As Poland's business services sector matures, the focus shifts from headcount to high-value, knowledge-driven processes. The ABSL 2024 report reveals how digitalization, hybrid work, and a push for productivity are reshaping the industry. By Robert Golnik
As Poland's business services sector matures, the focus shifts from headcount to high-value, knowledge-driven processes. The ABSL 2024 report reveals how digitalization, hybrid work, and a push for productivity are reshaping the industry.
Each year, the Association of Business Service Leaders (ABSL Poland) hosts a summit focused on the transformation of the shared services sector. This past June, Krakow welcomed more than 1,500 industry professionals who gathered to exchange ideas, explore emerging trends, and hear from an impressive lineup of over 150 speakers. Notable voices included Jacinda Ardern, former Prime Minister of New Zealand, Jacek Siewiera, Head of Polish National Security, and Leszek Balcerowicz, the esteemed economist and former Prime Minister of Poland, among others.
Alongside the event, ABSL released a 200-page report that stands as one of the most comprehensive analyses of Poland's business services sector to date. The 2024 edition of the Business Services Sector in Poland report highlights significant trends and changes, offering a detailed, data-driven examination of the sector’s evolution. It compares current data with previous years to provide insights into the sector’s trajectory.
In this article, we distill the core findings of the ABSL 2024 Report, synthesizing the past year’s developments in the sector. We also examine the scenarios that may shape the industry’s future, shedding light on the evolving landscape of this pivotal sector.
A key revelation is the sustained expansion of Poland’s business services sector, a trend that has gained remarkable momentum since the nation’s accession to the European Union. By the close of the first quarter of this year, employment in the sector had reached 457,100—a 3.8% increase from the previous year, though at a slightly moderated pace compared to earlier periods. Over the past decade, the sector has seen an astonishing 259% increase in employment. Notably, a significant 84% of these jobs are concentrated in foreign-owned centers, with the United States, United Kingdom, and Germany emerging as dominant players in terms of operational scale and workforce.
The rise in employment is largely attributed to the opening of new centers across Poland, including 60 established throughout 2023 and the first quarter of 2024. These centers have not only created fresh job opportunities but have also diversified the range of services offered within the sector. Moreover, established centers have increasingly taken on more complex, knowledge-based processes, moving beyond the repetitive, entry-level tasks that once defined their operations.
The 2024 report also highlights the evolving landscape of business centers across Poland, with a noticeable shift toward IT processes, which now make up 46.6% of all business service centers in the country. This trend underscores the increasing importance of technology and digital transformation within the sector.
Another key factor contributing to the growing share of IT centers is the impact of regional and global mergers and acquisitions, which have led to some centers closing or being taken over by other companies. This shift reflects a move toward higher-value processes supported by IT, while simpler operational tasks are being streamlined or merged, ultimately adding more value to the business.
The report also notes a maturing market, with the overall number of business centers continuing to grow, albeit at a slower rate than in previous years. This maturation indicates a sector that is stabilizing and evolving, shifting from rapid expansion to a focus on quality, efficiency, and service diversification. The stabilization in the number of new centers suggests that while the sector continues to expand, it is doing so at a more strategic and sustainable pace than before.
Another significant finding in the report is the changes in working models within the sector. The hybrid work model, which gained traction during the COVID-19 pandemic, has now become a permanent fixture. Working from home is no longer just a perk but a standard term embedded in employment agreements. This shift not only reduces costs but also adds value to relocating processes to Poland. The move toward hybrid work reflects the sector's adaptability and its capacity to embrace new working paradigms. Importantly, Polish law will need to evolve to align with these changing employee expectations.
The ABSL report signals a pivotal shift in Poland’s business services sector, urging a move away from growth metrics centered on headcount to a more refined evaluation of qualitative factors. Key among these is productivity, with export output per worker set to reach $63,500 by the end of 2024—a remarkable 45.2% rise since 2016, underscoring the sector’s growing economic significance.
Sophistication is also on the rise, as over 55% of tasks have transitioned to knowledge-intensive activities, reflecting a broader move from routine operations to complex, value-added processes fueled by digitalization and upskilling. Automation continues its advancement, with 98% of business leaders acknowledging AI’s positive impact on talent management, and 86% embracing it as an opportunity rather than a threat. Additionally, the sector’s innovation potential and capacity for intellectual property creation have become increasingly critical, marking a shift from cost-driven operations to high-value, knowledge-driven services that promise sustained competitiveness and long-term growth on the global stage.
The ABSL's annual conference and report highlight a dynamic and evolving business services sector in Poland. Despite a slower expansion rate, employment and export productivity are on the rise, driven by a shift towards IT processes and hybrid work models. There is a noticeable transition in Poland’s business services sector towards measuring productivity and sophistication rather than just headcount. Key trends include a significant rise in export output per worker and a move to more complex, knowledge-intensive tasks driven by automation and digitalization.
Poland’s business services sector remains a crucial part of the national economy, with a promising future ahead. Its strengths in cost efficiency, skilled labor, and strategic location continue to attract investment. As the sector evolves towards high-value services, it will maintain its competitive edge and drive innovation, contributing significantly to the national economy.
