War in the Middle East is increasing companies’ focus on security. Central Europe is strengthening as a safe base for business

The escalation of conflict in the Middle East could reshape the global map of locations where international companies place and develop IT and business services centres. According to ABSL, previously attractive destinations such as Bahrain and Egypt, which ranked among the TOP 30 locations in The Hackett Group’s index, are losing attractiveness due to rising security risks. In contrast, Central European countries continue to strengthen thanks to their stability, security and ability to ensure business continuity. The Czech Republic could, according to current estimates, move up by around five places from its current 34th position.

Central Europe as a safe location

According to ABSL, global companies are shifting their decision-making from “where is it cheapest” to “where is it most stable, secure, manageable and sustainable in the long term.” This shift is also confirmed by international benchmarks from The Hackett Group, which has long tracked the attractiveness of locations for IT and business services centres.

In recent years, Middle Eastern countries have significantly strengthened their position in IT and business services, attracting large volumes of international talent. For example, Egypt and Bahrain ranked among the TOP 30 most attractive locations in The Hackett Group’s index. However, the current escalation of tensions is calling this trend into question and increasing uncertainty for both companies and employees. A recent incident in which Iran’s Revolutionary Guards threatened attacks on US technology firms highlights that security risks for businesses in the region are no longer theoretical, but real.

“Beyond investment decisions, we are also seeing changes in talent behaviour. Some international professionals in the region are considering returning home or seeking opportunities elsewhere. Companies are responding by limiting business travel and shifting work to safer locations. The uncertainty in the Middle East is no longer hypothetical – it is having a tangible impact on both companies and their talent,”

adds Jonathan Appleton, Managing Director of ABSL, noting that the current situation is playing in favour of Central European countries.

The Czech Republic could strengthen its position in the global attractiveness ranking

This shift is also reflected in growing interest from global companies in more stable European locations. Countries such as the Czech Republic, Poland and Hungary are strengthening their role as mature hubs for IT and business services, delivering not only core operations but also highly skilled activities in finance, HR, IT, artificial intelligence support and cybersecurity.

This development is further confirmed by recent data from ABSL. A survey among companies in IT and business services shows that security is the primary reason why international firms establish and continue to expand their operations in the Czech Republic. According to The Hackett Group’s ranking, the Czech Republic currently ranks 34th globally, while in the European context, it is among the leaders, with more than 400 centres and 200,000 employees. The growing emphasis on security and stability could help the country move up by approximately five positions.

The Czech Republic’s strong position is also supported by data from Grafton Recruitment, which shows that the country has the highest share of employees in business services relative to its population among the compared markets.

“The Czech Republic holds an exceptionally strong position within the region. The share of employees in the business services sector is approaching 2% of the population, which is significantly higher than in Poland, where it is around 1%, or Romania, where the share is even lower. This shows that the Czech Republic is no longer just a cost-efficient location, but a mature market with a strong pool of qualified talent capable of supporting more complex roles,”

says Martin Malo, Managing Director of Grafton Recruitment.

Resilience in practice: from plans to real-world operations

The growing emphasis on stability and security is also reflected in the way business services centres operate, where resilience is becoming a key factor. If it remains only on paper and is not embedded into the actual operating model, it can significantly jeopardise business continuity.

“Companies must now assume that disruptions and outages are no longer exceptions, but the new reality. Having a plan is not enough. The key is to embed resilience into day-to-day operations. In practice, this means greater diversification and decentralisation – spreading activities across multiple locations. This is closely linked to the ability to rapidly shift operations between locations,”

explains Jonathan Appleton, who adds that building backup IT systems, reducing reliance on a single supplier, and the ability to respond quickly to disruptions or sudden changes are also essential.

It is not enough to plan – organisations must also test scenarios and continuously eliminate weak points. As a result, the role of business services leaders is increasingly expanding beyond innovation to include crisis coordination and ensuring operational continuity in an increasingly unpredictable environment.

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.