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ABSL Report 2021
For the first time we are introducing a digital version of the ABSL Report 2021 in form of a microsite. Find easily the most significant data and an overview of the global, shared, business, IT and outsourcing services in the Czech Republic.
The main source of data in this report comes from the ABSL Survey, which was conducted amongst ABSL member companies in the period from June until September 2020. The in-depth survey has been completed by 59 centers employing almost 30 thousand people.
Basic Facts
130,000
Total number of employees in 2021
180,000
Expected number of employees in 2025
45%
Average share of employed foreigners
73%
Processes delivered in the advanced or partner stage
5%
Employment growth in the year 2020
330
Number of business services centres
92%
Centres reporting overall positive or no impact of COVID-19
59%
Activities performed as knowledge-based
Employment Growth
Over the years, the business services sector in the Czech Republic grows at a steady rate of more than 10%. Even during 2020, the year of pandemic crisis, business services was among the few sectors that still continued to grow. Proving resilience and adaptability.
5%
Employment growth in the year 2020
6%
Pre-COVID19 expected growth in 2021
5%
Post-COVID19 expected growth in 2021
Maturity of Services
Maturity of the provided services has been steadily rising over the last years. The business services centres in the Czech Republic are increasingly becoming Hubs of innovation and excellence performing work with high added value.
73%
of all processes are now being delivered in the advanced or partner stage
27%
of processes are delivered in partner stage
59%
of activities performed are knowledge-based
+9% compared to 2019
The top 5 most advanced services delivered by BSCs in the Czech Republic
- IT Services: Cybersecurity & Information Security
- IT Services: Application Lifecycle Management / bespoke, gradual and software development
- Customer Operations: Fulfilment
- Project Management Office
- Insurance Specific Processes: e.g. claim processing, underwriting, policy administration, regulatory reporting
Impact of COVID-19
During the COVID-19 pandemic the business services have proved their great flexibility, adaptability and resilience. 92% of centres report positive or no overall impact allowing them to continue operation in the ‘New Normal’. Some centres actually report new business opportunities and throughout the sector the implementation of digitalization and automation has been accelerated.
37%
of centres report new business opportunities
53%
of centres report faster implementation of automation
Towards Stabilization of the Labour Market
The ABSL Survey hints that the pandemic may contribute to a stabilization of the labour market in the Czech Republic. After years of rising competition, the centres continue to report a slow decline in the competition on the local market. In 2020 the attrition has significantly declined while salaries within the sector continue to rise at a higher rate than the national average.
14%
average attrition
significantly lower than in previous years
5%
average salary increase in 2020
compared to the national average 3,1%1
26%
of centres report more foreign applicants for open positions
78%
of centres report similar or lower attrition of foreigners
Workplace of the 'New normal'
The business services quickly adapted to the need for working from home. 54% of employees worked from home at least 1 day per week even before the pandemic outbreak. Moving towards a full home office therefore posed only minor challenges allowing the centres to continue operation and retain people.
83%
of centres report same or higher level of motivation of employees working remotely
50%
of centres plan to increase share of desk-sharing workstations
Accelerated Automation
The business services centres in the Czech Republic continue to implement automation in order to reduce manual workload and improve the level of services provided. Within the sector, robots now perform work equivalent to 8 750 full-time employees. This digital workforce increasingly allows the human employees to focus on complex tasks – boosting employee engagement as well as the complexity of provided services.
87%
of centres have already implemented some method of automation
70%
of centres build robotics & automation capability in-house
78%
of centres automate to boost employee engagement via reducing manual workload
Developing "Expatise"
As the business services centres in the Czech Republic mature towards Global innovation hubs, language capabilities gain importance. While technology increasingly helps to alleviate language barriers, expats continue to serve as the backbone on global business services growth. Thankfully, the Czech Republic offers a quality of life, which combines with the career perspective within the sector attracts and keeps foreign talent in the region.
45%
of employees in BSS in CZ are foreigners
+10% over the last 2 years
16,900
employees within BSS in the Czech Republic deliver services in German
9 weeks
average recruitment lead time from other EU countries
+10% -2 weeks compared to 2019
The Skills of the Future
Technology and automation are perceived as the most crucial skillsets needed by the centres today and for the next 5 years. The technical skills need to be accompanied by good data understanding, leadership and a strong focus on the customers.
Watch a short video of Jonathan Appleton, Managing Director of ABSL Czech Republic, presenting the key trends arising from the ABSL Survey 2020. The presentation was originally released during the ABSL Digital Conference 2020 on Nov 10, 2020.
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