Project on BPO/SSC Industry

Description
The Business Process Outsourcing/Shared Services Center industry is still a relatively fresh branch of the business services sector. Even though it hasn't been even a full decade since it first appeared in Poland, it is now one of the fastest-growing industries.






BPO/SSC Workforce
Trends
ManpowerGroup Survey Results
















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Table of contents:
• About the survey: Goals and methodology
• State of the Polish BPO/SSC industry
• Survey Results
o Market condition evaluation and challenges for the industry
o Recruitment plans and challenges
o Demand for flexible work arrangements
o Remuneration and benefits
• Survey Conclusions










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About the survey: Goals and methodology
ManpowerGroup, the world leader in innovative workforce solutions, creates and delivers high-
impact solutions that enable our clients and candidates to win in the rapidly changing world of work.
We have been monitoring the job market for years - the first Manpower Employment Outlook
Survey was published in 1962 and the yearly, global Talent Shortage Survey was launched seven
years ago. Currently, ManpowerGroup surveys include over 65 thousand employers in 41 countries
and territories. The goal is to provide a deeper understanding of the world of work and to identify
the trends profoundly impacting both organizations and job seekers.
For years, ManpowerGroup has been helping the world's and Poland's largest business service
centers in securing the best talent. Through ManpowerGroup Solutions, we also offer outsourcing of
processes and functions to all companies looking to fuel innovation by increasing efficiency.
ManpowerGroup is also a supporting member of the Association of Business Service Leaders in
Poland.
The BPO/SSC Workforce Trends report aims to provide a better understanding of this rapidly
developing industry in Poland. The survey has been carried out for the first time. Its goal is to
identify the current state of the industry and the long-term trends among BPO/SSC companies: the
biggest challenges they face, the direction of flexible work development, short- and long-term
employment outlooks, as well as talent shortages.
Invitations to ManpowerGroup's online survey were sent out to HR leaders and executives from
BPO/SSC companies. The 20-question online poll was carried out between April 23rd and May
18th, 2012. It encompassed 28 organizations, which make up for over 10% of all BPO/SSC
companies operating in Poland.
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Their answers have made it possible for us to prepare a
presentation of workforce trends in the Polish BPO/SSC industry.



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Source: Association of Business Service Leaders in Poland

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State of the Polish BPO/SSC industry
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The Business Process Outsourcing/Shared Services Center industry is still a relatively fresh branch
of the business services sector. Even though it hasn't been even a full decade since it first
appeared in Poland, it is now one of the fastest-growing industries. According to data from the
Association of Business Service Leaders, there are currently about 250 BPO/SSC centers
operating in Poland. Their most common projects are in the fields of accounting and finances, as
well as IT services. The BPO/SSC industry employs new technologies, advanced solutions and
specialist expertise, which make it an efficient medium for exchanging information and know-how.
The Shared Services Center market is growing fast and the forecasts for further development are
very promising. In 2011, BPO/SSC projects were the most numerous among those carried out by
the Polish Information and Foreign Investment Agency.
The region of Central and Eastern Europe has enormous potential for the developing BPO/SSC
industry. According to a 2010 report from research company DIS, Poland ranked first in terms of
new business centers and new jobs.
Global BPO/SSC companies are eager to tap the opportunities Poland has to offer, spurring the
economic growth and the development of all major urban areas. The main advantages of Poland's
BPO/SSC market are: the positive investment climate, highly qualified local staff and the rapidly
developing availability of modern office space.
In the last five years, new service projects have soared in the country's largest urban areas.
Currently, there are nearly 50,000 highly qualified IT, finance and accounting employees working in
the modern services industry.
All big Polish cities (such as Warsaw, Kraków, Wroc?aw, ?ód? or Pozna?) have the largest
concentrations of service centers. However, the list of potential locations included as many as 39
cities which can successfully accommodate this type of businesses thanks to the size of their
population. Poland has much more to offer in this field than other countries of the region.



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This chapter is based on the information published by the Polish Information and Foreign Investment Agency.

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Survey Results
The results of ManpowerGroup's BPO/SSC Workforce Trends report make it possible to identify the
current state and the long-term workforce trends in the industry. They also enabled us to define
employment outlooks and the challenges BPO/SSC companies are facing. Such knowledge
provides an up-to-date picture of the entire industry and an insight into its recruitment plans, but it
may also let companies analyze their own workforce policies with increased precision. The answers
we obtained have been organized into four sections. Together, they provide an accurate depiction of
the industry and valuable insights to both its members and observers.
Market condition evaluation and challenges for the industry
The market conditions advantageous for the BPO/SSC industry are confirmed in the results of
ManpowerGroup's survey. Nearly two out of three respondents (61%) declared they did not feel the
impact of the economic slowdown. In the open question about the market situation, a large majority
found it advantageous or neutral for their companies. Only a handful indicated a noticeable
economic downturn.
The main workforce challenge that BPO/SSC companies are currently facing (Figure 1) are the
increasing expectations of candidates - declared by 75% of the participants. Increasing client
expectations ranked second, indicated by 43% of respondents. The image of the company is also
crucial - employer branding poses a challenge to almost a third of surveyed companies (29%).
These were followed by demographic changes, which create problems for 18% of BPO/SSC
employers.

Figure 1: What external challenges is your company currently facing?

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To achieve a broader perspective, we asked the respondents about their biggest internal
challenges. The answers point to a close relation between market competitiveness, current
economic conditions and the business plans of organizations (Figure 2). The most common
challenges in our survey were the pursuit of increased efficiency (61%) and the need for cost
cutting (57%). This reveals a general desire for performance and prosperity coupled with post-
recession wariness of financial commitment. Further down the list are employee qualifications
(46%) and limited capability for permanent employment (25%).

Figure 2: What internal challenges is your company currently facing?
Recruitment plans and challenges
More than a half (61%) of the companies we surveyed intend to expand their workforce in the
coming quarters of 2012 or later. 21% could not specify their recruitment plans, which may indicate
that they are putting them on hold until investment decisions of their clients. Only 7% of companies
plan to reduce the workforce (Figures 3a and 3b).

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Figure 3a: Does your company plan to expand the total workforce (including permanent and flexible
workers)

Figure 3b: Does your company plan to reduce the total workforce (including permanent and flexible
workers)?
Even though a large proportion of survey participants declare plans to enlarge the workforce, as
many as three out of four have trouble finding talent for key positions for their business.
For most BPO/SSC companies surveyed, the fundamental reasons for recruitment trouble are the
overall lack of adequately skilled candidates or their lack of experience. Some also mention
excessive financial expectations of candidates as well as the lack of proficiency in foreign
languages.
Among positions hardest to fill, our respondents listed IT, engineering, specialist and executive jobs.
It seems that the biggest challenge is to find people proficient in more than one foreign language
and having the necessary specialist skills at the same time. Employers most commonly seek to

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overcome this problem by partnering with employment agencies and by migrating key employees.
Additionally, almost four out of five (79%) consider hiring foreign candidates in their Polish offices.
Hard skills, which include foreign language proficiency, are a tremendously important factor.
However, it is very telling that a large majority of surveyed companies (82%) declared that key skills
are learned by employees in the course of work (Figure 4).

Figure 4: How are key skills learned by potential employees in your opinion?
Employee turnover is also a challenge for HR leaders in the industry - almost six out of ten (57%)
declared that the problem is noticeable. On the other hand, 43% said it has no impact on business.
A vast majority of BPO/SSC employers wants to know the satisfaction levels of their employees and
82% monitor it in an organized fashion.
Demand for flexible work arrangements
The cost-conscious business model, shift-based work and employee turnover that organizations
face all influence the work arrangements they choose. A decided majority (79%) of surveyed
BPO/SSC centers are using flexible work arrangements. The most common is temporary work,
which is present in 68% of companies. External employment is employed by one in two, while 41%
use civil-law agreements and nearly 14% choose contractual agreements. (Figure 5)

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Figure 5: What flexible work arrangements does your company employ?
In general, the surveyed BPO/SSC centers find flexible work arrangements effective. More than a
half estimated their effectiveness and impact on business as high. Over a third (36%) declared them
moderately effective (Figure 6).

Figure 6: How do you rate the effectiveness and impact on business of flexible work arrangements?
Remuneration and benefits
The surveyed companies increased salaries fairly often. Almost eight out of ten (79%) declared that
the average level of employee remuneration had increased last year (Figure 7). More than a half of
all employers (64,3%) plan to continue the upwards trend. (Figure 8)

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Figure 7: Did the salaries in your company increase in 2011?
Figure 8: Do you plan on increasing salaries in the coming months of 2012?
Benefits are offered by almost all surveyed companies (96%) and they are usually of varying nature.
The most popular kind are training sessions, which are offered by 82% of participating employers.
63% use motivational programs and nearly 67% offer other kinds of benefits to their employees
(Figure 9).

Figure 9: What benefits do you offer to your employers?



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Survey Conclusions
ManpowerGroup's BPO/SSC Workforce Trends confirms the strong position of business service
companies in Poland. The favorable market conditions are reflected in the general desire to create
new jobs in the industry. Service centers are and will be hiring - more than a half of all surveyed
companies declared plans to expand the total workforce in the coming quarters of 2012 or in the
future.
The optimistic employment outlooks in the BPO/SSC should be interpreted in two dimensions. On
one hand, the declared workforce increases are largely a result of new projects and expansion of
outsourcing centers in new locations. On the other - it is necessary in order to overcome employee
turnover, which is a common challenge. This issue is worsened by the nature of work in the
industry. BPO/SSC centers offer outsourced services in various fields but all activity shares a
common framework. It is the framework of highly efficient business - which is only a part of a larger
structure from the perspective of a single position. After a certain time of such repetitive work, many
employees get tired of the routine and seek to escape it by changing jobs. Meanwhile, the statistical
BPO/SSC center worker is a qualified 30-something, proficient in at least one foreign language and
usually having invaluable skills and work experience.
Regardless of very common motivational programs, the specificity of the BPO/SSC industry,
together with the nature of work, force employers to find ways of overcoming the turnover issue. HR
leaders in the industry are facing a big challenge in their efforts to keep skilled talent in the
companies.
For three out of four BPO/SSC employers finding the right candidates for key positions is also a
significant issue - especially candidates proficient in more than one foreign language and having the
necessary hard skills at the same time. The deficit of adequately skilled people can be explained by
the low supply of experienced candidates and the ongoing talent shortage on the job market. The
latter is extensively covered in ManpowerGroup's yearly global Talent Shortage report, which
presents the scale and the causes of the problem.
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The rapid development of service centers, the talent shortage and the cost-conscious business
model all push the BPO/SSC industry towards flexible work arrangements, which are now a
common solution - declared by eight out of ten surveyed employers. Service centers are most likely
to use temporary work and external employment. The efficiency and impact on business of such

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The seventh annual Talent Shortage survey was carried out by ManpowerGroup in Q1 2012 among nearly 40,000
employers from 41 countries and territories, including 750 from Poland. We researched the views of human resources
leaders in small, medium and big companies.

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solutions are estimated to be very high. Apart of the possibility of using flexible work arrangements,
partnering with specialized employment agencies also gives companies recruitment support for jobs
created on-site, verified candidate bases and valuable insights and expertise in the job market.
ManpowerGroup's BPO/SSC Workforce Trends report shows an industry with a strong market
position and lots of potential for development. At the same time, the answers given by surveyed
employers indicate relevant issues, which have to be overcome in order not to lose the high-quality
workforce that is the driving force of growth. Human potential is what enables companies to win in
the Human Age.



















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About ManpowerGroup in Poland
ManpowerGroup, the world leader in innovative workforce solutions, has been helping clients and candidates
win in Poland since March 2001. With 47 branches in 28 cities across the nation, ManpowerGroup Poland
provides unique value to clients and candidates through ManpowerGroup™ Solutions, Manpower®, Experis™
and Right Management®. ManpowerGroup Poland portfolio covers permanent, temporary and contract
recruitment; employee assessment and selection; outsourcing and workforce consulting; career management
and outplacement.
ManpowerGroup aims to provide the highest quality of services. The company is a founding member of the
Polish HR Forum (formerly known as Federation of Temporary Staffing Agencies), the mission of which is to
guarantee quality and ethics among employment agencies. ManpowerGroup partners with organizations that
deeply impact business development in Poland: the Polish Information and Foreign Investment Agency, the
American Chamber of Commerce in Poland and the French Chamber of Commerce and Industry in Poland.
This is the Human Age, where access to talent has replaced access to capital as the key competitive
differentiator. ManpowerGroup Poland creates powerful connections between organizations and the talent they
need to enhance their competitiveness and unleash their workforce potential. By creating these powerful
connections, ManpowerGroup helps everybody achieve more than they imagined, and power the world of
work.

Learn more about ManpowerGroup in Poland at www.manpowergroup.pl.

About ManpowerGroup
ManpowerGroup™ (NYSE: MAN), the world leader in innovative workforce solutions, creates and delivers
high-impact solutions that enable our clients to achieve their business goals and enhance their
competitiveness. With over 60 years of experience, our $22 billion company creates unique time to value
through a comprehensive suite of innovative solutions that help clients win in the Human Age. These solutions
cover an entire range of talent-driven needs from recruitment and assessment, training and development, and
career management, to outsourcing and workforce consulting.
ManpowerGroup maintains the world’s largest and industry-leading network of nearly 3,900 offices in over 80
countries and territories, generating a dynamic mix of an unmatched global footprint with valuable insight and
local expertise to meet the needs of its 400,000 clients per year, across all industry sectors, small and medium-
sized enterprises, local, multinational and global companies.
By connecting our deep understanding of human potential to the ambitions of clients, ManpowerGroup helps
the organizations and individuals we serve achieve more than they imagined – because their success leads to
our success. And by creating these powerful connections, we create power that drives organizations forward,
accelerates personal success and builds more sustainable communities. We help power the world of work. The
ManpowerGroup suite of solutions is offered through ManpowerGroup™ Solutions, Manpower®, Experis™
and Right Management®. Learn more about how the ManpowerGroup can help you win in the Human Age at
http://www.manpowergroup.com/.

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