Battlefield expands outside Warsaw for Big Six firms

At least half of the large, international accounting firms which have made Warsaw their main battleground since arriving in the early 1990s, are planning to open offices in other parts of the country this year.
While many firms already have small satellite offices in other cities, they have until now been doing most of their business from Warsaw, sending auditors and accountants to clients as needed.
But now that they have well-trained nationals with a few years experience, many are planning to open fully-fledged offices around the country with permanent staff in what looks to become the market's next battleground.
"We never wanted to just set up something like a franchise operation," said Wojcech Caputa, manager of auditor and business advisory services with Arthur Andersen. "We wanted to build first, the resources in Warsaw and once we could ensure the same quality of services we are providing in Warsaw, then we thought it's the right time to open other offices."
Caputa will open an office for Arthur Andersen this fall in Katowice with 10 employees.
"All Big Six companies invested a vast amount of money for training," said Pawel Bietkowski, marketing manager for Coopers and Lybrand, which employs more than 260 people in Poland and plans to open an office in Gdansk this summer. "I think we've reached a critical mass of people who are qualified to grow faster."
In 1994 Coopers opened an office in Krak-w, where it employs about 25 people. Bietkowski said the firm would probably have a similar presence up north, where its clients include AT&T and ABB.
"We have a lot of clients in this area, and the nature of our work requires very close contact," said Bietkowski, adding that his firm would probably open its next office in Poznan.
KPMG Polska opened offices in Poznan and Krak-w last year - with about 10 employees in each - because of an "exceptionally large" client base in the two cities, said Managing Partner Bill Drysdale. "Over the next three to five years I wouldn't be at all surprised to open offices in Szczecin, Gdansk, Wroclaw and Katowice as well."
Ernst & Young, here since 1990, has taken the early lead in the cross-country move, with offices established in several cities.
Trying to play catch-up, other firms are now primed to expand their playing field as well.
"The market is maturing and is probably getting a little bit more competitive," said Gary Stachlowski, tax partner with Arthur Andersen. "One of the things to distinguish yourself is if you can truly be closer to your clients."
Dean Ruehle, senior tax partner with Price Waterhouse, said that "to give clients the best service you have to be physically near them ... You can only do so much over the phone."
And big clients mean big offices. Next month, Price Waterhouse plans to open an office in Krak-w with 12 to 13 staffers to service clients such as Philip Morris, which last fall purchased 33% of the former state-owned Krak-w tobacco plant. Another big client in the south is tire maker Debica.
Ruehle said the company expects to staff the office with up to 25 people by the end of the year. The firm already has a satellite office in Bielsko-Biala, but it's more of a representative office with no more than five employees there at a time.
Big Six executives argue that additional offices may give them an edge over the competition. But opening additional offices is fraught with difficulties as well. "The biggest issue we face is how you manage those offices," he added.
Arthur Andersen's Stachlowski, who also co-chairs the tax committee at the American Chamber of Commerce in Poland, cautioned that small representative offices aren't necessarily a value-added service.
"If you look at offices with two or three people, I don't think that's going to give them a real competitive advantage," Stachlowski said.