Business Services Sector in the Czech Republic
2022
ABSL Report 2022
The ABSL Report 2022 highlights key trends and provides the most complete overview of the shared, business and outsourcing services in the Czech Republic. The main source of the data in this publication comes from the ABSL Survey, which was conducted amongst ABSL member companies in the period from June until November 2021.
Here you may find a snapshot of the key trends and accompanying digital resources. For the full insights and analyses, download the full pdf report.
Watch a 15-min summary of the key trends
Jonathan Appleton, Managing Director of ABSL Czech Republic, presents the key trends arising from the ABSL Survey 2021.
The presentation was released during the ABSL Leader’s Hybrid Conference on Nov 10, 2021.
Size & Growth
Czech Business Services sector approaching 150,000 employees: On track to become the LARGEST business sector in the country by 2025
145,000
Total number of employees in 2022
200,000
Expected number of employees in 2025
350
Total number of business services centres in the Czech Republic
13%
Employment growth in 2021
9%
Expected growth in 2022
72%
of centres that grew in 2021
Greatest area of growth - Data Analytics: From data to intelligent solutions
The top 5 services on the rise in 2021
- F&A: Cash collection
- Data Analytics: Gather and aggregate enterprise data
- Data Analytics: Business Intelligence
- Data Analytics: Develop & Deliver insights to help leaders
run the business more effectively - Data Analytics: Provide requested report to the enterprise
Maturity of services
Powerful and consistent growth in maturity of services: Building higher value service hubs for the future
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.
Legend
Rookie
Design and initial implementation in place
Developing
Some processes transferred; majority not standardized
Advanced
Centralization completed, processes standardized, continuous improvement in place
Partner
Optimization and Automation across organization, Business Outcomes focus & Partnership with clients
80%
of all processes are now being delivered in the advanced or partner stage
24%
of processes are delivered in partner stage
52%
of activities performed are knowledge-based
60%
of centres provide some services on partner level
Impact of COVID-19
COVID-19 driving future growth opportunities: The pandemic accelerates the positive transformation of the sector
Czech centres continue to report an overall positive impact of the pandemic on their operations, with almost no impact on productivity. Some even track increase in effectiveness or new business opportunities.
95%
of centres report overall positive or no impact of COVID-19 on their operations
36%
of centres report overall positive
impact of COVID-19 pandemic
+16% compared to 2020
35%
of centres report positive impact on the number of processes serviced from the CZ
+19% compared to 2020
33%
Report positive impact on their
volume of activities
+14% compared to 2020
Post-COVID-19 Environment
Attrition remains low but continued growth fuels salary inflation and competition for talent
In 2021, Czech business service centres managed to retain employees for an average of 3 years and 2 months – identical to 2021 figures.
However, as the centres continue to grow amidst the pandemic they report a slight increase in the competition on the local market.
13,6%
Average attrition
Similar level as in 2020
4,5%
Average salary increase in 2021
3 years & 2 months
Average retention
Hybrid Work Strategies
Work from home becomes the new normal and transforms the future of the sector and country
Before the pandemic, only 18% of people worked from home half of their time or more. In 2021 it was 91% of people. This shows the incredible transformation the sector has undergone in such a short period of time.
While this reflected the reality of pandemic waves, 84% of centres plan to let their employees work from home for at least 2 days per week as a long-term solution.
Currently
91%
of employees work from home at least 2 days per week
72%
of employees work from home all the time and optionally come to the office
Long-term
84%
of centres plan to implement long-term policy to work from home for at least 2 days per week
71%
of centres plan long-term policy to work from home for 2-4 days per week
Technology
The Rise of the Robots: Automation Triples in only 3 years - robots grow to 10% of workforce
The workload performed by automation reached 13 000 FTEs in 2021. This is more than triple the amount of 2018. The growing automation workforce requires the management of an increasing number of experts, of which the sector currently employs 4,200 and it is planned to increase this number to 6,800 within the next 3 years.
13,000 FTEs
Equivalent work performed by automation
4,200
Automation experts within the sector
12 FTEs
Average number of automation experts per centre
83% of centres
have already implemented some methods of automation
63% of centres
Report positive impact of COVID-19 on the speed of implementation of digitalization
73% of centres
Build robotics & automation
capability in-house
Compared to 70% in 2020
Watch bite-size expert discussions
Deutsche Telekom Services Europe Czech Republic
The Hackett Group
Paioneers
Siemens
Fleetcor
Topics
Workforce Diversity
The Future of Diversity in the Czech Republic: Business services is the most diverse workforce in the country
The Czech business services employ more women, expats, minorities and diverse talent than any other sector. Majority of the sector’s workforce are women and almost half are foreigners.
In order to recruit and keep foreign talent, the Czech business services centres quickly adapted to the global pandemic. Over 30% of the centres report an increased effort in recruitment activities in the local talent pool as well as an increased support of their current foreign employees.
44%
of employees in BSS in CZ are foreigners
8
average number of languages used in a business services centre
59%
share of women in BSS in CZ
36 years
the average employee age
Expat working coditions threatened by COVID-19: Czech centres stepping up their strategies
Due to travel restrictions, COVID-19 pandemic raised challenges in the supply and turnover of international talent. However, the Czech business services centres stepped up their approaches and strategies to continue building strong talent pools.
35% of centres
report reduction in
number of foreign applicants for open positions
+11% compared to 2020
31% of centres
report increased attrition
of foreigners
+9% compared to 2020
29% of centres
see employing foreigners
as more risky
+9% compared to 2020
12 weeks
average recruitment lead time from EU countries (excl. CZ)
+3 compared to 2020
Watch bite-size expert discussions
Grafton Recruitment and Gi Group
ExxonMobil
KBC Group
Commerzbank AG
Topics
The Skills of the Future
Increased investment in building future skills but centres report a deficit for key roles of the future - Data Analytics, Robotics and CX expertise
The business service centres in the Czech Republic require increasingly complex skills, which they largely develop in-house. This is reflected by the average number of training hours provided to each employee, which has risen to 50 hours per year.
Nevertheless, the skills deficit experienced by the business services centres in the Czech Republic increased virtually in all areas but most notably in the fields of data analytics, technology / automation, customer centricity, leadership and innovation. The vast majority of the centres plan to develop the skills they lack internally by training their current employees.
50 hours / year
average number of training hours provided by business services centres to their employees
+32% increase since 2017
98% of centres
develop training programmes in-house
75% of centres
report data analytics skills deficit
+38% of centres
more than in 2020
68% of centres
of centres report
customer centricity
skills deficit
+56% of centres
more than in 2020
Skills with the biggest increase in deficit
Customer centricity
+52% of centres compared to 2020
Data Analytics
+ 38% of centres compared to 2020
Innovation
+ 33% of centres compared to 2020
New roles planned to be
introduced in the next 2-3 years
Data Scientist / Analyst
Planned by 74% of centres
RPA Engineer / Trainer
Planned by 57% of centres
CX Specialist
Planned by 49% of centres
Watch bite-size expert discussions
Deloitte Czech Republic
UNYP
Novartis
Siemens GBS
The Hackett Institute
Topics
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