krakow, poland: a technology hub for central
TRANSCRIPT
Krakow, Poland:A Technology Hub for Central & Eastern EuropeRamon TancincoChairman, High Tech Committee: American Chamber of Commerce PolandHead of Strategy Central and Eastern Europe: Cisco Systems
Version as of 28 May 2010THIS WORK IS LICENSED UNDER THE CREATIVE COMMONS ATTRIBUTION-SHARE ALIKE 3.0 UNITED STATES LICENSE.
Agenda
Speaker Intro
Krakow Primer
Krakow by the Numbers
Krakow Trends
Who is in Krakow?Multinational R&D: Google, IBM, Motorola, ABB, SABRE, Delphi, Fujitsu
Offshore BPO: CapGemini, IBM, Motorola, Shell, ACS, Fortis Bank, UBS, Comarch, Unicredito Bank, Tesco, International Paper, HSBC, Lufthansa, State Street, HCL, Philip Morris, Hewitt, Alexander Mann, Hitachi, Accounting Plaza, EDF Energy, UPM-Kymenne
IT Services: concentrations in video game design and development, web design and development, mobile applications, bioinformatics, and other areas
Startups such as iLoopMobile, Volantis, Synkia, X-Formation, Test4Load, PipeJump, and many others
R&D Headquarters for Small and Medium-Sized Companies from Ireland, Israel, UK, Denmark, Norway, and US
Why Krakow?
Large technical/engineering talent pool
Low cost + stability of European Union
Multilingual, educated work force
Great place to live: Beauty, culture, and recreation
Krakow Multinational Employment
0 2000 4000 6000 8000 10000 12000 14000
inne
Logistics
Telecom
HR
Telemarketing
Sales
R&D
Customer Support
Accountint & Finance
IT
TOTAL
Kraków – employment in Major IT Companies and SSC (ITO)
IT Company Approx. no. of employees
Comarch 1000
Motorola 800
Sabre 800
Capgemini IT 500
IBM IT 450
Ericpol 400
Dreamlab (Onet IT) 200
Quantum Int. 150
HCL IT 250
TP S.A. IT 60
Google 80
Electrolux IT 40
Total 4730
Student numbers – Kraków and Katowice - (one labour region)
0 100 200 300 400 500
Zielona Góra
Opole
Białystok
Kielce
Olsztyn
Rzeszów
Szczecin
Bydgoszcz
Gdańsk
Lublin
Łódź
Wrocław
Poznan
Warszaw a
Kraków and Katow ice
Katowice, located very close to Krakow, create one labour makro region with the highest no. of students in Poland, with min. 2,5 times higher students potential compared to Poznań Source: National Statistics Office
Growing population in Kraków
Positive net migration by region – Krakow on 2nd position in Poland (number per 1000 inhabitants)
-5 -4 -3 -2 -1 0 1 2 3
Warszawa
Kraków
Poznan
Gdańsk
Łódź
Bydgoszcz
Wrocław
Szczecin
Zielona Góra
Rzeszów
Białystok
Lublin
Kielce
Olsztyn
Katowice
Opole
Polska
Krakow’s Transformation into an R&D Center
IBM Launches their Software R&D Laboratory in Krakow
Poland emerges from Communism
2000:Sabre purchases Gradient
2002: IBM Buys PwC’s Finance BPO Operations
Sabre reaches 340 Engineers
Motorola Office Opened in Krakow at Jagiellonian Campus Tower
Rafal Styczen sets up IIF, the first Venture Capital fund in Krakow
Poland joins the European Union
Sabre reaches 100 Engineers
Google Opens their first and only Central and Eastern European R&D Center in Krakow
Sabre reached 600 Engineers
1998 2004 2007
2002 2006 2005
1992 1994 1996 1998 2000 2002 2004 2005 2006 20071989
Trend Snapshot: The Krakow Mobile Cluster
Motorola
EricPol
Google (Android)
Volantis
iLoop Mobile
Trend Snapshot: International Start-up Back-Office R&D (last 2 years)
Synkia (Norway)
X-Formation (Denmark)
iLoop Mobile (USA)
Test4Load (Israel)
PipeJump (USA)
Krakow success stories• Google
•“For years, Western technology firms have come to Eastern Europe to lure away talented computer-science graduates...but now, the region's universities are producing so many top programmers that many firms are changing tack – and setting up shop at the source. IBM, Motorola, and Google have all opened research labs here in Krakow in recent years.
•Eastern Europeans have dominated international programming competitions in recent years, attracting the attention of tech firms. "When we saw these trends, of people from Eastern Europe winning these contests, we decided to take a closer look," says Kannan Pashupathy, Google's head of international engineering operations. "People have a huge interest in software, and there's a much deeper grounding in mathematics in the curriculum in these countries"...Cultural, geographic, and economic proximity to Western Europe has given the region an advantage over global competitors like India.”
(Christian Science Monitor, “Why Google put a research lab in Poland”, 3/13/07)
• IBM•“For Big Blue and other IT services companies, Poland's skilled workforce makes up for rising wages with skills that offset Bangalore's low costs. Krakow, Poland, is a nice place to live and work, with a charming old quarter and a lively club scene driven by the city's population of more than 150,000 students. In fact, Krakow seems almost too nice to compete with the raucous, traffic-jammed cities of India as a location for outsourcing...
•Since 2002, IBM has boosted staff in Krakow tenfold...Part of the reason Krakow makes sense for IBM, as well as for Cap Gemini, Motorola, KPMG, and other multinationals is that the university town churns out a steady supply of well-qualified graduates.”
(Spiegel Online, “As Good as Bangalore: Why Krakow Still Works for IBM”, 9/26/07)
• CapGemini•Provides support in 25 different languages. “Krakow has a rich history, but today’s city has a modern face with the kind of infrastructure you’d expect from any European commercial hub...Importantly, it gives us access to the skills we need – 180,000 graduates (30,000 from Krakow) leave Poland’s universities every year.”
(“Krakow Centre of Excellence”, CapGemini)
Krakow, a university city
200,000+ students in higher education
400,000+ students within 100 km
Over 30,000 new graduates each year.
~8,000 IT sciences students; ~5,000 mechanical engineers currently enrolled
Leading universities in the country
Jagiellonian University, AGH University of Science and Technology, Krakow University of Technology, Krakow University of Economics, and others.
8 universities in Krakow with IT degrees
SOURCE: TESTHR.PL, CAPGEMINI
Krakow culture and lifestyle
“Eastern Europe’s new bohemian capital” (New York Times)
EU Capital of Culture 2000; “considered by many the cultural capital of Poland”.
Entire Old Town is a UNESCO World Heritage Site.
With 7 million+ visitors per year, convenient transportation links and infrastructure.
7 national parks within 200 km; world-class skiing 100 km away.
Support for investments
EU subsidies for service sector job creation
Polish government support
Direct aid for R&D and BPO job creation
Corporate and real estate tax exemptions
Poland has a large and growing economy: ranked #21 in global GDP, low inflation.
Krakow/San Francisco
SISTER CITIES, AS OF JULY 2009