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News Release

Prague

The Czech Republic is the second largest country for Business Services in CEE


​Prague, 11 June 2014 –The Business Services sector is one of the largest employers in the country and continues to grow every year. New companies are coming to appreciate the benefits of setting up their operations in the Czech Republic which is the second largest country for Business Services in CEE. 

According to the 2013 ABSL sector study, there are currently over 200 centres throughout the country, employing in excess of 50,000 people. Although a large number of the centres are located in Prague, Brno and Ostrava, you will also find them spread out in more than 10 cities overall. In recent years, the majority of growth in the sector has come from the expansion of existing centres as opposed to new market entries. 

Both at present and over the past few years, the top global destinations for foreign direct investment and business (shared) service centres are, and have mainly been in emerging markets in Southeast Asia (for example India and the Philippines) and in South America (Argentina). However, European countries such as the Czech Republic, Poland and Romania remain to be very sought-after locations, particularly due to their lower labour costs, compared to Western Europe, and strong potential for economic growth and development.

The Czech Republic has struggled to compete with the economic dynamics, English language skills and low labour costs that India had to offer, for example. Compared to Poland and Romania, currently the two strongest competitors of the Czech Republic in the region, the advantages of the Czech Republic are predominantly its educated labour force, with a very good range of European language skills, long industrial tradition, long term stability, good levels of market transparency and very good infrastructure. 

JLL becomes a supporting member of ABSL and plans to help put the Czech Republic back on the radar of investors and corporates

At the end of May 2014, JLL became a member of the Association of Business Service Leaders (ABSL) in the Czech Republic. ABSL has been formed to give the business services industry a common voice to help shape its environment and destiny. Due to the strong and growing competition from other countries in this sector, JLL, who operates across the entire CEE region, has been accepted as a supporting member to actively help support the association in both creating awareness for new members and to provide real estate, occupational and other industry related market advice. 

‘’Selecting a country, city, sub-market and an attractive, efficient, productive office space for a shared service centre, on top of all the other strategic decisions around operations and human resourcing, is highly complex in today’s rapidly changing business and economic climate. Creating the right mix is becoming ever more crucial in order for businesses to attract and retain talent, and to reach the required levels of productivity to sustain a profitable business operation. Alongside other ABSL member experts from within the industry, we at JLL hope to reiterate the competitiveness of the Czech market both for the business services industry but also for business as a whole’’ comments Kevin Turpin, Head of Research & Consultancy for CEE at JLL.

ABSL Members include companies which conduct business in the area of Shared Services Centre (SSC), Business Process Outsourcing (BPO), Information Technology Outsourcing (ITO), Research and Development (R&D) and companies contributing to the sector's growth. For more information please visit: www.absl.cz.