Table Of ContentKPMG in Poland
Poland as the
destination for
Business Services
Centres
2015 Edition
kpmg.pl
2 | Section or Brochure name
© 2015 KPMG Sp. z o.o., a Polish limited liability company and a member frm of the KPMG network of independent member frms affliated with KPMG International Cooperative (“KPMG International”),
a Swiss entity. All rights reserved.
Poland as the destination for Business Services Centres | 3
Foreword
Poland is one of the most attractive destinations for business service centres
worldwide. Tholons in its report 2015 TOP 100 Outsourcing Destinations ranks
Kraków as the 9th top service location worldwide. A recent report published
by the Polish Information and Foreign Investment Agency and Hays shows that
in Poland there are over 650 business service centres employing over 150,000
people. KPMG’s IT Outsourcing Service Provider Performance & Satisfaction Study
published in March 2015 shows that Poland is the #2 location for IT outsourcing
services according to the surveyed organisations, 450 polled in this survey
worldwide. The importance of the service industry for the Polish economy has been
also recognised by the Polish government and local authorities in cities that are
attracting more and more investors.
KPMG has dedicated global Shared Services and Outsourcing Advisory (SSOA)
teams that service various companies, taking care of the entire lifecycle of business
services centres, or outsourcing contracts, from design to implementation, and
performance improvement. Many of our clients are making the decision on where
to locate their global business centre, extend the existing business center, or they
are redefning their global sourcing strategy.
Our Polish team that is a part of the global SSOA practice supports many businesss
services centers in Poland. Therefore, we have decided to prepare an updated
version of our thorough report “Poland as a destination for shared services centres”
that was published the very frst time in 2008. We hope that our comprehensive
information on the business environment in Poland and specifc areas that are
important for investors in business service centres will help them in a quick initial
assessment of how Polish locations can meet their specifc needs. We specifcally
present a diversity of large towns that can meet these requirements, showing also
differences between these potential locations.
We are aware that we may not have been able to answer all potential questions that
could arise during the site selection process. Therefore, if there are any additional
questions or issues that require further elaboration, our SSOA team in Poland is
more than happy to provide you with the required support.
Jerzy Kalinowski
Partner, Management Consulting
Head of Strategy & Operation Consulting
© 2015 KPMG Sp. z o.o., a Polish limited liability company and a member frm of the KPMG network of independent member frms affliated with KPMG International Cooperative (“KPMG International”),
a Swiss entity. All rights reserved.
] Section or #rochVre name
Table of content
1. Introduction 5 7. S alaries in SSC/BPO centres in Poland 95
1.1 3 ight location as a prereRVisite for the .1 Methodology and general overview 5
sVccess of a bVsiness services centre 5 .2 Salary sVrvey resVlts by location
1.2 G oal of the report 5 8. A bout KPMG and KPMG in Poland 103
2. W hy Poland attracts investors 7 .1 IntrodVction 10
2.1 I ntrodVction ĸ information aboVt Poland .2 SS0A (Shared Service and 0VtsoVrcing
2.2 & conomy Advisory) ĸ KPMG services in setting
2. ' %I and key investors in Poland 10 Vp and rVnning SSCs 10
2. I nfrastrVctVre 12 . KPMG services in setting Vp and
2.5 0 ffce market in Poland 1 rVnning SSCs 10
2. ) Vman capital 1 Appendix:
2. - aboVr costs 1 9. L egal aspects of business operations
2. - egal aspects of employment in Poland 1 in Poland 113
3. I ncentives for investors 21 .1 I ntrodVction ĸ Polish and &6 legal system 11
.1 I nvestment phase 21 .2 ' orms of condVcting bVsiness activity 11
.1.1 S pecial &conomic ;one (S&;) 22 .2.1 ' reedom of economic activity 11
.1.2 & Vropean 'Vnds 22 .2.2 ' orms of condVcting economic
.1. - ocal aVthoritiesij sVpport 2 activity 11
.2 # Vsiness operation phase 2 .2. I ncorporation of a company with
4. P oland as the destination for Business foreign participation 11
Services Centres 25 .2. P articipation in an eYisting
5. B usiness Services Centres in Poland 29 company 11
5.1 & Yamples of eYisting Shared .2.5 # ranches and 3epresentative
Services#P0 Centres 0 0ffces 11
5.1.1 a rvato Polska 2 . 3 eal estate 11
5.1.2 I #M ..1 G eneral remarks 11
5.1. I ndesit 5 ..2 A cRVisition of real estate
5.1. M A/ by foreigners 115
5.1.5 0 pVsCapita . C ontracts 115
5.1. 0 range ..1 P olish law of contracts 115
5.1. 0 riĜame .5 ' oreign eYchange law 115
5.1. 6 niCredit 0 . - aboVr regVlations (forms of employment) 115
5.1. 3 ockwell AVtomation 1 ..1 G eneral 115
6. K ey locations for Business Services Centres 43 ..2 & mployment Contracts 11
.1 # ydgoszcz .. M aKor rVles and regVlations
.2 K atowice of employment 11
. Krakòw 51 10. Transfer pricing regulations in Poland 11
. -Vblin 55 10.1 G eneral remarks 11
.5 òdĖ 5 10.2 M ethod and way of establishing
. 0 lsztyn the service fee 11
. Poznaí 10. % ocVmentation reRVirements 120
. 3zeszòw 1 10..1 5 ransfer pricing docVmentation 120
. Szczecin 5 10..2 & vidence confrming the receipt
.10 5orVí of services 120
.11 5ròKmiasto (the 5ricity) 10.. % ocVmentation to the socalled
.12 8arszawa low valVe adding services 120
.1 8rocìaw 1 10. A dvance Pricing Agreements (APA) 120
10.5 # Vsiness restrVctVrings 120
© 2015 KPMG Sp. z o.o., a Polish limited liability company and a member frm of the KPMG network of independent member frms affliated with KPMG International Cooperative (“KPMG International”),
a Swiss entity. All rights reserved.
Poland as the destination for #Vsiness Services Centres ] 5
1 Introduction
services centres (SSCs) or bVsiness
1.1 Right location
process oVtsoVrcing centres (#P0s),
as a prerequisite and introdVce new potential locations
for the consideration of investors.
for the success
5he report specifcally covers the
of a Business following sVbKects that are important
for investors when selecting the
Services Centre location for SSCs or #P0s
5he location of the service site is of ľ why Poland attracts investors,
fVndamental importance not only from
ľ key economic and political data for
the cost point of view, bVt also from
Poland,
the perspective of availability of highly
RValifed people, investment incentives, ľ availability and cost of edVcated
welldeveloped infrastrVctVre and hVman capital,
potential synergies that companies
ľ grants and incentives available for
may beneft from in the fVtVre. 5he
investors,
need to consider so many factors that
inĜVence the decisionmaking process ľ eYperiences of shared services
makes it diffcVlt for companies to centres already established in
select the right location, especially in Poland,
a dynamic growing market with strong ľ key potential locations and their
competition. Additionally, limited access characteristics.
to a talented pool of workers dVe to
a worsening demographic sitVation is 8e also provide synthetic information
VsVally mentioned by service providers on doing bVsiness in Poland.
as well as advisers as a bigger barrier,
In this report, we focVs on information
which may have an impact on the
that we believe is of key importance for
fVtVre of shared services centres and
investors considering a shared services
eYpansion of operations.
centre setVp in the area of accoVnting,
fnance, I5 or 3%. 5his data shoVld
1.2 Goal of the also enable investors already operating
report in Poland to condVct an initial analysis
when they are planning to relocate
Central and &astern &Vrope has or eYpand with a more hVman capital
already been recognised as a stable intensive part of their operations here.
part of &Vrope, attracting investors In addition, we provide comprehensive
with not only cost benefts, bVt also information on varioVs aspects
with increased political stability and associated with doing bVsiness in
continVoVsly developing infrastrVctVre. Poland. ShoVld any company interested
As the largest coVntry in the region, in setting Vp a SSC or #P0 operation
Poland offers probably the widest in Poland reRVire any additional
variety of benefts to foreign investors, information aboVt the coVntry, its
which is why many mVltinational potential and its environment, KPMG
companies have already established is eager to provide this information,
a signifcant presence in Poland. assist in detailed location stVdies and
help in any way it can in fVrther steps
5he goal of this report is to present to sVccessfVlly laVnch operations of
Poland as a potential location for shared a new soVrcing centre.
© 2015 KPMG Sp. z o.o., a Polish limited liability company and a member frm of the KPMG network of independent member frms affliated with KPMG International Cooperative (“KPMG International”),
a Swiss entity. All rights reserved.
Poland as the destination for #Vsiness Services Centres ]
2 Why Poland attracts
investors
2.1 Introduction – information about Poland
Key facts
mCoanrkseVtmer ľ Ptoh tphla Vlralgartegiosetns t mo mfa rakrek.te5 ti n mi nti hltlieho en& w6orld
ľ G%P of 6S% 552.2 billion (201)
ľ G%P growth of 5 from 200 (Vp to 201)
&conomy ľ P0Vvbelriacl ls eYcptoorr td oefb 6t oSf% 5 .10 o5f tmheill iGon% P(200201)
ľ 10: bonds yield of .11 (AVg 201)
ľ 3eference rate of 1.5
-iving standard ľ Gini indeY of 0. (201)
SoVrce KPMG in Poland
© 2015 KPMG Sp. z o.o., a Polish limited liability company and a member frm of the KPMG network of independent member frms affliated with KPMG International Cooperative (“KPMG International”),
a Swiss entity. All rights reserved.
8 | Poland as the destination for Business Services Centres
Unemployment rate in the period 2007-2014
Political changes in the CEE region
10.9% were initiated by Poland in 1989 which
10.5% caused a signifcant shift in all areas of
10.2%
economic activity. Their basic premise,
9.6% 9.7% 9.7%
10.1% 10.3% which is the effective implementation
9.0%
9.0% of free market rules, is based mostly
9.6%
on the growing position of the private
sector. Furthermore privatisation (top-
down and bottom-up) has contributed
7.1% 8.1%
to the emergence of more competitive
7.2%
structures in the economy. In 2011
7.0%
the private sector was responsible for
more than 75% of the Polish GDP and
job growth of more than 70% of the
2007 2008 2009 2010 2011 2012 2013 2014
professionally active population. The
Poland EU28
abovementioned political changes
Source: Eurostat database
allowed Poland to build a stable and
predictable parliamentary political
system. Moreover the country is an
Average GDP growth in the period 2007-2014 active member of numerous international
organisations such as: the EU, NATO,
7.20%
WTO, OECD and CEFTA. With the global
economic collapse beginning in 2008,
4.80%
Poland faced signifcant slowdown in
3.90% 3.70%
2.60% 3.30% its economy, but never experienced the
2.60%
1.80% 1.80% 1.70% recession. Moreover the state grew
-1.50%
1.10% by 54% during the last 10 years1 (up to
0.10% 0.10%
-0.70% 2014).
In terms of international trade Poland is
-4.70%
exporting more goods and commodities
year on year, achieving a surplus in
January 2014 of USD 300 million. The
EU region accounts for more than 70%
2007 2008 2009 2010 2011 2012 2013 2014 of Polish exports and 60% of its imports.
Another signifcant business partner for
Poland EU28
Poland is Russia, the source of 12.1% of
Source: Eurostat database, Central Statistical Offce of Poland (GUS) all Poland’s imported goods (mainly oil
& gas), and the recipient of 5.4% of its
exported goods.
In 2014, Poland celebrated its frst
decade in the EU as a strong and
authoritative leader among Member
States, pursuing its interests while acting
with responsibility towards European
integration.
It is worth note that the current President
of the European Council is the former
Polish Prime Minister Donald Tusk.
In terms of nationalities living in Poland,
the country has stayed relatively
homogeneous. According to the National
Census (2011) more than 97% of
respondents declared Polish nationality.
1
Eurostat database.
© 2015 KPMG Sp. z o.o., a Polish limited liability company and a member frm of the KPMG network of independent member frms affliated with KPMG International Cooperative (“KPMG International”),
a Swiss entity. All rights reserved.
Poland as the destination for Business Services Centres | 9
Unemployment rate according to the latest data (February 2015)
19.6%
16.3% 16.3% 16.3%
15.3%
13.3%
12.5%
11.8%
11.1%
10.2% 10% 10.3% 11.2%
8.3%
7.2% 7.6% 8.2% 8.8% 8.8% 9.3%
4.3% 4.4% 4.8% 5.4% 5.8%
3.4%
Unemployment rate in the whole voivodeship Unemployment rate in cities
Source: Central Statistical Offce of Poland (GUS)
highest level since 2006 (29.8%),
2.2 Economy
the better result in 2014 (23.9%) was
perceived as a success and a good
Prior to the recent global crisis, Poland
indicator for the future.
was one of the fastest growing
economies in Europe, growing at During the period of 2007–2013 Poland
a pace of 7.2% GDP (2007). Although, has been the largest recipient of
the crisis led the vast majority of the EU structural funds, and will remain
European countries into recession, the largest benefciary of all the EU
Poland continued to perform with real countries. Total EU allocations of the
economic growth. The Polish economy Cohesion Policy 2014–2020 for Poland
has grown by 23.8% since 2007 and is will account for EUR 82.1 billion2.
estimated to grow 3.4% in 2015.
In 2008, Polish currency experienced
Taking into account the unemployment a volatile period against all of three
rate statistics, the Polish market major currencies: USD, EUR and CHF.
follows the trend set by the 28 Apart from further global economic
countries of the European Union. The turbulence, the Polish Zloty was
unemployment rate as measured by relatively stable. The currency market
Eurostat fell in February 2015 to 7.8%, became more dynamic in Q3, Q4/14
the lowest level since February 2009. and at the beginning of 2015.
These statistics suggest that Poland is
The long-term forecast for the Polish
a leader in the job market.
Zloty is optimistic. As soon as the
According to Eurostat data, the long- global factors become less important
term unemployment rate decreased and domestic economic conditions
by 0.6% in 2014 vs. the previous year; come to the fore, the exchange rate
moreover, currently it is expected to for the Polish Zloty will strengthen
further decrease, and the historical its position against other currencies
lowest level from 2008 (2.4%) could be due to: stable economic growth, low
reached again relatively soon. current account defcit and low foreign
debt (Poland is considered among
Finally, according to Eurostat data as
the top EU countries in terms of its
well, despite the youth unemployment
fnancial situation and government
rate in 2013 (27.3%) that was at its
responsibility).
2 www.mir.gov.pl
© 2015 KPMG Sp. z o.o., a Polish limited liability company and a member frm of the KPMG network of independent member frms affliated with KPMG International Cooperative (“KPMG International”),
a Swiss entity. All rights reserved.
Poznań
Wrocław
Warszawa
Katowice
Kraków
Trójmiasto
Olsztyn
Bydgoszcz
Rzeszów
Toruń
Lublin
Szczecin
Łódź
10 | Poland as the destination for Business Services Centres
Average exchange rate for the PLN against the USD, EUR and CHF in the The stunning economic upturn was
period of Jan 2008 – Mar 2015 also possible by a simultaneous and
determined crackdown on corruption.
5.0 From 2004 Poland has signifcantly
4.5 improved its ranking and was lastly
(2014) placed at 35th in the Corruption
4.0
Perceptions Index published by
3.5
Transparency International.
3.0
2.5 2.3 FDI and key
2.0
investors in Poland
1.5
1.0 Being a member of the EU has
0.5 signifcantly improved the attractiveness
0.0 of Poland as an investment location.
Since 2004 the cumulative value of
direct foreign investments in Poland
has exceeded EUR 103 billion. In the
1 USD 1 EUR 1 CHF last decade, from the entire CEE region
Poland was the country of choice for
Source: National Bank of Poland (NBP)
foreign investors (mainly from the EU),
which invested every third euro here.
Yearly average exchange rates in the period 2010-2015 (up to 31.03) Furthermore, in the last few years, direct
foreign investment infow to Poland did
2010 2011 2012 2013 2014 Q1 2015
not experience any signifcant effects as
Exchange
a result of the global crisis. The decrease
rate EUR/PLN 3.99 4.12 4.19 4.20 4.18 4.19
in infow of investments in 2012 resulted
(average)
primarily from investors’ withdrawal of
Exchange
capital involved in transit3. Transactions
rate USD/PLN 3.02 2.96 3.26 3.16 3.15 3.73
(average) in transit capital affected both the size
of the infow as well as the geographical
Exchange
structure and division of investments
rate CHF/PLN 2.90 3.35 3.47 3.41 3.45 3.93
(average) in various types of economic activities.
Numbers for 2013 and 2014 are quite
Source: National Bank of Poland (NBP)
low in comparison to the previous years,
when Poland was experiencing record-
breaking investment levels. However,
Foreign direct investments infow to Poland (million EUR/USD)
the bigger picture is the continental
2010 2011 2012 2013 Q1 2014 perspective and, as pointed out by
Sławomir Majman, chairman at PAIiIZ,
million EUR 10.473 14.832 4.716 2.208 1.839 we have a good level of stability.
million USD 13.872 19.819 6.052 2.932 2.529 The estimated balance of direct foreign
investments in 2013 was positive and
Source: National Bank of Poland and Ministry of Finance
amounted to EUR 2.208 million. This
amount is comprised of: net capital
outfow of lending institutions, reduction
in shareholders’ equity and positive
reinvested earnings. It is not as good as in
previous years but Poland remains at the
top of the rankings for European FDI job
creation and FDI projects.
The Polish government is well aware
3 Transit capital is a phenomenon, which occurs in the situation of simultaneous investment capital infow and of the importance of direct foreign
outfow abroad resulting in noticing symmetric entries in both foreign direct investments in Poland and Polish
direct investments abroad. Capital in transit doesn’t affect domestic production and employment.
© 2015 KPMG Sp. z o.o., a Polish limited liability company and a member frm of the KPMG network of independent member frms affliated with KPMG International Cooperative (“KPMG International”),
a Swiss entity. All rights reserved.
1/2/2008
1/2/2009
1/2/2010
1/2/2011
1/2/2012
1/2/2013
1/2/2014
1/2/2015
