Download - Paweł Panczyj (ABSL Poland)
BUSINESS SERVICES IN CEE 2014 KEY FACTS ON THE SECTOR
AND FUTURE TRENDS
POLAND & CZECH REPUBLIC – OVERVIEW:
CZECH REP.
APPROX. 470 CENTRES*
APPROX. 130 000 FTEs*
POLAND
APPROX. 260 CENTRES*
8 STRONG LOCATIONS 3 STRONG LOCATIONS
APPROX. 57 000 FTEs*
*Only foreign capital centres
POLAND AS A LEADER OF BUSINESS SERVICES IN CEE
High number of cities being academic centres
More advanced services are provided
Growing complexity of business processes
Nearshore advantage with Western Europe as client
CEE’S STRONG COMBINED “VALUE PROPOSITION”
From costs to outcomes / high-end services (value added)
From enabling functions to core processes
Industry know-how required in traditionally horizontal processes
Desire for process expertise and technology (platforms)
Global solutions - multi-sourcing, near-shore / far-shore
KEY MARKET TRENDS IN CEE REGION
Modern services sector job growth in Eastern Europe is back to on track
▪First results from 2014 – growth continues!
15% expected for 2013
2004 05 06 09 08 07 10 11 0
100
200
300
400
500
+11% +22%
+34% +31%
12
+15%
YE 2012: 320,000 FTEs
2013
+20%
YE 2013: 409,000 FTEs 28% achieved
SOURCE: McKinsey&Co.
SOURCE: NASSCOM; McKinsey
1 Estimates
Eastern Europe
India
∆ 2012/2013 (percent)
EE as % of India
BPO (F&A, HR, CC)
R&D, ESO
ITO
Total
13
22
21
18
2013
+7.0 +28.0
+9.0 +40.0
+4.0 +31.0
+9.0 +19.0
2013 FTEs ('000)
140
1,0551
197 9171
72 3521
409 2,3241
Overall, Eastern Europe still growing faster than India, mainly driven by record growth in BPO
6
9
26
10
2006
Poland - the growth engine for modern services in CEE
SOURCE: McKinsey
Ø 2013: +28%
0 2 4 6 8 10 12 14 16 18 20 22 24 26 28 30 32 34 36 38 40 42 44 46 48 50 52 54
40 30 20 10 0
70
50 60
130 120 110 100 90 80
Change in FTEs Percent, 2012/2013
Total FTEs FTE, thousands, 2012, 2013
Czech
Ukraine
Russia
Hungary
Estonia
Romania
Latvia Lithuania
Poland
Bulgaria
Poland
Romania
Slovakia Ukraine
Russia
Hungary
2013
2012
Global BPM market is likely to sustain 8-10% growth
2012 2014(E) 2020(E)
Global BPM market size1
2012-20(E), US$ billion
111-113 128-130
204-206
1 For leading segments and industries Source: Everest Group (2014)
ESTIMATES
Five next generation BPM trends to watch out for
1 Growth segments different from the past
2 Though a big opportunity, analytics requirements likely to change
3 Technology/Automation a strategic imperative
4 Increase in outcome based pricing constructs , though selectively
5 Increasing maturity of hybrid sourcing
Source: Everest Group (2014)
Newer BPM segments driving growth as traditional segments mature
BPO segment growth (3 year CAGR) Percentage
FAOPO
Contact centerMulti-process HRO
Capital Markets BPOHealthcare BPOInsurance BPOAnalytics BPO
Marketing BPORPO
20-22%
14-16%
16-18%
30-32%
16-18%
20-25%
New
er
horiz
onta
ls
Mat
ure
se
gmen
ts 8-10%
10-12%
2-4%
6-8%
Indu
stry
sp
ecifi
c
Source: Everest Group (2014)
Majority of the current work
Likely to be productized /
automated
Relatively easier to
commoditize
Increasing area of interest
More talent / expertise based
Difficult to commoditize
Though a big opportunity, analytics requirements likely to significantly change
Bus
ines
s im
pact
Sophistication of solution
30
40
20
10
1. Reporting
2. Descriptive Analytics
3. Predictive Analytics
4. Prescriptive Analytics
Relative maturity of analytics solutions Percentage third-party offshore analytics FTEs
Source: Everest Group (2014)
FUTURE IS BRIGHT BUT CANSURPRISE YOU!
THANK YOU