Business Support Services

Transcription

1 Business Support Services 2013

2 Content Why Portugal? aicep Portugal Global 2

3 Education & Labour Force Higher Education: qualified workforce available Number of total graduates in the main cities in Portugal, 2010 Students enrolled in higher education institutions by field of study, 2010/2011 5,948 15, Healthcare 16% Services 6% Education 6% Arts 9% Agriculture 2% 29, Engineering, Manufacturing 22% Science, Maths and Computers 7% Social Science and Law 32% 2,129 High-Tech areas represent almost 30% Source: INE Statistics of Portugal, 2011/2012

4 Education & Labour Force A positive trend towards an interesting talent pool Enrolled in higher education, HUMAN RESOURCES PERFORMANCE Portugal was ranked #2 in Human Resources growth performance according to the European Innovation Scoreboard POST-GRADUATE EDUCATION WORLD CLASS EDUCATION Life Science, Health and Engineering areas represent 40% of the total enrolled students in tertiary education, 2009/ ATTRACTIVENESS FOR EXPATRIATES Portugal is ranked # 2 in Migrant Integration Policy Index III 2011 out of 31 countries, European Commission Source: INE Statistics of Portugal, 2011/2012

5 Education & Labour Force 18,500 students 32 R&D facilities 11 Faculties 32,000 students 60 R&D facilities 15 Faculties 24,000 students 54 R&D facilities 11 Faculties MINHO UNIVERSITY PORTO UNIVERSITY LISBON UNIVERSITY Reference Universities in the country CATHOLIC UNIVERSITY AVEIRO UNIVERSITY 14,000 students 23 R&D facilities 16 Faculties 14,000 students 16 R&D facilities 20 Faculties 20,000 students 41 R&D facilities 9 Faculties NOVA UNIVERSITY COIMBRA UNIVERSITY 24,000 students 40 R&D facilities 12 Faculties 24,300 students 55 R&D facilities 7 Faculties TECHNIC UNIVERSITY ALGARVE UNIVERSITY 9,700 students 7 R&D facilities 7 Faculties Source: Conselho de Reitores das Universidades Portuguesas

6 Education & Labour Force International Schools in the South Lisbon area has a big diversity of International schools, offering foreign-language based education from pre-primary school until k-12 in several languages. St Julian's School - St Dominic's International School - German School (Estoril) - Carlucci American International School of Lisbon - Lycée Français Charles Lepierre - International Preparatory School - St. Peter s School - (Setúbal city) LISBON AREA

7 Education & Labour Force International Schools in the North Located in Porto, they offer foreign-language based education from pre-primary school until k-12 in French, English and German and a increasing number of students. PORTO AREA

8 Education & Labour Force Labour Force Available Unemployment Rate (Q1-2013) Portugal Total 17.7% Young People (Aged between 16 and 24 ) 42.1% Source: INE, 1 st Quarter 2013 Recognized skills: Good command of the English language; Good level of academic qualifications; Ability to solve new problems / Adaptability; Commitment to work Surplus of engineers: Civil and construction Electronics and telecommunications IT (computer system designers / programmers) Mechanical, Chemical, Electrical Others (such as Environmental)

9 Labour Regulations Overview Portugal is a modern country, with an attractive employment market, a peaceful labour environment and flexible labour regulations, that offer various competitive advantages to foreign investors. Hiring Firing Others Employment contracts are not subject to any specific formalities (except when the law requires differently). Trial period: from 15 to 240 days, depending on job specifications. Fixedterm contracts can be renewed during 3 years (maximum of 3 renewals). Foreign workers, who are authorised to work as employees in Portugal, have the same rights and duties as Portuguese nationals workers. Employment contracts celebrated with national members of European Economic Area do not require the written form. The new Portuguese employment code simplifies and shortens disciplinary procedures and increases the legal security of the parts in dismissal processes. During trial period, either part may terminate the contract without notice, with no right to compensation (if the trial period lasts more than 60 days, to cancel the contract the employer must notice the decision 7 days in advance). Also, no compensation is due in case of dismissal with just cause (i.e., situation in which the employment relationship is impossible to keep). Maximum working hours per day: 8. Maximum working hours per week: 40. Collective agreements allow up to 6 hours consecutive work, reduce or exclude resting hours duration and extend daily and weekly working hours to 12 and 60, respectively. Individual employment contracts can extend these values to 10 and 50 hours, respectively. Special working hours, shifts, night work and overtime work can be stipulated. National members of European Union countries do not requires working, residence or habitation visas/permits. Source: Portugal Labour System January 2011, Aicep Portugal Global

10 Labour Regulations New Labour Law Less 4 public holidays starting in 2013; Regarding holidays, the 3 extra days for attendance reward will be eliminated from 2013; The hour bank system during production peaks can be negotiated directly with the workers; Overtime work payment will be reduced by 50% and employees are not entitled to paid time off in lieu; Compensation for dismissal will decrease to the average European Union level and a threshold will be defined; Lay-off with new rules to reduce deadlines.

11 Language Skills The country has made several efforts towards an increase in the foreign languages learning at school Non-Academic Language Schools are available throughout the country Wide pool of multilingual skills English learning is mandatory since 2009 beginning at the elementary school; 80% of the students enrolled in high school also learn English; 63% of the students enrolled in high school learn French; Around 20% of highly qualified workforce has attended foreign language degrees;

12 Language Skills Native Speakers of Foreign Languages in Portugal Native Speakers of the most common Foreign Languages in Portugal. A dominant presence of European eastern and southern languages. Language Number of native speakers Scandinavian PORTUGAL English German Dutch French Spanish Chinese Bulgarian Japanese Others Scandinavian English German Italian Russian Ukrainian Romanian Polish Bulgarian Chinese Japanese 385 Others Polish Romanian Ukrainian Dutch French Spanish Italian Russian Source: Official Statistics SEF 2011, Ministry for Foreign Affairs

13 Competitive Costs Among EU Countries, Portugal is rather competitive MININUM WAGES ELECTRCITY PRICES No statutory minimum wage EU-27 Eurozone Portugal Eurostat, Electricity prices for industrial, 2 nd Q, 2011 ( /Kwh) LABOUR COSTS REAL ESTATE RANKINGS EU-27 Eurozone Portugal Eurostat, Labour cost per hour in euros (> 10 employees), 2011 # 19 Office space in Lisbon CBD 12.1 # 11 Office space in Lisbon non-cbd PORTUGAL Cushman & Wakefield, 2012; 63 cities Source: Eurostat, 2012 Data as on 1st of January in European Union.

14 Competitive Costs Average wages in Contact centers in Portugal AVERAGE WAGE OF AN OPERATOR /Month AVERAGE WAGE OF A SUPERVISOR /Month More than Specialized center Large center More than Between 901 and 1200 Between and 1500 Between 751 and 900 Between 1001 and 1200 Between 601 and 750 Between 851 and 1000 Between 500 and 600 Between 700 and 850 Less than 500 Less than % of the salary levels range between 500 and 600/month. In case of specialized centers, the range moves up one level. For higher job positions a supervisor the salary increases by 30% on average. Source: Benchmark Survey 2011, Portuguese Contact Center Association

15 Competitive Costs Average Bonus in Contact Centers in Portugal Operators No Bonus Supervisors Others Health Insurance Mobile Most common bonuses are cashrelated, sales commission and health insurance. The differences in bonuses between operators and supervisors are relatively small. Gift voucher for other criteria Gift voucher for quality service Gift voucher for efficiency Gift voucher for attendance Sales commission Cash bonus for other criteria Cash bonus for quality of service Cash bonus for efficiency Cash bonus for attendance Source: Benchmark Survey 2011, Portuguese Contact Center Association

16 Competitive Costs Wages by Industry Average AVERAGE WAGE OF AN OPERATOR The monthly wage of an operator is around 736, on average. On average, a supervisor gets 40% more than an operator. On average, the most common bonus is awarded according to service quality and efficiency. /Month MOST COMMON BONUS OF AN OPERATOR (%) Source: Benchmark Survey 2012, Portuguese Contact Center Association: IT Services Retail & Commerce Postal Services Utilities Telecommunications Insurance & Travel Assistance Banks & other financial entities Others No Bonus Health Insurance Mobile Telephone Sales Commission Cash bonus for other criteria Cash bonus for service quality Cash bonus for efficiency Cash bonus for attendance

17 Incentives & Grants Government Support GOVERNMENT SUPPORT Commercial Register Online Companies can update or record formal acts online: 50% cost reduction and no need for physical presence. Simplified Company Information Submitting financial and accounting information required by public bodies in one step: filling of a single form, available online. On the spot company In January 2010, the average time to set up a company was of 35 minutes: this service enables to set up companies at a single contact point, without filling any application form. Financial Incentives Fiscal Incentives Training Incentives R&D Incentives Internships Grants Job creation incentives Customized incentives package Government Agency with dynamic approach focused on the client or investor; Free of charges, flexible and streamlined services; Single point of contact in all phases: pre-investment, incentives negotiation, settling in and after care; Promoting a direct negotiation with investors. The United Nations Public Service Awards granted Portugal with 1st prize in Improving the Delivery in Public Services category in May According to the World Bank, in 2012 Aicep is in the TOP 10 (out of 189 countries) Worldwide Investment Agency in inquiry-handling to potential investors.

18 Prime rent ( /sqm/month) Office Space Office Space Available The office market in Portugal is quite competitive and recorded a tremendous change: new or rebuild properties, eco-efficient construction, modern and design-oriented, close to public transportation. Calls centers, financial services and technology are the most active sectors in terms of occupancy of new office space, as a result of growing availability of modern office space. Prime Rents: are expected to see further pressure to decrease as landlords compete for tenants. Vacancy rates 2012: 12%, the highest ever recorded Total Vacant Area (sqm): 545,000 (Lisbon, 2012) Space currently under construction: almost two thirds is pre-let. (Out of town) The trend in prime rents has been clearly downwards in the last 7 years, in major Lisbon office areas. Source: Cushman & Wakefield, Marketbeat Portugal, Spring 2013 Source: Jones Long LaSalle, Portugal Market Pulse, 2012 Q4

19 Shared Services & Outsourcing Shared Services and Contact Centers: Overview Portugal has 450 companies in the shared services centres and call centers industry, employing an excess of 30,000 people and representing around 2% of GNP. A growing number of companies are choosing Portugal to invest in this sector. That s why the industry is showing a twodigit growth over the last 4 years and is expecting to keep this track on the coming years. Portugal is already the chosen destination of large and medium sized multi-national contact center corporations who profit from the existing installed expertise combined with comparative lower installation and running costs the country offers. The Portuguese Shared Services Centre Market is growing and the new centres recently established in Portugal prove that we remain competitive. According to the latest IBM-PLI SSC Monitor, Portugal represents 2% of the SSC market and is included in the third wave location trend. The country s language-skilled workforce and flexibility has made companies such as IBM BTO, Siemens, Cisco and Alcatel to locate their SSC in Portugal and by doing so, saving up to 58% of costs in these divisions.

20 Shared Services & Outsourcing Outsourcing services: Overview The Outsourcing activities are growing fast across the country. Currently, this industry represents around 900 Million (0.54% of GDP), still below the European average. It is expected an increasing employment through the creation of 10,000 new jobs and the value generated achieve one billion in productivity gains. Outsourcing Value 2012 (Million ) Expected trend in Outsourcing Employment in Portugal BPO 41 % IT 59 % Source: Portugal Outsourcing, IDC Source: Portugal Outsourcing, INE, IDC Xerox office in Lisbon Source: Portugal Outsourcing

21 Shared Services & Outsourcing Main cities attracting services in Portugal Largest cities in Portugal Porto and Lisbon concentrate the main services centers. But smaller cities are also attracting IT outsourcing activities and shared services, for their lower costs, dynamic and skilled local university graduates and higher office vacancy rates. BRAGA PORTO AVEIRO COVILHÃ LISBON

22 Shared Services & Outsourcing Contact Centre World Awards 2012 Portugal is top Performer in key areas of SSC sector, showing its value among other countries from EMEA Region and at worldwide level: Gold Medal ZON Portugal for Technology Innovation; for Home/Remote Agents; for Community Service; for Contact Center Design; Optimus for Customer Service (Inhouse) PT Contact for Green Contact Center Silver Medal Teleperformance for Outsourcing Performance, for Customer Services, for Large Sized Contact Center; Bronze Medal Optimus for Technology Innovation PT Contact for Community Spirit Source: Contact Center World Awards

23 Shared Services & Outsourcing Breaking News In 2012, Lusotechnip, Portuguese subsidiary of the Group Technip, reinforces his bet by Lisbon, and opened a new engineering execution center and training pole to serve Brazilian and Angolan markets, employing currently 110 persons. Altran, French global leader in innovation and high-tech engineering, has opened an office in Fundão, for a Nearshore Delivery Center, focused in information systems, telecom network support and automotive diagnosis. Source: aicep Portugal Global

24 Some Reference Players Reasons for choosing the site location

25 Shared Services & Outsourcing Portugal Outsourcing The Industry Association Portugal Outsourcing gathers the TOP IT and BPO companies in the country, with the objective of contributing for the development of the Portuguese Outsourcing Industry promoting best practices, stimulate the creation of competence centers and disclose the offer and the outsourcing activity in Portugal. It represents 85% of the BPO and IT market share. MEMBERS For the first time, Portugal is included in the TOP 11 countries as the best worldwide destination to establish Outsourcing activities either in offshore or nearshore, according to the consulting firm Gartner. Source:

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27 aicep Portugal Global Who are we? We are a Business Development Agency, focused on the development of a competitive business environment that contributes to the international expansion of the Portuguese Economy. Mission Increasing the country s competitiveness, promoting large private investment and fostering the internationalization of Portuguese companies. Values Focus on clients. We serve our clients in accordance to their requirements through various solutions and long-term relationships. Selectiveness. We direct our activity towards projects and markets that make a better contribution to company competitiveness and the sustainability of the Portuguese economy. Excellence. We seek to exceed expectations by means of a rigorous approach, effectiveness, enthusiasm and a willingness to innovate.

28 About Us aicep Portugal Global: how can we help you? Pre- Investment Incentives Negotiation Settling In After Care Single point of contact in all phases: preinvestment, incentives negotiation, settling in and after care Dynamic approach focused on the client or investor Promoting a direct negotiation with companies, through which a tailored approach to incentives may be applied in order to define a global package that fully satisfies the investor's needs Government business entity, flexible, free of charges and streamlined services

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