bpo innovations conference - the czech success story

BPO Innovations Conference A Czech Success StoryJan Fried | Director of East Coast Operations, USA

New York, November 13th 2013

1. Success Factors

2. Case Studies

3. Incentives and Statistics

Agenda

Success Factors

Source: CzechInvest / Gartner's Leading Locations for Offshore Services in EMEA, 2012

Population 10.5 million

Labor force 5.3 million

Unemployment 7.6 %

GDP growth (2012) -1.0 %

GDP growth (*2013) -1.0 %

Annual inflation 1.8 %

Outsourcing and Innovation

Hub in the Heart of Europe

Czech Republic

Source: CzechInvest, 2013; Czech Statistical Office, May 2013, Czech Ministry of Finance, July 2013

BSS Case Studies

Source: CzechInvest, 2013

Complex expense management and outsourcing services

Ariba Prague offers its services for the companies in EMEA region

using 15 European languages

2004 – Establishment of Ariba in the Czech Republic

2007 – Establishment of Prague BPO office with only 25 employees

2012 – Ariba Inc. became a part of SAP family – Ariba and SAP Company

2013 – Ariba employs 160 employees


BPO Center of Excellence in Prague since 2001

Services: Finance & Accounting, HR, Insurance, Supply Chain, Procurement, Business Services, Infrastructure Outsourcing, Application Outsourcing

Banking, Communications, Financial Services, Products, FMCG

The capital and the largest city of the Czech Republic,

Prague, is easily accessible to major cities in Europe

A key business hub and cost-effective market of top technology talent;

25% of the university population are science and technology graduates

Multilingual workforce (23 languages)Source: CzechInvest, 2013

BPO – invoice management, customer support, data management

Established in 2004 in Brno

Number of employees: 550

In 2013 one of the founding members of ABSL in the CR

The Association of Business Service Leaders in the Czech Republic (ABSL) has formed to give the business services industry a common voice to help shape its environment and destiny.

ACCA, Accenture, DHL, Edwards Services, Gardner Denver, Infosys, JNJ, MANN + HUMMEL, Monster, Motorola Solutions, PPG INDUSTRIES CZECH REPUBLIC, Pilsner Urquel, PricewaterhouseCoopers, Process Solutions, Siemens


Geographic Location in the Centre of Europe

Well Educated and Skilled Labor Force

Favorable Labor Costs

R&D and InnovationCapabilities

Attractive Business Climate

Why?


╌ Corporate Tax (19%) Relief for up to 10 Years

╌ Transfer of a Land at Discount

╌ Job-creation Grants (up to USD 2,500 per employee)

╌ Training and Re-Training Grants

╌ Condition: 100+ new jobs

╌ State Aid Maximum 40 % of Eligible Costs:

╌ Assets (>1/2 New Machinery)

╌ 2-years Gross Wages (New Positions)


State Incentives (BSS/BPO)


╌ Operational Program Enterprise and Innovation (OPEI)

╌ 15 Grant Programs for the period 2007-2013

╌ ICT and Business Support Services

╌ Shared-Services and Data Centres

╌ Allocation: app. USD 50 mil.

╌ Individual Subsidy: up to USD 7.5 mil. (40 – 60 % of Eligible Costs)

╌ Application Registration: Nov 6 – Dec 17, 2013

╌ Full Application: Nov 6, 2013 – Feb 7, 2014


EU Funds


╌ Conditions:

╌ Minimum investment: USD 150k (50k for SMEs)

╌ Creation of minimum jobs: 10/20/40 (size)

╌ Eligible costs:

╌ 1) 2 yr Gross Wages + Social-security and Health Insurance

╌ 2) HW/SW

╌ Real Estate Rental + Services of Experts and Consultants


ICT and Business Support Services


Manufacturing 100%

Year 1993Manufacturing

16%

Business Support Services

45%

Technology Centers

39%

Year 2013

Change in the Structure of Investments


Ministry of Industry and Trade

CzechInvest AgencyForeign Offices – USA

Jan Fried

USA – East Coast – New York

Mobile phone: +1 (347) 216 9355

E-mail: [email protected]

Roman Horacek

USA – West Coast – California

Mobile phone: + 1 (415) 794 0665

E-mail: [email protected]


mailto:[email protected]


Thank you for your attention.www.czechinvest.org

Jan Fried | Director of East Coast Operations, USA

[email protected] @jan_fried


USD 2.5milUSD 25mil +

500 jobs

$$

USD 500k + 40 jobs

$$

USD 10mil + 120 jobs

STRATEGIC

40 jobs IT 100 jobs BSS

Incentives

strategic services center5,52% paper, wood processing

1,78%

electronics, electrotechnics

10,92%

plastics, rubber6,25%

chemistry, pharmacy6,33%

IT and software development

19,51%

metal products4,04%

aircrafts0,21%

biotechnology, medical equipment

0,68%

Food Processing0,59%

engineering13,73%

manufacture of motor vehicles16,40%

other14,02%

Sector Statistics 1993 - 2013


1999 - Establishment of business entity: AT&T Global Network Services Czech Republic s.r.o. in Prague

2008 - Establishment of Brno Network Operations Centre

2009 - Launch of new AT&T Brno premises in Campus Science Park

2010 - Large Transition Project Bloom (consolidation of Global Customer Service Centres from various locations in Europe to Brno, CZ)

2013 – AT & T in Brno employs more than 1000 people


2001 – Establishment of Brno branch with dozens of employees

2004 – Brno branch became a part of strategic locations IBM Delivery Centers – DC

2005 and 2006 – Significant growth – IBM DC employed more than 2000 people

2009, 2010, 2011 – New projects were launched

2013 – IBM DC employs more than 3300 employees


╌ BSS / Call Centrum (Italy)

╌ Ostrava, Chrudim (app. 400 jobs)


Investors of the Year 2012

╌ IT / SW Development (USA)

╌ Brno (app. 200 jobs)

╌ BSS / IT (USA)

╌ Brno (app. 200 jobs)
