business services sector

in the czech republic

ABSL Report 2021

Business Environment

Czech republic as a desired business location

The initial reasons for companies to establish a new centre in the Czech Republic

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.


Safest country in the world
according to the Global Finance Safety Index Score


in terms of the quality of life among new EU members
Mercer Quality of Living Survey, 2019


most competitive location out of 140 countries
Global Competitiveness Index

“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.”

Michal Čermák
Expert Partner
McKinsey & Company
The reasons for companies to continue to use the Czech Republic as a centre location

"Excellent value for a reasonable cost."
"Established capabilities and room for growth in skills and technology."
"High quality of talent, smooth service delivery, resilience."
"Labour cost and competition on labour marked increased, the perception of the organisation in Czech Republic improved and the service centre is seen as an equal partner for internal organisation and the clients.
- ABSL Survey 2020 Respondents -

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.

Competition on the local market

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.


average rating of competition among business services centres in local markets in 2020

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.

Rating attractiveness of Prague, Brno and Ostrava

In 2020, Prague scored the highest in majority of the assessed factors. However, Ostrava was evaluated the best in terms of cooperation with local authorities and the competition on the local market.

“Blend together strong will, energy, a willingness to learn, and diligence and adjust them to modern trends, and you get Ostrava. The city has been endowed with all of these qualities for the last two centuries. Without them, Ostrava could not have become one of Europe’s leading industrial centers.”
Tomáš Macura
Mayor of the City of Ostrava

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