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Shared business services (corporate outsourcing)
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In terms of demand for locations in Central and Eastern Europe at this time, business services is the most buoyant sector which, in turn, covers several different segments within which labor intensity and value added benefits vary considerably.
Business Services Comprises the following key segments:
- Data processing center
- Call center
- Technology support center
- High-tech repair center
- Shared service center
- Technology center
- ICT expert solutions center
- Software development center
- Headquarter
Starting with the site selection factors, ICT related investment decisions are overwhelmingly influenced by the availability of programmers and senior programmers at a moderate rate of remuneration compared to Western Europe.
For ICT and other forms of business services multilingualism and multiculturalism are of paramount importance and where direct customer interfacing is required, potential investors are seeking a Western-oriented mentality. It should also be borne in mind that within the call center segment in particular, Vojvodina is competing within a time zone – not just a territorial part of Europe. For example, some of Lufthansa passenger and logistics support services are provided from Cape Town in South Africa. The top ten factors influencing the site selection are:
- Technical skills
- Linguistic skills
- Cost efficiencies
- Fully enabled business environment – including intellectual property protection
- Quality and cost of telecom and internet services
- Provision of suitable property – especially technology and business parks
- Linkages with universities
- Professionalism of investor servicing
- ‘soft’ issues like international schools for family of foreign investor
- Incentives (if there are fundamental weaknesses with any of the top seven issues, raised above, then incentives won’t compensate – no matter how generous).
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