Back office comes to the fore
The facility, dubbed a 'NearShore Center' to underline its proximity to the markets it is targeting, will service primarily Capgemini's German operations, but it will also undertake work for its divisions in other Western European countries.
"The decision to place the Capgemini center in Poland proves that Poland is becoming a more and more important market player in the field of export of top quality business services to global corporations," says Krystian Pracz, president of Capgemini Polska.
The new center will add to Capgemini's presence in the country, as the company already has a similar center in Kraków that specializes in accounting. The Kraków center allows the firm to save some zł.9.3 million (e2 million) a year, and Capgemini counts on similar savings in its IT expenditure, says Mirosław Adamczyk, director of Capgemini's Wrocław operations.
"We want to see the near-shore concept lower costs and expand services to our clients through dedicated, custom-made software solutions," he adds. The NearShore Centre is aimed primarily at servicing existing clients in Germany, but as Adamczyk points out, the goal is also to increase the client base to include those in Poland and other countries in the CEE region, such as the Czech Republic and Hungary.
The decision to locate the center in Wrocław was aided by the city's advantageous airline connections, a favorable investment climate created by the local authorities, and its quality higher education institutions, which should provide the firm with a good source of skilled IT and engineering graduates. Indeed, the low-cost but relatively well-educated workforce was an important consideration in choosing the location of the center, which is slated to employ 140 people.
Capgemini is only one of an increasing number of international firms that are deciding to take advantage of these assets and are setting up shop in this country to reap the favorable investment conditions and the highly educated and inexpensive employee base.
Another spectacular example of this can be found in Łódź, where Dutch electronics giant Philips operates a shared-service center employing 300 highly educated, multi-lingual professionals. Philips recently closed down its Dublin operations, transferring the work to Łódź, and expects to employ 500 people within another few years.
"There was a substantial difference in wages between Ireland and Poland and that was an important factor," stated Bogdan Rogala, Philips' Polish chief executive. The savings must have been on a considerable scale, as the transfer of operations from Dublin necessitated repaying millions of euros in incentives from the Irish government. And in recent weeks, the Irish press has been awash with dire warnings of an emerging competitor to Dublin's vibrant offshoring industry.
According to McKinsey, a consulting firm, in a recent report, the country could become Europe's leading service center. However, the report also urges expediency in the implementation of a "comprehensive program to improve the way Poland approaches investors as a whole." Without an overhaul of the bureaucratic system that potential investors face, the country cannot hope to fulfill its potential, the report goes on to say. And the time, say the authors, is running out. Two years from now, it will all be too late.
"The decision to place the Capgemini center in Poland proves that Poland is becoming a more and more important market player in the field of export of top quality business services to global corporations," says Krystian Pracz, president of Capgemini Polska.
The new center will add to Capgemini's presence in the country, as the company already has a similar center in Kraków that specializes in accounting. The Kraków center allows the firm to save some zł.9.3 million (e2 million) a year, and Capgemini counts on similar savings in its IT expenditure, says Mirosław Adamczyk, director of Capgemini's Wrocław operations.
"We want to see the near-shore concept lower costs and expand services to our clients through dedicated, custom-made software solutions," he adds. The NearShore Centre is aimed primarily at servicing existing clients in Germany, but as Adamczyk points out, the goal is also to increase the client base to include those in Poland and other countries in the CEE region, such as the Czech Republic and Hungary.
The decision to locate the center in Wrocław was aided by the city's advantageous airline connections, a favorable investment climate created by the local authorities, and its quality higher education institutions, which should provide the firm with a good source of skilled IT and engineering graduates. Indeed, the low-cost but relatively well-educated workforce was an important consideration in choosing the location of the center, which is slated to employ 140 people.
Capgemini is only one of an increasing number of international firms that are deciding to take advantage of these assets and are setting up shop in this country to reap the favorable investment conditions and the highly educated and inexpensive employee base.
Another spectacular example of this can be found in Łódź, where Dutch electronics giant Philips operates a shared-service center employing 300 highly educated, multi-lingual professionals. Philips recently closed down its Dublin operations, transferring the work to Łódź, and expects to employ 500 people within another few years.
"There was a substantial difference in wages between Ireland and Poland and that was an important factor," stated Bogdan Rogala, Philips' Polish chief executive. The savings must have been on a considerable scale, as the transfer of operations from Dublin necessitated repaying millions of euros in incentives from the Irish government. And in recent weeks, the Irish press has been awash with dire warnings of an emerging competitor to Dublin's vibrant offshoring industry.
According to McKinsey, a consulting firm, in a recent report, the country could become Europe's leading service center. However, the report also urges expediency in the implementation of a "comprehensive program to improve the way Poland approaches investors as a whole." Without an overhaul of the bureaucratic system that potential investors face, the country cannot hope to fulfill its potential, the report goes on to say. And the time, say the authors, is running out. Two years from now, it will all be too late.
