Invest Lithuania Market ResearchShared Services and Business Services survey

www.investlithuania.com

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SSC/BPO in 2014:

5 new companies announced their plans to establish their Shared service centres in Lithuania. Additionally, 4 already existing SSCs confirmed their decision to expand. In total these 9 projects will create 1,320 work places.

Combined, the Shared Services industry now consists of 54 international companies employing over 12,000 staff.

Shared Services and Business Services SurveySSC Overview

Publicly announced projects:

Finnish fiber-based materials maker opened a new SSC in Vilnius. The new Service Centre will manage most of Ahlstrom’s finance, accounting and customer service operations in Europe, the middle east and Africa.

Danske Bank, the largest bank in Denmark, has doubled their financial operations centre over the last year.

Lindorff – the Norwegian credit administration company, will create a new SSC for credit management, big data analysis & business intelligence functions.

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Shared Services and Business Services Survey1. Survey Respondents

The aim of the survey: to evaluate the standing of the Shared Services and Business Process Outsourcing community in terms of the most common functions undertaken, salary levels, growth perspectives and other relevant aspects in the field.

Responses: The survey findings were gathered from respondents who employ 50% of the entire SSC sector workforce. This comprised 18 companies, employing over 6,000 people.

Functions: • F&A: Accounts Payable and/or Receivable, Travel

& Expenses, Master Data Management\• IT: Applications Management, Infrastructure

Management, Other IT Services• HR: Payroll, Administration and Reporting, Other

HR Services• Customer Operations: Sales & Account

Management, Helpdesk• Other: Legal Processes, Procurement,

Anti-money laundering, Supply Chain Management

Exports:

average percentage of services exports – 59%-82%

50%SSC

28%BPO

22%Both

24% F&A

22% IT

20% HR

14% Customer operations

20% Other

SSC

BPO

Both

77%-98%

32%-54%

53%-77%

49%SSC

13%

BPO

38%Both

6,000employees

RESPONDENTS’ TYPE OF ACTIVITY

FUNCTIONS SUPPORTED AT LITHUANIAN BUSINESS SERVICE CENTRES

EMPLOYEES OF BUSINESS SERVICE CENTRES

EXPORTS OF SERVICES

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Shared Services and Business Services Survey2. Employment

39%

30-34 yrs

5%

20-24 yrs56%

25-29yrs

SSC BPO Both

<10%<14%

<21%

SSC/BPO BY EMPLOYEES’ AGE GROUPS

TIME NEEDED TO FILL A POSITION

ATTRITION RATE AT BUSINESS SERVICE CENTRES

Average age: 29 years Attrition rate: 10%-14%

The highest attrition rate is within the “both” category as this category contains several call centres.

1 weekStart 2 weeks 3 weeks 4 weeks 5 weeks 6 weeks 7 weeks 8 weeks

F&A

Customer Operations

HR

IT

2-4 weeks

2-4 weeks

4 weeks

4-8 weeks

Where English language is the only prerequisite:

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Shared Services and Business Services Survey3. Education and Languages

6%Secondary schooldiploma

1%Doctoral degree

45%Mastersdegree

48%Bachelor’s degree

46%Up to 6 months

31%More than 1 year

23%6-months -1 year

EnglishSwedishGerman

NorwegianPolish

FinnishFrench

RussianDanishItalian

SpanishPortuguese

EstonianLatvian

100%50%44%39%33%33%33%28%28%28%28%17%17%17%

SSC/BPO EMPLOYEES BY HIGHEST EDUCATION LEVEL ATTAINED

LANGUAGE TRAINING PERIOD IN ORDER TO REACH THE REQUIRED LEVEL

RESPONDENTS PROVIDING SERVICES IN INDICATED LANGUAGES

Languages:

• Most common languages: English, Swedish, German

• 50% of respondents provide services in Nordic languages

Education attainment:

• 94% of employees have Bachelor’s or higher education

• Percentage of employees with Master’s degree exceeds 80% in some companies

Language training:

• 67% of respondents provide language training for employees

• 85% use external resources

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Shared Services and Business Services Survey4. Labour Costs and Benefits

Labour costs

• Average starting salary in the industry – EUR 818

• Avg. salary for mid-level manager – EUR 1,788

Salary growth• Average annual nominal salary growth

2010-2014 – 4.86%

Non-wage benefits• 89% of business service centres offer

non-wage benefits to their employeesSSC BPO Both

825 95

6

700

1,50

8

2,06

6

1,82

3

Starting position (EUR)Mid-level manager (EUR)

Sports/Entertainment

Private health insurance

Life insurance

Private pension schemes

Other

None

11%

11%

22%

44%

67%

83%

AVERAGE GROSS MONTHLY SALARIES

NON-WAGE BENEFITS

Shared Services and Business Services Survey5. Cooperation with Education Institutions

CONTACT US:

• 94% of respondents cooperate with education institutions• 67% cooperate with more than 1 education institution

To find out more about the cooperation opportunities and case studies click here

RESPONDENTS COOPERATING WITH EDUCATION INSTITUTIONS

Kaunas University of Technology

Vilnius University

Vilnius Gediminas Technical University

Vytautas Magnus University

Mykolas Riomeris University

Vilnius College

Lithuanian University of Educational Sciences

ISM University of Management and Economics

72%

61%

50%

39%

11%

11%

11%

6%

Gintvile DambravaiteTeam Lead for Business Services

T: +370 686 59669E: gintvile@investlithuania.comA: Jogailos St. 4 | Vilnius LT-01116 | Lithuania

www.investlithuania.com

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