to the larger availability of education abroad which is chosen by an increasing number of Polish high school graduates.9.0%of the overall student pool are foreigners,while the share of foreigners in the graduate pool is 6.0%.Ukrainians represent 47.0%of the overall

84、 number of foreign students,with 12.0%from Belarus.THE ATTRACTIVENESS OF LOCATIONSPart of the ABSL annual survey is the assessment of factors by the surveys participants that affect doing business in particular locations in Poland.In this years edition,we have not adjusted the list of factors.Howeve

85、r,the list does include factors that were added last year:the availability of flex/coworking office space,quality of the local natural environment,and the area of office premises relative to the city center(an attractive place in the city center.)The overall position of a city in the ranking reflect

86、s the opinions of the managers.The top three cities in this years assessment were Wrocaw(1st),Warsaw(2nd),and Tricity(3rd).The overall score based only on the assessment of objective factors,and excluding the managers overall assessment,was similar to the top three positions at the end of Q1 2022:Wa

87、rsaw(1st),Wrocaw(2nd),and Tricity(3rd).With hybrid work patterns(and a partial return to office)as well as work from anywhere increasingly more important,processes services becoming more standardized,and“footloose”AI taking prominent functions in the industry,the role of locations and their specific

88、 advantages is expected to diminish.Executive summary12Business Services Sector in Poland 2023THE OFFICE MARKETThe Polish office real estate market is one of the most dynamic and innovative in the Central and Eastern Europe(CEE)region.Despite many challenges(e.g.,the post-pandemic reality,the emerge

89、nce of the“new normal”,and indirect consequences of the Russian invasion of Ukraine on the regions economy),the market in Poland remains in good condition.Nine mature regional markets in agglomerations of Poland(Warsaw,Krakw,Wrocaw,d,Pozna,Tricity,and Katowice)continue to attract the attention of de

90、velopers,investors,and tenants alike.At the end of Q1 2023,these nine major markets total modern office stock increased to 12.7 million square meters.Over 480,000 m2 of new office space was delivered in 2022,in comparison to 550,000 m2 in the previous year.With the return to the office,space under c

91、onstruction in 2023 stands at 712,000 m2.However,this is lower than the over 1.2 million m2 of modern office space under construction at the end of 2021.Warsaw,as the largest business hub,attracts both domestic and international companies.The share of demand generated by BPO&SSC centers in Warsaw is

92、 11.0%,and in Warsaw and other metropolitan regions 19.0%.In recent years,however,other metropolitan areas and emerging markets in smaller cities have also seen development,becoming attractive locations for companies seeking office space,which to some extent reflects the increasing role of work from

93、 anywhere.In terms of demand,2022 brought a significant increase in annual office take-up.The total volume of lease transactions signed in 2021 totaled 1.24 million m2.This figure rose to 1.483 million m2 in 2022,and when Q1 2023 is included,increased to 1.810 million m2.The vacancy rate in Polands

94、nine key markets increased to 13.8%from 13.4%last year.For comparison purposes,this number was 11.3%at the end of 2020.TOP DIRECT COMPETITORS OF POLANDRespondents were asked to identify locations that may become direct competition in placing roles that could be located in Poland,taking into account

95、the countrys aspiration to grow knowledge-intensive,high-value-added business services against a backdrop of significant inflation and talent pool availability issues.The main competitors were seen as India(27.0%),followed by Romania(15.0%),and the Czech Republic,Bulgaria,the Philippines,and Spain(e

96、ach around 6.0%).Executive summary13Business Services Sector in Poland 2023ESG IMPERATIVEFor the first time,this years survey featured questions related to ESG,as sustainability/ESG has become an increasingly important element in doing business.71.0%of respondents declared that they had introduced a

97、 global ESG strategy,while 15.0%had not but were preparing a strategy.The sector in Poland is mainly driven by centers which are owned by foreign firms and are part of global/transnational organizations.48.0%of respondents declared that they had rolled out a local ESG-related action plan as part of

98、their organizations global strategy,confirming the global character of the sectors operations in Poland.34.0%of respondents said that they did not have a local ESG-related action plan.The main risks,challenges,and costs associated with introducing an ESG strategy included a lack of tools,methods,and

99、 appropriate knowledge about setting ESG targets and measures(50%),the perceived negative impact on financial results(35.0%),and a lack of relevant regulatory requirements/industry standards in the sector(33.0%).The main opportunity associated with ESG is an improvement in the companys position as a

100、n attractive employer(83.0%),which can help in improving the firms standing in the competition for talent.Some participants in the survey also saw a better embodiment in the local community and limiting negative impacts on the environment as positive consequences of adopting an ESG strategy.ExECUTIV

101、E SUMMARY OF THE ABSL STRATEGIC FORESIGHT REPORTThe ABSL 2023 Industry Foresight Report is based on qualitative research and identifies trends,main drivers of change,and potential black swan events for the business services industry in Poland and the CEE region,vis-vis global trends.The strategic pe

102、rspective of the foresight report is 2033+(10 years+)and goes beyond the perspective of the ABSL survey as well as the ABSL annual report(Q1 2024).GLOBAL AND INDUSTRY TRENDSThe size of the global business process outsourcing market is anticipated to reach USD 525.2 billion by 2030 and expand at a CA

103、GR of 9.4%from 2023 to 2030,according to a new study by Grand View Research.The outlook for the global industry in 2023 is generally favorable but some uncertainties exist due to a dependence on the global macroeconomic cycle.2020 was one of the most difficult years for the global economy.COVID-19 p

104、roved to be the largest black swan event in a century,halting parts of the global economy due to regional or nationwide lockdowns,forced production stoppages,and restrictions on travel leading to global supply chain disruptions.COVID-19 represented a global health crisis and a supply and demand shoc

105、k.Its effect on global production chains and consumer confidence led to one of the worst downturns in economic history.However,the crisis has also been a catalyst for change including accelerated digitalization and new work patterns.Although 2021 saw a recovery in Q1 with moderate growth around the

106、world,there was a significant rise in global inflation well into 2022.This inflationary pressure led central banks to hike interest rates with the transition to quantitative tightening further stifling economic growth with some countries economies close to or in a state of stagflation.The Russian in

107、vasion of Ukraine and the continuing war,as well as geostrategic tensions between the US and China has led to significant adjustments in trade patterns with long-term consequences(geostrategic fragmentation and a move towards regionalized value chains characterized by back-shoring,near-shoring and i

108、ncreasingly friend-shoring).This period has been dubbed by some as the era of poly crisis.The global KIBS industry proved to be more resilient and less susceptible to crises than most manufacturing and services sectors.The industry is currently Executive summary of the ABSL Strategic Foresight Repor

109、t15Business Services Sector in Poland 2023at the forefront of digitalization,and it seems that disruptive change is coming due to progress made in numerous dimensions digitalization,automation,virtualization as well as a personalization of services on offer.The industry in Poland is an integral and

110、important part of the global KIBS industry.The industry is growing and expanding.At the same time,the complexity of processes on offer is increasing with the trend towards higher-value-added aspects for client and client experience proving to be important as well with more personalized,tailored-made

111、 services provided.Both upgrading and upskilling are evident.Cost efficiency will still be a prominent feature of the industry that is valued by its clients.With rising labor costs,this will require the wide-scale use of emerging technologies:cloud,cloud computing,IPA,and generative and adaptive AI.

112、Generative AI could be the single most important source of disruption.The industry is becoming data-centric with the ability to obtain,transfer and use data(advanced analytics,predictive analytics)on the rise.At the same time,clients demand to have access to services on multiple platforms and throug

113、h different channels.IT infrastructure is becoming critical.The trend towards more data and more data types from various sources,including social media,is becoming more marked.Predictive analytics including forecasting,nowcasting,and near casting is on the rise.The incoming data is of greater variet

114、y,arrives in ever-increasing volumes,and with more velocity(variety,volume&velocity 3Vs).Data is becoming an even more important commodity and access will be key to gaining a competitive advantage.The changing nature and volumes of data require new handling strategies and IT solutions.As rapid compu

115、ting is a necessity,the advances in quantum computing could facilitate the next big jump into the future.At the same time,the use of AI will be key in sustaining a cost advantage.Cloud-based services will become essential and will genuinely democratize access to global markets.Due to security concer

116、ns,industry cloud platforms are likely to emerge with edge computing gaining in importance.Cyber-security concerns are rising with more attacks being seen on a daily basis.Quantum cryptography could become indispensable.At the same time,virtualization is ongoing.VDIs are becoming standard and a part

117、ial shift to the virtual or Metaverse is likely.THE INDUSTRY IN POLANDThe industry in Poland is an integral and important part of the current global KIBS industry.It has proven its resilience to numerous crises and is growing both in quantitative terms(headcount,number of centers,exports,turnover)an

118、d more qualitative terms(an increase in the share of knowledge-intensive processes,upgrading and upskilling towards mid-office roles,rising automation levels,and innovative potential).Looking from global perspective,Poland is no longer a cheap-labor location but it still offers good value for money.

119、The countrys current competitive edge is based on time-zone considerations,location,the size of its talent pool relative to the CEE/EMEA region,polycentricity several key agglomerations,an ability to think creatively and to perform more complex tasks and roles.New competitors continue to emerge glob

120、ally and regionally with Romania being an example in the IT sector.Therefore,we still stress that the value-added aspect of Poland as a key destination of knowledge-intensive business services should be better documented and communicated.From the perspective of 2033,the increasing scale of Polands i

121、ndustry operations(and thus its talent Executive summary of the ABSL Strategic Foresight Report16Business Services Sector in Poland 2023pool)will become its main competitive advantage.However,there are significant challenges that lie ahead for the industry in Poland:demographics,quality of education

122、 system,leadership dimension,and innovative potential the ability to shift to and drive global technology in key technology domains:hyper-automation,hyper-personalization,generative and adaptive AI,virtualization.Greater innovation is a must.There are huge expectations in the industry to innovate;ot

123、herwise,Poland could lose its position as one of the top locations more quickly than one might think.New business models are likely to emerge and push out the current dominant form disruptive change could be just around the corner.Poland should build a competitive advantage not only on the already a

124、vailable talents and assets.The talent needs fresh,strategic,and innovative leadership.Poland should be better positioned to benefit from green-oriented investments.Sustainable technologies will thrive in the future due to the rising role of ESG because of escalating climatic and social concerns.The

125、 inertia represented by some centers in Poland will adversely affect the sectors future.Poles in the industry must endeavor to be at the table when global decisions are taken the number of Poles as heads and global decision-makers is residual at this stage.An insufficient talent pool could be a sign

126、ificant bottleneck,and the challenge to sustain the long-term competitive position of Poland when upgrading and upskilling would be imperative,even if positions are replaced by robots or AI.The growth of AI will endanger certain jobs and tasks within the sector,effectively replacing people,but many

127、new jobs around AI will have to be created at the same time.Creative disruption could once again be expected.The industry in Poland will keep on changing and continue its journey toward a middle office role,and for some leading centers,toward that of a front office.It is an excellent prognostic of u

128、pskilling into higher positions in the value chains of global structures.Nonetheless,some threats or challenges are likely to occur with the growth of technology(disruptive change)being to a large extent scenario-agnostic.We explored three alternative visions of the industry from the strategic persp

129、ective of 2033+.In the first,Poland is at the forefront of global technology by 2033 with a competitive advantage based on the talent pools size,scale of operations,adaptability,and creativity.Poland has become one of the leading innovation locations both from a regional and global perspective with

130、high-intensity innovation,and hosting large R&D labs/IT infrastructure hubs of leading players.Holistic digitalization and automation are standard.A substantial number of firms are utilizing the most advanced business models from the ABSL Industry Transformation Cube.Centers are able to provide more

131、 complex,higher value-added,and tailored services for even the most demanding clients with CX-focus thanks to hyper-personalization&the use of AI in predictive analysis.The share of permanently innovating centers is significantly higher,with centers being able to introduce incremental and radical in

132、novation both at the firm and global market level.In 2033,the industry in Poland has 600,000 employees although there is the relative dampening effect of AI on FTE growth.In the second vision,Poland is closer to being a leader of global technology but is still behind the frontrunners.Upskilling has

133、partially transformed the sector,with low-end jobs being moved to low-cost countries and fully automated.More complex middle-office processes are the main focus.However,Poland is attempting to keep its advantage based on labor arbitrage,losing several positions in the global attractiveness rankings.

134、Centers are more focused on innovation,but introduce them rather sporadically and reactively.Most innovations are relatively incremental at firm and regional market levels.Some firms utilize the most advanced business models from the ABSL Industry Transformation Executive summary of the ABSL Strateg

135、ic Foresight Report17Business Services Sector in Poland 2023Cube.The majority are somewhere between the current(base)models and the advanced models of the future partial automation,partial virtualization,and partial personalization of services on offer.Insufficient reform of the education system is

136、a major factor dampening growth possibilities.The industry in Poland grows to 550,000 by 2033.In the third vision,Poland falls further behind the leaders of global technology which leads to a partial collapse of the sector with the sector headcount decreasing to 340,000 jobs in 2033.The threats are

137、more numerous than the opportunities.Only a few firms are utilizing the most advanced business models from the ABSL Industry Transformation Cube.Most are somewhere in between the current(base)models and the advanced models of the future partial automation,partial virtualization,partial personalizati

138、on of services on offer,or use of legacy business models(the base).Insufficient reform of the education system as well as a demographic crisis are major factors that are dampening growth possibilities.Some key global players have left Poland for their respective HQs or other rising global locations.

139、MACROECONOMIC TRENDS AND OUTLOOKGLOBAL PERSPECTIVE2022 proved to be a difficult year for the global economy,with growth decelerating after the peak of the recovery from the COVID-19 pandemic in Q2 2021,as well as inflationary pressures leading to a“cost of living crisis”.The sharp increase in inflat

140、ion has resulted in a major shift in monetary policies with hawkish attitudes,sharp interest rate hikes,and quantitative tightening.Uncertainty is still high as systemic risks prevail.Q1 2023 proved to be a bumpy period for the global economy with increased volatility and even greater uncertainty.Sy

141、stemic risks had been rising for some time and led to financial turmoil first in the US regional banks sector(the collapse of Silicon Valley Bank SVB,Signature and then First Republic)and then on the other side of the Atlantic with adverse effects being felt in the Swiss banking sector.This saw the

142、sudden takeover of Credit Suisse by UBS,with the support of FINMA,SNB,and the Swiss government(finalized on 12th June 2023).Systemic financial sector crises and a potential contagion spreading to emerging markets have been avoided for now,mainly thanks to very decisive actions by regulators,central

143、banks,and governments.However,there are still risks.As volatility in the banking sector gradually eases,the fight against still-elevated inflation levels continues.Headline inflation indices started to subside in Q1 2023,but labor markets remain tight,and core inflationary pressures have proven to b

144、e more persistent,with inflation widespread and embedded in expectations.The secondary effects of previous supply shocks are still putting upward pressure on inflation.Monetary policies remain hawkish with some central banks still raising interest rates at the end of Q2 2023(e.g.,ECB,BoE,SNB)with th

145、e FED“skipping”one hike,as it and other central banks wait to see forthcoming data before possibly increasing rates in Q3.We are unlikely to see a major policy shift(decrease in interest rates)before the late fall,unless the financial situation worsens,or data points to a recession.Monetary Policy C

146、ouncils in their statements show their commitment to pushing inflation to their policy targets.Credit conditions,in particular in emerging markets,will likely remain under pressure through 2023,undermining the payment capacities of both households and corporate clients.This could further undermine a

147、ggregated demand.Global headline inflation in the baseline is predicted by the IMF to fall from 8.7%in 2022 to 7.0%in 2023 on the back of lower commodity prices.Underlying(core)inflation is likely to be more persistent,with a return to policy targets unlikely before 2025 in most cases.In the US,CPI

148、inflation dropped to 4.0%in May with PPI at 1.1%while in the Eurozone CPI stood at 6.1%.Macroeconomic trends and outlook19Business Services Sector in Poland 2023According to some analysts,after an era of low inflation and low interest rates,we have now entered an era of globally elevated inflation(a

149、nd thus high-interest rates).OPECs decisions have had a temporary impact on the global oil market&disinflationary scenarios with crude oil(Brent)now trading at levels close to USD 80 per barrel.A Russia-induced energy crisis has not materialized,despite Europe effectively decoupling from Russian nat

150、ural gas supplies.At the end of Q2 2023,natural gas traded at levels observed prior to the COVID-19 pandemic in mid-2019.Global value chains(GVC)s disruptions have subsided with transport costs easing significantly the China Shanghai Containerized Freight Index(SCF)in June 2023 stood at USD 930 per

151、container,70.0%lower YoY and down from a peak of above 5000.00 in January 2022.At the same time,some studies(IMF)point to an already ongoing geostrategic fragmentation of FDI flows which could lead to the development of regionalized value chains over the long term.It will significantly impact the se

152、ctor and Poland,which are part of the European VC and the EUs internal market.The process will be characterized by some back-shoring,more near-shoring,and friend-shoring(Intels announcement of investing in a chip factory,located in the Wrocaw area,can be perceived in this way).IMFs and World Banks E

153、conomic Outlooks for 2023&2024 point to a slowdown.According to the IMFs Global Economic Outlook(April 2023),the overall outlook for the global economy is uncertain amid financial sector turmoil,high inflation,the ongoing impact of Russias invasion of Ukraine,and the mid-term effects of the pandemic

154、.The baseline forecast for growth is to fall from 3.4%in 2022 to 2.8%in 2023,before settling at 3.0%in 2024.Advanced economies are expected to see an especially pronounced growth slowdown,from 2.7%in 2022 to 1.3%in 2023.In an alternative IMF scenario of further financial distress,global growth decli

155、nes to about 2.5%in 2023 with advanced economy growth falling even further to below one percent.Global headline inflation is forecast to fall from 8.7%in 2022 to 7.0%in 2023 on the back of lower commodity prices but underlying(core)inflation is likely to decline more slowly.Inflations return to resp

156、ective target levels is most cases unlikely before 2025.In turn,according to the World Banks most recent Economic Outlook(June 2023),global growth is projected to slow significantly amidst high inflation,tight monetary policy,and restrictive credit conditions.The likelihood of more widespread bank t

157、urmoil and tighter monetary policy could result in even weaker global growth and lead to financial dislocations in the most vulnerable emerging market and developing economies(EMDE).The World Banks latest baseline scenario suggests that global growth will slow from 3.1%in 2022 to 2.1%in 2023,before

158、edging back up to 2.4%in 2024.This is based on the assumption that stress in advanced countries banking sectors does not spill over to EMDEs.Macroeconomic trends and outlook20Business Services Sector in Poland 2023THE ECONOMIC SITUATION IN POLAND According to a flash estimate,provided by Statistics

159、Poland,the seasonally unadjusted GDP in the fourth quarter of 2022 increased by 2.0%year-on-year in real terms,compared to an increase of 8.5%in the corresponding period of 2021.Seasonally adjusted GDP(with fixed prices compared to those of 2015)decreased in real terms by 2.4%compared to the previou

160、s quarter and was 0.3%higher than the previous year.The Polish economy is slowing and the likelihood of a recession in at least one quarter of 2023 is increasing.Headline inflation in Poland peaked at 18.4%in February 2023 before falling to 13.2%in May 2023.Core inflation(excluding the most volatile

161、 prices of foodstuff and energy)stands at 12.2%.It is worth stressing that PPI has been lower than CPI readouts since March.The situation on the labor market remains tight,with a low unemployment rate(5.0%in May),stable employment levels,and increasing mean nominal wages(with YoY changes below CPI f

162、rom May 2022 onwards with wages falling in real terms.)With unemployment close to natural levels and high inflation levels,we still seem to be on the vertical section of a Phillips curve.NBP is keeping the reference rate(minimum money market intervention rate)at 675 points with the interest rates ch

163、annel shaped by the deposit rate of 625 bp(floor)and a Lombard rate of 725 bp.WIBOR 3m is currently at 6.90(WIBOR 6M at 6.95)significantly below the peak in November 2022.The policy is rather restrictive and is likely to remain so in 2023 taking into account internal and external circumstances.Under

164、 these conditions,the credit crunch remains ongoing.Leading consumer confidence indices(Statistics Poland)are still negative but are gradually improving.Nonetheless,the risk of stagflation for Poland is increasing.Overall growth prospects for Poland are worsening.The IMF in its most recent forecasts

165、 predicts growth in Poland in real terms to reach only 0.3%,thus increasing the likelihood of a recession.According to the World Banks most recent projection,economic growth in Poland is projected to decelerate to 0.7%in 2023,as a result of high inflation,monetary policy tightening,negative confiden

166、ce sentiment related to the war in Ukraine,a lower number of foreign workers compared with the previous year and an easing of demand from key trading partners.The report of the National Bank of Poland(March 2023)is more optimistic than the projections of the IMF and the World Bank.The bank predicts

167、a steady increase in economic growth from Q1 2023 onwards,and CPI levels in the baseline scenario dropping below 10.0%by the end of 2023.Still,according to NBP,risks to the forecasts are significant and uncertainty remains elevated.Factors driving the growth and transformation of the industry includ

168、e:A prolonged conflict or potential escalation of the war in Ukraine,Escalating geopolitical tensions,leading to the further fragmentation of trade/GVC and a proliferation of shocks e.g.,a potential crisis in the Taiwan Strait,Macroeconomic trends and outlook21Business Services Sector in Poland 2023

169、 A re-escalation of systemic tensions in the global financial sector,with possible regional(global)contagion,Higher-than-expected inflation trajectories,which could lead to yet another round of tightening monetary policies further weighing down growth prospects,Potential stagflation in some key econ

170、omies of the global economic system in 2023/2024,The restricted inflow of structural funds to Poland due to tensions with the European Union worsening the fiscal position of Poland,Uncertainty about the results of the parliamentary election in the fall of 2023,The re-emergence of the pandemic(having

171、 become more endemic in recent months),The transformative impact of AI-revolution on labor markets around the world(five-year perspective).Concept and methodology of the report22Business Services Sector in Poland 2023CONCEPT AND METHODOLOGY OF THE REPORT“The Business Services Sector in Poland in 202

172、3”report aims to provide comprehensive insights into the activities of the BPO/SSC,GBS,and IT/ITO R&D service centers in Poland and outlines growth directions for the sector.The report adopts a broad definition of the sector and includes the activities of business processes outsourcing(BPO),shared s

173、ervices(SSC),global business services(GBS),IT,and research&development(R&D)centers.Its preparation was based on ABSLs internal database of business services centers in Poland(at present,the database contains information on over 1,800 centers located in Poland and is updated regularly by the ABSL BI

174、team),and the results of the annual ABSL 2023 survey of managers.The survey was conducted by the ABSL BI team using the CAWI(computer-assisted web interview)approach in January-March 2023(we assume that the results reflect the state of the sector at the end of Q1 2023).This years survey was complete

175、d by managers of 205 companies employing 212,574 people in business services centers located in Poland,and represents 49.0%of the sectors employment.The results of the ABSL 2023 report concern business services centers whose parent companies have their headquarters in Poland or abroad.Each entity wa

176、s assigned to one of the primary types(BPO,SSC,GBS,IT,R&D),taking the dominant profile of its operations into account.49.0%The share of companies in total employment of KIBS centers operating in Poland that participated in this years ABSL survey.205The number of companies that took part in the ABSL

177、nationwide survey in Q1 2023.212,574The number of people employed by companies in Poland that took part in the 2023 ABSL survey.Concept and methodology of the report23Business Services Sector in Poland 2023Contact centers providing services to external customers were classified as BPOs.IT centers we

178、re defined as entities that outsource IT solutions(e.g.,system,application or infrastructure maintenance,technical support)and develop and sell(implement)software for external customers(software development).Rather than running many shared services centers and independent management of suppliers,GBS

179、 centers ensure full integration of global governance and provide services for locations using all shared services and outsourcing throughout the enterprise.Even when located in the same city,particular business services centers were treated as separate units for analysis purposes.Accepting the geog

180、raphic criterion,the requirement of being in two different places would have eliminated information about centers of various types,e.g.,IT and BPO,which were in the same location.Similar to last years edition,this years report also takes into account all of the BPO and SSC/GBS centers in which emplo

181、yment does not exceed 25 people.While this concerns 167 entities,employing a total of 2318 employees,these companies do constitute part of the sectors ecosystem.It is worth emphasizing that direct comparisons with previously published ABSL reports should be avoided;relying on the information present

182、ed in this report is recommended.The ABSL database is continually updated and includes data revisions for previous years.Because some values are rounded off,in particular tables and other figures in the report,they may not add up to exactly 100.0%.The unit of analysis in the report is a metropolis/c

183、onurbation.GZM means Katowice together with other cities of the Grnolsko-Zagbiowska Metropolis(Katowice&GZM)unless otherwise indicated.Tricity means Gdask,Gdynia and Sopot.The report can be downloaded free of charge in PDF format from the ABSL Shop(shop-absl.pl),both in Polish and English.This repor

184、t could not have been prepared without the information obtained from respondents to the nationwide ABSL survey.We extend our sincere thanks to all of the companies representatives who took time out of their busy schedules to complete it.We are also grateful to the representatives of local government

185、s and investor support institutions who assisted with this project.We would like to thank the co-authors of this report,particularly our strategic partners,who shared their expert knowledge as well as data and significantly enriched the reports content.Experts from Colliers wrote the section that an

186、alyzes the real estate market,and representatives of Mercer and Randstad contributed to the labor market section.We also extend our thanks to the National Information Processing Institute National Research Institute,an important partner of ABSL annual reports for providing data on the academic and h

187、igher education sectors.Last but not least,we would be grateful for any opinions and comments on the contents of this years report that can help enhance the quality of future editions and adapt them to the needs and expectations of the centers managers as well as new investors.ABSL BI teamConcept an

188、d methodology of the report24Business Services Sector in Poland 2023AbbreviationsAIArtificial IntelligenceAMERNorth,Central,and South AmericaAPAC Asia-PacificBIBusiness IntelligenceBCPBusiness Continuity PlanBPOBusiness Process OutsourcingCAGRCompound Annual Growth RateCEECentral and Eastern EuropeC

189、oECenter of ExcellenceDEIDiversity,Equity,and InclusionDIBDiversity,Inclusion,and BelongingEMEAEurope,Middle East,and AfricaEMDEsEmerging market and developing economiesESG Environmental,Social,and GovernanceF&A Finance and AccountingFTEFull Time EquivalentGBSGlobal Business ServicesGVCsGlobal Value

190、 ChainsIPA Intelligent Process AutomationKIBSKnowledge-Intensive Business ServicesLACLatin America and the CaribbeanNLPNatural Language ProgrammingR&DResearch&DevelopmentRPARobotic Process AutomationSSCShared Services CenterVDIVirtual Desktop InfrastructureWFAWork from AnywhereWFHWork from HomeYoYYe

191、ar on YearQoQQuarter on QuarterPoland key facts25Business Services Sector in Poland 2023Poland is the sixth-largest economy in the European Union and has been one of Europes leaders in economic growth over the past decade.It has the largest economy in Central Europe and has been a leader in growth a

192、nd development since the outset of its economic transformation in 1989.One of the essential branches of the contemporary Polish economy is the knowledge-intensive business services sector with its growing significance illustrated by its rapidly growing share in the countrys employment and GDP.In rec

193、ent years,the industrys impressive growth has enabled Poland to strengthen its position as one of the prime destinations in the business services sector not only in the EMEA region but globally.Poland is one of the prime locations for new investments in BPO/SSC,GBS,IT,and R&D centers.Language:Polish

194、Currency:Zloty(PLN)Number of cities with more than 100,000 inhabitants:37Poland in international organizations:EU(2004),NATO(1999),OECD(1996),WTO(1995),UN(1945).656.9 billionGDP in nominal prices in 2022(6th largest EU economy,EUROSTAT)+2.0%GDP real growth in Q4 2022 YoY,seasonally unadjusted(+8.5%Y

195、oY in Q4 2021,Statistics Poland)37.766 millionPopulation of Poland in 2022(Statistics Poland),141.000 YoY+16.1%Consumerprice index(CPI)inflation March2023(Statistics Poland)17,370Nominal GDP per capita in 2022(EUROSTAT)79.0%GDP per capita in PPS in 2022,in terms of the EU-27 average5.4%Unemployment

196、rate(March 2023,Statistics Poland)50thPosition in World Talent Ranking 2022(IMD World Competitiveness Center),45th in 202139thPosition in Global Talent Competitiveness Index 2022 rankings(INSEAD)47thPosition in World Competitiveness Ranking(IMD World Competitiveness Center),47th in 2021$269.8 billio

197、nValue of the inward FDI stock in Poland at the end of 2022(UNCTAD,World Investment Report 2023)$29.5 billionFDI inflows at the end of 2022(UNCTAD,World Investment report 2023)PLN 4.6899EUR exchange rate at the end of 2022(NBP)PLN 4.4018USD exchange rate at the end of 2022(NBP)POLAND KEY FACTSSTATE

198、OF THE BUSINESS SERVICES SECTOR IN POLAND AT THE END OF Q1 20231Chapter content developed by:ABSLOVERALL CHARACTERISTICS OF THE SECTORAt the end of Q1 2023,more than 1,800 business services centers,representing 1,106 companies,were operating in the KIBS sector in Poland,comprising BPO,SSC/GBS,IT,and

199、 R&D entities.They employed 435,300 people(8.0%more than in the previous year).Thirty-one centers were established in 2022,and one was founded in Q1 2023.As in previous years,foreign-owned centers dominated new investments in 2022 and 2023(90.1%).New centers,established in 2022 and Q1 2023,created 2

200、,866 jobs.Foreign-owned centers created 96.9%of the total employment in these new centers with 41.6%of these new jobs created in Tier 1 cities,52.0%in Tier 2 cities and 6.4%in tier 3 locations.At the unit level,the top three destinations were Tricity(33.1%share in work generated by new centers),Krak

201、w(21.1%),and Wrocaw(13.2%).The most significant number of new centers was established in Wrocaw,Tricity,and Pozna,followed by Krakw,while most jobs were created in Warsaw.Compared with previous reports,we noticed a decrease in the share of Tier 1 cities regarding the number of new investments.In fac

202、t,Tier 1 cities were surpassed by Tier 2 cities which claimed the majority of jobs created in new centers.State of the business services sector in Poland at the end of Q1 202327Business Services Sector in Poland 2023FIGURE 1.1THE BUSINESS SERVICES SECTOR IN POLAND THE KEY NUMBERS435,300 The total nu

203、mber of jobs in business services centers;363,900(83.6%)of which are foreign-owned.6.7%The share of the sector for total employment in Polands enterprise sector(6.2%in 2022).32The number of business services centers that began operations in Poland from the beginning of 2022 till the end of Q1 2023(4

204、6 in the previous year).The new investments(in 2022 and Q1 2023)have already generated 2,866 new jobs.86 The number of business services centers with at least 1,000 employees(79 in the previous year).$53,000 Estimated mean export per worker in the sector as for Q1 2023.24 The most significant number

205、 of business services centers owned by a single investor in Poland.465,000 The number of jobs in the sector at the end of Q1 2024(forecast by ABSL baseline scenario).A projected increase of 6.9%YoY.$30.0 billion The estimated overall value of knowledge intensive business servicess exports in Poland

206、in 2022.1,803The number of BPO,SSC/GBS,IT,and R&D business services centers in Poland(72.0%of which are foreign-owned investors).1,106The number of investor companies with business services centers in Poland(69.4%of which are foreign-owned investors)(1,068 in the previous year).103 The number of“For

207、tune 500”investors operating in the business services sector in Poland (102 in the previous year).8.0%Growth in the number of jobs at business services centers in Poland in the last year(Q1 2022 Q1 2023).Since 2018,the overall number of jobs has increased by 56.0%.8 The number of locations where bus

208、iness services centers employ more than 10,000 people.4.5%The sectors estimated share of Polands GDP in 2023(4.2%last year).State of the business services sector in Poland at the end of Q1 202328Business Services Sector in Poland 2023Tier 1Krakw,Warsaw and WrocawTier 2Tricity,Katowice&GZM,d,PoznaTie

209、r 3Bydgoszcz,Lublin,Rzeszw,SzczecinTier 4Biaystok,Opole,Olsztyn,Radom,Kielce,Tarnw,Elblg,Pock and othersClassification of cities and agglomerations according to absl0206080400192022&2023*FIGURE 1.2NUMBER OF ACTIVE CENTERS OPENED BY DATE OF ESTABLISHMENT AT THE END OF

210、 Q1 202396*The data for 2023 only reflects Q1 2023 information that was available when the report was being written.Source:ABSLs study based on the ABSL business services centers databaseState of the business services sector in Poland at the end of Q1 202329Business Services Sector in Pol

211、and 2023Source:ABSLs study based on the ABSL business services centers databaseAlthough the number of centers in Poland is still increasing,the rate of growth has been steadily decreasing since 2018(figure 1.2.).One must bear in mind,however,that despite this slow-down in the number of new investmen

212、ts,total employment in the industry has maintained its long-term growth trend.Expansion in the number of centers occurred in two waves the first after Poland acceded to the European Union with the second following the global financial crisis of 2008 when international corporations wanted to optimize

213、 their costs by outsourcing certain aspects of their activities on a larger scale.The peak year for growth was 2015.At the same time,according to the ABSL database,60 centers ceased their operations in Poland or were taken over by other companies as a result of regional or global M&As.Most firms at

214、the end of Q1 2023 operated just one center in Poland(73.2%).13.9%had two centers,with 9.9%of firms operating three to five centers in the country.Only 0.5%of respondents ran more than ten centers,often of different types.The leader in these statistics operates 24 centers in Poland.IT is the most fr

215、equent type of center in the ABSL database(45.3%),followed by SSC/GBS centers(24.1%)and BPO centers(15.5%).R&D centers are responsible for a further 12.8%.The smallest share,as before,is claimed by hybrid/other model centers(2.4%).FIGURE 1.3DISTRIBUTION OF THE NUMBER OF CENTERS BY TYPE(%)10%20%30%40

216、%50%60%70%80%90%0100%ITSSC/GBSBPOR&DHybrid/Other model45.3%24.1%15.5%12.8%2.4%State of the business services sector in Poland at the end of Q1 202330Business Services Sector in Poland 2023THE NUMBER OF CENTERS AND STRUCTURE OF NEw INVESTMENTSWarsawKrakwWrocawTricityPoznaKatowice&GZMdLublinSzczecinBy

217、dgoszczRzeszwFIGURE 1.4NUMBER OF CENTERS IN THE MOST IMPORTANT LOCATIONS IN POLAND AT THE END OF Q1 2023 BY THE YEAR OF ESTABLISHMENTSource:ABSLs study based on the ABSL business services centers database-200212022-2023 Q00250300350356284Warsaw still leads in terms of the numbe

218、r of active business services centers at the end of Q1 2023(356 centers).Locations with at least 100 centers include Krakw(284),Wrocaw(220),Tricity(212),Pozna(141),Katowice&GZM(134),and d(111).The number of active centers is significantly lower in Tier 3(with Lublin 73 and Szczecin 67)and Tier 4 cit

219、ies.400220273674946State of the business services sector in Poland at the end of Q1 202331Business Services Sector in Poland 2023From the beginning of 2022 to the end of Q1 2023,the majority of new centers were opened in Pozna Tricity,and Krakw,followed by d,Warsaw,Wrocaw,and Lublin.One n

220、ew center was opened in Katowice&GZM.The number of locations where new centers were opened decreased year-on-year with all new investments concentrated in Tier 1 and Tier 2 cities.Lublin was the only Tier 3 city in the ranking.Investors continue to prefer existing Tier 1(Warsaw,Krakw,Wrocaw)and Tier

221、 2 locations(the Tricity,Katowice&GZM,d,and Pozna)as places for new investments,and in particular for first-time investments in Poland.The changes in the number of centers do not fully reflect the changes in total employment due to differences in the size of centers and company strategies.Compared t

222、o the last edition of the report,the number of new centers has decreased.In contrast to the previous year,the role of Warsaw significantly diminished with the number of new investments in Tier 2 cities exceeding those in Tier 1.New investments in 2018 were made in 21 locations with 20 locations attr

223、acting new centers in 2019.2020 saw new centers opened in 17 locations,with 13 in 2021,and eight in 2022.New investors created 3,440 new jobs(in the previous year it was 6,381),nearly halving YoY.The new centers were responsible for approx.10.5%of the increase in the sectors total employment.During

224、2020-2022,most new investments were made in IT(50.0%),SSC/GBS(28.1%),R&D(20.4%),and BPO(15.2%)followed by R&D centers(6.25%).Employment-wise,IT centers were responsible for most jobs created(45.5%),followed by BPO(32.8%)and SSC/GBS(19.5%).The average headcount declared by newly established centers w

225、as 201(median=100.0).New investors in the sector in Poland came from 13 different nations(18 nations in the previous edition of the report).New centers,established from the beginning of 2022 till the end of Q1 2023 were established by mainly UK investors(25.0%)ahead of French and American(16.0%each)

226、.Polish investors came fourth,with a share of 9.0%.Regarding employment numbers,new French investors created 1,189 jobs more than one-third of the sectors total(34.6%),followed by British(20.4%)and American(8.9%)firms.New Polish investors created only 130 jobs(3.8%).State of the business services se

227、ctor in Poland at the end of Q1 202332Business Services Sector in Poland 2023FIGURE 1.5EXAMPLES OF SELECTED NEW INVESTMENTS IN PARTICULAR LOCATIONS IN POLAND(2022 TO Q1 2023)New investors=first business services center in PolandRecent investments by existing investors=another business services cente

228、r opened in PolandSource:ABSL business services centers databaseAllegroCapgemini Business ServicesFuture ProcessingGodel Technologies PolandiTechArtNavblueS&P GlobalSoftServeTricityBeiersdorf BSS Hub BestCoders Poland Sp.z o.o.FIS Technology ServicesHaleonIVU Traffic Technologies AGLidlPEAC PolandRG

229、ames WestSigma Software LabsSISSSC Phoenix ContactTietoTranscom WorldWideZalaris ConsultingPOZNAAllegroairSlate Poland Sp.z o.o.NatWest PolskawROCAwGlobalLogicKatowice&GZMAllegroAloricaAxalta Coating Systems Poland SSCDOCAPOSTEEYFinanteqLaSoftMarel Shared Services CenterDImperial Brands Services Pol

230、ska Sp.z o.o.L&T Technology Services Limited(LTTS)Novocure Poland Sp.z o.o.SoftServeTeleperformance PolskaKRAKwImperial Brands Services Polska Sp.z o.o.Fresenius KabiRockwoolwarsawAllegroDignio Poland Sp.z o.o.Publicis Re:SourcesLublinState of the business services sector in Poland at the end of Q1

231、202333Business Services Sector in Poland 2023FOREIGN TRADE IN KNOwLEDGE-INTENSIVE BUSINESS SERVICES The sector is one of the principal drivers of the contemporary export potential of Poland.The sector is a highly internationalized,clearly export-oriented integral part of the global economy.The key d

232、river of the export of firms in the industry is their superior productivity.Also,foreign ownership matters,as it provides experience in servicing clients from foreign markets.Overall,most firms(centers)are so-called“superstar”firms.The ability to export and thus compete in international markets is m

233、ainly a function of firms productivity(Melitz,2003)1.Numerous empirical studies show that exporters are found to be more productive than non-exporters,and the more productive firms choose for themselves which export markets to target.Exporting per se does not necessarily improve productivity(no lear

234、ning is derived by exporting).Mayer&Ottaviano(2008)analyzing a panel of European firms showed that internationalized firms are superstars(they are rare “happy few”with their distribution being highly skewed few firms are responsible for most of their export potential exports are concentrated),export

235、ers differ from non-exporters on average they are bigger,generate higher added value,pay higher wages,spend more capital per worker,employ more skilled workers and have higher productivity2.$30.0 billion The estimated overall value of knowledge intensive business servicess exports in Poland in 2022(

236、USD 26.4 billion in 2021).19.8%CAGR for overall exports of business services in 2005-2022(CAGR for imports 13.8%).13.7%The estimated increase in the value of exports of business services in 2022 YoY(15.1%in 2021).$53,000 Estimated mean export per worker in the sector as for Q1 2023.$12.5 billion The

237、 estimated surplus in the trade of Polands knowledge intensive business servicess in 2022(11.3 billion in 2021).Germany,United Kingdom,Switzerland&the USA Export destinations with a value exceeding USD 2 billion.1 Melitz,M.J.(2003).The impact of trade on intraindustry reallocations and aggregate ind

238、ustry productivity.Econometrica,71(6),1695-1725.2 Mayer,T.,&Ottaviano,G.I.(2008).The happy few:the internationalization of European firms:new facts based on firm-level evidence.Intereconomics,43(3),135-148.State of the business services sector in Poland at the end of Q1 202334Business Services Secto

239、r in Poland 2023The sectors centers differ from the overall profile of Polish firms in this respect,their activity is strongly export-oriented as their clients,both internal and external,are predominantly foreign.The estimates as of the end of 2022 show that the overall value of KIBS imports equaled

240、 USD 17.5 billion,with the value of exports being USD 30.3 billion.Year-on-year exports increased by 13.7%and imports by 16.3%(15.1%&13.7%in 2021,respectively).The surplus in KIBS trade surpassed USD 12.5 billion(11.3 billion in 2021).A clear surplus has been regularly generated by the sector since

241、2008 and has been constantly growing during this period.Despite the enormous black swan event in the shape of the pandemic and the severe downturn in the global economy that ensued,particularly in manufacturing goods and services in H1 2020,the business services industry proved to be resilient.It co

242、ntinued its foreign expansion and positive contribution to the surplus in foreign trade.2021 proved to be particularly good for both the global economy and the sector,with the peak of the recovery happening in Q2 2021 before growth levelled off and returned to lower levels.Despite the slowdown in th

243、e global economy in 2022,the Russian invasion of Ukraine,and financial turmoil in Q1 2023,the export potential of the sector is still growing and continues to prove its competitive edge,productivity,and resilience.We estimate the share of business services centers analyzed in the report,represents n

244、o less than 70.0%of Polands overall KIBS industrys export value.In 2005,the year after Polands EU accession,the KIBS sector provided 7.7%of the value of exports of commercial services from Poland(26.9%in 2017,27.5%in 2019).In 2022,according to ABSL estimates,the share of the KIBS sector rose to 31.3

245、%.The CAGR for overall exports of commercial services from Poland,from 2005 to 2022,was 10.3%.The CAGR for exports of KIBS over the same period was 19.8%nearly double the overall amount for commercial services.In terms of the significance of Polish exports of KIBS,four countries play a crucial role

246、Germany,the United Kingdom,Switzerland,and the USA,according to WTO-OECD Balanced Trade in Services(BaTIS)dataset.State of the business services sector in Poland at the end of Q1 202335Business Services Sector in Poland 20230Imports valueExports value200520062007200820092000162

247、01720182019-2,0002005200620072008200920000192,0004,0006,0008,10,000FIGURE 1.6THE VALUE OF POLANDS EXPORTS AND IMPORTS OF KNOWLEDGE-INTENSIVE BUSINESS SERVICES(USD MILLIONS)FIGURE 1.7POLANDS FOREIGN TRADE BALANCE IN KNOWLEDGE-INTENSIVE BUSINESS SERVICES(

248、USD MILLIONS)Source:ABSL estimates based on WTO TiSMoS database&NBP balance of payments data2020202112,0002021Source:ABSL estimates based on WTO TiSMoS database&NBP Balance of payments data2022014,0002022-,0781,4011,9611,6782,7103,1544,2245,8777,7578,8119,68211,32912,5005,00010,00015,0002

249、0,00025,00030,00035,000State of the business services sector in Poland at the end of Q1 202336Business Services Sector in Poland 2023Taking into account the role of productivity as a driver of export potential,the report presents for the first time statistics on the proxy of productivity within the

250、sector estimated mean export per worker in sector centers.ABSLs estimate for Q1 2023 shows that mean exports per worker exceeded USD 53,000 and has grown by an impressive 21.1%since 2016.FIGURE 1.8EXPORTS PER WORKER IN THE INDUSTRY(2016-2023)Source:ABSL estimates based on NBP balance of payments dat

251、a&ABSL dataset on centers10,00020,00030,00040,00050,000060,0002000222023100%125%75%120%115%110%105%95%90%85%80%Exports per worker in USDExports per worker(2016=100)43,75045,04748,85746,85046,99351,50552,42052,963100.0%103.0%111.7%107.1%107.4%117.7%119.8%121.1%State of the busin

252、ess services sector in Poland at the end of Q1 202337Business Services Sector in Poland 20239.1%The employment growth in foreign-owned centers located in Poland(Q1 2022/Q1 2023).363,900 Employment in foreign-owned centers in Poland at the end of Q1 2023.83.6%The share of foreign-owned centers in the

253、 sectors total employment.120,000+Employment in the centers owned by American investors(share of American companies in new investments generated in 2022 and Q1 2023 is 26.6%).47 The number of countries from which centers operating in Poland originate.FOREIGN-OwNED INVESTMENTS,COUNTRIES OF ORIGINThe

254、1,251 foreign-owned centers in Poland employ 363,900 people(Q1 2023).Foreign-owned centers are defined as those centers controlled by a foreign investor.At the end of Q1 2023,foreign-owned investors accounted for 83.6%of the jobs in the sector(a 1 p.p.increase YoY)and managed 69.4%of the total numbe

255、r of business services centers in Poland.From Q1 2022 to Q1 2023,foreign-owned companies created 30,471 new jobs(compared to 37,089 in the previous year).Employment growth was 9.1%in the foreign-owned centers between Q1 2022 and Q1 2023(compared to 2.4%in Polish-owned centers).From the beginning of

256、2014 till the end of Q1 2023,the CAGR for employment in centers owned by foreign investors and located in Poland was 13.2%.In the total number of 32,141 new jobs created,the highest contribution was made by centers with their headquarters in the USA(26.6%),UK(21.0%),France(12.1%),Switzerland(7.4%)an

257、d Poland(5.2%).It is worth emphasizing that employment went down YoY in Austrian and Irish companies which are present in the Polish market.Please note:the previous years figures concerning the headcount and the number of centers were verified in accordance with ABSLs current best knowledge.As part

258、of updating the data,we also took into account differences resulting from changes in ownership and several investors terminating their operations in Poland.State of the business services sector in Poland at the end of Q1 202338Business Services Sector in Poland 2023FIGURE 1.9EMPLOYMENT IN FOREIGN-OW

259、NED CENTERS IN POLAND(2014-2023)100,000Source:ABSLs study based on the business services center database.Headcount information has been rounded to the nearest hundred150,000200,000250,000300,000350,000400,000Employment in foreign-owned centersOverall employment20002020212022TAB

260、LE 1.1EMPLOYMENT AND THE NUMBER OF CENTERS ESTABLISHED IN 2022 AND 2023(BY COUNTRIES WHERE HEADQUARTERS ARE LOCATED)Country of originEmploymentNo.of centersFrance7755United Kingdom7028United States6555Ukraine2402Germany1402Others35410Overall2,86632Source:ABSLs study based on the business services ce

261、nter database2023450,000127,200150,400213,900245,800279,100310,900341,500358,600403,100435,300118,800140,700174,000198,500227,100253,900283,100296,100333,400363,900State of the business services sector in Poland at the end of Q1 202339Business Services Sector in Poland 2023Country(or region)of origi

262、nEmploymentShare in overall employment(%)No.of centersShare in the number of centers(%)United States120,90427.835619.7Poland71,37016.455230.6United Kingdom45,46410.41488.2France42,2699.71116.2Nordic countries*38,0348.71699.4Germany32,7837.51538.5Asian countries*21,5825.0915.0Switzerland20,9724.8522.

263、9Netherlands18,7654.3522.9Ireland10,1012.3271.5Other European*5,7431.3412.3Belgium1,7190.4140.8Canada1,4020.390.5Luxembourg1,2200.370.4Austria1,0620.250.3Italy1,0500.260.3Other non-European*8390.2100.6Total435,279100.01803100.0*Nordic countries:Denmark,Finland,Norway,Sweden*Asian countries:China,Hon

264、g Kong,India,Israel,Japan,Qatar,Singapore,South Korea,Thailand,Turkey,United Arab Emirates*Other European:Belarus,Bulgaria,the Czechia,Estonia,Greece,Hungary,Iceland,Malta,Portugal,Romania,Russia,Slovakia,Slovenia,Spain,Ukraine*Other non-European:Australia,Brazil,Mexico,South AfricaSource:ABSLs stud

265、y based on the ABSL business services centers databaseTABLE 1.2EMPLOYMENT IN THE INDUSTRY AND THE NUMBER OF CENTERS BY COUNTRY OF ORIGIN(2023)State of the business services sector in Poland at the end of Q1 202340Business Services Sector in Poland 2023FIGURE 1.10SELECTED BPO,SSC/GBS,IT,AND R&D BUSIN

266、ESS SERVICES CENTERS IN POLANDAmazon Development CenterArla FoodsBayerCognizant Technology SolutionsDNV Ergo HestiaHapag LloydHiab(Part of Cargotec)IBMiSourceTecKemiraLEO PharmaLyreco AdvantageMacGregorMets GroupMOWINoble Drilling Poland Sp.z o.o.Ricoh Business ServicesSantander Global OperationsSon

267、y Pictures GBSSwarovskithyssenkrupp Group ServicesWiproWNS Global ServicesZalaris WiproWNS Global ServicesZalaris HR Services Tricity Szczecin Toru Poznad Wrocaw Katowice&GZM Czstochowa Zielona Gra Opole Bydgoszcz3M Global Service Center PolandairSlate Poland Sp.z o.o.AtosBecton Dickinson BNY Mellon

268、Boehringer IngelheimConsult RedDeLavalDevinitiDiebold NixdorfDXC TechnologyEtteplan PolandEYFactor LawFresenius KabiGates Business Services Europegetsix GroupGoogleHewlett Packard Enterprise GBCHicronHP Inc.Impel Business SolutionsIncoraInforintiveKogifi DigitalKyndryl GSDCMahleMAHLE Shared Services

269、 Poland McCainMerckOlympus Business ServicesParker Hannifin ESSCPPGQIAGEN Business ServicesScaloSchaeffler Global Services EuropeSmith&NephewSoftServeSSABToyotaUBS/Credit SuisseUPMUPS Global Business Services VolvoXL CatlinAmmega Business Services Sp.z o.o.ArcelorMittal Business Center of Excellence

270、 PolandCooper StandardEPAM SystemsFireup SoftwareHoneywellHostersiING Tech Polandista Shared Services PolskaKLDiscovery OntrackKyndryl GSDCNGA HR/AlightPwC Service Delivery CenterRockwell AutomationSopra SteriaTV RheinlandUnileverVialto Partners PolandZFADM Poland Allegro sp.z o.o.Arvato B.Braun Gro

271、upBeiersdorf BSS Hub Carlsberg Shared Services Centre ComputacenterConectys Poland Sp.z o.o.DFDSFlexDevFranklin TempletonGrant Thornton FrckowiakGSK Pozna Tech Centre/GSK Finance HubHaleon Global Capability CenterIKEA Global Business OperationsJohn DeereLumen Technologies PolandLyondellBasellMajorel

272、 Poland sp.z o.o.MAN Shared Services CenterMarsMcKinseyMiele Global ServicesNewellO-I Business Service CenterPEAC PolandRaben Business Services Sp.z o.o.REHAU Business ServicesRockwool Global Business ServicesSignifySKF Financial Servicesabka PolskaConsileon PolskaCSL Sp.z o.o.Demant Business Servic

273、es Poland Sp.z o.o.METRO Global Solution CenterWilhelmsen AtosGrant ThorntonAtos SiiGlobalLogicZFPoznaWrocawKatowice&GZM KoszalinGlobalLogicElblg Transcom Worldwide LegnicaGates CorporationTricity Gorzw Wlkp.SC JohnsonState of the business services sector in Poland at the end of Q1 202341Business Se

274、rvices Sector in Poland 2023The map presents only selected business services centers owned by companies responding to the ABSL sector survey 2023.If you would like to enhance your visibility and contribute to the next ABSL sector survey please contact researchabsl.pl Toru Biaystok Warsawd Lublin Rze

275、szw Krakw Katowice&GZM CzstochowaABBAlexander Mann SolutionsAmwayAonAptivAras Software Sp.z o.o.Arrow ElectronicsBystronicCapgeminiCiscoCodeteDanish CrownDXCDysonEcolab Services PolandELECTROLUX GSCC KRAKWEPAMEuroclearGEGenpactHAVIHCL TechnologiesHeinekenHerbalife Nutrition Global BSCHitachi Vantara

276、HSBCIAG GBSIBM BTOInfogain TechnologiesInternational PaperJacobsJacobsKimberley ClarkKimberly-ClarkKIONLTIMindtreeLufthansa Global Business ServicesLundbeckMotorola SolutionsNovocure Poland PepsicoPMI Service Center EuropePontoon SolutionsQurate Retail Group Global Business ServicesSabreShellState S

277、treetSylvamo PolskaTE ConnectivityTTEC EUROPE B.V.UBSWestinghouse Electric Poland Sp.z o.o.BillenniumintiveNetguruSoftServeTranscom WorldwideArcus Systemy InformatyczneBillenniumCapgeminiCollaberaDignio Poland GenpactInfiniteintiveMIKROBIT LLCOrangePhlexglobal Sp.z o.o.ProService FintecoPublicis Res

278、ources Poland Pyramid Games S.A.SiiAdaptive Solutions&Advisory GroupAmcor Speciality Cartons SSCArvatoBarry CallebautCERI InternationalClariantCollaberaCommerzbank Aktiengesellschaft Spka Akcyjna Oddzia w PolsceDIGITAL WORKFORCE SP.Z O.O.Fujitsu Technology SolutionsInfosysMcCormickNordea PhilipsPKP

279、Energetyka CUWRecticelSignifyTakeda SCE Wella CompanyWhirlpoolCapgeminiista Shared Services PricewaterhouseCoppers Service Delivery Center PolandVialto Partners PolandWarsawdLublinAccenture OperationsAkzoNobelAlconAmadeus PolskaAmerican ExpressASTEKAstraZeneca AvengaAwaresonBAT Digital Business Serv

280、ices PolandBaxter BSCBillenniumBiogenBNP ParibasBPO InternationalBrown Brothers HarrimanBrukerCashDirector S.A.CBRE Business Services OrganisationCiech Services sp zooCircle KCitibankCoca-Cola Poland ServicesColgate-PalmoliveDaikinDanfossDanoneDentons Business Services EMEADLA PiperDSV International

281、 Shared ServiceDysonElanco Solutions CenterElekta ABEquatexFIS Technology ServicesGoldman SachsGoogleGroupon Shared ServicesIntermediate Capital Group(ICG)ISS GlobalITDS PolskaJ.P.MorganJohnson&Johnson JTI GBS PolandKMD LinklatersLionbridgeLOrealLTIMindtreeMercerMettler-ToledoMMC GroupModerna MoneyG

282、ramMSA SafetyNatWest PolskaNovo NordiskOerlikon Business Services EuropeOrstedPandoraPoint72Procter&GambleRITS Professional ServicesSchneider ElectricSiemensSIX Global ServicesSkandinaviska Enskilda Banken(SEB)Societe GeneraleSonovaStandard CharteredStrykerTata Consultancy ServicesTeleperformance Po

283、lskaVELUXWestwingZimmer BiometZoetis Finance ServiceAtosSiiElblg KielceMedicoverKrakw OlsztynBillenniumCitibank Transcom Worldwide OpoleState of the business services sector in Poland at the end of Q1 202342Business Services Sector in Poland 2023SERVICES PROVIDED AND OPERATING MODELSFIGURE 1.11SSC/G

284、BS CENTERS OPERATING MODELS(%OF RESPONDENTS AND RESPONSES WEIGHTED BY HEADCOUNT)Single-function (i.e.,only one function e.g.,only F&A)Multi-function (i.e.,more than one function e.g.,F&A+IT+HR)GBS (could be single or multi function)Other33.6%5.3%59.5%unweighted1.5%Source:ABSLs study based on the res

285、ults of the survey(N=131 companies)27.2%3.8%68.0%employment weightedFIGURE 1.12SSC/GBS OPERATING MODEL(RESPONSES AND RESPONSES WEIGHTED BY HEADCOUNT,IN%)All in-house/CaptiveHybrid in-house+Multiple BPOsHybrid in-house+Single BPO23.3%14.0%62.8%unweightedSource:ABSLs study based on the results of the

286、survey(N=129 companies)28.0%20.7%51.3%employment weighted1.1%State of the business services sector in Poland at the end of Q1 202343Business Services Sector in Poland 2023STRUCTURE OF CLIENTS SUPPORTED BY INDUSTRY0Information TechnologyBFSI:Banking,Financial Services,InsuranceConsumer Goods&Services

287、*Commercial&Professional Services*Health CareEnergy,Materials&Utilities*Industrial GoodsTransportation*Telecommunication ServicesOther Private ServicesPublic Sector ServicesReal EstateOther5%10%40.7%FIGURE 1.13WHICH SECTORS DO YOUR CENTERS IN POLAND SERVICE(INTERNAL AND EXTERNAL CLIENTS)?(%OF RESPON

288、SES)15%20%25%30%35%40%45%50%39.6%39.0%29.1%28.6%24.7%23.1%23.1%15.4%11.5%11.5%9.3%13.7%Source:ABSLs study based on the results of the survey(N=182 companies)*i.e.,Automobiles&Auto Parts,Food&Beverages,Media,Retailing,Leisure*i.e.,Business Support Services,HR Services,Legal Services,Research&Consulti

289、ng Service*i.e.,Oil&Gas,Chemicals,Paper&Forest Products,Metals&Mining*i.e.,Airlines,LogisticsState of the business services sector in Poland at the end of Q1 202344Business Services Sector in Poland 2023GEOGRAPHIC SCOPE OF SERVICES DELIVEREDMore than half of the analyzed centers,55.0%,operate global

290、ly for internal and external customers while 42.2%provide services for clients from specific countries and regions.The number of centers serving only clients from Poland is low at 2.2%,while only 0.6%concentrate exclusively on clients from one foreign country.This structure is stable in comparison t

291、o previous editions of the survey.Similarly,in recent years,the most significant number of centers have focused on serving customers in Western Europe(91.1%),Poland(83.3%),Central and Eastern Europe(79.7%),Nordic countries(76.7%),and Southern Europe(72.2%).Most of the clients served are therefore fr

292、om Europe and located in the same or close to the same time zone.On the other hand,the share of centers servicing the United States&Canada increased to 64.4%,and the Middle East and Africa to 48.9%.Currently,the share of centers servicing clients from APAC(32.2%)and LAC(27.8%)is lower.Nonetheless,th

293、e global profile of services provided in Poland is clear.Poland and CEE have an obvious time zone advantage allowing centers located here to provide services worldwide.Global reach supportedOnly domestic(Polands)market supportedOnly a single foreign country supportedSpecific countries or regions sup

294、portedFIGURE 1.14GEOGRAPHIC PROFILE OF SERVICES DELIVERED(%OF RESPONSES)Source:ABSLs study based on the results of the survey(N=180 companies)55.0%0.6%2.2%42.2%State of the business services sector in Poland at the end of Q1 202345Business Services Sector in Poland 2023Western EuropeNordic countries

295、Central&Eastern Europe(excl.Poland)Asia-Pacific(APAC)USA and CanadaMiddle East&AfricaSouthern EuropePolandLatin America and the Caribbean(LAC)Other region/countryFIGURE 1.15GEOGRAPHIC SCOPE OF SERVICES DELIVERED BY REGIONS OF THE WORLD(%OF RESPONDENTS)76.7%91.1%64.4%83.3%79.4%27.8%72.2%48.9%32.2%7.2

296、%Source:ABSLs study based on the results of the survey(N=180 companies)Based on the locations of the five most essential clients indicated in the survey,we have determined the ranking of locations from which clients are most frequently supported.The country stated most often was Germany(73.8%of resp

297、onses),followed by the United Kingdom(57.0%),and France(44.2%)which overtook the USA(40.7%)for third position.Poland(37.2%)rounded off the top five whose composition remained unchanged.As we stressed in the previous edition of the report,these responses point to the significance of nearshoring.The l

298、ist of countries with shares exceeding 5.0%consists of 11 from Western&Northern Europe and Canada.As we expected in the latest edition,Russia and Belarus disappeared from the ranking as a direct result of the Russian invasion of Ukraine that started in Q1 2022.The role of the Ukrainian market at the

299、 same time decreased.The list now covers 44 countries,which are served by centers located in Poland in Q1 2023.State of the business services sector in Poland at the end of Q1 202346Business Services Sector in Poland 202373.8%Germany57.0%United Kingdom44.2%France40.7%United States37.2%Poland20.9%Ita

300、ly18.6%Netherlands18.0%Switzerland16.9%Spain13.4%Sweden11.6%Belgium9.3%Denmark8.7%Austria5.8%Czechia5.8%Norway5.2%Canada5.2%FinlandSource:ABSLs study based on the results of the survey(N=172 companies)The remaining countries indicated by less than 5.0%of respondents,in decreasing order of significan

301、ce:Brazil,Ireland,Luxembourg,Turkey,Hungary,Romania,Swaziland,United Arab Emirates,China,Japan,Portugal,Singapore,South Africa,Ukraine,Greece,India,Afghanistan,Andorra,Australia,Colombia,Iceland,Israel,Lithuania,Malaysia,Morocco,Saudi Arabia,and Slovakia.FIGURE 1.16LOCATION OF TOP CLIENTS SERVED BY

302、CENTERS(%OF RESPONSES)State of the business services sector in Poland at the end of Q1 202347Business Services Sector in Poland 2023FIGURE 1.17PROCESS CATEGORIES SUPPORTED BY BUSINESS SERVICES CENTERS IN POLAND(PART 1)(%OF RESPONDENTS)FF&A:Accounts PayableF&A:General Ledger&Period ReportingF&A:Trave

303、l&ExpensesF&A:Invoice to Cash*F&A:Order to Invoice(Order Management)F&A:Statutory&Tax ServicesF&A:Business Controlling(incl.Project Controlling)F&A:Financial Planning&AnalysisF&A:TreasuryData Management:Master Data Management(various business processes)HR:HR Administration&ReportingHR:RecruitmentHR:

304、PayrollHR:Compensation&BenefitsHR:Talent ManagementHR:MobilityHR:Knowledge ManagementCustomer Operations:Customer HelpdeskCustomer Operations:Sales&Account Management SupportCustomer Operations:FulfillmentIT:Application Lifecycle Management(incl.Software Development)IT:Infrastructure ManagementIT:Cl

305、oud ServicesIT:Project Management(IT specific)IT:Robotic Process Automation(RPA),Process DigitizationIT:User support/Service DesksIT:Information Security(incl.Cybersecurity)IT:TestingIT:Other IT servicesIT:Enabled Services10%20%30%40%50%060%10%20%30%40%50%60%63.1%59.2%54.7%53.6%50.8%50.3%47.5%43.0%3

306、6.3%51.4%53.1%46.9%40.8%39.1%36.3%25.7%24.0%35.8%24.6%24.0%50.3%50.3%46.9%44.1%43.6%43.0%40.8%37.4%36.9%31.8%070%70%Source:ABSLs study based on the results of the survey(N=179 companies)*incl.Cash Allocation,Cash Collection,Disputes ManagementCATEGORIES OF PROCESSES SUPPORTED State of the business s

307、ervices sector in Poland at the end of Q1 202348Business Services Sector in Poland 2023FIGURE 1.18PROCESS CATEGORIES SUPPORTED BY BUSINESS SERVICES CENTERS IN POLAND(PART 2)(%OF RESPONDENTS)BFSI:Risk&ComplianceBFSI:Corporate PaymentsBFSI:Cash ManagementBFSI:Asset ManagementBFSI:KYC/AMLBFSI:Other BFS

308、I Specific ServicesBFSI:Fund AccountingBFSI:Insurance ServicesSourcing&Procurement:Indirect ProcurementSourcing&Procurement:Sourcing&Category ManagementSourcing&Procurement:Direct ProcurementSourcing&Procurement:Strategic ProcurementSupply Chain:Supply Chain Management&LogisticsMarketing:Digital Mar

309、ketingMarketing:Content Management(incl.Platforms)Marketing:Other Marketing ServicesMarketing:Strategic MarketingProject Management:Project Management Services(incl.Service Transitions)Change Management:Business Transformation ServicesQuality Management:Internal Audit&ComplianceIntelligence&Insights

310、*Document ManagementExecutive Support Services:Administrative SupportLegal:Legal ProcessesIndustry Specific:Engineering ServicesR&D:Research&Development(other than Software Development)Industry Specific:Health Care Specific ProcessesIndustry Specific:Network ServicesIndustry Specific:Real Estate,Fac

311、ilities ManagementIndustry Specific:Public Sector Specific ProcessesOther services10%20%30%40%50%060%010%20%30%40%50%60%26.8%24.0%22.3%16.8%16.8%12.3%11.7%8.4%39.7%28.5%25.7%18.4%29.1%22.3%17.9%12.3%7.8%32.4%30.7%27.4%26.3%26.3%20.7%19.0%12.8%10.6%11.2%6.7%6.a%3.4%Source:ABSLs study based on the res

312、ults of the survey(N=179 companies)*Business Intelligence,Data Analytics,Complex Performance Reporting8.9%State of the business services sector in Poland at the end of Q1 202349Business Services Sector in Poland 2023The business services sector in Poland is changing.A gradual increase has been obser

313、ved in the sophistication of the services provided by the centers.Respondents were asked to estimate the transactional vs.knowledge-intensive work ratio.We define transactional work as tasks that require less than six months to train a worker to reach the required efficiency level;it is six months o

314、r more for knowledge-intensive work.For the first time,the percentage of knowledge-intensive processes exceeded 50.0%in 2022.At the end of Q1 2022,50.8%of all processes(weighted by employment)performed in the centers were considered knowledge intensive.At the end of Q1 2023 it reached 56.9%(a year-o

315、n-year increase of 6.4 pp.and an impressive 12.9 p.p.since 2019).Trends toward upskilling and upgrading are more than evident.The conclusion was arrived at by using a unified methodology applied in previous years.This implies that most new positions in the sector have been generated in knowledge-int

316、ensive tasks.FIGURE 1.19PROPORTION OF TRANSACTIONAL VS.KNOWLEDGE-INTENSIVE PROCESSES IN Q1 2023 (EMPLOYMENT-WEIGHTED RESPONSES)Transactional workKnowledge-intensive workSource:ABSLs study based on the survey results(N=167).The results are weighted by the overall employment of a firm in Poland.10%20%

317、30%40%50%60%70%80%90%0100%43.1%56.9%SOPHISTICATION OF BUSINESS PROCESSESTo be able to compare responses to previous ABSL surveys,process categories supported in centers were assigned according to their location in the functional structure of organizations(back-office,middle-office,and front-office).

318、Front-office positions are the most client-facing and related to HQ functions.Front-office workers consistently work directly with customers.The middle office supports the front office in dealing with more complex tasks,such as advanced analytics.The back office provides administrative&general suppo

319、rt.As in last years report,we have identified a downward trend in the importance of back-office processes and an increase in the importance of mid-office functions with no change in the role of front-office BACK-OFFICE/MID-OFFICE/FRONT-OFFICEState of the business services sector in Poland at the end

320、 of Q1 202350Business Services Sector in Poland 202332The largest number of languages used at a single business services center.7 The average number of languages used at business services centers.Median=6.26.2%The share of business services centers using at least ten languages.3.5%The percentage of

321、business services centers using at least 20 languages.41.5%The share of centers in which processes are carried out in English only.English The most popular language in which services are provided in Poland(in 93.6%of centers).Five other languages are used to provide services in more than half of the

322、 centers.LANGUAGES USED AT BUSINESS SERVICES CENTERSfunctionality.The industry in Poland has been gradually shifting towards functions with higher added value and greater complexity over the last year.On average,51.4%of processes supported by our centers in Q1 2023 are back-office(a decrease of 0.3%

323、YoY),while the share of the mid-office process is 47.6%(an increase of 0.4%YoY).The percentage of mid-office processes has nevertheless significantly increased over time(2016-2021).TABLE 1.3PROCESS CATEGORIES SUPPORTED BY BUSINESS SERVICES CENTERS IN POLAND(INDUSTRY AVERAGES)2023202220212023-2021Bac

324、k-office51.451.752.9-1.5 Mid-office47.647.246.11.5 Front-office1.01.11.00.0 Source:ABSLs study based on the results of the surveys in 2021,2022&2023State of the business services sector in Poland at the end of Q1 202351Business Services Sector in Poland 2023FIGURE 1.20LANGUAGES USED AT CENTERS IN SE

325、RVICING CLIENTS BY POPULARITY(%OF RESPONSES)Source:ABSLs study based on a survey addressed to business services centers(N=172 companies).The results do not add up to 100.*In the category“other”were:Chinese(Mandarin),Estonian,Hindi,Latvian,Korean,Chinese(other dialects),Vietnamese,Persian,Urdu,Flemis

326、h.EnglishGermanPolishFrenchSpanishItalianDutch(incl.Flemish Dutch)Portuguese(incl.Brazilian Portuguese)RussianCzechSwedishDanishHungarianUkrainianNorwegianTurkishArabicFinnishGreekBulgarianRomanianSlovakCroatianHebrewSlovenianSerbianJapaneseBelarusianLithuanianOthers*20%40%60%80%100%0020%40%60%80%10

327、0%93.6%75.6%65.1%64.5%55.2%51.7%34.4%27.3%23.8%23.8%20.9%18.6%18.0%16.3%15.7%15.7%14.5%13.4%11.0%10.5%10.5%9.9%8.1%8.1%5.2%4.1%4.7%3.5%3.5%13.4%10%30%50%70%90%10%30%50%70%90%State of the business services sector in Poland at the end of Q1 202352Business Services Sector in Poland 2023FIGURE 1.21NUMBE

328、R OF LANGUAGES USED AT A CENTER(%)FIGURE 1.22SHARE OF PROCESSES PERFORMED IN THE CENTER REQUIRING ENGLISH ONLY(%RESPONSES)Source:ABSLs study based on a survey addressed to business services centers(N=159 companies)02%6%8%10%14%2345612%14%16%Source:ABSLs study based on a survey addressed to business

329、services centers(N=162 companies).The results do not add up to 100.010%15%20%15%23-415-1920-3225%5-67-910-1411.0%11.0%15.7%16.9%19.2%14.5%8.1%3.5%78910-1415-1920-325.2%6.4%11.0%14.5%11.0%9.3%11.6%5.8%7.0%6.4%8.1%3.5%State of the business services sector in Poland at the end of Q1 202353Business Serv

330、ices Sector in Poland 2023FIGURE 1.23TOP PROCESSES PERFORMED IN ENGLISH ONLY(%RESPONSES)F&A:General Ledger&Period ReportingF&A:Accounts PayableIT:Application Lifecycle Management(incl.Software Development)F&A:Financial Planning&AnalysisIT:Infrastructure ManagementIT:Cloud ServicesF&A:Travel&Expenses

331、Data Management:Master Data Management(various business processes)IT:Project Management(IT specific)IT:Information Security(incl.Cybersecurity)F&A:TreasuryF&A:Business Controlling(incl.Project Controlling)F&A:Invoice to Cash*IT:User support/Service DesksIT:Robotic Process Automation(RPA),Process Dig

332、itizationF&A:Order to Invoice(Order Management)Project Management:Project Management Services(incl.Service Transitions)IT:TestingF&A:Statutory&Tax ServicesHR:RecruitmentHR:MobilityIntelligence&Insights*BFSI:Risk&ComplianceBFSI:KYC/AMLHR:Talent ManagementHR:Compensation&BenefitsHR:HR Administration&R

333、eportingCustomer Operations:Customer HelpdeskSourcing&Procurement:Indirect ProcurementSupply Chain:Supply Chain Management&Logistics5%10%15%20%25%030%05%10%15%20%25%30%29.6%23.3%23.3%20.8%18.9%18.9%17.6%16.4%16.4%15.7%13.8%13.2%12.6%11.9%11.3%10.7%10.1%8.8%7.5%6.9%6.9%6.9%6.3%6.3%5.7%5.7%5.7%5.0%Source:ABSLs study based on a survey addressed to business services centers(N=159 companies).The result