Poland as a Business Services Hub

The buzz around Poland continues to enthuse and excite investors. The Polish złoty became the top-performing currency against the dollar following the recent pro-EU general election result. Polish society and the economy have been re-invigorated, although it’s not as if the economy needed any extra fire.

Top Reasons for Investment

The country’s large population and supremely well-educated workforce continue to trump neighbouring economies. 92% of people aged 65-64 have completed secondary education in Poland, which is fifth among all OECD countries. As for universities, Poland is ranked third in the world by the Programme for International Student Assessment (PISA).

Poland’s Investment and Trade Agency (PAIH) boasts that 94% of investors are happy and willing to re-invest in the Central European powerhouse. At the beginning of the year, it also announced that the previous year had been a record-breaker for the Agency.

Of particular note is the confluence of a number of critical factors which has allowed business to percolate so effectively:

• Large population;
• Educated workforce;
• EU member;
• NATO member;
• Special Economic Zones with preferential tax rates;
• Mature BPO/SSC sector;
• Focus on IT and new tech sector.

Top Investors in Poland

A quick look at the past 18 months clearly shows the investment trajectory the country is on:

• Jan 2022: French EDF signs cooperation agreements to become a strategic partner in Poland’s nuclear programme.
• Feb 2022: Samsung announces a EUR 198 million investment in expanding production capacity in Poland.
• May 2022: Google announces investment of $700 million in the purchase and further development of the Warsaw Hub.
• Nov 2022: US giant Westinghouse Electric to become official partner in Poland’s new nuclear reactor programme.
• Dec 2022: Mercedes-Benz announces it will invest over EUR 1 billion to establish an electric van manufacturing facility in Poland.
• Feb 2023: Volvo details plans to open a new Tech Hub in Poland, responsible for developing complete and key features on Volvo electric cars.
• May 2023: Visa details plans for a new Global Technology and Product Hub in Poland to support its development model for innovation.
• Jun 2023: US tech giant Intel announces it will invest $4.6 billion to build a new semiconductor chip assembly and testing facility in Poland.

The ten largest investors in Poland in terms of headcount in business service centres (according to ABSL), include some big names:

1. Capgemini (France),
2. Nokia (Finland),
3. Sii (France),
4. Comarch (Poland),
5. Atos (France),
6. State Street (USA),
7. Credit Suisse (Switzerland),
8. Citigroup (USA),
9. Kyndryl (USA),
10. HSBC (UK).

A host of other multinationals have put their faith in Polish shared service centres to great success. With changes in the status of Poland’s Special Economic Zones and forthcoming funds from the European Union’s Recovery Instrument, Poland has much, much more to offer investors.