Report About Czech Republic

BUSINESS SERVICES
SECTOR IN THE
CZECH REPUBLIC
2016
Report prepared by
the Association of Business Service Leaders (ABSL)
in cooperation with:
Grafton Recruitment, Jones Lang LaSalle, PwC, CzechInvest
Project Coordinator :
Darie Zmtlkov, Operations Manager, ABSL
e-mail: darie.zmatlikova@absl.cz
Authors of the Report:

Ota Kulhnek, Accenture Services & Jonathan Appleton, ABSL | Chapter 1
Kevin Turpin & Jana Krajkov, Jones Lang LaSalle | Chapter 2
Martin Jeek, Grafton Recruitment | Chapters 3, 4
Karel Kuera & Lucie Polkov, CzechInvest | Chapter 5
Mike Jennings & Adam Jamiol, PwC | Chapter 6
Chief editor and proofing: Jonathan Appleton, ABSL
Graphic layout and typesetting:

www.copygeneral.cz
ABSL 2016
All copyrights in this work are the property of ABSL. Unless otherwise stated by the relevant provisions of law,
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 the copyright holder, is a violation of copyright law.
Table of Contents
Introduction 5
1. Profile of the business services 9

sector in the Czech Republic
About the report 10
Structure of the business service sector in the CR 15
Range of services the business service sector in the CR 20
Development of the business service sector in the CR 24
Human capital in the business service sector in the CR 30
2. Office market 37
3. Labor market 47
4. Salaries in business services 57
5. Investment incentives 61
6. Global services market trends and forecast 67

Business services sector in the Czech Republic 5
Introduction
Introduction
I am proud to introduce the third ABSL report. It presents the development of the Business Service
Sector in the Czech Republic and I believe it shows the very successful story of one of the key
industrial sectors in the Czech Republic. Overall we calculate that the business services sector
creates around $3 billion in revenues or 75 billion Czech crowns and represents 1.5% of the Czech
Republic GDP. The sector employs about 65.000 people in more than 180 centers. These are
impressive statistics but even more important than the size of the industry is the growth. In the
last year we have seen average growth of 15% per year and the demand for new centers is still high.
Wesee continuing high interest of international investors in the Czech Republic and all our existing
centers expect further expansion in their scope, as well as their employee numbers.
The other important trend we see is the change of the scope of services. While previously
thecenters were focusing on the centralization of the individual business processes, today most
ofthem have become innovation centers, focusing on improvements and process optimization.
With the development of new IT technologies, for example, we see a broad application of automation
and robotics in many areas of our operations. Employees of the centers therefore no longer need
toperform routine activities, but are solving tasks with greater added value. It is in this area, that we
see great potential and opportunities for development in future years.
In the following chapters you will learn about the current profile and status of the sector, as well
as some of the newest trends for the business service sector in the Czech Republic. The centers
need two important elements for their existence good people and the right office space. You will
find more detailed insights in the relevant chapters that were provided by our strategic partners.
TheChapter about labor market was provided by Grafton and chapter about the office market by
JLL. I would also like to thank to CzechInvest for contributing to the report with the information
about the Czech Republic and Incentive Structure.
One of the challenges we are facing is the correct terminology for this dynamic sector. Traditionally
in the Czech environment and language, everything that belongs to the centralized Business
services is called Shared Services. You will notice that we intentionally
tried to avoid this term in our report and always use the term
Business Services to reflect our members broad activities
in Business Process Outsourcing BPO, Shared
Services SSC, IT outsourcing ITO and research
anddevelopment centres R&D.
I hope you will find the data and information

published in this publication useful and relevant
foryour business needs.
Ota Kulhnek
President of ABSL
6 Business services sector in the Czech Republic
Introduction
ABSL Czech Republic.

From strength to strength.
I am delighted that our ABSL Czech membership has grown by over 30% in 2015 to over
50members. A significant part of this growth is members from the Pharma, logistics and
IT/digitaltechnology sectors. This reflects the increasing demand and investment in these
sectorsacross theCzech market today.
Our member companies now represent over 15,000 employees and many of the largest business
services employers in the country. Our members are telling us that ABSL adds value to their firms
byproviding them with the following benefits:
Access to our huge ABSL network and knowledge they can share with leaders of Czech and
international business service centres
Best practices from benchmarking studies, sector reports, conferences and workshops
Opportunities to influence and change the Czech business environment to drive the growth
oftheirbusiness
As this years report clearly shows, our members are growing in size and complexity. ABSL is
growing with them and together, we will achieve our strategy to keep Czech Business Services
attheforefront of the sector in CEE and Globally. Our future plans for ABSL 2016 include :
The launch of the ABSL HR Club which provides HR leaders in our sector with professional
insightsand issues regarding recruitment, talent retention and development, employee
remuneration.
The launch of the ABSL Awards programme to recognize best practices and promote
Czechservice centres for their innovations and great working practices.
The introduction of the ABSL Academy to promote the development of talent within the services
sector and provide common learning solutions to attract and develop talent in business services.
A
BSL board members will keep supporting growth of our members by improving mutual
cooperation with governmental, regional and educational bodies across the country.
We have achieved a great deal together in 2015 - and laid strong foundations
for thefuture. I would like to thank all of our members and sponsors
for their efforts this year and we look forward to building on our
achievementsin2016
Jonathan Appleton
ABSL Managing Director
Introduction
ABSL growth
?
60 52
50
40
founded in 2013
30
by 15 members *
20
10
0
13
6/ 3
13
8/ 3
13
10 13
11 13
12 13
1/ 3
2/ 4
3/ 4
4/ 4
5/ 4
6/ 4
14
8/ 4
14
10 14
11 14
4
1/ 4
2/ 5
3 15
4/ 5
6/ 5
7/ 5
8/ 5
5
10 15
11 15
12 15
5
1
01
01
1
01
01
01
20
20
20
20
20
20
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20
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20
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20
20
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5/
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9/
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12
9
* Founding members:
ACCA Gardner Denver CZ + SK ZEBRA Technologies
Accenture Services Infosys BPO PPG Industries Czech Republic
EZ Korportn sluby JNJ Global Business Services PricewaterhouseCoopers esk republika
DHL Express (Czech Republic) MANN + HUMMEL Service Process Solutions
Edwards Services Monster Worldwide CZ Siemens

Introduction
9 Business services sector in the Czech Republic 9
Chapter Content Provider: ABSL
1 | Profile of the business services

sector in the Czech Republic
The local market data for the business services sector shows
that theCzechRepublic is one of the key target destinations for
the business service centers in Europe. International and local
investors recognize theCzech Republic for the availability of a well
qualified workforce with very good coverage of foreign languages.
They also find here good infrastructure and competitive costs as
well as political and economic stability. Another important aspect
that influences investor decisions is our cultural and geographical
proximity within Europe, as the majority of the services provided
by the centers target end customers who are located in Europe.
Profile of the business services sector in the Czech Republic
About the report

The purpose of this Chapter is to provide a comprehensive profile of the business centers
in theCzech Republic. The important source of the data and information that are published
in this report was the survey conducted by ABSL among the business service centers that
operate intheCzech Republic. The survey has been completed by 33 respondents representing
investors from 15 countries and employing 12.000 people. The data and information collected
through thesurvey enhances the ABSL database on the sector and provides the statistical study
publishedinthis report.
33
the number of companies that took part in this years ABSL survey
12 000
the number of people employed by respondents of the ABSL
research in the business service centers in the Czech Republic
The Chapter is divided into five parts. The first part provides summary information about
thebusiness services sector in the Czech Republic. A broad definition of the industry has been
adopted here where business services centers are typically internal units on mother companies
(SSC), companies providing business process outsourcing (BPO) and IT outsourcing (ITO) as well
as research and development centers (R&D). The following part present the structure of the sector
in terms of thesize and future potential growth, geographical spread in the country and investors
information. The third part describes the range of services that are provided by the centers as well
as what industries and geographies are supported from the Czech Republic. The next Chapter is
especially interesting as it shows the development of the sector and captures also the trends and
directions of the industry. The last part of the chapter present the current structure of employment
including benefits and training typically provided by the centers.
SUMMARY INFORMATION OF THE BUSINESS

SERVICE SECTOR IN THE CR
65.000
employment in the business services sector
180+
the number of business service centers
30%
employment growth in the sector during last two years
361
average number of employees in the business service centers
$3b
annual revenue generated by the business services sector which is 1.5% of the total Czech GDP
5%
employment of Czech workforce in 25-30 age group in in the business services sector
100.000
projected employment in the sector by the year 2020
Table 1
Size of the Business Services Sector in the Czech Republic that includes SSCs, BPOs, ITOs and R&Ds
Accenture Services Regus Business Centre Atento

Adobe SAP BSCE Laird Technologies
ADP Scanservice
Amazon Siemens
Anheuser-Busch InBev SITA
Ariba Skype
Atento T Systems
AXA Assistance Tesco
Barclays TMF Group
Blue-Infinity UniCredit Bank
Liberec
BlueLink Xerox
st nad Labem
Bodycote
CA Technologies
Johnson Controls
Carrier
CDK Global
Clearstream / Deutsche Borse
Cleverlance
Comdata Procter&Gamble
Commerzbank
Covidien Roztoky u Prahy
CSC
Rakovnk
DHL
Praha
eBay
EDITEL
Edwards Lifesciences
EPAM
ESET
ExxonMobil Plze
Praha
Google
GTS
HayGroup
Honeywell
Hewlett Packard
ICON
ICZ
Intel
Psek
International SOS
Interoute
J&T Services
Jarden BSG Czech Cloud Cluster
ADP
Johnson&Johnson Aimtec
Komern banka HayGroup esk Budjovice
LUKOIL Kerio
Mallinckrodt PDM Technology
Microsoft Sony DADC
Monster Worldwide
NESS
NNIT
Novartis
Novell
Oracle
E.ON
Panalpina
UniCredit Bank
Pfizer
Process Solutions
Table 2
List of centers in the Czech republic
Member of ABSL
Eaton
Roztoky u Prahy
AXA Assistance
Comdata
EZ Korportn sluby
DHL
Kingspan GE Money
Genpact
O2
OKIN GROUP
RWE
Siemens
StoraEnso
Tieto
Hradec Krlov Xerox
Pardubice
Ostrava
Foxconn
NonStop Recruitment
Olomouc
MANN + HUMMEL
EXL Service
Honeywell
Okky ICON
u Jihlavy Brno John Crane Sigma
ABB Fabory Lear Corporation

Acer FEI Lufthansa in Touch
AT&T FNZ MediClinic
Atento Gardner Denver Monster Worldwide
AVG Home Credit NetSuite
CGI IBM Pixmania
Cleverlance ICON PPG Industries
Deloitte IMI Norgren Red Hat
Dixons Retail Infosys BPO Seznam.cz
Edwards Services John Crane Sigma Ysoft
EmbedIT KBC Group ZEBRA Technologies
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jll.cz
Structure of the business services

sector in the CR
Currently there are more than 180 business service centers in the Czech Republic. The centers are
located in the country in three main hubs: Praha, Brno and Ostrava. These three locations cover
about 90% of the market. The other popular locations are Olomouc, Pardubice and Plzen with
5% ofthe share. The rest of the centers are spread in the country in many locations very often
connected toother business activities of their mother companies such as production plants,
logistic centers, etc.
0,5%
1% 1%
4% 4% Share of locations
Praha 48,3%
Brno 22%
Ostrava 21%
21%
Plze
3,7%
100% = 12.000
Pardubice 0,8%
people 48% Olomouc 0,5%
Liberec 0,4%
Hradec Krlov 0,1%
22%
st nad Labem 0%
esk Budjovice
0%
Praha Pardubice
Other cities 3,1%
Brno Olomouc 0 10% 20% 30% 40% 50%
Ostrava Liberec
Plze Other cities
Figure 1
Share of individual business service locations in overall employment / in # of centers
In the last two years the employment in the sector in the Czech Republic has increased by 30%
from 50.000 in 2013 to 65.000 employees in 2015. The growth was driven by establishing new
centers as well as by the growth of existing centers. We estimate that the sector will continue
growing also in the next years and reach employment of 100.000 employees in the next 4-5 years.
120,000
97.500
100,000
80,000 60.500
50.000 55.000
60,000
40,000
20,000
0
2013 2014 2015 2020
Figure 2
Employment growth in business service centers in CR
The typical business service center in the Czech Republic on average employs 362 employees.
This number has not changed in the last two years, as the growth of the existing centers is covered
with the small number of employees in newly opened centers. Almost half of the centers (46%) are
centers with up to 200 employees. According to the ABSL study 10% of centers have more than
1000employees.
18%
362
100% = 33
average employment in all centers
46%
centers
> to 200 employees

36%
200-500 employees
< than 500 employees
Figure 3
Size of the centers according to the number of employees
9%
9% 24% Industrial & Consumer Goods
Technology & Telecom
12% Business and Professional Services (incl. BPO)
Health Care
Energy, Utilities and Basis Materials

15% 24%
Consumer Services (incl. Media, Retail, Travel & Leisure)
Banking, Insurance, Financial Services (BIFS)
Other
21% 21%
Figure 4
Structure of employment in business service centers by industries of their parent company
The biggest share of the investment in the Czech modern business service sector comes
traditionally from US companies. German companies remain the largest European
investors in service center numbers and employees. Other European countries follow
with growing demand for near shore operations from across Western Europe.
USA
Germany 24% 30%

Switzerland
Belgium 100% = 33
Czech Republic companies
Ireland
6%
UK
6%
Other 12%
6%
6% 9%
Figure 5
Structure of business service centers by parent company headquarter location
3%
2%
3% 4%
4%
USA
Germany
Ireland
6% 37% Italy
Belgium
7% Czech Republic
India
Switzerland
13% Austria
Other
21%
Figure 6
Employment business service centers by parent company headquarter location
What we understand as a Business Services Center is an organizational unit responsible

fortheexecution of specific tasks supporting the core activity of the company e.g.Finance
&Accounting, IT support, Sourcing & Procurement, Human Resources and others. Such centers
exist as captive centers being separate legal entities or just organizational units of the mother
company. In terms of centers ran by BPO providers their Delivery Centers render various types of
centralized services for multiple 3rd party clients. In the Czech Republic the great majority (around
80%) are captive Shared Services Centers. BPO providers have a higher share of employment
because typically they employ a higher number of people and serve multiple clients. The survey
also shows that the hybrid centers (centers that serve their mother company as well as 3rd party
clients) cover the widest range of services while the BPO are more specialized on specific areas.
6%
12% 17%
100% = 33
centers
24% 59%
82%
Internal unit / captive Service Center Internal unit / captive Service Center
Commercial provider / outsourcing Service Center Commercial provider / outsourcing Service Center
Hybrid model (both internal and external clients) Hybrid model (both internal and external clients)
Figure 7 Figure 8
The organizational structure of the sector The organizational structure of
by number of business service centers the sector by employment
More than half of the service centers benefit or have benefited from the public support in the past.
The most used support is EU grants for training and employment and also government grants.
Share of centers
Company did not use / do not

use the public support
46%
EU training grants 27%
Government grants 24%
EU employment grants 21%
Other public grants 3%
Local tax exemptions 3%
Tax exemptions within Special
Economic Zone (SSE)
0%
0 10% 20% 30% 40% 50% 60% 70% 80% 90%
Figure 9
Public support used by business service centers
Range of services the business service

sector in the CR
Czech business service centers support a diverse range of global industries.TheFigure10 shows
that most centers are found in Technology & Telecom plus Industrial&Consumer Goods. Both
industries are supported by more than 30% of the Czech centersandhealth care is a fast growing
industry for new investors in the country.
Share of companies
Technology & Telecom 33%

Industrial & Consumer Goods 30%
Health Care 24%
Banking, Insurance, Financial
Services (BIFS)
21%
Consumer Services (incl. Media,
Retail, Travel & Leisure)
18%
Business and Professional Services 18%
Energy, Utilities and Basis Materials 15%
Public Sector 3%
Other (please specify)* 15%
0 10% 20% 30% 40% 50% 60% 70% 80% 90%
Figure 10
Industry structure of companies supported by business service centers
*Mining, Logistics and Freight Forwarding
Czech business service centers support a wide range ofservices.Themajority of

them support several type of business services and onaveragethecentersprovide
a minimum of 3 types of business services.
As in previous years, Finance and Accounting services are still the largest. More
than 75% ofthecenters report they have F&A scope which represent almost one
third of employees. However,theoverall share of F&A in terms of employment
is going down on previous years, while newer service areas such as Customers
Operations, IT and HR are rapidly on the increase across Czech centers.
4%
6% Finance & Accounting (F&A)
Customer Operations
9% 32% IT Services (incl. software development)
HR
13% Other services
Supply Chain Management
Banking, Insurance, Financial Services (BIFS)
13% 21%
Figure 11
The structure of employment in business service centers by categories of supported processes
3
average number of business processes
supported by the business service centers
Share of centers
Finance & Accounting (F&A) 76%

Customer Operations 58%
HR 52%
Other services 42%
IT Services (incl. software
development)
33%
Supply Chain Management 33%
Banking, Insurance, Financial
Services (BIFS)
18%
0 10% 20% 30% 40% 50% 60% 70% 80% 90%
Figure 12
The structure of categories of supported processes in business service centers
F&A - Accounts Receivable 82%
F&A - Accounts Payable 76%
F&A - Travel & Expenses 64%
F&A - General Ledger & Reporting 76%
F&A - Business Controlling 39%
F&A - Treasury 36%
F&A - Master Data Management 64%
F&A - Billing 27%

Strategic Procurement 9%
Operational Procurement 33%
HR - Recruitment 21%
HR - Talent Management 18%
HR - Mobility 21%
HR - Payroll 36%
HR - Compensation & Benefits 30%
HR - Administration & Reporting 39%
Document Management 27%
Operational Marketing 15%

Customer Operation - Sales &
36%
Account Mgmt Support
Customer Operation - Fulfillment 6%
Customer Operation - Customer Helpdesk 46%
Knowledge Management 15%
IT - User support / Service Desk 46%

IT - Application Lifecycle Management
18%
(incl. software development)
IT - Infrastructure Management / Support 24%
IT - Information Security 12%
IT - Request Fulfillment / process execution (BPO) 6%
IT - Enabling Services 12%

IT - Automatization / Optimization of
Service Delivery (cost, quality) 24%
IT - Other IT services 15%
Project Management 27%
Business Transformation 24%
Supply Chain Managemen 12%
Banking Specific Processes 9%
Insurance Processes 9%
Professional Services 6%
Other Processes * 33%
0 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Figure 13
The structure of individual business processes supported in business service centers
* Technical Drawings for Manufacturing, Fleet management; Facility management, Logistics, Quality, Compliance & Fraud prevention
Number of processes covered
20 18
11
15
11
average number of
9 processes supported
10
by the business service
centers
5
0
Internal unit / captive Hybrid model (both internal Commercial provider /
Service Center and external clients) outsourcing Service Center
Figure 14
Average number of processes covered by business service centers according to their organizational model
91%
of centers support more than 1 country
76%
42%
76%
CEE
(excl. Czech Republic)
North
America Czech Republic
85%
Western
Europe 30%
33% Asia Pacific
15%
Middle East
& Africa
South
America
Figure 15
Geographical structure / range
Development of the business service sector in the CR
85%
of the surveyed companies have increased the range of provided processes in the past 3 years (87% of
companies with fewer than 200 employees, 75% with 200-500 employees and all companies that employ
more than 500 employees.
91%
of the surveyed companies in past three years have increased the degree of sophistication of provided
processes: in 58% of companies it has increased significantly and in 33% insignificantly. Advanced
processes have increased in all companies employing more than 500 employees, in 83%of companies
employing 200-500 employees and in 93% of companies with fewer number of employees than
200employees.
85%
of service centers predict an increase in employment through the end of 2016 on average of 17%.
All companies employing more than 500 employees (100%) and operating in either commercial or
hybrid model plan the growth.
17%
average expected employment growth in business service centers
60
40
21%
17% 16% 17%
20
0 < 200 200-500 > 500 Total
Figure 16
Share of grow companies
85%
of business service centers expect to grow in the next 2 years
100%
100 92%
85%
80
73%
60
40
20
0 < 200 200-500 > 500 Total
Figure 17
Share of grow of employees
Percentage of companies
Average projected
that predict an increase in
employment growth
employment by the end of 2016
Total 85% 17%
Centers with less than 200 employees 73% 21%
Centers with 200-500 employees 92% 17%
Centers with 200-500 employees 100% 16%
Centers with more than 500 employees 100% 24%
Commercial providers 100% 10%
Hybrid model (internal and external clients) 81% 15%
Table 3
Forecast for the employment growth by the end of 2016
0% Rookie
17% (Design and initial
> 500
33%
implementation in place)
50%
Developing
0% (Some processes transferred, majority
0% of processes not standardized)
200-500
83%
17% Advanced
(Centralization completed as
0% planned, processes standardized,
53%
< 200 continous improvement in place)
47%
0%
Business Partner
(Optimization and Automation across
0%
27% organization, Business Outcomes
Total focus & Partnership with clients)
58%
15%
0 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Figure 18
Stage of development of business service centers
64% of the business service centers plan to expand their business activities in the next
two years. The more people employed in a service center, the higher the likelihood
that thecenter plans to increase their activities. Further expansion is planned by
83% of companies employing more than 500employees, by 75% of companies with
200-500employees and by 60% of companies with less than200 employees. Business
expansion has been planned by all companies with hybrid operation models followed
by75%of thecommercial providers (75%) and 67% of the internal units / captive centers.
The expansion is mostly driven by global restructuring plans (55%) followed by increased
external demand (39%). 30% of companies are expect to build the new business areas
and 21% of companies expect that the expansion will be driven by new acquisitions.
Share of employment growth

40%
33% < 200
External demand increase 40%
39% 200-500
> 500
47%
58% Total
Global restructuring plans 67%
55%
27%
25%
New business areas
50%
30%
13%
25%
Acquisition
33%
21%
0 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Figure 19
Key drivers for employment growth in business service centers by employment range
Share of employment growth
30%
50%
External demand increase
100%
39%
59%
Global restructuring plans 0%
100%
55%
30% Total
New business areas 0%
30% Commercial provider
50%
Hybrid model (internal
and external clients)
26%
0% Internal unit / captive center
Acquisition 0%
21%
0 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Figure 20
Key drivers for employment growth in business service centers by organizational model
Share of plans for expansion
70%
Stabilization and optimization 87%
of current activities 58%
50%
64%
Expansion of activities new 53%
activities, same customers 75%
67%
61%
activities, new customers 40%
83%
15%
Expansion of activities same 60%
33%
15%
27% Total
Reduction of activities 8%
0% < 200
200-500
12%
No plans to change 20% > 500
current activities 8%
0%
0 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Figure 21
Plans for expansion of business activities by employment range
Share of centers
70%
Stabilization and optimization 74%
of current activities 50%
50%
64%
activities, same customers 50%
50%
61%
75%
55%
Expansion of activities same 56%
75%
15%
19% Total
Reduction of activities 0%
0% Internal unit / captive centers
Hybrid model (internal and external clients)

12%
No plans to change 15% Commercial providers
current activities 0%
0%
0 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Figure 22
Plans for expansion of business activities by organizational model
< 200
200-500
> 500
Total
0 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
All decisions of process changes are made within retained organization
We do not own any processes in our scope, however opinions and suggestionsofSSCregarding
process changes are an important input for process owners
We have full ownership of some processes in our scope and havedecisionpowertomodifythem.

Other processes are owned by retained organization
We have full ownership of all processes in our scope and we have decision power to modify them
Figure 23
Ownership of the processes supported by the business service centers by employment range
Share of centers
Automation is part of the 40%

50%
process (complex macros & 100%
script, low end robotics) 55%
67%
Limited automation 50%
(small macros, etc.) 17%
52%
0% <200
Advanced automation 17%
(advanced robotics) 17% 200-500
9%
500<
0% Total
No automation of the process 0%
0%
0%
0 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Figure 24
Level of process automation in business service centers by employment range
Share of pricing models
Time & Material (Cost-Plus) 49%

FTE based (rate card) 42%
Transaction based 42%
Fixed Price 15%
Revenue based 12%
Output based 9%
Demand based 3%
Benefit based 0%
Other 6%
0 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Figure 25
Pricing models used by business service centers
Human capital in the business service sector

in the CR
The Business service centers in the Czech Republic deliver services globally to almost
all geographies. The majority of the services are being delivered to European countries,
NorthAmericaand Middle East. This creates a high requirement for knowledge of foreign
languages in the business service centers. In order to support 31 languages, almost all centers
employ a proportion of foreigners. The average share of foreigners in the Czech centers is 34%.
31
Share of centers
100%
90%
The number of languages used
80% in business service centers
70%
60%
50%
40%
30%
20%
10%
0
h
Ge h
Fr n
ch
h
Ru a n
Sl n
Sp ak
ng h
m n
r tu i a n
S w se
Fi h
D h
r w sh
B u g ia n
ra k
C r ia n
Tu n
Ar h
He ic
Se w
pa n
se
Fl an
h
Ch an
ua e
an
Uk ee
L i in es
is
lis
ia
H u n is
Ro a r i a
is
is
ia
ti a
is
Ja i a
B e m is
ec
tc
e
ab
e
ne
ov
No a ni
en
rm
li
di
si
ni
br
gl
ed
nn
rk
ss
Po a n
in
rb
ar
Du
Gr
gu
Po
Cz
I ta
oa
ru
a
In
e
En
a
lg
la
th
Figure 26
Languages supported in business service centers
19 80%
the largest number of the maximum share of
languages used by one foreigners in one business
business service center service center
9 34%
average number of average share of foreigners
languages used in business among all employees in
service centers business service centers
36% 97%
of business service of business service centers
centers use more than employ foreigners
10 languages
76% 85%
of business service centers
of business service centers employ at least 10% of
use more than 5 languages foreign employees
Table 4
Structure of supported languages and employment of foreigners in business service centres
5%
27% Secondary School (or equivalent)
Master/Bachelor Degree (or equivalent)
Post graduate/Professional Cert. (ACCA, CIMA, MBA, ITIL, etc.)
68%
Figure 27
Levels of education of employees in business service centers
Share of centers
Subsidizing language courses 73%

Sports entertainment 61%
Pension fund 61%
Benefit card (or other of that kind) 52%
Life insurance 49%
Subsidizing (postgraduate) studies
or other professional courses 46%
Leasure trips / activities 39%
Service Center-provided mobile
phone for personal use 33%
21%
49%
Preferential share purchase options
Medical pack 18%

Child care / infant care subsidies;
Service Center kindergarten 12%
Additional health insurance
centers use cafeteria system
(other than a medical pack) 12%
We do not offer any social benefits 6%
Other 36%
0 10% 20% 30% 40% 50% 60% 70% 80% 90% 100%
Figure 28
Non-wage benefits offered by business service centers
Share of centers
Induction / Introduction 94%

Soft skills incl. social communication,
emotional Intelligence
88%
Language competencies incl. certifications 58%
Manager coaching 52%
Other professional trainings 49%
Financial e.g. CIMA, CIA, ACCA, CFA, etc. 49%
Time management 46%

Project Management e.g.
PMP, Agile, Scrum, etc.
36%
Computer & Internet Technology
e.g. CISA, ITIL, etc.
36%
Business Analysis e.g. 6 Sigma, CBAP, etc. 33%
Supply Chain e.g. APICS 6%
Other 15%
0 10% 20% 30% 40% 50% 60% 70% 80% 90%
Figure 29
Training offered to employees by business service centers
Employees of Czech service centers are well educated and over two thirds have a first University
degree or Masters. The share of employees directly from high school is consistent with previous
years and represents 27% of services employees. Continuing professional development or CPD
is a growing trend in the business services sector and 5% of employees have or are studying
for a postgraduate qualification. See fig 27. The importance of continuous investment in
education is seen in fig 28 with the majority of centers providing additional language courses
and nearly 50% investing in postgraduate or professional qualifications for their talent pool.
Training and education has become a key strategic tool for business services to attract,
retain and develop the talent force that centers require as they move up the value curve
to deliver higher end reporting, analytical and front end services. Our survey shows
that almost all business centers are providing induction training for new recruits see
fig 29 and the vast majority have educational programs to develop the key business
skills for leading teams, managing workloads and delivering complex projects.
An increasing number of Czech centers are investing in professional financial qualifications

such as ACCA, together with recognized certification in project management, lean six sigma
and leading IT certificates. This is clear evidence of the move within Czech business services
to higher level, professional services requiring business centers to adopt sophisticated learning
strategies and provide employees with international development options and qualifications.
In the survey the leaders of Czech business service centers were asked for their opinion
on the characteristic of the local market as a place for business. In the case of companies
with centers in several cities, generally the respondents referred to the market in which
they employed the majority of employees. The following aspects have been rated most
positively: availability of modern office, the image of the city (in the opinion of investors and
the quality of public transport (all were rated above 8 on a scale 1 to 10) as well as thecity
accessibility (average score 7.94). Investors are satisfied with the conditions of functioning
that individual locations offer them. In general the average rating of the competition between
business service centers in local markets was rated on 6.76 (on a scale 1 to 10).
6.76
average rating of completion between business service centers in local markets
Availability of talent pool

/ highly qualified staff
6,76
Cooperationwith City accessibility

local authorities (airport, trains)
7,94
6,19
1,0 2,0 3,0 4,0 5,0 6,0 7,0 8,0 9,0 10,0
8,15
8,85
Image of the city The quality of
(in the opinion public transport
of investors) in the city
8,33
Availability of modern
office space
Figure 30
Average scores from business service centers representatives pertaining to
selected features of local markets in which the centers operate
Brno
The Knowledge City
Brno, the Czech Republics second biggest city, lies at the heart of the South Moravian
Region. It borders Austria and Slovakia and it is strategically placed among Prague,
Vienna and Bratislava. Brno is a constantly developing metropolis which many times in
its history has proven to have something to offer the world. So internationally renowned
were its local textiles, that Brno was called the Moravian Manchester in the 18th and
19th centuries. Later, it became one of thegreat engineering powers, created the largest
exhibition centre in Central Europe and founded a respected technical university. It was
in Brno that Gregor Johann Mendel came up with his laws of genetics, Viktor Kaplan
invented his turbine, Kurt Gdel began his logical reasoning and Leos Janacek started his
musical pilgrimage.
Brno is a city with great potential. A number of universities with more than
80,000students ensures that it is a creative and dynamic city with a youthful
spirit.Universities with a tradition in a number of fields oversee advanced research,
especially in the biological and medical sciences, as evidenced by the presence of leading
scientific research centres. Whole chapters could be devoted to the local academic and
research successes in information technology, the life sciences, electron microscopy and,
especially, cyber security and software development, where Brno has taken on the role
ofa courageous, successful and promising leader within Europe.
Brno
The Knowledge City
Foreign companies see the city and its surroundings as a region with prospects
in which it pays to invest. Several multinational concerns have established their
development centres and top production facilities there (e.g. FEI, Honeywell,
IBM and Red Hat). Brno assists incoming and current investors in finding
locations and provides solutions based on their individual requirements, utilising
a perfect knowledge of the local environment. The city actively cooperates in
developing its potential with regional institutions (the South Moravian Innovation
Centre, theRegional Development Agency South Moravia, CzechInvest and
the Brno Regional Chamber of Commerce). It is working to ensure that the
results ofinnovative and daring projects become a reality. Brno also helps with
thecreation of more new centres and places to inspire fruitful ideas and goals
(e.g. the Europoint Brno project for modernization of the rail interchange, a large
ring road, the Czech Technology Park Brno, the Brno Creative Centre, the Janacek
Cultural Centre and the Brno Industrial Zone Cernovice Terrace).
Part of Brnos long-term strategic plan is also the development of the knowledge
economy, which brings with it economic development, an improvement in the
quality of life, research, development, innovation and education. A key word for
Brno and South Moravia is cooperation. Universities and scientists are on one
side, and companies and entrepreneurs are on the other, and all of them are
striving for closer connections. As well as providing an excellent background for
work, this sharing of experience and information also brings with it an increase
inthecompetitiveness of the city, as well as the region as a whole.
This is probably also a reason why ever more investors are choosing Brno as
a home which offers everything necessary for the harmonious combination
of working success and a fulfilling personal life. Everyone who comes there in
order to build something is welcomed with open arms. Evidence of this is the
constant effort to improve and perfect the region to meet the requirements of
the hectic and demanding pace of our times. Ease of movement within the region
is guaranteed by the sophisticated transport system, thanks to which there is
nowhere that its inhabitants cannot reach whenever and however. Everything
isavailable culture, monuments, national institutions, an international airport,
services, sports and recreational areas. The Brno Expat Centre is available to help
with the integration of foreigners.
The current rankings of the respected Numbeo.com server has Brno as the city
with the highest quality of life in the Czech Republic. On the worldwide rankings
itis ahead of such giants as London, Los Angeles and Brussels. We take pride in
thisbut we are aware that we cannot rest on our laurels.
City of Brno
e-mail: investors@brno.cz
Chapter Content Provider: JLL
2 | Office market
The Czech Republic has continuously proved to be an attractive location

for international businesses. This is largely thanks tothe high quality and
high technical standards of available office accommodation, coupledwith
highly skilled, well-educated andcompetitively priced labour. As of 2015,
there is approximately 4 million square meters of modern office space
spread throughout thecountry with the largest concentration located in
Prague, Brno and Ostrava. Current market conditions are favourable to
occupiers with more than 650,000 m2 of space currently available to lease
across the country. A range of rental costs, to suit all budgets, are available
with typical BPO/ SSC rental costs at between 8 -15 / m2 / month.
Office market
Prague Office Market
Stock and supply
As the capital city, Prague has the largest office stock in the Czech Republic which currently
stands at approximately 3.2 million m2 of modern office space. The majority of the stock meets
therequirements of A class buildings which account for ca. 69%. The remaining 31% are high
quality refurbishments. The largest office districts are Prague 4, Prague 5 and Prague 1 which are
regarded as the core office areas in Prague. Over the last few years however there has been a growth
in importance of Prague 8 which has been the target of the majority of new developments within
theinner city area. In 2015, we expect new office supply to reach approximately 187,500 m2 which
would be the highest level since the record year of 2008. In 2016, office completions are expected to
drop to a level of around 25,000 m2. New supply should increase again in 2017 when it is expected
toreach pre-crisis levels.
m2
350,000
300,000
250,000
200,000
150,000
100,000
50,000
0 2005 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015
Figure 31
Prague Office Completions
Office market
Availability
The level of choice in office space in Prague decreased to 16.38% which means that there is more
than 520,000 m2 of office space available. A large portion of available space is currently in new
office buildings which are predominantly being built on a speculative basis and therefore are usually
not fully occupied by the time of their completion. The majority of available space is nevertheless
inolder office schemes as a result of tenants relocating from these schemes into newer, more
modern premises. Due to strong speculative supply, the level of choice increased significantly in
2015 and in Q1 reached its historical maximum by exceeding the level of 17%. Despite the fact that
a significant amount of the vacant space has already been leased throughout 2015, we expect the
level of choice to remain relatively high. As net demand is driven mainly by relocations of existing
tenants within the current stock, we can expect more second hand space to become available on
the market in the forthcoming quarters. This will keep the level of choice relatively high, despite
thelimited office supply pipeline in 2016.
Rents
Prague is quite a stable market in terms of rental costs. In 2015, prime headline rents in the
city centre remained stable, ranging between 18.0 and 19.5 m2/month. Inner city rents were
between 15.0 and 16.0 m2/month in Pankrc (Prague 4) and Smchov (Prague 5) and between
13.5 and 15.5 m2/month in Florenc (Prague 8). Rents in the Outer City, which was historically
one ofthe mostsought after locations by companies from the SSC and BPO sector, remained
between13.0and 14.5 m/month.
Holeovice Prosek
12.0 - 13.5 12.0 - 13.5
Karln Vysoany
13.5 -15.5 12.0 - 13.5
City Centre Prague 3 & 10
18.0 - 19.5 11.0 - 14.0
Prague 2 & 10 Chodov/Opatov
13.0 - 16.0 12.0- 15.0
Stodlky Pankrc
12.0 - 14.0 14.5 - 16.0
Butovice Andl/Smchov
12.0 - 14.0 15.0 - 16.0
Figure 32
Prime Rental Levels in Major Office Areas
Office market
All of these values refer to prime levels achieved in a limited number of prime properties. In general
there are ca. 1-3 properties in each submarket which achieve these levels as they are usually brand
new, above standard quality and/or very well located. Second hand products stand at approximately
1.5 below the afore-mentioned ranges.
Rents are predominantly denominated in Euro. CZK rents are available for some properties owned by
local investors. Rents are paid quarterly in advance. Indexation is annually in line with European CPI.
In case the contractual rent is in CZK, landlords prefer to use Czech CPI.
Demand and SSC/BPO sector
Over the last two years we have seen revived activity from both developers and tenants. Many
companies, especially the larger ones, have used the opportunity of tenant favourable conditions,
due to strong supply coming to the market, to relocate their offices into new and modern premises
which would correspond with the highest standards of office workplaces.
Between Q1 and Q3 2015, the gross demand for office space reached almost 300,000 m2 which
represents a 36% increase on the previous year. Renegotiations accounted for approximately 43.5%
of that volume. Thanks to a very strong demand for offices between Q1 and Q3 and several large
deals in advanced stages of negotiation, we expect 2015 to exceed the record-breaking result of
lastyear and become the most successful year ever recorded on the Prague office market in terms
of gross demand.
m2
350,000 Net take-up
Renegotiations
300,000
Net Demand: A figure representing

250,000 the total floor space known to
have been let or pre-let, sold or
pre-sold to tenants or owner-
occupiers over a specified period
200,000
of time. Net demand includes
lease extensions and subleases
but excludes lease renewals.
150,000
Gross Demand (Take-up): A figure

representing the total floor space
100,000 known to have been let or pre-let,
sold or pre-sold to tenants or
owner-occupiers over a specified
50,000 period of time. Total demand
includes renegotiations.
0
2011 2012 2013 2014 Q1-Q3 2015
Figure 33
Prague Gross Demand (Take-up) 2011 2015
Office market
In the first three quarters of 2015, the gross demand has been driven mainly by IT and
telecommunications companies which accounted for almost one third of the total take-up.
Thesewere followed by companies from the manufacturing and professional services sectors.
2%
7% IT & Telecoms
9% 29%
Manufacturing & Consumer Goods
Professional Services
10% Other
Pharma & Medical
Banking, Finance & Insurance

11% Construction & Transportation
17% Advertising & Media
15%
Figure 34
Demand drivers of 2015
The strong demand for offices in Prague has been also reflected in the SSC and BPO sector.
Someof the key players on the market of business services decided to either relocate into newly
built offices or to renegotiate their leases in the current premises. ExxonMobil, for example, has
renewed its lease in its current premises in Prague 3. SAP Business Services Centre and Oracle on
the other hand, have both decided to relocate into newly built buildings in the outer city of Prague 5.
The following table shows examples of the recent activity of companies from the SSC and BPO sector in Prague
Company Year Floor-space (m2) Location Type of deal
ExxonMobil 2015 9,230 Prague 3 Renegotiation
ExxonMobil 2014 8,649 Prague 3 Renegotiation
Amazon 2014 6,047 Prague 6 New occupation
JNJ Global Business Services 2014 4,356 Prague 5 Renegotiation
Accenture 2015 3,053 Prague 4 Renegotiation
Table 5
Examples of the recent activity of companies from the SSC and BPO sector in Prague
Office market
Over the years, Prague has been selected as a headquarter location for a number of the largest
corporations in the world and their SSC and BPO activities. One recent newcomer is e-commerce
giant Amazon which opened its SSC in Prague 6 providing mostly HR shared services and remote
IT support for its employees. Amazon leased approximately 6,000 m2 of office space and plans
tocreate over 500 jobs.
Thanks to the strategic location of Prague in the centre of Europe and its highly skilled and
qualifiedworkforce, companies already present on the market are becoming more specialized and
are expanding the scope of services that they provide. Recently, many companies have established
their ICT and R&D centres in Prague and in other Czech cities. For example in 2014, pharmaceutical
company Merck Sharp & Dohme (MSD) opened its IT centre in Prague, leasing approximately
6,200m2 of office space in the inner city area of Prague 5.
Brno Office Market
Stock and Supply

As the second largest city in the country, Brno has the second largest modern office stock which
amounts to approximately 483,000 m2. The majority of the office stock has been delivered to
themarket since 2005. Modern A class offices cover 80% of the total stock while the remaining
20%consists of B class projects. A very similar ratio of 77% to 23% is in favour of newly built
buildings in comparison to quality refurbished schemes.
After the strong year of 2014, when ca. 45,000 m2 in 5 new office schemes and one extension was
added to the Brno office market, there were no new completions in the first half of 2015. Overall in
2015, only 1,500 m2 of offices within one multifunctional project should be delivered to Brno office
market. In 2016, we expect the office supply to amount to approximately 22,000 m2.
Availability and Rents
Since 2013, due to the strong demand for offices, the level of available office space in Brno has
been gradually decreasing. With the subdued development activity and very limited supply coming
to themarket in 2015, the level of choice declined to 16.48% by the end of H1 and it is forecasted
todecline further as the market absorbs more vacant space.
Prime headline rents for A class office space oscillate in the range of 12.0 to 12.5 m2/month.
However, this value represents only a limited part of the stock. In general, modern offices in
theBrnomarket are currently being offered between 8.0 and 12.0 m2/month, depending on
thevicinity to thecity centre and the overall quality of the project.
Office market
Over the last decade, Brno has been very successful in attracting offshoring and shared service
centre activities. This is mainly thanks to the availability of an educated, highly qualified labour
force, obtainable at a significantly lower cost to Prague, combined with an above-average level
ofregional unemployment which includes a large proportion of higher education graduates.
Over the years, Brno has attracted a wide range of businesses covering areas of software/IT
development, accounting/finance or customer service centres. Demand in Brno has been driven
bymultinational corporations including IBM, Infosys, Lufthansa, Red Hat, KBC and Monster
Worldwide, to name a few.
In 2014, the gross demand for offices reached 58,700 m2 which represented the second strongest
result since 2005 and y-o-y increase of ca. 21%. The share of renegotiations reached almost
50%. In H1 2015, total demand reached ca. 26,400 m2. Due to the large renegotiation of IBM
atTechnologick Park Brno, the share of renegotiations reached 49%. Over the past year and
ahalf,demand for offices was driven mainly by the manufacturing and IT sectors, accounting
forca.35% and 27% of the total demand respectively.
m2
70 000 Net take-up
60 000
Renegotiations
50 000
40 000
30 000
20 000
10 000
0 2011 2012 2013 2014 H1 2015
Figure 35
Brno - Gross Demand 2011 2015
In terms of the SSC and BPO sector, the most significant transactions of 2014 and 2015 included
therenegotiation of IBM at Technologick Park Brno with ca. 13,000 m2 or renegotiation and
apre-lease deal of Motorola Solutions within the same business park.
IBM 2015 12,953 Brno Renegotiation
Motorola Solutions CZ 2014 2,435 Brno Renegotiation
Motorola Solutions CZ 2014 1,207 Brno Pre-completion
Table 6
Examples of the recent activity of companies from the SSC and BPO sector in Brno
Office market
On top of this, several companies have expanded their R&D and ITC activities in Brno. A great
example of this is Honeywell which has recently renegotiated and expanded its premises in Brno
to its current ca. 20,000 m2. The R&D centre in Brno is therefore the largest innovation centre of
Honeywell where approximately 1,500 specialists are employed.
Ostrava Office Market
Stock and Supply

Ostrava has the third largest office stock in the country which exceeds 205,000 m2 and consists
of mainly A class, newly built office premises. A class stock currently totals ca. 147,000 m2 which
represents 71.4% of the total modern stock in Ostrava.
The most active years with respect to new development, as well as demand for newpremises,
were between 2006 and 2009. The economic downturn and lack of available financinghad
subsequently put many of the development projects on hold, mainly those ofa largerscale.
This resulted in a limited number of completions between 2010 and 2011.
The excess of supply over demand in 2013 resulted in continued limited development activity.
Afterthe completion of one large speculative project with ca. 25,000 m2 of offices in 2013 we did
not record any new completions in 2014. In 2015 we expect the delivery of ca. 7,700 m2 of offices
butthere are currently no projects under construction with planned completion for 2016 onwards.
Availability and Rents
The level of choice in Ostrava stands at 24%. Overall, there is more than 49,000 m2 of
available office space for lease in various projects. 3 projects would be currently able
to accommodate larger tenants with requirements exceeding 5,000 m2 of offices.
Prime office rents in Ostrava range between 10.0 and 11.5 m2/month,
depending mainly on the location, quality and age of the building.
Some landlords, especially the local ones, are quoting and collecting rents in local currency.
Thistrend is currently more common on the Ostrava market than in Prague or Brno, where
almost all rents are denominated in Euros. Larger, international developers such asRed
Group however use similar conditions to those that are common on the primary markets.
Office market
Companies from the SSC and BPO sector have recently been seeking alternative locations in
the Czech Republic to establish their centres outside of Prague and Brno. They have focused
on regional cities such as Ostrava, Olomouc, Hradec Krlov, Pardubice or even smaller cities.
Unlike the smaller cities however, Ostrava has the advantage of a rather developed office stock.
Over the past couple of years, gross annual demand for offices in Ostrava has oscillated in the range
of ca. 15,000 to 25,000 m2. In H1 2015, gross demand reached approximately 7,350 m2. The largest
deal was the expansion of OKINs shared service centre in The Orchard by almost 4,500 m2.
m2
30 000 Net take-up
Renegotiations
25 000
20 000
15 000
10 000
5 000
0 2012 2013 2014 H1 2015
Figure 36
Ostrava Gross Demand 2012 2015
In Ostrava there are several key players in terms of shared services and ITO centres such as Tieto,
Siemens, OKIN and GE Money. These companies have also been quite active in terms of demand
foroffice space. Examples of the major transactions from the sector are listed in the following table.
OKIN Group 2015 4,437 Ostrava Expansion
Siemens 2013 4,093 Ostrava New occupation
Tieto Czech 2013 2,690 Ostrava Expansion
Table 7
Examples of the recent activity of companies from the SSC and BPO sector in Ostrava
Office market Profile of the business services sector in the Czech Republic
CZECH REPUBLIC
THE MODERN OFFICE MARKET IN NUMBERS
3
Main office markets: Prague, Brno & Ostrava
Almost
4 000 000 m2
of modern office stock
The total m2 volume of office space due for delivery in 2015 is close to
200 000
<50 000 m2
of office premises are estimated to be under construction and due for delivery in 2016
A range of rental costs, to suit all budgets, are available across the country.
Typical BPO/SSC rents are between
8 -15 / m2 / month
Subject to individual lease negotiations, typical tenant incentives may include: Rent free periods,
fit-out contributions, additional free parking spaces
>650 000 m2
of estimated vacant space is available to lease across the major office markets
in the Czech Republic
The estimated total vacancy rate across the major office markets in the Czech Republic
is approximately
16%
Table 8
Source: JLL, Q3 2015
Chapter Content Provider: Grafton Recruitment, ABSL, CzechInvest
3 | Labor market
There are around 350,000 students enrolled within the Czech Republics
stable environment of both public and private universities. This represents
3.5 per cent of the population and around 90,000 new graduates enter
the labor market each year, many to start careers in business services.
Many students are studying fields whichprovidetheskillsrequired

in business services. These include engineering,technical,economic,
administration and IT studies.
Czech universities are well distributed across the country and provide
asteady pipeline of graduates into the main cities and regions. Thenumber
of foreign students studying at Czech universities is increasing rapidly
and the business services sector is growing as a first choice for young
people wishing to start their working careers in the country.
Labor market
No. of Universities in Czech Republic * Towns with Universities
80
69
70 Liberec
st nad Labem
60
50 Hradec Krlov
Cheb
Praha Pardubice
40 Opava
Ostrava
26 Plze
30 Olomouc
20 Jihlava
Brno Zln
10
esk Budjovice
0 Total Public
Figure 37
Universities in the Czech Republic
(Source: Grafton Recruitment, 2015)
* Ministry of Education, www.msmt.cz
395 990 392 099

400 000 381 047
368 304
347 339
350 000
300 000
250 000
200 000
150 000
88 065 92 975 93 943 91 679 88 146

100 000
50 000
0 Students Graduates Students Graduates Students Graduates Students Graduates Students Graduates
2010 2011 2012 2013 2014
Figure 38
Student and graduate numbers in the Czech Republic
(Source: Grafton Recruitment, Ministry of Education, 2015)
Labor market
LABOR MARKET IN NUMBERS
350 K 95%
FOREIGN LANGUAGES SPOKEN IN CZECH BUSINESS CENTERS

Number of students in Academic year 2014/2015 English
90 K 70%
Number of graduates in Academic year 2014/15 German
81 K 67%
Number of Business Administration French
students 2014/15
36 K 48%
Dutch
Number of IT students 2014/15
74 K 45%
Italian
Number of Engineering students 2014/15
210 K 39%
Spanish
Number of students studying foreign languages
25%
during University 2014/15
Czech Republic is in the Global
top 20
Nordics
in respect to English language command

(Education first: English Proficiency Index 2015.)
Table 9
Labor market in numbers Source ABSL 2015 survey for
Source Czechinvest. Czech Ministry of Education. 2015 Czech Business Service Centres
Labor market
27,4% 2010
27,7%
Economics and
27,6% 2011
administration 26,9%
26,8% 2012
20,5% 2013
Engineering and 20,4%

19,8% 2014
Technical studies 20,8%
20,6%
15,9%
16,1%
Humanities,Arts
16,4%
and Philology 16,5%
16,7%
14,7%
Pedagogics (often 14,3%
13,9%
include also Philology) 13,6%
13,1%
0 5% 10% 15% 20% 25% 30% 35% 40% 45%
Figure 39
Student numbers in Czech Republic by subject
49 745 2010
49 485
Charles University in Prague 48 470 2011
47 798
48 115 2012
2013
39 454
39 684 2014
Masaryk University in Brno 38 937
37 309
34 822
21 546
Czech University of Life 21 598
Science in Prague 22 896
22 301
20 438
22 206
Czech Technical 22 397
21 397
University in Prague
21 524
20 866
21 933
22 362
University Palacky in Olomouc 21 717
21 305
21 063
19 266
University of Economics 18 794
18 151
in Prague
17 195
16 385
0 10 000 20 000 30 000 40 000 50 000 60 000 70 000 80 000
Figure 40
Student numbers at largest Czech Universities
Labor market
Number of candidates registered by Grafton in Prague with a foreign language at C1 level or higher AND English at B2 lever or higher
English 24 243
German 3 545
French 2 051
Russian 1 513
Spanish 1 329
Italian 1079
Slovak 1012
Polish 695
Dutch 441
Hungarian 342
Romanian 324
Portuguese 242
Arabic 236
Swedish 195
Turkish 170
Bulgarian 139
Ukrainian 128
Croatian 126
Serbian 97
Finnish 83
Greek 74
Norwegian 69
Danish 57
Chinese 43
Macedonian 35
Slovenian 32
Lithuanian 32
Hebrew 31
Japanese 23
Hindu 23
Vietnamese 19
Albanian 17
Estonian 16
Latvian 15
African 9
Indonesian 8
Korean 5
Malaysian 4
0 2 500 5 000 7 500 10 000 12 500 15 000 17 500 20 000 22 500 25 000
Figure 41
Foreign language speakers in Prague
(Source: Grafton Recruitment, 2015)
Labor market
Students
Prague
Graduates
South Moravia
Moravia - Silesia
South Bohemia
Zlin
Olomouc
Plzen
Usti nad Labem
Pardubice
Hradec Kralove
Vysocina
Liberec
Central Bohemia
Karlovy Vary
0 10 000 20 000 30 000 40 000 50 000 60 000
Figure 42
Business Administration, HR and Law student and graduate numbers in Czech Republic, academic year 2014/15.
(Source: CzechInvest, 2015)
3% 0,9%
23,3% Business Administration
ICT
More than 130,000 Others

students are enrolled
in ICT, business Law
administration, HR or
62,5% HR
law programmes
10,3%
Figure 43
Business, ICT, Law and HR students in the Czech Republic, academic year 2014/15
Labor market
Number of Foreigners in the Czech Republic Selected Countries,

According to the Languages as of 30 December 2014
German 23 711
English 14 749
Chinese 5 587
French 3 874
Italian 3 810
Dutch 2 946
Spanish 2 262
Scandinavia 1 661
Korean 1 517
Japanese 1 488
0 5 000 10 000 15 000 20 000 25 0000
Note: English - Australia, Canada, Ireland, United Kingdom, United States, South Africa; German - Austria,Germany,Switzerland;
French - France, Belgium; Spanish Spain, Mexico, Colombia, Peru, Cuba, Chile
Figure 44
Numbers of foreigners by country in the Czech Republic.
Business Administration & HR Study Programmes Business Administration and HR Study Programmes at Czech Universities
100 000
84 260 Liberec
st nad Labem
80 000
Karlovy Vary Hradec Krlov

60 0000 Praha Pardubice
Ostrava
Plze
Olomouc
40 000
28 395
Jihlava
Brno Zln
20 000
esk Budjovice
0 Students Graduates
Figure 45
Student and graduate numbers in Business Administration and HR
Labor market
Business Administration and HR Study Programmes at Czech Universities
University of Economics, Prague 13 295

3 926
Czech University of Life Sciences Prague 10 197

3 263
University of Hradec Kralove 1 512

392
Technical University of Liberec 1 780

559
VSB Technical University of Ostrava 5 743

1 791
Silesian University Opava 3 154

1 010
University of West Bohemia, Plzen 1 426

448
VSTE Ceske Budejovice 2 143

382
Mendel university, Brno 3 947

1 438
Masaryk University of Brno 3387

843 Students
Graduates
2 176
University of Pardubice
516
2 606
Tomas Bata University in Zlin
847
0 3 000 6 000 9 000 12 000 15 000
Figure 46
Number of Students and Graduates. Selected Universities, academic year 2014/2015
Labor market
Cooperation between Business Services

sector and Universities
The majority of companies in business services cooperate with universities (73%) as a means
toattract and secure their talent pipelines. The most popular form of cooperation for 67 % of
business centers is direct recruitment of graduates. Many centers are now creating additional
formsof cooperation to promote their business and attract skilled students. This includes
conferences andjoint educational or research projects, especially in the IT sector. A growing
number of centers offer students a range of career development opportunities during their studies
eg internships, training certificates. workshops and career advice. The strategy of university
cooperation is now common across the Czech Republic with most larger business services centers
offering university programmes at the major universities across the country. This is expected to
grow in line with thesector and increasing competition between employers to secure the best
graduate talent.
Share of centers
Recruiting future employees 67%
Joint conferences 33%
The Service Center (service Service Center)
doesnt cooperate with universities
27%
Joint educational projects 9%
Joint training courses 6%
Joint research projects 6%
Other (give examples)* 18%
0 10% 20% 30% 40% 50% 60% 70% 80% 90%
Figure 47
Various forms of cooperation between business service centers and universities
* Presentation, sponsorship, job fairs, diploma thesis, internship
WE
LISTEN
REACT
INITIATE
DELIVER
YOU GROW
Poland
CEE RECRUITMENT LEADER IN PERMANENT,
TEMPORARY AND OUTSOURCED SOLUTIONS.
400 employees working in 25 offices in Europe across 20 specialisms.
Czech Republic
Slovakia CZECH REPUBLIC: Prague, Brno, Ostrava, Jihlava, st nad Labem, esk Budjovice, Plze, Zln, Liberec,
Olomouc, Hradec Krlov, Pardubice, Koln, Vysok Mto, Chomutov. HUNGARY: Budapest.
Hungary
POLAND: Warsaw, Cracow, Wroclaw, Lodz, Katowice, Poznan. SLOVAKIA: Bratislava, Koice, Nitra, Trenn.
Main contact person for Grafton Recruitment CZ

Jonathan Hill | +420 602 121 700 | jon.hill@grafton.cz
Grafton.cz | Grafton.hu | Grafton.pl | Grafton.sk
Chapter Content Provider: Grafton Recruitment
4 | Salaries
in business services
In the last year we have registered great changes in the conditions

for employees in established companies. Most companies are
aware of the growing competition on the market and have initiated
improvement of benefit packages, salary terms and opportunities for
external training. A rise in salaries has been registered, especially
in jobs requiring candidates to speak German. Companies place
great emphasis on the development of their employees in general.
Salaries in business services
Business Support Services

Role Prague Prague Brno Brno
Min CZK Max CZK Min CZK Max CZK
Centre Head 120 000 200 000 100 000 180 000
Customer Service
Customer Service Manager with Languages 50 000 80 000 50 000 80 000
Customer Service Manager 50 000 70 000 45 000 60 000
Customer Service Team Leader with languages 40 000 50 000 35 000 45 000
Customer Service Team Leader 40 000 50 000 35 000 40 000
Customer Service Agent with English (13 years of experience) 28 000 35 000 25 000 30 000
Customer Service Agent with English (01 years of experience) 27 000 30 000 23 000 25 000
Customer Service Agent with English and core

30 000 40 000 25 000 35 000
language (13 years of experience)
Customer Service Agent with English and core

27 000 35 000 23 000 30 000
Customer Service Agent with English and non-core

28 000 35 000 25 000 32 000
Customer Service Agent with English and non-core

27 000 30 000 24 000 27 000
Order Entry Clerk with languages 27 000 32 000 22 000 25 000
Sales
Telesales Manager with languages 50 000 80 000 50 000 80 000
Inbound Telesales with languages 28 000 45 000 25 000 40 000
Outbound Telesales with languages 28 000 50 000 25 000 45 000
Technical Support (all platforms)
Technical Support Team Leader 45 000 60 000 40 000 50 000
Technical Support Level 3 45 000 55 000 40 000 50 000


Procurement
Procurement Manager 50 000 80 000 50 000 80 000
Procurement Operational Specialist 35 000 45 000 30 000 40 000
Procurement Strategic Specialist 45 000 60 000 45 000 60 000
HR
HR Delivery Manager 120 000 150 000 80 000 130 000
HR Business Partner Team Lead 75 000 100 000 50 000 70 000
HR Business Partner 50 000 80 000 40 000 60 000
Payroll Manager 45 000 60 000 45 000 55 000
Payroll Practitioner 25 000 35 000 25 000 35 000
Learning&Development Manager 40 000 55 000 40 000 50 000
Learning&Development Specialist 30 000 40 000 25 000 40 000
HR Operations Manager 40 000 60 000 40 000 60 000
HR Administrator 28 000 35 000 23 000 28 000
Compensation&Benefit Manager 50 000 60 000 40 000 60 000
Compensation&Benefit Specialist 35 000 45 000 35 000 45 000
Recruitment Manager 50 000 70 000 40 000 60 000
Recruitment Specialist 30 000 40 000 25 000 35 000
Finance
Finance SSC Manager 120 000 150 000 100 000 150 000
AP Manager 50 000 80 000 50 000 70 000
AP Team Lead 35 000 45 000 32 000 38 000
AP Analyst 28 000 30 000 23 000 27 000
AR Manager 50 000 80 000 50 000 70 000


AR Team Lead 35 000 45 000 32 000 38 000
AR Analyst 28 000 30 000 23 000 25 000
GL Manager 70 000 110 000 60 000 90 000
GL Team Lead 40 000 60 000 35 000 45 000
GL Accountant 30 000 45 000 25 000 35 000
Intercompany Accountant 30 000 40 000 25 000 30 000
VAT Accountant 30 000 40 000 30 000 38 000
Table 10
Source: Grafton Recruitment, Salary Survey 2015, updated as of October 2015
Chapter Content Provider: CzechInvest
5 | Investment incentives
The amendment to the Investment Incentives Act fundamentally

expands the number of districts in which cash grants for job
creation as well as retraining and training of new employees will be
available. At present, 4 districts are supported; the amendment will
make it possible to increase that number to 14. The purpose of the
regional focus of cash grants is to motivate investors to implement
their projects in regions with the highest rates of unemployment.
This measure will stimulate the economy and thus raise the
standard of living in selected regions through increased production
capacities, exports and purchasing power of the local population.
Karel Kuera, CEO, CzechInvest

Investment incentives
Business support services centres
Conditions for qualification
The investment may not be initiated prior to submitting the incentives application to CzechInvest.
Fulfilment of the terms and conditions within three years following the granting of investment
incentives.
Retention of assets and jobs throughout the period of drawing incentives, at least for five years.
Investments in business support services centres specific conditions

Creation of a minimum number of new jobs (see table below).
International reach: services provided by a BSS centre must reach two other countries
besidestheCzech Republic.
Overview of the minimum number of newly

created jobs for individual centres
Software development 20
Data centres 20
Shared-services centres 70
Repair centres 70
Call centres 500

0 100 200 300 400 500
Figure 48
Source: Grafton Salary Survey 2015, updated as of October 2015
Forms of investment incentives
C
orporate income-tax relief for a period of ten years.
T
ransfer of land for a discounted price.
C
ash grants for job creation up to the amount of CZK 300,000.
C
ash grants for retraining and training new employees up to
the amount of 50% of training costs.
P
roperty-tax exemption for a period of five years only in special industrial zones.
Special industrial zones

The Government of the Czech Republic approves the special industrial zones on the basis of
aproposal issued by the Ministry of Industry and Trade. More attractive investment incentives
areprovided in special industrial zones. The specifications of special industrial zones are
availablefromCzechInvest upon request.
Region I *
Region A
Region B
* Region I (Special Industrial Zone)

Region Job Creation Re-training
1. Ostrava-Mosnov
Region I * 300 00 CZK - 2. Most-Joseph

3. Holesov
Region A 200 000 CZK 50%
Region B 100 000 CZK 25%
Figure 49
Job Creation, Training and Retraiing Grants
Eligible costs
A] Assets, whereas new machinery must comprise 50% of eligible costs or
B] Two years wage costs of newly created jobs
State aid
25% of eligible costs for large enterprises throughout the Czech Republic, with the exception
ofPrague, for all types of business support services centres except data centres.
6.25% of eligible costs in the case of data centres.
Process of applying for investment incentives

Abridged single-round process in the case of an expansion of an investment. The Decision
to Grant Investment Incentives is issued within roughly three months after submission of
theapplication to CzechInvest. The investor can initiate the investment immediately following
submission of the application; it is not necessary to wait for issuance of the aforementioned
Decision.
Extended two-round process in the case of initiating a new investment. This process involves
theestablishment of a new Czech legal entity. The Decision to Grant Investment Incentives
is issued within roughly six months following submission of the application toCzechInvest.
Theinvestor can start implementing the investment immediately after submitting the
application;itisnot necessary to wait for issuance of the aforementioned Decision.
Sample calculation
An investor (medium-sized enterprise) plans to start operating a repair centre in a region whose
unemployment rate is 50% higher than the national average. The total investment in assets
amountsto CZK 12 million comprising CZK 8 million invested in the building and CZK 4 million
invested in new machinery. The investor plans to create 80 new jobs and to spend CZK 4 million
on training itsnew employees. The average monthly wage of employees in these newly created
positionswill beCZK30,000.
Region with unemployment 50%

Calculation Notes
higher than the national average
reduction by machinery,
Eligible costs in assets CZK 8 mil.
i.e.CZK4mil. x 2
This concerns a medium-sized

State-aid intensity 35%
enterprise
Investment-incentive ceiling CZK 2.8 mil. 2,690 CZK 8 mil. x 35%
Structured as follows:
80 jobs x 200,000; limited by

Cash grants for new jobs CZK 2.8 mil.
theceiling
Tax relief CZK 0 Residual to the incentive ceiling
Plus:
Cash grants for training and retraining CZK 2 mil. CZK 4 mil. in training costs x 50%
Total investment incentive CZK 4.8 mil. incentive ceiling plus training aid
Region with unemployment 50%

Calculation Notes
higher than the national average
CZK 30,000 x 24 months x 80

Eligible costs in assets CZK 57.6 mil.
positions
This concerns a medium-sized

State-aid intensity 35%
enterprise
Investment-incentive ceiling CZK 20.16 mil. CZK 57.6 mil. x 35%
Structured as follows:
Cash grants for new jobs CZK 16 mil. 80 jobs x CZK 200,000
Tax relief CZK 4.16 mil. Residual to the incentive ceiling
Plus:
Cash grants for training and retraining CZK 2 mil. CZK 4 mil. in training costs x 50%
Total investment incentive CZK 22.16 mil. incentive ceiling plus training aid
Table 11, 12
A] Eligible costs - assets
B] Eligible costs wage costs
Investment in a technology centre
Min. amount of
Min. amount of Min. number of newly
Technology centres investment in new
investment in assets created jobs
machinery
Investment CZK 10 mil. CZK 5 mil. 20
Strategic investment CZK 200 mil. CZK 100 mil. 100
Table 13
Overview of specific conditions
Forms of investment incentives

Corporate income-tax relief for a period of ten years
Transfer of land for a discounted price
Cash grants for job creation up to the amount of CZK 300,000
Cash grants for retraining and training new employees up to the amount of 50% of training costs
Property-tax exemption for a period of five years only in special industrial zones
Cash grants for acquisition of assets only for strategic investments
Eligible costs
C] Assets, whereas new machinery must comprise 50% of eligible costs or
D] Two years wage costs of newly created jobs
State aid
25% of eligible costs for large enterprises throughout the Czech Republic,
withtheexceptionofPrague
Chapter Content Provider: PwC
6 | Global/CEE Business
Services Market overview
The Global services market continues to grow at 8-10% per year and CEE
has emerged as the leading European Nearshoring destination with growth
rates up to 30% across the region. This chapter explores the trends and
changes in the Global and CEE services market and shows that the future
promises even more opportunities especially for those countries such
asthe Czech Republic that are at the forefront of the outsourcing industry.
Global/CEE Business Services Market overview
CEE in the premier league of outsourcing destinations
Over the last 15 to 20 years, the centralisation of supporting processes into Shared Service
Centres (SSC) and outsourcing has become very prevalent given the global economy and
enhanced global competition. Businesses have been constantly looking for efficiencies in their
processes, adapting best practice approaches and cost reductions. The reduced regulatory
limits in setting up multinational service centres and major advancements in technology have
enabled the movement of core processes to central or offshore locations with the resulting
benefits on scale, cost arbitrage and enhanced control. Globally, the most popular regions
for SSCs and outsourcing centres are located in Asia - India, China and Philippines, Central
Eastern Europe (CEE) and Central America. Generally, these regions offer large labour pools with
theright skills and very competitive costs. Therefore they are always popular when it comes
to choosing the right location for a Shared Service Centre or finding an Outsourcing partner.
There is a broad variety of SSCS/Outsourcing centres that exist today.

The most popular ones are:
Shared Service Centres, where businesses have centralised significant portions of their back
office functions, such as: Finance and Accounting, Procurement, Supply Chain, IT, Customer
Service or Human Resources.
Business Process Outsourcing companies 3rd parties that offer delivery of a range
ofprocessesfor a fee, based on service contracts. Therange of functions covered are
broad,similarto SSCs above.
Knowledge Process Outsourcing organisations that offer a scope of specialised decision
making processes and/or research.
More scope and services in CEE
Global trends do not differ much from those observed in the CEE region. The biggest
global conglomerates familiar with the concept of SSCs, are constantly increasing
thescope of their centres both in terms of serviced geographies and range of processes.
As a result, the catalogue of the processes transferred to SSCs is expanding and includes
such functions as: Marketing, Legal Services, Big Data and advanced analytics.
Smaller centres are on the rise
Another trend observed is an increasing number of smaller centres, often employing less than
50 employees. Despite low economies of scale, such centres prove to be financially effective and
contribute to increasing operational efficiency.
For example:
A relatively small SSC was recently set up in Prague by a pharmaceutical
company. The scope for the SSC includes Finance and Accounting processes for
15European countries. By focussing on centralised processes rather than multiple
dispersed locations, the company has been able to achieve significant savings.
Inaddition, theintroduction of customer service provided in English and electronic
documentationflow, helped in creating an effective process based organisation.
CEE leads European Nearshoring growing

at 30% per year
Even though Asian locations can offer very competitive prices for their back office services,
Europeancountries are still an attractive option for the location of SSCs/Outsourcing centres,
andCEE is by far the most popular destination for Europe. The nearshore market continues to
growstrongly across CEE as businesses with operations in Europe seek SSC/Outsourcing locations
closerto home with therequisite language and other skills for their European operations. Recent
reports show that business services in CEE have continued to grow at an average of 30% per annum.
This growth rate is faster than in India and has generally been through significant growth of existing
centres aswell as new centre arrivals into the region. This is a strong reflection of the growth in
capability and performance of Central European centres and their established reputation as Centres
of Excellence. Not only the biggest corporations but also companies operating on a regional or even
national level look for cost saving, process optimisation and transparency which can be achieved
in SSCs/Outsourcing centres. The significant growth in size and range of processes/functions
forexisting centres also reinforces the original strategic decisions made by business to locate
theircentres in theregion.
Czech cities are in the top league in CEE
In CEE, the main SSC/Outsourcing destinations are Poland, Czech Republic, Romania and Hungary.
They continue to attract the bulk of new investors in the region for SSCs/Outsourcing. One noticeable
trend in recent times regarding international rankings of SSC/BPO hot spots is that cities in these
countries are generally strengthening their position whilst Western European locations which
traditionally have been ranked strongly are falling down the rankings to some degree, e.g. Dublin,
Ireland. For example, according to the latest 2015 Tholons Top 100 Outsourcing Destinations Prague
is ranked as number 15 in the Global list and Brno is 25th among the highest ranked European
locations for outsourcing. Compare this to the same report from 2007 where none oftheCEE
locations were in the top 20 and Dublin was in the top 10.
Czech Republic has the right critical combination

for outsourcing success.
There are a number of critical characteristics of the CEE region which are key to the location decision
for the creation of SSC and BPO centres in CEE:
A highly skilled workforce is a key differentiator and the CEE region has developed a large
skilful workforce of service professionals. Current number of SSC/BPO companies operating
in the region ensures the availability of skilled employees. Additionally there is a significant
pool of theworking population/students speaking a foreign language. For instance, in Czech
Republic 42% speak one foreign language and 24% of the population is able to speak two
foreign languages. For companies with the business dispersed across Europe the availability
ofarange of desired languages is a crucial point when choosing the location for a potential
SSC/Outsourcing centre. Generally for European based languages, cities in Asia cannot
competewiththe ones in CEE.
Notwithstanding a visible increase in salaries in the SSC/Outsourcing sector across CEE,
theregion still remains a very attractive location in terms of significantly lower operational
costs.Factors impacting salaries include language proficiency as well as technical and
professional experience of candidates.
A majority of the necessary infrastructure serving the SSC/Outsourcing sector in CEE has
been built in the past 20 years. Accordingly, the infrastructure is generally very modern and
with alarge and diversified range of properties. In CEE the number of available A-class office
buildings is constantly growing and the main SSC/BPO locations in the region have no issues
withaccommodating incoming businesses.
Recent trends in CEE and Czech business services
The SSC/BPO market is very dynamic. There are several new developments in recent times in
theCEEregion that can be observed. Two trends are particularly interesting:
(I) Robotic process automation and continuous process improvement

Robotic Process Automation (RPA) is the application of technical solutions allowing employees
toconfigure a robot or computer software to interpret and capture existing applications and data
to process a transaction, trigger responses, manipulate data or communicate with other systems.
Morespecifically, RPA applications may include: automatic reading and forms filling, repetitive
keyboard and mouse tasks, database creations, periodic reporting and calculations.
By introducing RPA, companies using labour on a large scale can benefit from increased capabilities
and reduced cost. Robotic automation tools are generally at least twice as fast as human staff
and can function 24/7. In addition, a robotic FTE costs on average a third of what its costs to hire
anoffshored FTE in an SSC/Outsourcing centre. Other reasons behind RPA deployment include
ageneral reduction in error rates, improved compliance and flexibility, as well as the ability to replicate
the solutions across various geographies and business units. The technology of RPA can be applied
to a wide range of industries with repeatable processes such as: banks, IT, BPO, SSC and others.
Global outsourcing service providers have already started using RPA or are in the process of testing
the approach. The biggest players who have invested in RPA business solutions are: IBM, HP, TCS,
Genpact, and Accenture. This list is constantly expanding and it is believed that RPA will be a crucial
trend in the upcoming years.
Although RPA is in the development stage and there are certain limitations to its application, the area
is maturing and gaining more credibility and transparency. It is possible that in the future this system
will leverage elements of artificial intelligence for more sophisticated functions, resulting in the further
evolution of the SSC/Outsourcing sector.
(II) Expanding range of the processes being centralised/outsourced

For the SCC/Outsourcing industry, the initial waves of centralisation/outsourcing were generally
limited to transactional and regular processing with the more advanced processes remaining onshore
in the local businesses. However, over the years the industry businesses started to further optimise
their delivery model to the next level. This has resulted in a broader and more complex range of
process/functions being centralised into SSCs and Outsourcing centres.
Czech Business service centres reflect this wide range of processes and their success shows that
anoperating model with the support of Business Service Centres can be utilised in many different
ways rather than limiting companies to centralise only certain, traditional back office functions.
CEE Perspectives for the future over 1 million

people in 10 years.
Considering the number of success stories and the dynamic increase of SSCs established in
theregion, the trend for growth of this type of business in CEE is positive. Countries like the Czech
Republic, given their numerous cities with large well educated populations can offer skilled labour
pools, good infrastructure and competitive salaries, will continue to be leaders in setting up new
and expanding existing centres. For example, in CEE today there are approximately 335,000 people
currently employed in the SSC/BPO sector. According to a recent ABSL/McKinsey report this number
is expected to grow by 300% 400% within the next 10 years to over 1,000,000 people employed
inbusiness services.
However, in order to reach this level of growth and maintain/improve the excellent reputation for
the industry in the region, CEE countries will need to ensure that they continue to meet the needs
of current and potential new business. It is recommended that within the CEE region governments
should continue to and expand support to investors whilst universities should position themselves
tobe able to react to the market demand to provide the number of required graduates with the relevant
skills for the industry. In addition there should also be a constant focus on developing the required
infrastructure. Having these secured and given the current trends, CEE and the Czech Republic should
remain one of the most important destinations on the global business services map.
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BUSINESS SERVICES

Authors of the Report:

Chief editor and proofing: Jonathan Appleton, ABSL

Graphic layout and typesetting:

1. Profile of the business services 9

About the report 10

Structure of the business service sector in the CR 15

Range of services the business service sector in the CR 20

Development of the business service sector in the CR 24

Human capital in the business service sector in the CR 30

4. Salaries in business services 57

6. Global services market trends and forecast 67

I hope you will find the data and information

ABSL Czech Republic.

ACCA Gardner Denver CZ + SK ZEBRA Technologies

Accenture Services Infosys BPO PPG Industries Czech Republic

EZ Korportn sluby JNJ Global Business Services PricewaterhouseCoopers esk republika

DHL Express (Czech Republic) MANN + HUMMEL Service Process Solutions

Edwards Services Monster Worldwide CZ Siemens

1 | Profile of the business services

About the report

SUMMARY INFORMATION OF THE BUSINESS

Accenture Services Regus Business Centre Atento

Hradec Krlov Xerox

u Jihlavy Brno John Crane Sigma

ABB Fabory Lear Corporation

Your partner for real estate success.

OTHER REAL ESTATE SERVICES

officefinder. cz warehousefinder. cz homefinder. cz

Structure of the business services

Plze Other cities

> to 200 employees

< than 500 employees

Technology & Telecom

12% Business and Professional Services (incl. BPO)

Energy, Utilities and Basis Materials

Banking, Insurance, Financial Services (BIFS)

Germany 24% 30%

What we understand as a Business Services Center is an organizational unit responsible

Company did not use / do not

Range of services the business service

Technology & Telecom 33%

Czech business service centers support a wide range ofservices.Themajority of

6% Finance & Accounting (F&A)

13% Other services

Supply Chain Management

Banking, Insurance, Financial Services (BIFS)

Finance & Accounting (F&A) 76%

F&A - Accounts Receivable 82%

F&A - Accounts Payable 76%

F&A - Travel & Expenses 64%

F&A - General Ledger & Reporting 76%

F&A - Business Controlling 39%

F&A - Treasury 36%

F&A - Master Data Management 64%

F&A - Billing 27%

Operational Procurement 33%

HR - Talent Management 18%

HR - Compensation & Benefits 30%

HR - Administration & Reporting 39%

Document Management 27%

Operational Marketing 15%

Customer Operation - Customer Helpdesk 46%

Knowledge Management 15%