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INTRODUCTION
There are an estimated 500 offshore outsourcing centers in Eastern Europe, and Poland is poised for major expansion in the coming years. According to some of the largest IT companies outsourcing services will grow in the areas of large and medium businesses, particularly in the manufacturing and financial sectors. Warsaw, Krakow, Poznan, and Sczecin are just some of the key locations that are primed for the outsourcing market, and many more are expected to emerge in the future. According to KPMG, an audit and consultancy firm, Poland ranks third for shared services centers and business process outsourcing in the world after India and China. Poland's key assets are its trained and educated workforce, economic stability, depreciation of the zloty, and political stability. Poland specializes in software products focusing on projects for embedded systems, business analytics, human resources, finance/banking and accounting, multilingual contact centers, tele-information network management, or programs that use languages like C and C++. Experts believe that the expansion of outsourcing in trade, heavy industry, and telecommunications will result in further development, particularly among call center services or help desks services. Polands rates are actually higher than many of its offshore competitors. EU membership, its proximity to and relationship with Western Europe as a venue for custom software development have resulted in these higher wages. Poland also has problems in fostering and managing opportunities for its IT specialists, due to the European Union's broadening adjustability. According to the World Fact Book 2011, the country has created a successful policy of economic liberalization since 1990. Its gross domestic product (GDP) rose to an estimated 6 percent due to private consumption. The creation of the Polish Chamber of Information Technology and Telecommunication (PIIT) has advocated on behalf of the IT market to companies that are situated in Poland.
Usually, businesses outside the central districts have lower costs, and companies can utilize this well to save up on their expenditures. Employee compensation: Employee compensation is the greatest component of any outsourcing operation. A typical project will include several junior resources, along with some high-skilled and senior oversight/ project management. Junior resources generally offer the greatest savings in comparison to their US counterparts. A junior software developer/engineer with less than four years experience can provide savings, with salaries ranging from $9,338 to $19,747 USD, with is roughly 21% of similar US salaries. More senior Web developers and engineers earn 40% of comparable US counterparts. Project managers for IT with high levels of experience earn within thirty to fifty thousand dollars US, which is 38% of US salaries. BPO resources offer similar savings, with junior and senior personnel earning twenty-three and forty-four percent respectively. High-level operations management positions offer virtually no benefit, earning almost 97% of what US staff earn. Junior customer service representatives come with savings of 37% below US rates Real estate The office occupancy cost for Warsaw is around $52.34/sf/yr. This figure is high compared to the Philippines ($24.6), the U.S. ($42.3), and even Canada ($50.1). Office lease agreements in Warsaw have taken a stricter tone in its office lease agreements. According to CB Richard Ellis, the economic slowdown and uncertainties in the future market trends have led banks to impose stringent credit policies to companies. The policy asks that 40 to 60 percent of the office space should be pre-leased before giving the construction loan. Banks also demand "high own contributions to the project," which can consequently slow down--or even complicate--the development. Analysts believe that office markets will be hugely undersupplied in the future should the investors and banks continue their strategy of imposing these restrictions.
Technological readiness Poland enjoys a high number of internet subscribers, placing in sixth among the countries with the most number of users per 100 inhabitants. Similarly, it also belongs in the top ten for the most number of broadband Internet access.
Corruption perception The country ranks 8th among the countries with the best corruption perceptions index scores. China, India, and the Philippines are some of the outsourcing locations with the most corruption challenges and perceptions in the world. Legal protection A nation's economic competitiveness is correlated with its complexity in enforcing contracts. Poland ranks below average in the list, ranking in 7th to Pakistan as the country with the most number of steps required to enforce a contract. It also takes around 830 days to complete this process, which is tedious compared to Russias 281 days.
Additionally, in early 2011 new operations were initiated by Ernst & Young (shared services center, Wroclaw), BSH (procurement center, Lodz), McKinsey (support services center, Poznan). In planning are shared services center by Tate & Lyle in Lodz, IT software development center by BMS Bankruptcy Management Solutions in Lodz, Nordeas operations centre in Lodz, Intrum Justitas service center in Bialystok. Members of ABSL are convinced that the inflow of new projects, especially advanced business services such as KPO and R&D is possible provided that Polish economy will be actively promoted to the international business community, and if the government carries out a coherent and clear investment policy and maintains investment in human resources. It is not enough to organize a single event, but it is important to constantly promote the greatest strengths of Polish economy, above all, the enormous pool of qualified staff and friendly investment environment. Polish Presidency in the EU can be a starting point for a stronger, long-term campaign to promote Poland in the business field says Jacek Levernes, Vice President ABSL and Hewlett-Packard GBS in Europe.
EXISTING PLAYERS
Accenture, ADP, Capgemini, Genpact, HCL, HP and IBM have all made significant investments there, in addition to many captive centers that have been established there in recent years.
BPO - primarily Accounting Services). Even among BPO/Shared Service centers, captives form more than half the industry which is very distinct from the India story. Skill Scarcity: If you sought help from any leading recruitment consultants for hiring people with 4-5 years experience even with common technology skills, they would suggest that it requires a direct search as it is a "senior level" hiring placement. Initial offers from consultants mentioned rates of 20-25% of annual salary you could almost hire a VP on those terms in India. I found this shocking but then it was easy to understand why. A software engineer, business analyst or a transition manager with 5 years experience is a European resource rather than Polish or a Romanian resource and hence cannot be source of any cost arbitrage. Poland makes up its lack of scale through superior quality: Poland has 45% of its population, in relevant age groups, in its universities; compared to only 10% in India. Moreover, until recently, it did not have graduates, but only post-graduates - hence the quality of human resource in BPO and shared service centers is far superior to most such centers in India and other European nations. Most BPOs hire post-graduates in Economics and Finance from top institutes for their operations - a luxury which may not be available in India other than to some high-end KPO operations (see this earlier discussion). Ability to attract a truly global workforce: In our organization we not only have a multilingual workforce, but a multi-national one which includes Portuguese, Spanish, Russian, Italian, Brazilian, British, Polish and Indian nationals. This gives it an advantage which most Indian operations do not have. While most companies currently leverage this facet largely to source language skills, it has the potential to be extended to other areas in the future. Poland has far greater potential than simply being a multi-lingual hub: I have talked to outsourcing heads of two leading financial institutions one European and other American who acknowledge that their Global Operating/Delivery Model is almost a euphemism for an India-strategy backed by couple of other locations for work that cannot be done out of Indiaeither due to EU or local regulatory restrictions or foreign language requirements. The language skills advantage is significant but if that remains the key driver of outsourcing to Poland, then some really bright Masters in Economics would be in an accounting operation for a German client not because she knows econometrics but because she knows German.
In fact this alternative offshore location positioning is unfair to a country like Poland which offers really unique benefits. With the strength of its education system and ability to attract global talent, Poland should challenge the niche positioning of a country like Israel in highend technology or other niche skills rather than be a generic offshoring destination. CONCLUSION Poland has the potential to rise as one of the leading global outsourcing hubs because of the various mentioned advantages it has over many countries. Many companies have already realized the potential and have invested into the country like Accenture, ADP, Capgemini, Genpact, HCL, HP and IBM. The major sector that contributes to the countrys future in outsourcing is the IT sector.