business services sector

in the czech republic

ABSL Report 2021

Scope & Value Added

towards global knowledge-based services

Global trends affecting the business services sector

20%

of centres operate under a hybrid model (service both internal and external clients)
+9% compared to 2019

63%

of centres operate as an Internal unit / captive Service Centre

17%

of centres are Commercial providers / outsourcing Service Centres

Beyond transactional: Knowledge-based activities on the rise
Activities performed as knowledge-based
+9% compared to 2019
73%
Share of centres performing more knowledge-based activities than transactional ones
21% increase over the last 2 years
36%

The centres increasingly perform a higher share of knowledge-based activities, which are defined as complex tasks requiring expertise.  36% of centres perform more knowledge-based activities than transactional ones. Furthermore, the transactional activities defined as simple repetitive activities requiring basic training are increasingly delegated to the digital workforce – the automation.

Fostering innovation: Becoming trusted partners of the parent organization

73%

of all processes are now being delivered in the advanced or partner stage

27%

of processes are delivered in partner stage

Over the last 5 years the Czech centres have steadily increased the maturity of delivered processes. Almost three quarters of the processes delivered from the Czech Republic are now in the advanced or partner stage. This reflects the trend of the Czech centres becoming specialized hubs fostering innovation.

The top 5 services delivered by BSCs in the Czech Republic on the most advanced level

The technical skills capabilities present in the Czech Republic enable many centres to develop specialized expertise in the field of IT Services. This is reflected by the fact that the top 2 most advanced services delivered from the Czech Republic are within the IT fields.

  1. IT Services: Cybersecurity & Information Security
  2. IT Services: Application Lifecycle Management / bespoke, gradual and software development
  3. Customer Operations: Fulfillment
  4. Project Management Office
  5. Insurance Specific Processes: e.g. claim processing, underwriting, policy administration, regulatory reporting

Why do you continue to use the Czech Republic as a centre location?

"Established capabilities and room for growth in skills and technology."
"High quality of talent, smooth service delivery, resilience."
"Availability of IT experts, attractive country for relocation.
- ABSL Survey 2020 Respondents -

Winner 2020 in category Value Creation
ABSL Diamonds Winner

In the Value Creation category was awarded BlueLink International CZ, which belongs to the AirFrance-KLM group and provides customer services from Prague to its clients-customers from various industries, mainly from air travel industry and the sale of luxury goods. Over the past 18 months, the company in cooperation with its customers focused on improving the quality of customer support and receiving the “Excellence de Service” award for Air France’s Platinum Service line and the “Elu Service client de l’Année” for Transavia.  Both awards confirm the high standard of services and customer support provided by BlueLink. Emphasis is placed on the satisfaction of the end customers and the internal processes on the part of the client, as well as on the commitment, teamwork, and satisfaction of BlueLink employees. In the first phase, the end customers were also involved in the project. They shared their feedback and suggestions for further streamlining and improvement of services. Thanks to this initiative, BlueLink has helped its clients to strengthen ties with end customers and increase their attractiveness. At the same time, it improved the motivation and efficiency of work teams and ensured further business development at a time of a huge decline in air traffic caused by the coronavirus pandemic.

Top 10 services on the rise - most often newly adopted by the business services centres in 2020
  1. IT Services: User support / Service Desk
  2. HR: HR Administration & Reporting
  3. HR: Payroll
  4. HR: Recruitment
  5. F&A: Business Controlling
  6. IT Services: Mobile Applications
  7. HR: Talent Management
  8. Other: Prof. Services Specific Processes
  9. IT Services: Cybersecurity & Info Security
  10. IT Services: Other IT services

The COVID-19 pandemic shook the global businesses but the Czech centres reacted swiftly and with flexibility. They stepped up to support their parent organization during the rapid transformation to digital work.

This is reflected also by the top newly adopted service of 2020 – IT Services: User support – which was newly taken on by 12% of the business services centres in the Czech Republic.

The increase in IT User support can be attributed to the rise of the home office and the higher number of employees requiring assistance during their smooth transformation to home working.

Delivery models are becoming increasingly global

39%

of the Czech business services centres provide services globally

The Czech centres continue to expand their reach of provided services. In 2020, the highest increase was reported in terms of the centres supporting the region Asia Pacific (6% centres more than in 2019).

Compared to the Asian centres, which faced increased difficulties during the transition to the home office, the Czech centres managed this transition smoothly allowing them to take over some of the workload of the Asian locations.

From Shared Service Centres to Global Business Services

44%

of services are provided as shared services

39%

of services are provided as global business services

17%

of services are provided as integrated services

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