Outsourcing Sector Driving CEE Office & Graduate Demand


More than 60 per cent of the demand for office space in four major CEE cities – Warsaw, Lodz, Krakow and Sofia – during the first half of 2017 came from the outsourcing sector. That is one of the key findings of a major new report published on December 14 by Colliers, one of the region’s largest real estate agencies. The report claims that the demand for office space is itself being driven by the ready availability of skilled workers, but also warns that the stock of highly-qualified graduates is not inexhaustive.

Importantly, while the cost of labour throughout CEE is rising, this does not yet appear to be putting potential outsourcing clients off the region: far from it. In fact, the report finds that it is precisely the characteristic of the sector, the climb up the technology complexity chain that is in part driving wage increases. “Graduates and employees are acquiring new skills and thus improving productivity and creating more value for their clients,” said Mark Robinson, CEE research specialist at Colliers and author of the report.

“I would not call wage inflation a big risk, but obviously it is a significant factor,” added Jacek Levernes, president of the management board at the Association of Business Service Leaders in Poland. “Investors who are developing their business in central Europe are aware that employees in the region are very well-qualified and continually working on ever-more professional processes. As such, wage costs should reflect that progression and are part of the story of any emerging economy. This availability of human resources and experienced staff is exactly the factor which attracts outsourcing providers to open operations in Poland.”

The biggest problem might well be a shortage of qualified workers. In all but two (Budapest and Bratislava) of the 21 CEE cities surveyed by Colliers over the past 18 months, the outsourcing sector is a significant employer of new graduates. In two cities, Wroclaw and Bucharest, the outsourcing sector is currently hiring more than 20 per cent of all graduates. It is here, as well as Krakow (19 per cent) and Sofia (17 per cent), that demand versus graduate availability could soon be an issue.

George Didoiu, who heads up Colliers office department in Romania, said that 300,000 sq m of office space is due to be delivered in Romania in the immediate future, much of it for the outsourcing sector. “Companies will be able to choose from some great spaces,” he said. “The problem will be filling them with qualified workers. Although graduates are heading for the services sector, universities are simply not producing enough of the right calibre. Given that unemployment is at a record low, under two per cent, this could be crucial for companies making decisions about opening up in Romania or extending existing operations.”


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Poland to Switch from Emerging to Developed Market by September 2018

warsaw stock exchange

Kaczyński Defends PiS Record

How to Prepare an Organisation Before Deciding to Outsource


EBRD Transition Report Highlights Financial Sector Resilience


IMF Concludes Latest Moldova Review, Releases New Money

Reflection of a Soviet building in Chisinau Republic of Moldova

Brexit Doesn’t Mean Business Is “On Hold”

Baltic Bank Merger May Tempt Polish Heavyweight

DNB Bank Vilnius

Is the CEE Region About to Steal the Outsourcing Crown From India?

Amazing view on the Taj Mahal in sunset light with reflection in water. The Taj Mahal is an ivory-white marble mausoleum on the south bank of the Yamuna river. Agra Uttar Pradesh India.

Budget Chaos Hits Romanian Leu

Different Romanian Lei Banknotes on the table

HSBC Opens Warsaw China Desk

Croatian Salaries Are Growing in Line With Other CEE Countries

Dubrovnik Croatia emerging europe

EY: Belarus’ IT Scene Is Thriving

High tech park minsk

Poznań is Becoming an Automotive, IT and BPO Hub

Night view of Poznan Old Market Square in western Poland. Panoramic montage from 5 HDR images

Putin Urges Belarus to End Oil Transit Through Lithuania

Athens Greece - May 27 2016: Russian President Vladimir Putin delivers

Slovakia: Growth Continues But Problems Remain

Baltics Seek Lockstep With High Tech States

Euro money: Macro view of euro coin and bill. Suitable for financial, monetary, euro or European Union concepts and ideas

Ask for Georgian Campaign Set to Expand Abroad

Traditional Georgian carpet. Carpets with typical geometrical patterns are among the most famous products of Georgia.

Poland & Ukraine Should Join Outsourcing Forces


Poland’s New PM Defends Attacks on Justice System

warsaw supreme court

European Commission Withholds 600 Million Euros from Ukraine

kyiv, kiev, ukraine

The Polish Government’s Mid-Term Report: Must Do Better

Front of finance ministry in Warsaw Poland with a fountain framing the entrance. Could be used for images about Euro currency problems

“e-Belarus”: Embracing the Internet and its Possibilities

Western Ukraine Could Be an Entry Point into the Country

China Agrees to Build High-Tech Business Park in Serbia

BELGRADE SERBIA - SEPTEMBER 29 2016: View on the city center and the junction of Rivers Sava and Danube in Belgrade Serbia.

Ametek opened a new factory in Subotica

Romanian Transport Infrastructure Failures Pile Up

Cernavoda Romania - June 20 2012: Construction works at the A2 highway connecting Romania's capital Bucharest to Constanta.

IFC Invests 30 Million Euros in Ukrainian Packaging Firm

IMMER Ukrplastic

Non-Financial Reporting No Longer a Secondary Consideration in CEE

EBRD Finances Small Business Support And Foreign Trade Promotion In Belarus

Estonia Proposes Bill of Rights and Responsibilities for Robots

Robotic hand accessing on laptop the virtual world of information. Concept of artificial intelligence and replacement of humans by machines.

Tech Giant Expands Romanian Operations

Merkel: Albania is taking big steps forward

Growth Increase Offers Glimmer of Hope for Moldova


Sarajevo Stock Exchange Connected to SEE Link

sarajevo stock exchange

German Multivac invests €15 million near Sofia

The Newly Branded Global Sourcing Association Makes Standards its Priority

Poland’s Q2 2017 Growth Is Stronger Than Expected

WARSAW, POLAND - MAY 07, 2016: Building Palace of Culture and Science among the modern buildings of the city

Emerging Europe to Record Positive Growth Across the Board in 2018

coins growth

Fitch And the World Bank: Economic Growth To Remain Solid Within CEE In 2016

Ukraine Continues to Make Waves as an IT Outsourcing Destination

Bulgaria Eyes Azerbaijani Gas Deal

Yellow gas pipes in natural gas treatment plant in bright sunny summer day

Why Emerging Europe is the New Darling of Outsourcing

outsourcing Developing programming and coding technologies. Website design. Cyber space concept.

A Risky Evaluation of Croatia’s Economy?

ZAGREB, CROATIA - JULY 17, 2017: Square Ban Josip Jelacic with tourists and trams on a summer day in Zagreb. City of Zagreb is the capital of Croatia.

ICT Given Huge Boost in Belarus

MINSK, BELARUS - AUGUST 15, 2016: Aerial view of the southwestern part of the Minsk with Palace of Sport and old and new other buildings. Minsk is the capital and largest city of Belarus.

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