Outsourcing industry of Poland defies economic crisis, generates 100k jobs

Poland is also suffering from the pangs of the ongoing economic crisis, just like many other countries of Europe, but its outsourcing industry seems to be proving otherwise. The outsourcing industry of Poland seems to be generating more number of jobs in spite of the existing economic gloom in the country.

However, ABSL (Poland’s Association of Business Service Leaders) said that the business services sector in the country is starting to face stiff competition from newer additions to European Union (EU), which are lower-waged countries.

The outsourcing industry of Poland is one of the fastest growing sectors in the country in terms of the number of jobs generated. ABSL made the following observations regarding the business services industry.

  • The service centers for BPO and other centers related to technology have been steadily increasing. The number was 337 last year and it jumped to 375 in 2012.
  • The number of employees of business service industry saw a huge increase with the figure passing the 100,000 mark at the beginning of December, 2012, for the first time ever.
  • The number of jobs generated by the business services industry is expected to increase further by 15,000 or 20,000 in 2013.

outsourcing in Poland. Image source outsourcingportal.eu

Poland dominates the outsourcing services market of Eastern Europe with almost half of all jobs in this industry being generated in Poland.

The other major players in the market are Czech Republic, Romania, Slovakia, Hungary and Bulgaria. These countries are steadily increasing the competition for Poland in terms of number of jobs created. This is because the wages in those countries are cheaper by 10 or 15 percent than Poland.

Marek Grodzinski, director of the Polish BPO center of Capgemini and vice chairman of ABSL, said that such a risk from other countries would always exist. He added that the industry can survive only if centers which primarily focus on the expertise of its work force are opened.

However, Poland is not that expensive compared to the other countries in Western Europe. So, it is still poised for the growth of its outsourcing industry.

It is still unclear how much the outsourcing industry of Poland can contribute to improving the bleak labor market. Unemployment rate in the market has risen to 13% already and economists are pessimistic about the coming year.

Despite the economic crisis in the country and stiff competition from countries in EU offering lower wages, the outsourcing industry of Poland is set to climb further and generate more jobs.

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