Shared Service Centers Continue Growth in Hungary

PricewaterhouseCoopers conducted the first comprehensive survey on the SSC industry in Hungary, finding that Hungary’s shared services industry has grown into one of the country’s largest employers with 30,000 jobs.

PricewaterhouseCoopers conducted the first comprehensive survey on the SSC industry in Hungary, where they found that after the rapid expansion of the past decade, Hungary’s shared services industry has grown into one of the country’s largest employers with 30,000 jobs.  
Today, there are more than 80 SSCs in Hungary, providing a range of centralized business services at a primarily regional, but in some cases global level. Typical services include finance and accounting, procurement, logistics, IT and human resources, and involve transactional roles as well as complex, high-end, value-added activities. SSCs primarily employ graduates with strong language skills. Further to being a significant employer, the shared services industry accounts for approximately 1.2pct of the 2010 central state budget in terms of employee-related taxes, duties and VAT payments.
As the key attribute of that attractiveness, respondents have focused on the highly qualified workforce with their strong language skills, the excellent infrastructure, and the ‘Class A’ real estate.
The capital is becoming more competitive due to new entrants and the expansion of existing SSCs; however, in-country alternatives need to be explored if Hungary wants to continue to attract new SSC investment.  Mike Colicchio, managing director of Celanese Corporation’s Budapest Business Services Center says: “One important aspect of a country’s ability to maintain a leadership position in the SSC marketplace is the development of secondary locations outside the primary city.”

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