Polish Outsourcing Companies Compared to Global BPO and SSC Centers
Polish outsourcing companies specializing in BPO (Business Process Outsourcing) and SSC (Shared Services Centers) are assuming an ever more pivotal role. This is attributable to the proficient language skills of consultants, access to specialized knowledge, and a robust business infrastructure.
As per Kearney’s report, Poland holds the 13th position on the global stage among the prime locations for business service centers. In Europe, only the United Kingdom outranks the country.
This article will delve into the factors shaping the selection of locations for BPO and SSC services and elucidate why Polish outsourcing firms are at the forefront of the global market.
BPO and SSC Services Market
According to The 2023 Kearney Global Services Location Index, the global business process outsourcing (BPO) market increased from $624 billion in 2022 to $681 billion in 2023, and it is projected to grow by 8% by 2027. The value of the shared services centers (SSC) market was $51.5 billion in 2023, and Global Market Insights forecasts that it will experience an average growth rate of over 16% from 2024 to 2034, as new firms emerge and existing ones expand.
Countries such as India, China, and Malaysia are considered the most attractive locations. The cost of services in these countries is significantly lower than in Europe, and additionally, the workforce is highly specialized and well-versed in the latest technologies.
The United Kingdom also ranks among the top five, boasting a highly qualified and educated workforce fluent in various languages, particularly English. This linguistic versatility is paramount for catering to global clients across diverse markets. Moreover, the UK boasts a stable political landscape and robust legal frameworks, ensuring a secure environment for conducting business operations.
Factors Influencing the Choice of BPO and SSC Locations
According to the consulting firm Kearney, talent regeneration stands out as a pivotal factor shaping the selection of offshoring services. The ability to swiftly train and re-skill the workforce to adapt to market shifts is paramount. Prompt responses to evolving needs, technological advancements, and comprehensive staff readiness are vital for sustaining competitiveness.
Equally crucial is ensuring access to talent through favorable tax laws and outsourcing regulations, fostering English language proficiency, upholding robust data protection regulations, and maintaining internal stability. The countries adept at pinpointing requisite skills can swiftly reap economic benefits.
A closely related concept to offshoring is nearshoring, a strategy gaining momentum. It involves relocating business processes or production to countries geographically proximate, typically boasting lower labor costs compared to the parent company’s domicile.
Nearshoring destinations often share the same geographical region as the parent company, facilitating seamless team management and communication. Opting for locations where business culture and language align with or easily adapt to the corporate milieu can streamline team integration and collaboration.
Other factors that can impact BPO and SSC operations in a given country are:
- Labor and infrastructure costs: Evaluating labor costs and infrastructure in a specific location is crucial. Companies seek areas where labor expenses are competitive, while also ensuring there’s adequate infrastructure to support business activities.
- Available skills and service quality: Access to a skilled workforce with the right expertise and experience for the company’s tasks is vital. Additionally, delivering high-quality services is essential for customer satisfaction and business success.
- Business environment: A favorable business environment, including stable laws, favorable tax regulations, transparent administrative procedures, and support for entrepreneurship, can attract investors and streamline business operations.
- Political and social risks: Companies need to consider political and social risks in a location. Political instability, social unrest, or unforeseen legislative changes can significantly impact business operations.
- Immigration laws: Flexible immigration regulations enable BPO and SSC firms to recruit foreign talent, crucial when there’s a shortage of qualified local candidates. Simplifying the process for hiring international staff can foster industry growth.
- Government support: Governments can implement beneficial regulations and tax incentives for BPO and SSC companies, attracting investment and fostering industry expansion. Implementing adaptable employment and outsourcing regulations can stimulate sector development, encouraging companies to invest and grow domestically.
Polish Outsourcing Companies
Poland is setting the benchmark in the region, emerging as a leader in terms of both the number of centers and the employment within the industry. With over 1300 operational centers, it represents approximately 70% of all BSS centers in Central and Eastern Europe. The total employment within these enterprises has surpassed 300,000, making up nearly half of the industry’s workforce in this region.
The growth of the outsourcing industry in Poland owes to several factors. Firstly, Poland boasts better access to experienced professionals compared to other countries, including business leaders and multilingual employees, alongside a steady influx of graduates into the job market.
Foreign professionals, often employed in BPO, SSC, CBC, IT, and R&D centers, also significantly contribute to the development of the BSS industry. Additionally, Poland’s labor market strength lies in its consistently low wage costs compared to regional peers and a strong work ethic focused on efficiency.
Strategic location plays a pivotal role in establishing shared service centers in Poland. Its favorable investment climate, economic stability, attractive time zone, and cultural affinity with other European nations, coupled with the development of modern business infrastructure and an improving quality of life in Polish cities, make it an appealing destination for investors.
Moreover, the business-friendly ecosystem and robust support for investors further enhance its attractiveness as a business hub.
According to Ernst & Young, the primary factors driving the growth of BPO and SSC firms in Poland include:
- Availability of skilled workforce, drawn from countries like Ukraine, Belarus, Spain, India, Uzbekistan, and Turkey, making up a significant talent pool of over 2.3 million individuals, as per data from the Ministry of Family and Social Policy. This influx of qualified professionals is a direct result of the issuance of various work permits for foreigners in 2022.
- Evolution of the labor market, particularly in the adoption of flexible collaboration models like B2B contracts.
- Widespread adoption of remote work, with its regulation introduced in the Labor Code in January 2023.
- Favorable conditions for investors. The SSC/BPO sector in Poland is expanding across at least 10 urban hubs such as Warsaw and Krakow, with another seven locations poised to attract investor interest soon, particularly those with access to airports.
Comprehensive Services Offered by Polish Outsourcing Companies
A prominent trend in the market is consolidation, empowering clients with access to more comprehensive services. This facilitates entrusting a single service provider with a myriad of diverse business processes. Within the Polish market for contemporary business solutions, several sizable domestic capital groups have emerged, exemplified by entities like OEX VCC.
The hallmark of Polish outsourcing firms lies in their adaptability and responsiveness to evolving client demands. They boast a broad spectrum of services, encompassing customer support, financial management, human resources administration, IT solutions, research and development, alongside various other business operations.
Furthermore, Polish enterprises frequently invest in cutting-edge technologies and innovations, positioning themselves at the forefront of the industry and ensuring clientele receive top-notch service quality.
Why OEX VCC Stands Out as an Attractive Outsourcing Company for International Businesses
At VCC, we’re witnessing significant interest, particularly from clients in German-speaking countries, drawn by the strategic advantage of Poland’s geographical proximity. Our services cater to a diverse linguistic landscape, encompassing English, German, French, Italian, Spanish, and more. Furthermore, we undertake projects in languages such as Czech, Romanian, Dutch, and beyond.
European and American enterprises favor us as their preferred partner for customer service centers operating in their native languages, capitalizing on the exceptional language proficiencies of our staff, often complemented by higher education.
Our extensive service portfolio is a magnet for clients seeking comprehensive solutions beyond standard customer service, spanning sales support, employee training, back-office operations, business process automation, and beyond.
Clients choose VCC not only for our proficient consultants but also for our implementation of cutting-edge AI-driven tools tailored to their specific requirements. As a forward-thinking entity, we internally develop tools like voicebots (Primebot) and analytical solutions, seamlessly augmenting contact center processes.
For many businesses, scaling services presents inherent challenges, necessitating the introduction of new processes and tools. However, companies partnering with VCC benefit from access to robust infrastructure and resources, facilitating agile scaling of projects to meet evolving demands.
Summary
The growth of Polish outsourcing firms in the BPO and SSC domains is a pivotal factor in the global business services landscape. Poland is increasingly acknowledged as a desirable hub for foreign investment, owing to its highly skilled workforce, adaptable legal framework, and advanced business infrastructure.
Consequently, Poland appeals to clients seeking comprehensive outsourcing solutions and investors keen on establishing shared service centers. The competitive edge of Polish enterprises in language proficiency, innovation, and flexibility positions them as frontrunners in the international arena.
Author: Ewa Depta, Sales Director and Board Member at OEX VCC