How to select your new SSC site in Hungary?

by Dr. Balazs CsorjanXanga Office Park, Debrecen

[overview]

track record

labour market

office markets

infrastructure

locations

[hungary]

low-cost location inside the EU market

geographical and cultural nearness

leading industries: automotive, pharma, electronics, SSC, tourism, food

[SSCs in hungary]a proven track record

[SSCs in hungary] a non-comprehensive listing

industry association: www.hoa.hu

[overview]

track record

labour market

office markets

infrastructure

locations

[university students]

[SSC employees]

[wages]

€12k in Budapest, annual gross salary for carrier-starter operator with 2 foreign languages

€8k outside Budapest >> 30% cost saving

trend: Budapest becomes more and more expensive

[overview]

track record

labour market

office markets

infrastructure

locations

[office supply]

over 3 million sq.meter office stock in Budapest: the largest market in Central and Eastern Europe

100k sq.meter in Debrecen: SSC-focused office parks

other cities: microscopic/non-existing office markets, built-to-suit solutions

[office costs]

Budapest: €13/sq.m/month (14.5€/sq.feet/year) average rental fees, 0.5-2€/sq.m/month service charges

Debrecen: €8/sq.m/month (8.9€/sq.feet/year) average rental fees, 0.5-2€/sq.m/month service charges

other cities: customized agreements

[overview]

track record

labour market

office markets

infrastructure

locations

[air access]

Budapest Airport: the 2nd largest hub in Eastern Europe, more dozen daily flights inside Europe

Debrecen International Airport: strong air cargo focus; passenger flights to Western Europe and to Mediterranean Sea

[international schools]

Budapest: more international schools in more languages (English, French etc)

Debrecen: international school in English from 2013; bilingual high schools and grammar school

other cities: bilingual (e.g: English-Hungarian) high schools

[telecom]

free market, competing service providers

high broadband access in all cities

at least 2 service providers in all relevant facilities

[industry associations]

HOA Hungarian Outsourcing Association

: strong impact on labour market regulations; networking events e.g: 2012 Annual International Conference on talent management

ICT Association of Hungary

SEE YOU THERE

[overview]

track record

labour market

office markets

infrastructure

locations

[budapest]

leading universities: Corvinus, ELTE, Budapest Tech

more than 90 SSC/BPO companies in every field; approx. 40k employees

office market benchmark: Vaci street corridor (underground access, 12-14€/sq.m/month average rental fees)

[debrecen]

8 SSC/BPO companies in IT/telecom support, customer service, FSSC, HR SSC

2k+ employees, numerous foreign languages

University of Debrecen: the largest one outside Budapest, 33k students, including 4k+ international students

leading office centers: Xanga Office Park (>> on-site SSC trainings), Lion Office Center

[miskolc/szeged/pecs]

large universities: University of Szeged, University of Pecs - almost 30k students on each one, University of Miskolc: 14k students

some SSCs are present; employment: under 1k

quickly available offices could be a problem; built-to-suit office developments

Thanks for your attention!Do not hesitate to email your questions:

b.csorjan@xanga.hu