13:39 7 October 2024
Poland shared services industry: a strategic shift towards expertise and advanced processes
Poland has evolved from a low-cost labor hub for shared services to a strategic center for advanced, knowledge-based processes. Rising wages have prompted companies to focus on Poland's skilled workforce, which excels in problem-solving and data management. With a shift towards process design and end-to-end management, Poland is positioned as a leader in the shared services industry, driving innovation and efficiency on a global scale.
When international companies first set their sights on Poland as a hub for shared services, the decision was simple: cost. As a region where labor was significantly cheaper than in Western Europe or the United States, Poland quickly became an attractive destination for offshoring repetitive, transactional processes, while being very close geographically and culturally to their neighbors. The charm of low costs in the early 2000s brought a wave of global corporations eager to take advantage of the economic benefits, establishing a shared services presence in cities like Kraków, Wroclaw, and Warsaw.
However, as the industry evolved, so did Poland's role. The country, once synonymous with inexpensive labor, is now a market in transition. Basic, repetitive tasks once dominated the shared services sector, but in the last decade, they’ve been steadily replaced by more complex, knowledge-based processes. International companies that initially outsourced their simple administrative work to Poland are now entrusting the country with increasingly advanced and specialized roleby Robert Golnik
It is related to rising technology and general sector experience that have been proven over the time.
The shift in Poland Shared Services industry is driven by a confluence of factors. While cost remains the number one reason businesses consider offshoring processes, rising wages in Poland have narrowed the gap with Western Europe, forcing companies to rethink their strategies. Yet, rather than deter growth, the country’s unique combination of talents, skills, and experience has bolstered its position as a global leader in shared services.
With wages rising, the talent pool in Poland has emerged as one of the key differentiators that keeps multinational companies committed to the country. Since joining the European Union in 2004, Poland has rapidly developed an educated, multilingual workforce, adept at handling more sophisticated processes. As shared services centers have matured, their scope has expanded beyond basic data entry or routine tasks to encompass roles that require high levels of expertise, problem-solving, and cross-functional leadership.
The significance of a skilled workforce is highlighted in the SSON Research & Analytics "State of the Shared Services & Outsourcing Industry Global Market Report 2024," which identifies the top three skills prioritized by organizations today: problem-solving, process design and improvement, and data management and analytics. These are the very capabilities that Poland excels in. Shared Services Centers in the country are no longer limited to back-office functions but are increasingly involved in creating value through strategic initiatives.
Companies now depend on Polish professionals to re-engineer and optimize processes, leveraging data analytics and advanced problem-solving techniques to drive efficiency and innovation. Poland has transitioned from being a cost center to a value creator, with shared services centers acting as innovation hubs for their global operations.
As the industry moves toward a more process-on-demand model, Poland has shown remarkable adaptability. Shared Services Organizations are shifting away from transactional work to focus on designing and setting global process standards. Poland, with its growing pool of industry experts, is well-positioned to meet this demand.
A key aspect of this shift is the emergence of global process owners—professionals who oversee end-to-end processes across organizational silos, geographies, and business units. These roles are highly specialized and require a deep understanding of both the business and the broader market environment. It’s an area where Poland stands out, offering not just the talent but the capacity to manage large-scale operations in a way that smaller markets simply cannot match.
This evolution in the shared services model has given Poland a unique position to support businesses worldwide. The country’s ability to handle complex, high-value processes, combined with its access to an experienced workforce, sets it apart from other locations. This is especially important as the sector continues to evolve, with more companies seeking process design expertise and end-to-end ownership, elements critical to remaining competitive in today’s global economy.
To underscore this transition, the chart based on a statistical model created using ABSL data, offers insight into Poland’s Shared Services landscape from 2017 to 2024. It shows a clear progression, where knowledge-intensive processes began surpassing transactional tasks in 2020, marking a pivotal shift in the sector. Prior to this, companies largely utilized Poland for simple, repetitive processes. However, by 2024, the projected workforce in the shared services industry is expected to reach 457,100 full-time equivalents, with 265,255 of those working in knowledge-intensive processes, compared to 191,845 in transactional tasks.
The data highlights the increasing importance of advanced processes in Poland’s Shared Services industry. While the country once served as a cost-saving solution for routine work, it now provides industry experts who design and manage global processes. These experts ensure a smooth operation across multiple business units and geographical boundaries, a capacity few other countries can offer. This expertise is a significant reason why Poland remains a top choice for businesses looking to relocate their operations, despite the rising costs.
As Poland continues to close the wage gap with Western Europe, its shared services industry is no longer driven solely by cost, but by the access to a skilled and experienced talent pool. With expertise in problem-solving, process design, and data management, Poland offers a unique value proposition that goes beyond traditional shared services.
In a world where businesses are increasingly focused on value creation and innovation, Poland has positioned itself as a strategic hub for advanced processes. The country’s shared services centers, once seen as low-cost alternatives for simple tasks, are now driving critical business functions globally, setting standards for the industry and delivering solutions that go far beyond their original scope. This evolution underscores Poland’s pivotal role in the future of shared services, as it continues to transition from a cost-effective option to a center of expertise and innovation.
