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

The sector continues to grow despite the pandemic and business service centres are reporting positive numbers in employment growth, upscaling their expert teams and services they provide.

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

  1. F&A: Cash collection
  2. Data Analytics: Gather and aggregate enterprise data
  3. Data Analytics: Business Intelligence
  4. Data Analytics: Develop & Deliver insights to help leaders
    run the business more effectively
  5. 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

Sergei Holmeckis
Managing Director
Deutsche Telekom Services Europe Czech Republic
Martijn Geerling
Managing Director
The Hackett Group
Sara Polak
Founder
Paioneers
Aramayis Manasyan
General Manager GBS
Siemens
Rafael Montesinos
Director Service Transformation
Fleetcor

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 sectorMajority 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

“Expatise” 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

Martin Malo
Managing Director
Grafton Recruitment and Gi Group
Diogo Videira
Senior Recruitment Advisor
ExxonMobil
Violeta Malar Momiroska
Chief Human Resources Officer, IT & Facility
KBC Group
Igor Savic
Head of DTC Prague
Commerzbank AG

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

Thomas De Bruyne
Connector for Innovation
Deloitte Czech Republic
Sotiris Karagiannis
Director of Graduate Programs
UNYP
Nina Bressler Murphy
Global Head of Enterprise Capability
Novartis
Jan Radoň
Head of Future of Work CZ
Siemens GBS
Ben Hartfield
Senior Director
The Hackett Institute

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