Slovakia becomes magnet for IT service centres

CENTRAL and Eastern Europe (CEE) is a popular location for international companies who want to establish new shared services and contact centres. Investors appreciate the low costs, skilled labour, and relatively short distances to the more developed countries of Western Europe, where their main customers reside. Slovakia, which offers all of these benefits, is one of the most preferred service centre locations in the region. CEE countries continue to be popular among European companies that are seeking alternative locations for their IT and business process outsourcing services. The CEE region offers a well-educated labour force with strong language skills, as well as proximity to Western European clients. Major CEE cities are a mere two-hour flight from London and Paris and are virtually next door to Germany and Austria.

In fact, according to data made available by the United Nations Conference on Trade and Development (UNCTAD), in recent years, more than 20 percent of offshore projects by European firms have gone to the CEE region.

The SARIO state investment agency recently listed 22 companies who have shared services and contact centres in Slovakia. The largest firms on the list are IT and telecoms companies such as IBM, T-Systems, T-Com, Dell, Hewlett-Packard (HP), Accenture, AT&T, Siemens, and Lenovo.

Following several large recent investments in the IT industry and service centres, the Slovak labour market is suffering from a shortage of IT-skilled people. But while IT service centres say they feel the shortage, they do not regard the situation as dangerous. Moreover, most have set up their own of further education and training programs. Work in such a centre can be a challenge for young people. They get to work for international companies in a domestic environment. They get useful experience and learn a lot from their training.

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4 thoughts on “Slovakia becomes magnet for IT service centres

  1. ..yup, but the problem with this IT companies is the fact that they are interested and they found their business in capital and that way also the job opportunities are situated only in Bratislava..the question is how to make other cities attractive for this kind of investments ???

    Reply
  2. OK..this is, of course, problem of Slovakia. All the investments are going to capital and every company wants to have its residence in capital as well. But in last several years is it better, i think. For example automobil factory KIA is in Trnava region, not in Bratislava. I know that this is not enough, but there begins better time for other regions in Slovakia. We can see some changes 🙂

    Reply
  3. i agree, time will do. and i think it is almost always like that – it is a problem of most of the countries, that some regions are more attractive for investors, or generally better off than others.

    it is the same in Germany for instance – west and east (it is visible in the number of investors, infrastructure, people are moving from east to west..), or in Spain, ..

    Reply
  4. From my point of view it can be a great opportunity for a country if such big companies decide to settle there. Because it means not only an increase in earnings of the government, caused through taxes, but also an increase in the qualification of the work force. Sure it is a pity that only the capital region profit of it.

    Reply

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