Czech republic as a desired business location
The Czech Republic has proved to be a great location for a rising number of business services centres. For almost half of the centres the initial reason to establish a centre in the Czech Republic has been associated with labour costs. The location and the skilled and well-educated workforce also attracted many investors for which the Czech Republic became an accessible hub for their services. The abundance of technical skills and language capabilities is further cited as a major advantage of the region.
More information on the macroeconomic conditions, the economic growth and the stability of the Czech Republic and the safe business environment can be found in A Leader’s Vision for Business Services in the New Digital Era.
“We are a macroeconomically stable country, we have a functioning infrastructure and an educated workforce. We must use this for the future. At the moment, international companies are restructuring their operating models and looking at business service centers, in which to move IT, innovation, digital skills and other services with high added value. This is an interesting opportunity for us.”
The Czech Republic has met or even exceeded the expectations of the investors establishing their centres in this region. Many still cite the cost-value ratio as exceptional, although some centres also report a rising labour cost and talent becoming scarcer.
However, the location and the highly skilled workforce allowed many centres to transform into knowledge-based partners of the parent organization especially in the areas of technology innovation and automation.
The centres were asked to evaluate the level of competition between themselves on the local market on the scale of 1 to 10, with 10 being the highest competition. In 2020 the trend of a decreasing competition on the local market continues. This is great news showing that the centres perceive the competition for the talent as improving.
The centres were asked to evaluate their location based on numbers of factors. The centres rated each factor on a scale from 1 – 10, being the highest score of satisfaction. Compared to the previous years, in 2020 the centres evaluated more positively majority of the factors, especially the availability of modern office space and talent pool.