The uncertainty caused by the pandemic has directed investors' attention to strategies based on nearshoring. The beneficiary of this trend, just as a decade ago, may be Poland.
Our observations show that companies which provided business services from further afield, such as Asian countries, have faced incomparably greater disruption than those that had developed European hubs before the pandemic. This again is drawing the attention of many foreign companies to nearshoring, and increasingly to Poland, which is perceived as a safe bridgehead for many strategic business processes. As a result, just as after the global financial crisis, we may expect a significant inflow of new outsourcing investments, which in recent months is illustrated by the growing number of potential investors from Scandinavia, Germany, the United Kingdom, France and Switzerland,
comments Mateusz Bonca, CEO, JLL Poland.
Poland’s stability puts it ahead of the competition
Poland’s strategic location at the heart of Europe, its modern IT infrastructure, qualified labour market as well as attractive grants and incentive system are undoubtedly assets that can attract new investors. Last year, Poland again proved that the country is also an economically stable location and is able to maintain the continuity of critical business processes. Although the downturn in global markets was inevitable, Poland's GDP in 2020 dropped by only 2.7%, one of smallest decreases among EU countries, and compared very favourably when stacked up against the largest economies in Europe,
emphasises Iwona Chojnowska-Haponik, Business Location Consulting Director, EMEA, JLL.
Human capital in the spotlight
Poland is perceived by investors as a mature and diversified business location, offering extensive access to skilled workers. As a result, foreign companies are increasingly choosing to relocate senior positions to Poland, meaning a rise in the implementation of increasingly advanced processes and functions, and the creation of key decision-making centres in the country that follows. In addition, Poland is attracting not only companies from IT, modern technologies and the finance sector but also pharmaceutical and medical device industries, which see the potential in the development of the clinical research sector in our country,
says Łukasz Grzeszczyk, Executive Director – Client Relations, Hays.
Grants strengthen investor appetite
Previously, the requirement for a business services centre, in order to receive financial support, was to create 250 jobs and invest PLN 1.5 million. Now, a large investor making its first investment or expansion on the Polish market can employ 100 people and incur capital expenditure of PLN one million within a five-year period. However, the level of grant depends on the quality assessment of the project,
comments Rafał Szajewski, Business Location Consulting Director, EMEA, JLL.
Services go hand in hand with offices
More than 1.2 million sq m of office space is currently under construction, with regional markets accounting for 800,000 sq m. This translates into an extensive office offering that enables investors to find suitable spaces in locations nearer to prospective employees. What is more, these schemes are of a high standard, particularly in terms of sustainability, and amenities that support employee wellbeing. And this is important for investors, who are aware of employees’ increasingly conscious approach, especially those from the younger generations, towards environmental issues, which is reflected in the operating strategies of both domestic and global employers,
says Jakub Sylwestrowicz, Head of Office Tenant Representation, JLL.
Poland has all the arguments in its favour to confirm its dominant position among the world's elite destinations in the business services sector. Importantly, business is now won to a much greater extent through innovation, high quality output and the specialization of processes conducted in Polish centres. In order to make good use of this opportunity, it is necessary to ensure the effective use of investment incentives and grants, as well as working on maintaining the attractiveness of the domestic labour market. In addition, sustainable investment in the office market is an area that will become increasingly important in the near future, especially in terms of environmentally friendly construction processes, and green solutions implemented with future office users in mind,
says Mateusz Bonca.
