Ministry of Economics GBS ENVIRONMENT ROLANDS BOGDANOVS, FDI ADVISER RIGA | 2017
What’s GBS(C)? 30% SSCs BPOs ITOs IT HR Legal 70% Finances Compliance Costumer Relations
WHY GBS? Globally renowned companies Fair taxpayers 2016 = 126 mil € In-house training Many workplaces Salary > average in the country
Number of employees Primera Air 120 Visma Labs 122 330 Swedbank 122 Allnex LV AVG 160 Webhelp 120 160 Runway 165 200 Tieto 200 Solvay 300 If 500 SEB 511 Circle K 650 Tele2 1265 Accenture 0 200 400 600 800 1000 1200 1400
Expansion in the next 2 years Expected growth of the sector > 2k Ready and willing to expand significantly, even x2 Grow steadily by 50 employees per year Not willing to grow in size, but in complexity Main drawbacks: limited office space; HR
What is important?
Automation allows us to manage processes more efficiently and at the same time it gives employers the privilage of utilizing the potential of their talent pool by redirecting it to more challenging, complex and value added tasks. Kim Leandersson General Manager of Tele2 Shared Service Center
Automation = future strenght
Current situation Autonomic process automation and AI 5 Advanced cognite automation 10 RPA (integrating rules) 40 Simple automation (MO based scripts) 35 Getting ready for automation 10 0 5 10 15 20 25 30 35 40 45
Our attractiveness Work culture Location (languages, talents) Ability to learn, adapt Competitive costs Work smart vs Work hard Developed infrastructure
CHALLENGES What’s GBS? Education system Taxes Resources Economic growth • Scandinavian • Tax burden • Office space • Growing salaries languages • Unpredictability • Lack of high level • IT specialists close to • State funded studies specialists the $ level of for exact sciences • Specific Scandinavia • Courses programming (unemployed, elderly, languages new mothers)
RELATIVELY LOW TAX-RATE Source: PricewaterhouseCoopers “Paying Taxes 2017 - The global picture”
Future plans of GBSCs Expansion Complexity Number of people Redirection of talent other functions Initiatives (training, boot camps, internships) Cooperation with universities, colleges, schools
Proposals Proposals for government, municipalities Training programs Tax stability Provision of office space Engaging in promotion
Opinion on other players joining the market Healthy competition and Attracting increased new players efficiency Solving the internal deficiencies
Further actions Identified problems Action Plan Improved action plan GBS Companies | JAN Presentation of the Action plan | FEB Conclusion of the Memorandum of Cooperation |MAR
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