Business Services Sector in the Katowice Agglomeration

Report prepared for Katowice City Hall by the Association of Business Service Leaders (ABSL) in cooperation with JLL and Randstad

Project coordinator: Janusz Górecki, Head of Research, ABSL e-mail: [email protected]

Layout and printing: www.ponad.pl

® ABSL 2016 All copyrights in this work are the property of ABSL. Unless otherwise stated by the relevant provisions of law, any application or disposal of the work, including any use, reproduction, duplication, modification, adaptation or retransmission of this work, in whole or in part, in any manner, without the prior written consent of ABSL, is a violation of copyright law. If in doubt, please address your questions to [email protected]

Contents Why Katowice?

4

Business services in Katowice and the Katowice Agglomeration

10

Companies about themselves: success stories

26

Business image

29

Labor market

36

Office market

41

Quality of life

48

Investor support – contact information

50

Poland – key facts

54

4

Business Services Sector in the Katowice Agglomeration Why Katowice?

Source: Katowice City Hall / R. Kaźmierczak

1 | Why Katowice? Katowice is a rapidly-growing city of 300,000 inhabitants located in southern Poland. Katowice is also the capital of the Katowice Agglomeration1, home to 2 million people, and is an important academic, cultural and economic center. Periodically, Katowice hosts the European Economic Congress – the largest business event in this part of Europe. With qualified people, research and development facilities, an advantageous location and extraordinary character, Katowice and the Katowice Agglomeration are a perfect place to develop business process outsourcing centers (BPO), shared services centers (SSC), IT centers and research and development centers (R&D).

1

14 neighboring cities: Bytom, Chorzów, Dąbrowa Górnicza, Gliwice, Jaworzno, Katowice, Mysłowice, Piekary Śląskie, Ruda Śląska, Siemianowice Śląskie, Sosnowiec, Świętochłowice, Tychy and Zabrze

5

Business Services Sector in the Katowice Agglomeration Why Katowice?

Maturity of the business services sector in the Katowice Agglomeration many companies have been present in the region for more than 10 years; investors are satisfied with where they do business

Numerous success stories relating to the operation of BPO, SSC, IT and R&D centers; growth in the level of advancement and complexity of services provided, business services center expert profiles

16,500 employees employed in BPO, SSC, IT and R&D centers in the Katowice Agglomeration, including 12,000 in foreign capital companies; 10 investors from the Fortune Global 500 list; year-on-year growth in hiring in the sector

A proven location for conducting business on a large scale 10 international investors employing more than 500 people in their business services centers

More than 30,000 university graduates each year in the Katowice Agglomeration, including an important pool of talent with a business service profile; experienced senior management personnel

5th place in terms of the size of office market in Poland (after Warsaw, Kraków, Wrocław and Tri-City)

Economic stability and a consistently-implemented strategy for developing Katowice as one of the most important economic centers in Poland

Figure 1 Key information on Katowice and the Katowice Agglomeration as a business services location Source: ABSL’s own study

6

Business Services Sector in the Katowice Agglomeration Why Katowice?

Tri-City

A1 Szczecin Białystok

Bydgoszcz

Berlin

A2

Warsaw

Poznań

A2

Łódź

A1 / DK1

A4

Dresden

Lublin

Wrocław

Katowice

Prague

A4

Rzeszów

Kraków

Ostrava

Lviv

Brno

Košice

Vienna

Bratislava

Figure 2 Location of Katowice and the Katowice Agglomeration Source: ABSL’s own study

Table 1 Distances and anticipated travel time to selected cities Distance from Katowice

Location

Travel time By car

By train

By plane

Warsaw

290 km

3h00min

2h20min

0h50min

Berlin

515 km

4h30min

8h20min

3h40min

Vienna. The city features quick access to three interna-

Vienna

385 km

3h50min

4h25min

2h45min*

tional airports: Katowice Airport (30 km from the city

Frankfurt am Main

901 km

8h15min

12h10min*

1h35min

Katowice lies in the central part of Europe, between Berlin and Kraków and between Warsaw and

center), Kraków Airport and Ostrava Airport (each within a radius of about 100 km). The road (A4 and A1 highways) and rail networks in the region are very well-developed.

Source: Google Maps, Deutsche Bahn, Google Flights * with stopover

7

Business Services Sector in the Katowice Agglomeration Why Katowice?

Katowice driving forces

Human capital

Transportation infrastructure

Suitable availability and quality of human resources. Two million inhabitants in the Katowice Agglomeration.

A well-developed transportation system (highways, rail network). Katowice Airport is Poland’s fourth largest by number of passengers served.

Investments The number of investors from the business services sector is growing rapidly. BPO, SSC, IT and R&D centers deliver services for many global corporations and large Polish companies.

Quality of life

Office space

Openness and support

Katowice is the fifth-largest office market in Poland, with resources of

Local authorities are pro-business, and support the expansion of office developments. Katowice Special Economic Zone.

International cultural, entertainment and sporting events, recreational green areas.

394,000 m2

Katowice Airport

78 DK1 A1

94

Piekary Śląskie 86

Dąbrowa Górnicza

Bytom Zabrze

Siemianowice Śląskie

Świętochłowice Gliwice

Chorzów

DTŚ

94

Sosnowiec A4

Ruda Śląska

DTŚ

Katowice 78

Jaworzno Mysłowice

44 86

A1

A4

Tychy

Figure 3 Map of the Katowice Agglomeration Source: ABSL’s own study

DK1

44

8

Business Services Sector in the Katowice Agglomeration Why Katowice?

Scientific and didactic support

Transportation infrastructure

There are 23 universities of different profiles active within the Katowice Agglomeration. They ensure access to graduates from various fields of science, including those highly desired for the growth of the business services sector such as business and administration, technical and engineering, philology and information and communications technologies. Among the leading institutions are the University of Silesia, the Silesian University of Technology and the University of Economics in Katowice. Katowice Agglomeration provides almost 10% of Poland’s research and development potential, and form the country’s second-largest academic center (after Warsaw) comprising more than 80 scientific and research and development units. The high quality of Katowice’s scientific and didactic support is enhanced by the area’s modern infrastructure: the Scientific Information Center and Academic Library (CINiBA) and the Advanced Information Technology Centre (CNTI). Apart from its role as a university library, the CINiBA is also a venue for exhibitions, cultural events and academic conferences. The CNTI’s activities are aimed at facilitating cooperation with business pertaining to the creation and application of information and communication technologies (ICT).

Katowice and the entire Katowice Agglomeration are served by Katowice Airport (KTW), located 30 km north of the city center. It is Poland’s fourth largest airport by number of passengers served (over 3 million in 2015). Katowice Airport provides direct access to important hubs (including Frankfurt, London, Paris, Dubai) as well as fast, easy travel to the USA and other destinations. Katowice also has a local airport, Katowice Muchowiec (EPKM), which serves smaller business and regional travel. Within a radius of about 100 km there are two other international airports: Kraków Airport, and Ostrava Airport in the Czech Republic. Important international routes cross in Katowice: from Berlin in Germany to Lviv in Ukraine, and from Gdańsk in Poland to Vienna in Austria. The city has convenient rail connections with other important cities in Poland (Warsaw, Wrocław, Kraków, Gdańsk, Łódź and Poznań) and abroad. Its internal transportation network is very well developed, with highways, express roads and rail transportation. Investments in transportation infrastructure ensure that city accessibility is improving year on year.

Katowice: a space for success / distinctions for Katowice

1st place

2nd place

5th place

In the “Global Free Zones of the Year 2015” ranking (Financial Times fDi Magazine), the Katowice Special Economic Zone was recognized as the best free zone in Europe and the second best in the world.

In the “Polish Cities of the Future 2015/16” ranking (Financial Times fDi Magazine), Katowice took second place for its strategy of attracting foreign direct investments. In addition, the city came in third in the category “Connectivity”, just after Warsaw and Kraków.

Katowice came in fifth among large European cities (ahead of Rotterdam, Frankfurt and others) for its strategy of attracting foreign direct investments in the “European Cities and Regions of the Future 2016/17” ranking (fDi Magazine).

9

Business Services Sector in the Katowice Agglomeration Why Katowice?

Figure 4 Map of air connections from Katowice Source: https://www.katowice-airport.com/pl/pasazer/mapa-polaczen

Katowice Airport [KTW]

3,069,279 no. of passengers served in 2015

Bergen Oslo

Stockholm

Stavanger Glasgow Belfast Malmö

Dublin Liverpool

Doncaster / Sheffield

Birmingham Bristol

Eindhoven

London

Dortmund Maastricht

Cologne / Bonn Paris

Warsaw

Düsseldorf Frankfurt am Main

Frankfurt / Hahn

Kiev

Katowice

Kutaisi

Milan Bologna Burgas

Barcelona Rome Alghero Tenerife

Naples

Larnaca Corfu

Tel Aviv

Lanzarote

Dubai

Crete / Chania

10

Business Services Sector in the Katowice Agglomeration Business services in Katowice and the Katowice Agglomeration

Source: Katowice City Hall / R. Kaźmierczak

2 | Business services in Katowice and the Katowice Agglomeration In terms of employment in BPO, SSC, IT and R&D centers, the Katowice Agglomeration is the fifth largest business services location in Poland, and the tenth in Central and Eastern Europe1. To a large extent, Katowice’s position has been strengthened by an influx of global corporations which have decided to make investments here. Considering the Katowice Agglomeration’s enormous potential, one can expect further development of the industry in the coming years and the creation of thousands of new jobs. 1

Central and Eastern Europe: Poland, the Czech Republic, Slovakia, Hungary, Romania, Bulgaria

11

Business Services Sector in the Katowice Agglomeration Business services in Katowice and the Katowice Agglomeration

Business Services Sector in the Katowice Agglomeration

74

20%

70%

5

BPO, SSC, IT and R&D business services centers in the Katowice Agglomeration (Q1 2016). A large majority of these (51) operate in Katowice. There are 50 foreign capital centers, while the remaining 24 belong to Polish companies.

share of Katowice in employment in the sector within the Katowice Agglomeration (11,500 people out of 16,500)

64

the number of investors (from 14 countries) that have their business services centers in the Katowice Agglomeration

73%

share of foreign capital business services centers in the sector’s employment structure

Figure 5 Business services sector in the Katowice Agglomeration – an overview Source: ABSL’s own study

growth in employment in foreign capital business services centers in the Katowice Agglomeration from Q1 2015 to Q1 2016. A large majority (90%) of new jobs were generated by centers already in operation expanding their activities

no. of new business services centers created since the beginning of 2015

22,000

no. of employees in the sector forecast for the year 2020

IT

is the most important category of services provided by centers in the Katowice Agglomeration. IT generates almost half (49%) of employment in the industry and appears in the service portfolios of more than 3/4 of the centers in the area analyzed

12

Business Services Sector in the Katowice Agglomeration Business services in Katowice and the Katowice Agglomeration

About the report

The purpose of this ABSL report is to provide a comprehensive overview of the business services sector within the Katowice Agglomeration and discuss, among other things, selected aspects of the labor market, the office market, forms of investor support. An important part of the project involving the publication was the gathering of information about the business services centers in the Katowice Agglomeration directly from their representatives. A survey was completed by 25 respondents representing business services centers with a total of 10,500 people in the Katowice Agglomeration, that is 64% of the total number of employees in the sector in the area analyzed. The information obtained through the survey was used to prepare collective statistical analysis on the operations of the entities in question (thematic analyses). The content of the report is supplemented by a section based on an analysis of the responses given by representatives of the managerial staff of business services centers during in-depth interviews. All figures concerning business services centers are as at Q1 2016. It is worth noting that due to different research methodology used, the figures contained in the report should not be compared to ABSL studies prepared before 2016. The study adopts a broad definition of the industry, which also covers research and development. The sector discussion relies on an analysis of both

foreign and Polish capital business services centers: business process outsourcing centers (BPO), shared services centers (SSC), IT centers, and research and development centers (R&D). It should be noted that some centers serve both the parent company and external customers (hybrid delivery model). However, the report does not make a special distinction for mixed-purpose BPO/SSC centers, but assigns each entity to one of the primary types (BPO, SSC, IT, R&D), based on the dominant profile of its operations. Contact centers serving external customers were classified as BPOs. The studies do not include companies that provide services only in Polish for customers in Poland. This applies in particular to centers established by financial institutions such as banks and insurance companies. This restriction does not apply to IT and R&D centers. The publication used the geographic criterion. Each business services location is treated as a separate unit of analysis if it is located in a different town. The report takes into account centers with a headcount of over 25. This does not include companies in the process of creating jobs which have an anticipated target headcount of over 25. The criterion does not apply to IT and R&D centers. We would like to thank all the members of companies and institutions who took the time to complete the surveys, take part in an interview or assemble the information used in this publication.

Source: Katowice City Hall / R. Kaźmierczak

13

Business Services Sector in the Katowice Agglomeration Business services in Katowice and the Katowice Agglomeration

The Katowice Agglomeration is one of the five largest business services locations in Poland (8% of employment in the sector nationally). 74 business services centers are located here, which belong to 64 investors from 14 countries. Apart from Polish investors (20), these are mainly companies from the USA (14) and Germany (7), but also from France, United Kingdom, the Netherlands, Sweden and 7 other countries. Business services centers in Katowice and the Katowice Agglomeration already employ 16,500 people. A large majority of those employees (73%) work for entities with foreign capital. Polish companies generate 27% of the jobs in the sector, American companies 20%, French companies 17%, British companies 14%, German companies 12%, and companies from other countries 10%. A large majority (51 out of 74) of the business services centers in the Katowice Agglomeration, and 70% of total employment in the sector, are located in Katowice itself. The second-largest business services location in the area is Gliwice.

The business services centers operating in the Katowice Agglomeration comprise: 35 IT centers, 19 SSC, 12 R&D centers, and 8 BPO centers. It is worth noting that the IT centers dominate employment structure by center type (48%). The average employment level in business services centers in the Katowice Agglomeration is 228 persons (the median is 100 persons). It should be added that the 10 largest business services centers in the Katowice Agglomeration (with more than 500 employees) generate a total of slightly more than 50% of total employment in the sector. Considering companies’ plans for development and potential new investments, one can assume that employment in the industry will reach 22,000 by 2020.

ABSL Regional Chapter in Katowice The ABSL Regional Chapter in Katowice is a local action group composed of investors representing the business services sector. Its priorities include supporting the activities of members of the Association, exchanging knowledge and best practice in order to foster an investment-friendly atmosphere, and initiating activities which serve to promote the business services sector within the region. For this purpose the companies which belong to the ABSL Regional Chapter in Katowice actively cooperate with representatives of Katowice City Hall, the Marshal’s Office, the Katowice Special Economic Zone and local academic institutions within the Katowice Agglomeration. Participants in the ABSL Regional Chapter include: ArcelorMittal, Capgemini, Cooper Standard, DisplayLink, Future Processing, IBM, ING Services, ista, JLL, Kroll Ontrack, EUVIC, Oracle, PwC, Randstad, Rockwell Automation, Saint-Gobain, Sopra Steria, Unilever, Wipro and TRW, as well as invited guests representing public administration or representatives of universities.

14

Business Services Sector in the Katowice Agglomeration Business services in Katowice and the Katowice Agglomeration

Piekary Śląskie

Dąbrowa Górnicza

Bytom Open-E

Alba Polska

Świętochłowice

Zabrze

ArcelorMittal

Siemianowice Śląskie

Saint-Gobain Wipro

Chorzów

Gliwice

ArchiDoc

Sosnowiec

Possible

Timken

Ruda Śląska

EUVIC

Gallup Arteria Management

Future Processing ista

Jaworzno

Katowice

Jiffy Packaging Neubloc

Mysłowice

S&T SAP Hybris Tenneco

Tychy

Vattenfall IT Services WASKO

General Motors

ADB

IBM

Perform Group

Sopra Steria

Barona

ING Services Polska

Proximetry

Teleperformance Germany

Bombardier

ista

PwC

TMF Group

Capgemini

JCommerce

Rockwell Automation

Unilever

DisplayLink

Kroll Ontrack

Sapiens International Corporation

Vattenfall IT Services

Dunlop Conveyor Belting

Neubloc

Sii

Webanywhere

EUVIC

NGA Human Resources

SMS Metallurgy

Wincor Nixdorf

HireRight

Oracle

SMT Software

ZETO Katowice

Figure 6 Selected investors having business services centers in the Katowice Agglomeration Source: ABSL’s own study

Largest employers in the business services sector in Katowice: Capgemini

IBM

PwC

Year operations commenced: 2006

Year operations commenced: 2013

Year operations commenced: 2009

Capgemini has two business services centers

IBM Global Services Delivery Centre

The PwC Service Delivery Center (SDC)

in Katowice: Infrastructure Services and

Polska in Katowice provides a wide range

in Katowice implements projects commis-

Business Services. Its Infrastructure Services

of IT services, including server operation

sioned by financial auditing and tax adviso-

serve customers from around the world

systems management, systems security

ry departments of PwC companies located

within the scope of remote technical support,

and protection, and services for end users,

in more than 20 European countries.

IT infrastructure management and data

including maintaining and monitoring

The Katowice center is growing rapidly,

security and protection. It provides Business

hardware and software systems.

and recently expanded its range

Services within the scope of finance and

of services to include accounting

accounting, banking operations, customer

and staffing processes.

service, supply management and human resources management.

15

Business Services Sector in the Katowice Agglomeration Business services in Katowice and the Katowice Agglomeration

7%

10%

15%

27%

12% Total: 16,500 persons

Total: 16,500 persons

48% 14%

20%

30%

17%

IT

Poland

SSC

USA

BPO

France

R&D

United Kingdom Germany Other

Figure 7 Employment structure of business services centers in the Katowice Agglomeration by type of center Source: ABSL’s own study

Figure 8 Employment structure of business services centers in the Katowice Agglomeration by parent company headquarter location Source: ABSL’s own study

3% 43% 0

10%

20%

Technologies and telecommunications Business and professional services

30% 30%

40%

50%

14%

60%

70%

80%

3%

7% 90%

Production of industrial and consumer goods

Financial services (banking, insurance, investment)

Energy, public utility services, raw materials and semi-finished goods

Consumer services (including trade and distribution)

100%

Figure 9 Employment structure of business services centers in the Katowice Agglomeration by parent company industry Source: ABSL’s own study

11 Before 2000

20

24

19

2000-2005

2006-2010

2011-2015

4 average number of new business services centers in a given year (2000-2015)

Figure 10 Number of business services centers in the Katowice Agglomeration by year activities commenced Source: ABSL’s own study

16

Business Services Sector in the Katowice Agglomeration Business services in Katowice and the Katowice Agglomeration

Share of business services centers

57%

Technologies and telecommunications Production of industrial and consumer goods Financial services (banking, insurance, investment) Consumer services (including trade and distribution)

52% 48% 48% 43%

Business and professional services Energy, public utility services, raw materials and semi-finished goods

35% 30%

Health care

17%

Public sector

13%

Other industries

0

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

90%

100%

90%

100%

Figure 11 Industry structure of companies (external and internal customers) supported by business services centers located in the Katowice Agglomeration Source: ABSL own study based on the results of a survey addressed to business services centers (N=23 companies)

49%

IT services (including software development)

14%

Customer service

12%

Financial and accounting services

5%

Supply chain management Document management

2%

Human resources management

2% 16%

Other

0

10%

20%

30%

40%

50%

60%

70%

80%

Figure 12 Employment structure of business services centers by process categories supported Source: ABSL own study based on the results of a survey addressed to business services centers (N=23 companies employing a total of 10,416 persons) Share of business services centers

78%

IT services (including software development)

33%

Financial and accounting services

25%

Human resources management

21%

Customer service

14%

Research and development

10%

Marketing

8%

Supply management Supply chain management

7%

Document management

7% 4%

Financial services (banking, insurance, investment)

8%

Other

0

10%

20%

30%

40%

50%

Figure 13 Process categories supported by business services centers in the Katowice Agglomeration Source: ABSL’s own study

60%

70%

80%

17

Business Services Sector in the Katowice Agglomeration Business services in Katowice and the Katowice Agglomeration

56%

Geographic scope of services delivered

36%

Global reach supported Specific countries or regions supported

8%

Only single country supported

Figure 14 Geographic scope of services delivered by business services centers in the Katowice Agglomeration (1) Source: ABSL own study based on the results of a survey addressed to business services centers (N=25 companies)

Centers in the Katowice Agglomeration provide services for companies across the world. The majority of the companies analyzed operate globally, for entities in all areas identified. The largest number of companies focus on serving customers in Western Europe and Poland.

72%

52% North America

Nordic countries

76%

92%

Central and Eastern Europe (excl. Poland)

Poland

92% 36%

Western Europe

36% 20% South America

Middle East and Africa

Figure 15 Geographic scope of services delivered by business services centers in the Katowice Agglomeration (2) Source: ABSL’s own study based on the results of a survey addressed to business services centers (N=25 companies)

Asia, Australia and Oceania

18

Business Services Sector in the Katowice Agglomeration Business services in Katowice and the Katowice Agglomeration

2. Poland

1. Germany

The majority of the centers analyzed provide services to customers in Germany (64%). Apart from Germany, Poland and United Kindgdom, business services centers also provide processes for customers from France, Switzerland, the Netherlands, the USA, Spain, Belgium, Austria, Canada, Russia and Sweden.

3. United Kingdom

Figure 16 Main countries supported by centers in the Katowice Agglomeration Source: ABSL’s own study based on the results of a survey addressed to business services centers (N=22 companies)

Plans for expansion of activities

96%

100%

15%

of companies extended their scope of supported services in the past year (N=25). This is more than the figure for all of Poland (88%) (N=168)

of the surveyed business services centers plan to increase employment (Q1 2016 vs Q1 2017)

average employee turnover rate in 2015

A clear majority of the business services centers surveyed plan to expand their activities in the next year.

Expansion of activities – new activities, new customers

72%

Expansion of activities – new activities, the same customers

52%

Stabilization and optimization of current activities

4% 0

10%

20%

30%

40%

50%

60%

70%

Figure 17 Business services centers’ plans to expand their activities in the next year Source: ABSL’s own study based on the results of a survey addressed to business services centers (N=25 companies)

80%

90%

100%

19

Business Services Sector in the Katowice Agglomeration Business services in Katowice and the Katowice Agglomeration

Business Process Automation

simple spreadsheet-based VBA scripts to more sophisticated automation involving complex VBA forms, RPA tools (such as Blueprism and Automation Anywhere), to the most advanced forms using cognitive solutions, among other things.

The vast majority of business services centers (91%) use business process automation in their operations. The level of process automation in the companies in question varies from basic automation involving

29% 0

10%

57% 20%

Basic Process Automation (simple VBA scripts, spreadsheet based)

30%

40%

50%

14% 60%

70%

Extended Process Automation (complex VBA forms, RPA Tools e.g. Blueprism, Automation Anywhere)

80%

90%

100%

Advanced Process Automation (e.g. cognitive solutions)

Figure 18 Level of process automation at the business services centers Source: ABSL own study based on the results of a survey addressed to business services centers (N=23 companies)

Languages used at the business services centers Share of centers

34

100% 90%

total number of languages used at the business services centers analyzed in the Katowice Agglomeration

80% 70% 60% 50% 40% 30% 20%

nc h I ta li Sp an an is h Du tc h Po Cze r tu c h gu e S w se ed is Da h ni Ru s h s S l s ia n ov a H u k ia ng n N o a r ia rw n eg ia Fi n nn Ro is m h an i Ch an in e Uk s ra e in B u ia n lg ar ia n Gr Li ee th ua k S l n ia n ov en ia Tu n rk is h Ar ab ic Cr oa ti a Es n to ni an He b Ja r e w pa ne s La e Be t v ia lo ru n ss ia n Ot he r

Fr e

h

Ge

rm

h is gl

Po

En

lis

0

an

10%

Figure 19 Languages used at the business services centers Source: ABSL’s own study based on the results of a survey addressed to business services centers (N=25 companies)

20

Business Services Sector in the Katowice Agglomeration Business services in Katowice and the Katowice Agglomeration

30

36%

highest number of languages used at a single business services center

share of the business services centers using at least 10 languages

9

68%

average number of languages used at business services centers – higher than the Polish average (8 languages)

share of the business services centers using at least 5 languages

Foreigners employed at business services centers

84%

32%

share of business services centers employing foreigners

maximum share of foreign employees at a single business services center

6%

20%

average share of foreigners among all analyzed business services centers' employees

share of business services centers where foreigners represent at least 10% of all employees

2. France

1. Ukraine

3. Spain

Apart from the three countries shown in the diagram, foreigners working in business services centers most often come from the Netherlands, India, Italy, Romania and Russia.

Figure 20 Major countries of origin of foreigners working at business services centers in the Katowice Agglomeration Source: ABSL’s own study based on the results of a survey addressed to business services centers (N=25 companies)

21

Business Services Sector in the Katowice Agglomeration Business services in Katowice and the Katowice Agglomeration

Employee training offered by business services centers Share of centers offering training

100%

Induction training Soft skills e.g. communication, emotional intelligence

96%

Language skills (including certification)

80%

Project management e.g. PMP, Agile, Scrum

76%

Manager coaching

72%

Time management

72%

Computer and internet technologies, e.g. CISA, ITIL

60% 44%

Financial, e.g. CIMA, CIA, ACCA, CFA

40%

Business analytics, e.g. 6 Sigma, CBAP

16%

Marketing, e.g. CIM

8%

Supply chain, e.g. APICS

12%

Other* 0

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Figure 21 Employee training offered by business services centers Source: ABSL’s own study based on the results of a survey addressed to business services centers (N=25 companies) * some of the trainings listed as “Other” include: “specific technical training” and IFRS (International Financial Reporting Standards)

86%

85%

53%

average share of business services centers' employees with higher education (N=23)

average share of business services centers' employees employed on a full-time basis (N=24)

share of women in overall employment at business services centers (N=23)

52% of business services centers employ at least 90% of their employees with higher education (N=23)

72% of business services centers employ at least 90% of their employees on a full-time basis (N=24)

37% share of women as managerial staff of business services centers (N=23)

22

Business Services Sector in the Katowice Agglomeration Business services in Katowice and the Katowice Agglomeration

Employees with Disabilities Business services centers employing persons with disabilities list the following facilities and accommodations: handicapped parking spaces, accessible workspaces and bathrooms, accessible building layout to allow employees with disabilities to move about comfortably, software solutions for visually-impaired employees, additional paid time off, flexible working hours and additional breaks during the workday.

60% of business services centers employ persons with disabilities (N=25)

Non-wage benefits Table 2 Non-wage benefits most commonly offered by business services centers

All employees

Private medical care (92%) / Multisport/fitness card (88%) / Group life insurance (80%) / Flexible working hours (76%) / Return of training costs (72%) / Social Benefits Fund (72%) / Option to work from home (60%) / Bonuses for individual contributions (60%) / Fresh fruit in offices (56%) / Additional bonuses for meeting targets (56%)

Team leaders

Cell phone (72%) / Laptop (40%) / Parking space (32%) / Option to work from home (16%) / Relocation bonus (8%)

Managers

Cell phone (68%) / Parking space (52%) / Laptop (32%) / Option to work from home (32%) / Corporate card for private use (32%)

Source: ABSL’s own study based on the results of a survey addressed to business services centers (N=25 companies)

13% average share of non-salary costs (non cash) per FTE on annual basis (N=16)

Relations between business services centers and universities Business services centers operating in the Katowice Agglomeration willingly cooperate with universities. They offer internships and training for students, take part in job fairs, organize open days, workshops and lectures. It is worth noting that, for the centers, cooperation with universities is a way of building up students’ awareness of the business services sector. Company representatives emphasize that universities increasingly see the need to cooperate with business.

They sign cooperation agreements with centers on the organization of internships and training for their students. In this way, students can gain their first professional experience in the industry, while centers obtain future employees.

92% of centers cooperate with universities

23

Business Services Sector in the Katowice Agglomeration Business services in Katowice and the Katowice Agglomeration

Share of centers cooperating with universities

86%

Recruiting future employees

59%

Conferences

55%

Educational projects

50%

Training, courses

27%

Joint studies

18%

Research projects

14%

Other* 0

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

Figure 22 Types of collaboration between business services centers and universities Source: ABSL’s own study based on the results of a survey addressed to business services centers (N=22 companies) * some of the types of collaboration listed as “Other” include: partnerships, job fairs, ABSL Academy, “Sukienka w biznesie – czyli kobieca droga do sukcesu” [Dress in the Business World: A Woman’s Path to Success].

Table 3 Examples of collaboration between business services centers and universities in the Katowice Agglomeration Company

Sample activities as part of collaboration with universities in the Katowice Agglomeration

Capgemini

»» Cooperating with University of Silesia, Silesian University of Technology, University of Economics in Katowice, Katowice School of Economics, Silesian School of Management, etc.

»» Participating in university academic councils. »» Organizing internships and training for students. »» Organizing training, lectures and industry events. »» Case Week – workshops for students organized with Silesian University of Technology, etc. »» Organizing open days, participation in job fairs and career days.

Future Processing

»» Cooperating with Silesian University of Technology, University of Silesia. »» Funding two computer laboratories for those institutions. »» Internships, training and seminars for students. »» Organizing a series of workshops and lectures titled “Dobre Praktyki Tworzenia Oprogramowania” [Best Practices

»» »»

IBM

in Software Development]. This project is addressed towards students of the Silesian University of Technology and University of Silesia – its goal is to increase students’ competence and knowledge in developing software through presentations of the practical aspects of IT. The lecturers are employees of Future Processing, specialists in software engineering. Organizing the international programming marathon “Deadline 24”. As part of the competition, teams of three compete by solving algorithmic problems for 24 hours. Preparing and running the course “Tworzenie oprogramowania w zmiennym środowisku biznesowym” [Software Development in a Changing Business Environment] (for IT students of the Silesian University of Technology). The classes cover the problem of software development as a business problem solution, and are aimed at showing students the types of issues they will face in their future professional work.

»» Cooperating with, among others, the Silesian University of Technology, University of Silesia, University of Economics in Katowice, Katowice School of Economics, University of Dąbrowa Górnicza.

»» Providing software and educational materials to universities for educational and academic purposes. »» IBM Open Day, and an Open Day for Persons with Disabilities. »» Teaching program for students: Corporate Readiness Certificate. This projects brings the worlds of business and science together. It consists of a series of practical sessions aimed at preparing students for project and team work in large corporations.

24

Business Services Sector in the Katowice Agglomeration Business services in Katowice and the Katowice Agglomeration

Company

Sample activities as part of collaboration with universities in the Katowice Agglomeration

ING Services Polska

»» Cooperating with, among others, the University of Silesia, University of Economics in Katowice, Silesian University of Technology.

»» Organizing meetings for students and graduates aimed at presenting possible forms of collaboration, employment and development within the company, organizing internships and training.

»» Submitting proposed subjects for student dissertations. »» Organizing the Corporate Readiness Certificate program in cooperation with IBM Polska, ING Bank Śląski and the University of Economics in Katowice.

Kroll Ontrack

»» Cooperating with the University of Silesia and the Silesian University of Technology. »» Running courses at universities on testing, programming – practical skills useful in the IT industry. »» Presenting the company’s cultural and organizational sides to students and graduates.

PwC

»» Cooperating with, among others, the University of Economics in Katowice. »» Educational activities (workshops, presentations, meetings with students). »» Offering internships and training for students and graduates. »» Organizing the nationwide “Grasz o staż” [Internship Challenge] competition in which students solve practical tasks to win a paid internship from among many companies, including from the business services industry.

»» WEX internship program for first-year students, at the headquarters and local offices of the company. Students have »»

the opportunity to gain their first professional experience, to train, to deal with practical issues from various fields, while the company puts the most successful through a simplified recruiting process. The PwC Experience competition for seniors and graduates. The competition has a few stages (online testing, case studies) and allows students to tackle actual challenges faced in the workplace.

Rockwell Automation

»» Equipping a new laboratory at the Silesian University of Technology. »» Job fairs, information campaigns, lectures for students. »» Supporting students in preparing master’s theses. »» Branding activities – strengthening the company’s brand image and industry knowledge among students. »» Financing post-graduate studies for employees, e.g. in project management.

Sopra Steria

»» Working together with philological faculties (due to the need to have French-speaking employees). »» Cooperating with the Silesian University of Technology. »» Vacation internship program. »» “Flex Agreement” for students – the opportunity to fit their work schedule to their university schedule.

Source: ABSL’s own study based on the websites of each company and university and on information obtained during interviews with business services center representatives

Representatives of business services centers from Katowice and the Katowice Agglomeration emphasize the importance of the challenges cooperating with business poses to universities. They point out that business activities are characterized by the need for efficiency in the face of market needs which change rapidly. Universities should adapt their teaching programs accordingly by offering, for example, accelerated courses covering problems of particular importance to business.

Business services center managers indicate the need to ensure that foreign languages are taught at a high level, especially in the case of technical universities. Graduates of technical faculties who have excellent command of foreign languages are the most attractive as potential staff of business services centers.

25

Business Services Sector in the Katowice Agglomeration Business services in Katowice and the Katowice Agglomeration

Assessment of business location

their opinions on the features of Katowice as a business services location. All of the features analyzed obtained a favorable rating, with the highest being the availability of transportation and modern office space (9.3 on a scale from 1 to 10).

In the survey, representatives of business services centers from Katowice (for which the city is the main location of their activities in Poland) were asked for

9.3

Availability of transportation (airports, trains)

9.3

Availability of modern office space

8.4

Quality of public transportation

7.6

Image of the region in the opinion of investors

7.0

Availability of highly-qualified staff

7.0

Collaboration with local authorities

7.0

Collaboration with local universities

Assessment of competition among BPO, SSC, IT and R&D centers on the local labor market: 7 out of 10 points. Katowice companies from the sector assess the level of competition on the local labor market as 7 on a scale from 1 to 10, where 10 means very strong competition. This means that rivalry among centers is perceptible, but is far from ‘draining’ the available pool of employees. Figure 23 Assessment of business location Source: ABSL’s own study based on the results of a survey addressed to business services centers (N=10 companies employing a total of 5,300 persons) for which Katowice is the main location of their activities in Poland

26

Business Services Sector in the Katowice Agglomeration Companies about themselves: success stories

Source: Katowice City Hall / R. Kaźmierczak

3 | Companies about themselves: success stories Among the several dozen of investors having business services centers in the Katowice Agglomeration there are many world-renowned companies, leaders in their industry. Moreover, leading Polish suppliers of IT services and business processes outsourcing have their head offices here. A clear majority of these have expanded the scope of their services and have hired more people in the course of their activities in Katowice and the Katowice Agglomeration. There have been many successful investments, some of which are presented below.

27

Business Services Sector in the Katowice Agglomeration Companies about themselves: success stories

Sopra Steria Polska was established in 2007 in answer to the needs of the Group for a new IT services center in Central Europe as part of its nearshore strategy. Neither Poland nor Katowice were accidental choices. Good infrastructure, a stable socio-political situation, and above all a large number of students and qualified candidates for work – all of these led the company to choose to open its headquarters in the heart of Silesia Province. The French Sopra Steria Group has been providing IT solutions for customers from both the public and private sectors for almost fifty years, and employs almost 40,000 people worldwide. Today, 700 of these work at the Global Delivery Center (GDC) in Katowice. The Katowice branch initially numbered only 40 people, and was created mainly to provide Service Desk-type services – IT support for users from various European countries. It soon turned out that Sopra Steria Polska was able to offer customers a wide range of advanced IT services at a very high level. The firm transformed itself into a specialized infrastructure management and application development center, a partner in transformations, and an expert in such fields at ITSM, using the DevOps concept,

Kroll Ontrack Sp. z o.o. is the Polish branch of Kroll Ontrack Inc. – a world leader in supplying data recovery services, ediscovery and software development. In Katowice, the company opened a data recovery laboratory which is the largest and most technologically advanced in Central and Eastern Europe, as well as the Kroll Ontrack software development center, the largest of its kind outside the USA. Silesia has been the company’s headquarters from the moment operations began in Poland in 2001. Today, more than 125 employees work for the company

and transitions based on ITIL methodology. GDC customers today are banks, large corporations from the telecommunications industry, other industries, and trade. The company also conducts several interesting projects related to software development entrusted to it by European institutions. The Polish branch of Sopra Steria owes its success to a team of ambitious, highly-skilled specialists in new technologies who love working in an international environment and constantly seek better solutions. GDC employees pride themselves on professionalism, on the standardization and automation of processes, and are partners for their customers. Interestingly, more than 60% of those employed in the Katowice Sopra Steria Center are women – who also comprise half of company managers. In the coming years, the company plans to meet customers’ needs by continuing to grow in the area of highly-specialized IT services, hiring even more IT experts.

in Katowice, and give the continuous growth of the company, that number is sure to increase. Silesia has expertly-trained IT specialists. Undeniably, one factor in this is the high level of teaching at local universities, with which Kroll Ontrack closely cooperates. The specialists in the Katowice branch of the company create solutions for customers the world over. Their comprehensive range of skills translate into a high level of services and high-quality, innovative solutions which meet current market needs.

28

Business Services Sector in the Katowice Agglomeration Companies about themselves: success stories

Global Finance Operations (GFO) is one of the global financial centers of Rockwell Automation. GFO Katowice employs over 180 people responsible for Accounts Payable, Accounts Receivable, General Ledger, Fixed Assets, Intercompany settlements, System Business Solutions projects and settling Travel and Expense, as well as projects implemented within the global financial center. Rockwell Automation is an accredited ACCA employer. Apart from the possibility of obtaining an ACCA certificate, training courses are organized on basic

Unilever Poland Services – the European Supply Chain & Finance Operations Centre – The Katowice Hub The Katowice Hub is Unilever’s in-house centre of operational excellence. The idea behind the creation of the center was born from the need of management centralization of key business areas, such as financial and transport operations. This structure allowed to accelerate many processes, significantly increase the efficiency and thus performance of Unilever and the team in Katowice has already achieved excellent results through the years.

accounting and specialized subjects, as is internal training, which permits employees to become familiar with work in other areas and understand the functioning of the organization as a whole. Employees can continually improve their language skills by taking part in language courses. They also participate actively in the Employee Value Proposition, the purpose of which is to create the best possible working conditions within the organization through career development, work environment, integration, joint projects and employee benefits and rewards.

The scope of the Katowice Hub is transport logistics, central planning, customer service, master data and financial services for all of Europe. The Hub has grown in line with increasing responsibilities and additional service lines from 20 people in 2008 to above 700 at the end of Mar 2016. The modern Katowice Hub office, whose interiors were designed according to the principles of sustainable development, is located at Chorzowska street in the city center of Katowice.

29

Business Services Sector in the Katowice Agglomeration Business image

Source: dreamstine.com

4 | Business image In this section we present the results of an analysis of responses given by representatives of business services centers operating in the Katowice Agglomeration during individual in-depth interviews (IDI)1. Discussions focused on the Agglomeration as a location for conducting business and on the functioning of companies from the sector. The content is supplemented with quotes from respondents.

1

We would like to thank the representatives of Capgemini, Future Processing, General Motors, ING Services Polska, Kroll Ontrack, PwC, Rockwell Automation, Saint Gobain and Sopra Steria for taking part in the interviews.

30

Business Services Sector in the Katowice Agglomeration Business image

Perceptions of Katowice as a location for business services centers

Availability of qualified staff

Changes in the city, changes in image

Good location, convenient transportation

Collaboration: business – local authorities

Figure 24 Main advantages of Katowice as a location for business services centers in the opinion of investors Source: ABSL’s own study based on interviews with business services center representatives

Availability of qualified staff Representatives of business services centers operating in the Katowice Agglomeration emphasize that an enormous advantage of the region is the availability of qualified personnel. In their opinion, investments in business services centers in this area attest to the potential of local employees. For business services centers, the most important factor for growth and success is the human talent available: people who are ambitious, pro-active, hard-working, and highly competent. Respondents emphasize that in the Katowice Agglomeration there is an abundance of highly competent people. The quality of Silesian specialists is high – people prove themselves in their work, they have a strong work ethic, they work effectively, not less effectively than their colleagues at company branches abroad, they are taking on increasingly advanced projects which require specialized knowledge and skills. Silesian staff show that they’re worth investing in.

Candidates often come back – for example, they studied in Kraków but want to return to the region, because they have family here and want to work and live here permanently. Respondents add that the close proximity of cities in the Agglomeration and the good transportation connections allow employees to move freely among locations. Employees, then, often choose to live in one city and work in another. According to center representatives, another strength of the Katowice Agglomeration is the large number of universities it accommodates, which prepare students in many fields related to the work of business services centers. Those universities act quickly, undertaking initiatives aimed at developing their students and the whole region. They are also open to initiatives coming from business, as attested to by their cooperation in preparing and implementing the ABSL Academy program1. 1

A prestigious educational program run by ABSL member companies in cooperation with the best universities in Poland. It arose in connection with the growing need for employees

In respondents’ opinions, Silesians are attached to the city they were born in and to the region. Even if they studied elsewhere in Poland, they gladly return to their native region to work as professionals.

having practical skills which will enable them to build their careers in the business services sector. The objective of the program is to increase the number of candidates prepared for work in the sector and to supplement activities promoting work in that industry. The program is addressed to students, graduates and working people who wish to find employment in business services centers or to acquire skills which will distinguish them on the labor market and help them develop their career path more quickly. Courses are conducted in English. More at: www.absl.pl

31

Business Services Sector in the Katowice Agglomeration Business image

Centers' representatives point out that Silesia, and the Katowice Agglomeration, feature a well-developed tradition of engineering, which is why it is possible to find valuable employees. Respondents say that local engineers are ambitious employees who are eager to work on advanced projects, to develop their skills, and to take on new professional challenges. In general, Silesia is full of good engineers, those who are well trained at technical universities in the region, and certainly in some way that engineering tradition with which the region is strongly associated is grounded here and yields results...

Respondents appreciate that employees prove themselves, have a strong work ethic, work effectively, and take on increasingly advanced projects requiring specialized knowledge and skills. In the opinions of company managers, Silesian personnel engage themselves in the performance of their work, strive to make it of the highest quality, and at the same time seek personal development. In Silesia, there’s an ethos of good, solid work, and this is very important, you probably won’t find it so often in other cities in the country like Warsaw, where there are a lot of newcomers, where everyone’s after something different. Here that work ethic is very strong, and it translates into results, no matter what the industry.

A city in transformation

KATOWICE

Green city City of youth Transformation Modernity City of culture Openness to business Rapid growth Renewal Intensity New investments

Figure 25 Associations of business services center representatives concerning Katowice Source: ABSL’s own study based on interviews with business services center representatives

32

Business Services Sector in the Katowice Agglomeration Business image

Representatives of the companies have noticed the positive changes which have taken place in Katowice in the recent years. They emphasize the importance of city transformation towards a modern, businessfriendly location and a place characterized by high quality of living. An important factor noted by business centers' representatives is the development of urban infrastructure, which is becoming increasingly attractive visually, for both residents and business guests. In the business context, it is vital for a city to draw attention to itself, to stand out from among its competitors. In Katowice, this is accomplished in part by the dynamic transformation the city is going through, its increasing visual attractiveness and well-designed logistical and transportation solutions. The city center is growing, and is now the city’s business and cultural calling card. A basic feature which a city should have is something which delights us for being unique. In speaking of the business services sector, that element must show modernity, and Katowice certainly makes an impression with its logistical and transportation solutions. It delights by the

Source: Katowice City Hall / R. Kaźmierczak

change, the transformation which has taken place in the center. This is a feature which shows that the city is moving in the right direction, and is modern.

Change in the city’s image Respondents perceive the enormous change in the city’s image in recent years. They see today’s Katowice as a city worth investing in, which is developing rapidly in many dimensions to become an evermore attractive place to live and work. Once I associated the city just with heavy industry, with mines; my father worked in a mine, so that’s how I thought of the whole region. I didn’t like Katowice much when I was young. Now I associate it with very, very rapid growth, with the enormous changes that have taken place over the past few years, with an emphasis on culture, among other things. Given Katowice’s potential, and its previous image as a typical industrial town, the change in the city’s image is of enormous importance, and opens up new prospects and possibilities for development.

33

Business Services Sector in the Katowice Agglomeration Business image

Advantageous location and good infrastructure Representatives of centers note Katowice’s excellent location, which they see as an important factor when locating business services. They also point out that the increasingly efficient transportation among the individual towns of the Agglomeration also raises the region’s business potential. They emphasize that this is important because residents of the region thus show a high degree of mobility, often working in a town other than the one they live in. The short distances between the towns of the Agglomeration and the ability to move quickly between them make it possible for these people to commute from other towns.

Respondents also acknowledge Katowice’s attractiveness for foreign business visitors due to the availability of international airports with a multitude of connections. In Katowice itself, not only transportation infrastructure is being developed, but also the real estate market – of special importance to the business services sector. Respondents mention that, with new office space being commissioned for use, some companies decide to relocate their offices, especially as they increase hiring and need more office space.

In Katowice, the progress made in transportation infrastructure is clearly noticeable. The city features properly-integrated transportation access solutions which should affect further business development.

Representatives of business services centers operating in Katowice estimate that more than half of their employees commute to work from other towns, mainly those belonging to the Katowice Agglomeration. Most often mentioned are: Gliwice, Chorzów, Sosnowiec, Bytom, Tychy, Ruda Śląska, Zabrze. People also commute to centers in Katowice from towns beyond the Agglomeration, such as: Rybnik, Częstochowa, Bielsko-Biała, Pszczyna and Kraków.

Collaboration: business – local authorities In the opinion of respondents, Katowice is a city with a positive atmosphere for investors. Representatives of the centers emphasize that the city authorities are open to cooperating with business. Those authorities try to meet the needs of both investors who are considering locating their business services center in Katowice and companies which already have a presence in the city.

Katowice is located in the very heart of the agglomeration, which is a major plus. You can see that the city is open for business. That is, when there is a need, you can see the will to meet one’s expectations and to make sure that cooperation runs smoothly. Contact with City Hall is really good from our point of view. Whenever we need concrete information, that openness is always there, and we can talk. We see that on the other side there’s a partner who willingly tries to help us. I think that’s a major plus for Katowice.

34

Business Services Sector in the Katowice Agglomeration Business image

Contact between business and Katowice City Hall takes place on different levels. As one of those, respondents mention cooperation on logistical matters such as improving transportation access to office buildings (business parks) in which business services centers operate. They emphasize that the city helps on transportation issues in order to make it easier for employees to get to the office every day. In respondents’ opinion, Katowice City Hall also takes an active part in promoting the city, building up its image as a good place to live and work, in particular for young people. Business services centers' representatives appreciate those efforts and recognize how important they are to the business development of the region. Companies also note that the city assists their initiatives in corporate social responsibility (CSR), such as the Poland Business Run. They emphasize that cooperation on joint initiatives between different companies and city authorities is extremely beneficial. It helps people identify with the company they work for and the city in which they work. City Hall also sponsors selected conferences organized by businesses, and helps business services centers in the recruitment process (e.g. by making employers visible on dedicated websites). In turn, when a request comes from city officials, companies welcome visits by investors considering locating their business services centers in the city. It is worth adding an important initiative functioning in Katowice which, from the point of view of business services centers' representatives, is a good example of trilateral cooperation among business, local authorities and universities. This is the ABSL Academy – a course preparing future business services sector employees. Business services centers' representatives emphasize that the Academy creates a synergy effect – the cost of time and work incurred by an individual company is lower, but the effect on the person being trained is maximized thanks to that cooperation.

Functioning and growth of business services centers in the opinion of respondents Competitiveness of business services centers In respondents’ opinions, the competition among centers which is seen in the city is significantly less than in many other business services locations. The respondents highlight that the biggest challenge is to obtain specialists with years of experience. In the opinion of business services centers' representatives, the “good” competition in the city will in the long term have beneficial consequences for the industry in the region, since it will draw highly-qualified employees to the region. Respondents also note that there is a “natural turnover" of employees in the sector resulting from the fact that most employees are young people. This is a natural phenomenon given the nature of the sector and competition among companies.

Headquarters of business services centers According to respondents, an important factor spurring the growth of business services centers is the recognition that “people count” – the specialists forming a company are vital to its prosperity and growth. That is why companies from the business services sector increasingly draw attention to the needs of their employees. An example of this are ideas for arranging office space which has a big impact on creativity and work quality. Respondents admit that it is very important to have “space for creative thinking”, conditions which stimulate employees’ inventiveness and increase their engagement in fulfilling tasks. The psychological and physical comfort of employees is crucial.

35

Business Services Sector in the Katowice Agglomeration Business image

Future of the industry Respondents indicate that business services centers operating in the Katowice Agglomeration are growing rapidly, taking on more employees and extending their range of services. They are striving to become centers of experts in which advanced processes are handled. Furthermore, the model they use increasingly is that of automation of selected business processes. Representatives of centers believe that there is room for new investors in the region, and room for further growth among companies already operating here.

They justify this view by: the large number of universities, students, and qualified graduates entering the market each year. Respondents state that Katowice will continue to grow, taking advantage of its proximity to Kraków (the largest business services location in Poland), constituting an attractive alternative for investors. Katowice, located in the center of the Agglomeration, is perceived by respondents as an integrator of development for the business services sector in the region.

Source: Katowice City Hall / R. Kaźmierczak

36

Business Services Sector in the Katowice Agglomeration Labor market

Source: Katowice City Hall

5 | Labor market Katowice is a city of young, educated people who have very good command of foreign languages and are ready to take on the challenges employers from the business services sector set for them. At universities in the Katowice Agglomeration, almost 94,000 students are being trained, 2/3 of them in Katowice itself. Every year, the local labor market is charged with graduates having excellent, varied skills.

37

Business Services Sector in the Katowice Agglomeration Labor market

HUMAN CAPITAL Katowice

Katowice Agglomeration

16,529*

30,362*

60,513

93,875

13

23

number of university graduates in Katowice

number of university graduates in the Katowice Agglomeration

number of university students in Katowice

number of university students in the Katowice Agglomeration

number of universities in Katowice

number of universities in the Katowice Agglomeration

Figure 26 Human capital in Katowice and the Katowice Agglomeration – key information Source: ABSL’s own study based on Central Statistical Office data (30 November 2015) * academic year 2014/2015

Students in the Katowice Agglomeration are trained in fields needed for work in the business services sector. These are primarily the following departments: business and administration, information and communications technologies, technical and engineering and philology (studied by a total of 40% of students).

A significant number of students choose an educational path which involves languages. At the University of Silesia, 5,605 students study at the Faculty of Philology (as at 30.11.2015). Among foreign philologies, most students choose English, followed by German and Spanish. It is worth adding that, within the Katowice Agglomeration (in Katowice and Gliwice), there are three high schools which implement the International Baccalaureate Diploma Programme.

38

Business Services Sector in the Katowice Agglomeration Labor market

19% 14% 10% 7% business and administration

medical

technical and engineering

social sciences

6% philology

6%

information and communications technologies

Figure 27 Most popular fields of study in the Katowice Agglomeration Source: ABSL’s own study based on Central Statistical Office data (30 November 2015)

business and administration

technical and engineering

languages

Katowice Katowice Agglomeration

information and communications technologies* 0

2,000

4,000

6,000

8,000

10,000

12,000

14,000

16,000

18,000

20,000

Figure 28 Number of persons studying at business and administration, technical and engineering, language and information and communications technologies faculties in the Katowice Agglomeration (academic year 2015/2016) Source: ABSL’s own study based on Central Statistical Office data (30 November 2015) * together with a subgroup of interdisciplinary programs and qualifications covering information and communication technologies

1,800

1,755

1,600 1,400 1,200 1,000 800 600

373

400

258

200 0

English

German

Spanish

174

156

110

Slavonic

Italian

French

Figure 29 Number of students of foreign philologies at the University of Silesia in academic year 2015/2016 Source: ABSL’s own study based on Central Statistical Office data (30 November 2015)

39

Business Services Sector in the Katowice Agglomeration Labor market

Table 4 Gross monthly remuneration [in EUR] in BPO/SSC/IT/R&D centers for employees who know English

F&A: GL Junior Accountant (1-2 years experience)

Min

Opt

Max

700

810

980

Accountant (2-3 years experience)

1,050

1,160

1,400

Senior Accountant (over 3 years experience)

1,280

1,510

1,860

Team Leader (team of 5-15 persons)

1,860

2,090

2,790

Manager (team of up to 50 persons)

2,330

3,020

4,190

Min

Opt

Max

700

810

980

F&A: AP / AR Junior Accountant (1-2 years experience) Accountant (2-3 years experience)

930

1,050

1,280

Senior Accountant (over 3 years experience)

1,160

1,400

1,740

Team Leader (team of 5-15 persons)

1,630

1,980

2,790

Manager (team of up to 50 persons)

2,330

3,020

3,720

Min

Opt

Max

700

810

980

Banking Junior Fund Accountant (up to 1 year experience) Fund Accountant (1-3 years experience)

980

1,140

1,300

Senior Fund Accountant (over 3 years experience)

1,300

1,470

1,790

AML/KYC Junior Analyst (up to 1 year experience)

700

810

930

AML/KYC Analyst (1-3 years experience)

810

930

1,050

1,050

1,160

1,510

810

930

1,050

Analyst (Product Control, Reporting Business Analysis / 1-3 years experience)

1,050

1,400

1,740

Senior Analyst (Product Control, Reporting, Business Analysis / over 3 years experience)

1,630

1,860

2,210

AML/KYC Senior Analyst (3-5 years experience) Junior Analyst (Product Control, Reporting Business Analysis / up to 1 year experience)

Team Leader (team of 5-15 persons)

1,630

1,860

2,330

Manager (team of up to 50 persons)

2,330

3,020

4,190

Min

Opt

Max

580

700

930

Customer Service Junior Specialist (without experience)

980

1,160

1,280

Team Leader (team of 5-15 persons)

Specialist (over 1 year experience)

1,160

1,510

1,980

Manager (team of up to 50 persons)

1,510

2,090

2,560

Procurement / Order Management Junior Specialist (up to 1 year experience)

Min

Opt

Max

930

1,050

1,400

Specialist (1-3 years experience)

1,280

1,510

1,740

Senior Specialist (over 3 years experience)

1,510

1,740

2,090

Team Leader (team of 5-15 persons)

1,860

2,330

2,790

Manager (team of up to 50 persons)

2,790

3,490

4,420

40

Business Services Sector in the Katowice Agglomeration Labor market

HR processes

Min

Opt

Max

Junior Specialist (up to 1 year experience)

580

810

880

Specialist (1-2 years experience)

810

1,050

1,280

1,160

1,400

1,860

700

810

880

Senior Specialist (over 2 years experience) Junior Payroll Specialist (up to 1 year experience) Payroll Specialist (1-3 years experience)

930

1,050

1,280

Senior Payroll Specialist (over 3 years experience)

1,160

1,510

1,630

Team Leader (team of 5-15 persons)

1,630

1,860

2,330

Manager (team of up to 50 persons)

1,860

2,330

3,260

Min

Opt

IT 1st Line Support (2 years experience)

810

930

Max

1,280

2nd Line Support (2 years experience)

930

1,160

1,630

3rd Line Support (2 years experience)

1,400

1,630

1,860

IT Administration (3 years experience)

1,400

1,740

2,090

Network / Security (3 years experience)

1,400

1,860

2,790

Business / System Analyst (3 years experience)

1,440

1,860

2,790

Developer (3 years experience)

1,400

1,860

2,790

980

1,160

1,630

Team Leader (team of 5-15 persons)

1,630

2,560

3,260

Project Manager (team of up to 50 persons)

2,330

2,790

3,260

Min

Opt

Max

930

1,160

1,280

Technologist (over 2 years experience)

1,050

1,280

1,630

Design Engineer (2-4 years experience)

930

1,510

1,860

Senior Design Engineer (over 4 years experience)

1,400

1,630

2,090

Product Development / NPI Engineer  (2-4 years experience)

1,050

1,400

1,860

Senior Product Development / NPI Engineer (over 4 years experience)

1,400

1,860

2,330

Quality Engineer (2-4 years experience)

1,050

1,400

1,860

Senior Quality Engineer (over 4 years experience)

1,510

1,860

2,090

R&D Manager (team of up to 50 persons)

2,560

3,260

3,720

From

To

Tester (3 years experience)

R&D Laboratory Specialist (over 2 years experience)

Source: Randstad Table 5 Languages bonus [EUR gross]

Spanish / Portuguese / Russian / Italian

70

190

French

120

210

German

120

230

Scandinavian languages / Finnish / Dutch

190

350

Source: Randstad

41

Business Services Sector in the Katowice Agglomeration Office market

Silesia Business Park

Source: SKANSKA

6 | Office market Katowice, the major office hub of the Katowice Agglomeration, offers more than 394,000 m2 of modern office space and have maintained its’ fifth position in terms of office stock in Poland (after Warsaw, Kraków, Wrocław and Tri-City). Due to the proximity of Katowice, the supply of modern office space in other cities of the Katowice Agglomeration is quite limited. Chorzow, Gliwice,

Bytom and Sosnowiec are the main office space locations outside of Katowice. Entry of new and expansion of already operating entities from the modern business services sector in Katowice has contributed to establishing strong position of the city among the other potential locations for business services sector in Poland.

42

Business Services Sector in the Katowice Agglomeration Office market

KATOWICE

Office market in numbers

394,000 m2

47,000 m2

30%

12.5-13.5 €

100%

52,800 m2

62

32

of existing office space in Katowice

office space in Katowice occupied by the BPO/SSC sector

increase in the amount of office space in the last five years

lease agreements signed in 2015

62,500 m2 of office space leased in 2015

office space under construction

monthly rents per m² for the best locations in Katowice

of office space will be delivered in 2016

office buildings of less than five years old in Katowice

69,000 m2 of existing office space remains vacant

Figure 30 Office Market in Katowice in numbers Source: JLL, Q1 2016

43

Business Services Sector in the Katowice Agglomeration Office market

Development activity in Katowice

The developers activity in Q1 2016 was relatively low (47,000 m2, of which ca. 70% is vacant), due to the almost 69,000 m2 of immediately available space in existing buildings. Largest projects under construction include: Silesia Star II (12,400 m2), A4 Business Park III (12,100 m2) or Silesia Business Park C (10,700 m2).

50% of existing modern office stock in Katowice has six or less years, so the office market in the city is “young”. This also proves that from 2010 onwards Katowice have gained not only the developers’ confidence but which is more important the potential tenants are willing to come and grow in the city. One of the largest office parks were completed since then: A4 Business Park I&II, Francuska Office Centre A&B or Silesia Business Park A&B.

Moreover, other office projects are in the planning stage: .KTW (phase I, ca. 18,250 m2, developer – TDJ Estate – the constructions should start in June 2016), Grand Central (19,200 m2, developer – Meyer Bergman), next stage of the Silesia Business Park D (10,700 m2, developer – Skanska) or GPP Business Park IV (7,500 m2, developer – Górnośląski Park Przemysłowy) to name just a few.

Currently Katowice is well prepared to meet the needs of new companies starting their operations in the city, and to provide expansion possibilities for developing enterprises, and therefore continuously looking for more office space for the purposes of further business expansion. m2 400,000

350,000

300,000

250,000

200,000

150,000

100,000

Figure 31 Office stock and completions in Katowice Source: JLL, Q1 2016

20 16 Q1

20 15

20 14

20 13

20 12

20 11

20 10

09 20

08 20

07 20

06 20

05 20

04 20

03 20

02 20

01 20