ABSL Report out now

Business Services Sector

in the Czech Republic

2024

ABSL REPORT 2024 – OUT NOW

Discover the trends in the Czech business services filled with detailed analyses and insights into the latest challenges the industry is facing. This comprehensive report covers key topics such as People & Talent Management, ESG, Hybrid & Remote Working Practices, Training & Education, Technology & Innovation, Labour Market,  Salaries, Real Estate, and more. The main source of the data in this publication comes from the ABSL Survey, which was conducted amongst ABSL member companies in the period from June until November 2023.

ABSL Report 2024 is an essential guide to staying ahead of the game and maximizing your success in the sector.

Download your copy to unlock the full potential of Czech business services!

The Czech Edge: Driving Digital Innovation in Global Business Services

Explore how the Czech Republic is becoming a leader in global business services, showcasing rapid sector growth and digital innovation. This overview highlights the country’s strategic positioning in Central and Eastern Europe, with a focus on its skilled, diverse workforce and advanced technological capabilities. Learn about the key factors making Czechia a top choice for business expansion and talent attraction in the business services industry.

Key Insights

The Top 5 Emerging Trends in the ABSL 2024 Report

Amidst the constantly evolving challenges, the Czech business services sector stands out by combining digital transformation with a people-first approach that prioritizes diversity and inclusion.

PEOPLE & TALENT MANAGEMENT:

Focus on attracting and retaining talent, with innovative HR strategies and employee engagement practices.

ESG TOWARDS RESILIENCE:

Emphasis on environmental, social, and governance (ESG) factors, highlighting sustainability and corporate responsibility.

TRAINING & EDUCATION:

Importance of continuous learning and development for employees to stay relevant in a rapidly changing industry.

REAL ESTATE & OFFICE MARKET:

Trends in workplace design and location, balancing remote work and in-office collaboration.

DIGITAL TRANSFORMATION & CYBERSECURITY:

Continued advancement in digital technologies and a strong focus on maintaining robust cybersecurity measures.

Key Numbers and Trends at a Glance

200 000

Expected number of jobs in 2025

380

Total number of business services centres 

7%

Growth expected in 2024

175 000

Total number of jobs 

5%

Employment growth in the year 2023

200 000

Expected employees in 2025

Centres Plan for Next 2 Years

59%

Centres plan to expand

32%

Centres plan to stabilise and optimise

9%

Plan to increase the number of office locations in the Czech Republic

Diversity and Inclusion

55%

Women in business services

42%

Women in senior management

70,000

Foreigners employed in Czech business services

ABSL Annual Report 2024

Discover the trends in People & Talent Management, ESG, Hybrid Work, Training & Education, Technology, Labour Market, Real Estate, and more. ABSL Report 2024 is an essential guide to staying ahead of the game and maximizing your success in the business services sector. Download your copy & unlock the full potential of Czech business services!

Government Activities

Staying in the EU is crucial for the success of centres in the Czech Republic. It’s also important to speed up getting permits and ensure the cybersecurity for business centres to run smoothly. The top 5 priorities of government activities for Czech business service centres include updating the education system and curriculum to align with evolving industry needs.

Importance of government activities for your business continuity and success

Location Attractiveness & Competition Assessment

Assessment of local markets as places to do business

When we take a closer look at individual cities, we see that Prague and Brno are the best-rated, especially in terms of quality of public transportation. Regarding the city’s image for investors, Prague receives the highest rating, also in terms of the accessibility of the city concerning transportation infrastructure, such as airport or train. Meanwhile, Brno excels in the availability of modern office spaces. Other cities, such as Ostrava, Plzen or Liberec received the highest number for availability of talent pool incl. qualified staff.

What should the Czech Government do to support the Czech business services sector?

FOSTER EDUCATIONAL AND TRAINING PROGRAMS

Align education with industry needs to ensure a skilled workforce

ENHANCE DIGITAL INFRASTRUCTURE

Invest in robust digital infrastructure to support technological advancements.

ENCOURAGE INNOVATION AND R&D

Provide incentives for research and development, especially in digital technologies.

STRENGTHEN CYBERSECURITY MEASURES

Support initiatives to improve national cybersecurity standards.

PROMOTE SUSTAINABLE BUSINESS PRACTICES

Encourage adoption of ESG principles.

THESE MEASURES WILL ENHANCE THE SECTOR’S GLOBAL COMPETITIVENESS

Drive economic growth, and position the Czech Republic as a leading hub for business services.

ABSL Annual Report 2024

Discover the trends in People & Talent Management, ESG, Hybrid Work, Training & Education, Technology, Labour Market, Real Estate, and more. ABSL Report 2024 is an essential guide to staying ahead of the game and maximizing your success in the business services sector. Download your copy & unlock the full potential of Czech business services!

The Future of Czech Business Services Centres

The primary focus for Czech centres, both in the upcoming year 2024 and as they look towards the end of 2026, revolves significantly around recruiting and retaining staff in key positions and with critical skills. In the more extended term, as we approach 2026, there’s an elevated emphasis on the somewhat more critical and high-priority tasks of effectively managing costs and creating new value. Equally important and with high priority remains maintaining the well-being and resilience of employees, which even become higher priority than last year.

82%

of centres consider recruiting and retaining staff in key positions as high or critical priority for the year

Skills Deficit & Training

Skills deficit in respective areas

Top 3 skills in deficit by Czech business services

Technology & Automation

63% of centres experiencing skills deficit

Data Analytics & Modelling

50% of centres experience deficit

Language Competencies

50% of centres Experience deficit

The Top 5 Strategic Priorities for the year 2024

1.

Recruiting and retaining staff in key positions and with critical skills.

2.

Managing costs, creating new value (value creating strategies)

3.

Maintaining the well-being and resilience of employees

4.

Promoting customer-centricity

5.

Digitization investments

Top initiatives on the top of 2024 agenda

The activities on the top of the 2024 agenda of the Czech centres prioritise the Digital Transformation but aim also to increase Value and Strengthen Foundations. The most important for the year 2024 is to accelerate digital transformation and reduce operation cost through greater process automation. However, the biggest change is in the deploy/improve cybersecurity capabilities +16% compared to the year 2023.

39%

of centres believing that innovation in AI likely or somewhat likely fundamentally changes the way work is executed

51%

of centres already executing plan in increasing cybersecurity risk outstrips centres ability to control it

43%

of the Czech business services centres provide services globally

Global regions supported by Czech business services

Based on the surveyed companies, we observe a rise in support for South America and APAC this year. Nevertheless, it’s noteworthy that Western Europe continues to be the most heavily supported region.

ABSL Annual Report 2024

Discover the trends in People & Talent Management, ESG, Hybrid Work, Training & Education, Technology, Labour Market, Real Estate, and more. ABSL Report 2024 is an essential guide to staying ahead of the game and maximizing your success in the business services sector. Download your copy & unlock the full potential of Czech business services!

People and Talent Management

“Czechia, ranked in the top 25 globally for attracting professional talent, is not just a hub for business services but also a magnet for foreign talent, thanks to its high quality of life, cost-effective living, safety, and abundant opportunities. These factors, combined with its strategic location and economic stability, create the right environment for expatriates. The significant presence of foreign professionals in the business services sector, nearly half of the workforce, is a testament to Czechia’s appeal. This blend of lifestyle benefits, economic prospects, and a welcoming professional environment makes Czechia a premier destination for global talent seeking a balanced and prosperous professional and personal life.”

Martin Howlings, CEO & Founder, Expats.cz

People & Company Culture

82%

Of centres plan have critical priority to recruit and retain staff in key positions and with critical skills

89%

Of centres focus on developing strong company culture

Remote Working Strategies

95%

of employees come to the office for socializing with colleagues

9%

Plan to increase the number of office locations in the Czech Republic

Expats Survey – Fusion Leader Project 2023

This Fusion Leader work group ran a survey across multiple business services centres to find out more about foreigners living in Czechia and who work in the sector.

Project group: Štepán Böswart (Knorr-Bremse), Beata Hriňová (Johnson & Johnson), Karolina Charouzková (Siemens), Nicolas Pottier (ADP), Hana Michelová (Infosys), Helena Tabakovová as a Coach.

58%

of women

69%

of the respondents were from European countries

84%

of respondents have some University degree

85%

of respondents were younger than 45 years

65%

of respondents are 5 years or less in current company

72%

of expats currently residing in the Czech Republic want to stay in the Czech Republic

Knowledge-based activities continue to grow

Centres continue to expand their knowledge-based activities steadily. At the partner level, predominant services include Finance and Accounting, IT services, as well as Research and Development. Notably, a substantial proportion of Customer Operations also falls within the partner level. At the developing stage, focus is on services like Data Analytics and Document Management.

Transactional vs. knowledge-based activities

ABSL Annual Report 2024

Discover the trends in People & Talent Management, ESG, Hybrid Work, Training & Education, Technology, Labour Market, Real Estate, and more. ABSL Report 2024 is an essential guide to staying ahead of the game and maximizing your success in the business services sector. Download your copy & unlock the full potential of Czech business services!

Robot and Automation Workforce

In Czech business service centres, technology and innovation thrive as robots and automation contribute to 6% of the workforce. With a collective strength of 10,500 FTEs, the sector averages around 53 FTEs per centre, showcasing a commitment to cutting-edge efficiency.

Robot and automation provide work equivalent to:

39%

of centres believing that innovation in AI likely or somewhat likely fundamentally changes the way work is executed

51%

of centres already executing plan in increasing cybersecurity risk outstrips centres ability to control it

6%

of workforce RPA & other automation

10,500 FTEs

equivalent robot/automation workforce in the sector

53 FTEs

average number of robot/automation FTEs per centre in CZ

Top services on the rise and on the go in the year 2023

In 2023, IT services, especially in cybersecurity and information security, are on the rise, aligning with Czech business service priorities. On the flip side, customer operations and remote sales in marketing show a slowdown this year. However, it’s essential to recognize that these trends are subject to variation based on companies that take part in the ABSL Survey 2023.

Top 5 on the rise in 2023

IT Services: Cybersecurity & Information Security

IT Services: User support / Service Desk

HR: Compensation & Benefits

Data Analytics: Provide requested report to the enterprise

IT Services: Other IT services

Digital transformation & Artificial Intelligence

86%

Of centres planning to accelerate digital transformation

80%

Of centres plan to reduce operation costs through greater process automation

Automation & Cybersecurity

> 90%

Centres with a plan in place to deal with the top 5 cybersecurity threats

25

Automation experts per centre in 2025

ABSL Annual Report 2024

Discover the trends in People & Talent Management, ESG, Hybrid Work, Training & Education, Technology, Labour Market, Real Estate, and more. ABSL Report 2024 is an essential guide to staying ahead of the game and maximizing your success in the business services sector. Download your copy & unlock the full potential of Czech business services!

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