The strategic location of the Czech Republic and qualified people are the main reasons why companies from all over the world are opening business, customer and IT service centers in the Czech Republic.
Their plans were not disrupted by the dramatic development of a pandemic, closed borders and a state of emergency. Last year, several new centers started their operations and recruitment, most often focusing on IT, research and development and financial services. This confirms the industry’s inclination towards qualified and innovative services that are resilient to crises and have the potential to support the Czech economy. Companies that have opened their centers in the Czech Republic include, for example, Envista Holdings Corporation, Genpact and Pure Storage.
Despite the coronavirus pandemic, the Czech Republic offers ideal conditions for investors from all over the world who are considering the location for a business service center. It is estimated that up to 10,000 new jobs will be created in this field of business this year. In addition to the newly opened centers, 58% of companies that already operate a business services center in the Czech Republic are planning expansion. IT centers providing infrastructure management, robotic automation deployment, digitization or development, testing and deployment of new products, services and cyber security are growing the fastest, by 18 percentage points year-on-year.
“Investors are particularly interested in the combination of local labor costs, location availability and education. The past year has been a major challenge for a start and opening a new center. However, the new centers managed to recruit employees remotely, set up processes while working from home or build an employer’s brand without real contact with employees very smoothly. I am glad that we were able to support and welcome them among the members, “says Jonathan Appleton, director of the ABSL association, which brings together providers of business, customer and IT services in the Czech Republic and supports new investors by consulting and sharing industry best practices.
Data storage, products for dentists and services in the field of digital transformation
For example Pure Storage, the global IT pioneer that delivers storage as-a-service for today’s multi-cloud world recently opened its R&D center in the Czech Republic, which supplies customers with data storage solutions based on all-flash technologies. Pure’s mission is to deliver a modern data experience that helps companies turn overwhelming amounts of data into clear-cut opportunities and outcomes. ” We’re actively hiring not only IT specialists, such as developers, testers or product managers, but also salespeople, financial specialists and employees in other office functions such as HR. In addition to this, we’re in contact with several universities to offer current students part-time jobs. It’s fair to say we recognise that the region has some of the best and most promising talent available globally,” said Jacob Ringler, head of Pure Storage’s R&D center in Prague.
Another center in Prague was recently opened by Envista, a major supplier of cutting-edge products, solutions and technologies for dentists and orthodontists. Its portfolio includes 30 brands that cover up to 90% of all dental care needs. From Prague, it provides professional customer support services and at the same time devotes itself to a number of innovative projects. “Our Prague center was created to unite teams that are currently divided in different countries. Prague is thus becoming the heart of all our European activities, “ says Matthew McDonald, Director of Human Resources at Envista Holdings Corporation.
The business services center was also newly launched in Prague by the technology company Genpact, which specializes in digital transformation projects with the help of its own, artificial intelligence-based platform, thus enabling its clients to innovate business processes and operate on the basis of intelligent digital solutions. The company’s Prague center employs 170 experts who provide support in the area of financial and accounting services to all European branches. The center speaks a total of 30 different languages and the team is made up of staff from more than 25 nationalities. “We chose Prague for both its strategic location and its stable business ecosystem, excellent infrastructure and access to a wide range of talent,” says Jakub Vanek, Genpact’s Vice President, Poland & Czech Republic Operations Leader, with the company planning to deploy new digital tools and expand the range of services and team.
High value-added investments
The good news for the Czech economy is that the share of those investments that are technologically oriented or linked to research and development in strategic areas is growing. Last year, it was even two thirds of all investments agreed by CzechInvest. In previous years, only a fifth of projects met the criteria of high added value. These include, for example, shared service centers, technology and IT centers, or even projects that invest in digitization and automation.
“The Czech Republic has become a country of innovative services that are fully digitized and thus provide service to customers from all over the world. Thanks to this, business service centers are able to function even in emergency situations or crises. Orientation to fields with high added value can thus strengthen the stability of the Czech economy, “says Jonathan Appleton.