Digital business services in the Czech Republic are gaining momentum: 175,000 employees, robotics and new investments drive growth

The IT and business services sector in the Czech Republic will employ 175,000 people in 2024, a 9% increase from last year. New investments from companies such as Asahi Group, Kenvue, Sandoz, Rapid 7 and HX Expeditions have boosted this dynamic growth. The sector is expected to reach the 200,000 employee mark by the end of next year. IT services and data analytics in particular have seen rapid growth, increasing by a tenth year-on-year. Modern technologies, such as software robots, now perform work equivalent to the capacity of 28,000 people in Czech centres. 

The industry is characterised in particular by the intensive adoption of modern technologies, which now makes it possible to provide services digitally and to the whole world. In addition, it relies on automation, which simplifies many processes and services. Software robots now do as much work in Czech centres as approximately 28,000 people – with an average of 74 robots per centre, a significant jump from last year’s 53.

“Technologies such as robotic process automation, artificial intelligence, OCR and data visualisation tools are key to expanding the reach and productivity of centres and are making a significant contribution to the Czech economy,”

says Jonathan Appleton, adding that the sector contributes over USD 20 billion a year. Automation and robotics projects are being developed in the centres themselves. Today, they employ an average of 14 robotics experts, and this number is expected to grow even further with robotics projects – to 19 within 3 years. These projects then have a significant impact on the growth of the centres themselves. ABSL Czech Republic data even shows that centres that have already integrated AI and automation are growing in terms of headcount at twice the industry average.

“The technological transformation in business services has a major impact on global markets. The Czech Republic is gaining a profile as a technology leader in this area and innovations from our centres are finding adoption around the world,”

says Jaromír Staroba, President of ABSL Czech Republic. According to the current ABSL survey, IT services and data analytics are among the fastest-growing areas, growing by a tenth year-on-year.

Innovation and technological changes shaping the industry’s future are the theme of this year’s ABSL Annual Conference. The new festival concept will allow participants to experience the dynamics of this sector first-hand in the inspiring surroundings of Prague’s Karlín, the centre of Czech business services and innovation.

“It is this urban district that has become a symbol of the success and transformation of the Czech business services sector. Some of the most modern office buildings in the Czech Republic have gradually been built here, attracting several IT, R&D and business services centres. It is no wonder that Karlín is often referred to as Prague’s Silicon Valley,”

explains Jonathan Appleton, Director of ABSL, adding that approximately 4,000 employees currently work here, which is as many as almost a third of the district’s population.

“The new format will allow attendees to get a ‘sneak peek’ and experience the dynamics of the sector first-hand. In addition to lectures and discussions, participants will have the opportunity to visit Karlin centres such as Edwards Lifesciences and Pure Storage. This interactive experience, including workshops and networking opportunities, will enable the sharing of views and ideas with industry colleagues, ”

adds Jaromír Staroba.

One of the objectives of the conference is to promote the idea of “Czech Edge” and to emphasize that the Czech Republic is an ideal place for establishing and running business centres, creating innovation and developing talented experts.

“Security, political and economic stability, and a high quality of life are key factors that make the Czech Republic an attractive destination for international companies. We actively work with investors who have the Czech Republic in their sights and help them to enter the Czech market,”

explains Jonathan Appleton, adding that currently, 43% of all employees in the sector are foreigners, which is a testament to the Czech Republic’s ability to attract professionals from abroad.

Conference participants can look forward to 120 renowned speakers in three thematic areas: The Big Idea, AI & Innovation and HR Transformation, focusing on current trends and challenges in the industry.

ABSL (Association of Business Service Leaders in the Czech Republic) is an association of companies operating in the shared business services sector, which represents a strong generator of employment in the Czech Republic. ABSL was established in 2013 to foster companies in the business services sector, share best practices and help to develop the activities of its members and other entities operating in this segment. At the same time, ABSL provides support to foreign investors who want to establish their business services centres in the Czech Republic. Currently, there are nearly 400 centres in the Czech Republic employing 160,000 people. For more information, please visit www.absl.cz.