Prospects for development of KPO services in Poland. Interview with Anna Borowicz, Sales Manager, on the advantages of competence outsourcing.
Cyclad: How does the market of business outsourcing in Poland in the IT industry look like?
AB: Over the last few years, Poland has consistently been building its brand as an attractive target for modern business. In Poland there are currently almost 1000 centers offering IT outsourcing services. The customers of such centers are mostly foreign-owned companies that decided to move some of their operational processes, such as workstation management and application hosting, to external companies. Frequently, those are also companies that decided to move their entire IT department, focusing on their flagship activities. The Polish cities which our customers chose are mostly academic centers guaranteeing the access to qualified specialists. The leaders that attract the greatest number of investors are Kraków and Warsaw, followed by Wroclaw, Tricity and the Silesian agglomeration. In recent years, Poznań, Łódź, Rzeszów, Szczecin and Bydgoszcz have become more and more popular on the list of places for IT investments.
It is worth emphasizing that how the IT outsourcing market in Poland looks like now and how it will look like in the future is influenced by the fact that, despite constantly increasing absorption of the market, understood as the willingness of foreign investors to use the skills of Polish IT specialists, the number of them is not sufficient. According to various estimates, we currently lack about 50,000 specialists.
Cyclad: In Poland, the market of business outsourcing services is steadily increasing. Why? How do Polish companies win with international competition?
AB: That is true, all industry reports on the most popular destinations of foreign investment in the IT indicate Poland. What makes foreign companies choose Poland? Certainly these are HR resources. High qualifications of our IT engineers, their innovation, diligence and knowledge of foreign languages. I think our geographical, central location is also crucial. We are well connected with the largest cities, not only in Europe.
Likewise in Cyclad, we notice a great deal of interest in our services by Western European and US customers. It is worth emphasizing that price competitiveness is not the only aspect that our foreign partners consider. The knowledge and skills of Polish IT professionals are increasingly appreciated.
Cyclad: What is the difference between KPO services and popular BPO services?
AB: BPO is the center of the so-called shared-services where some of customer’s business processes are carried out. The principle is simple, the same process should be provided more efficiently and at lower cost externally. We can outsource almost everything, financial services (human resources and payroll), transaction processing, cleaning, correspondence handling, marketing, mail service, Call Contact Center and HR services (employee leasing and recruiting). As for KPO, the principle is the same as in BPO, but with KPO we carry out projects involving knowledge, or values based on expertise, often niche ones, including new technologies.
In Cyclad, KPO services are provided by the most experienced IT specialists on the market. These are people employed in Cyclad who provide services exclusively for a particular Customer. Very often their workplace is our Clients’ office, although Cyclad obviously can provide a comprehensive service, including the organization of infrastructure necessary for the realization of the project. Our customers choose to outsource complex and expert processes because the amount of work, financial resources or time spent on acquiring the knowledge they seek, including, for example, doing their own research, is too big and stray from their core business. KPO allows you to concentrate on your core business objectives, while, at the same time, delivering your service at the highest level.
In addition, it gives an access to the knowledge and experience of market leaders. A Specialist with great expertise, who is delegated to the company, makes use of all the knowledge accumulated over the years while working for various clients.
Recruiting outside experts from companies such as ours, directly affects not only the cost reduction, but it also allows us to react more quickly and efficiently to the needs of the business. Thanks to the KPO service, we maintain optimum employment levels and do not face the risk of searching and employing our own specialists. This gives the customer greater security and flexibility in making strategic decisions.
Cyclad: What kind of competencies do employers expect from IT consultants?
Cyclad: What are the prospects for the development of KPO services in the IT industry in Poland?
AB: The technological advances we have never faced before forces organizations to look for the most effective IT project management models, no doubt KPO responds to this demand. The advantages of KPO such as an immediate access to specialized staff, cost reduction, ability to take up flexible solutions by opening up to the latest technologies, speak for themselves. All industry research indicates that KPO services are doing well, and we can expect their market share to grow in the nearest future.