Discover what Hungary can offer for your business! Hungarian SSC Business Day 2nd November, 2011
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1 Discover what Hungary can offer for your business! Hungarian SSC Business Day 2nd November, 2011
2 Agenda Overview of the Hungarian Economy Shared Service Sector in Hungary Goverment incentives Infrastructure Quality of life Conclusion About HITA
3 Agenda Overview of the Hungarian Economy Shared Service Sector in Hungary Goverment incentives Infrastructure Quality of life Conclusion About HITA
4 The seven break out points of the new economic policy Main objective: to achieve higher economic growth The New Széchenyi Plan Programs and break out points Goal: One million new jobs over ten years Health Industry Development of Green Economy Network Economy Knowledge Economy Home Projects Employment Transport Healing in Hungary Health Industry Program Renewal of Hungary Green Economy Development Program Development of business environment Science, Innovation and Growth Residential property policy Employment Programs Transit Economy Basic principles Integration Global or European competitiveness Creation of new markets High Added Value Source: Ministry for National Economy
5 Agenda Overview of the Hungarian Economy Shared Service Sector in Hungary Goverment incentives Infrastructure Quality of life Conclusion About HITA
6 Why Hungary? What makes Hungary attractive for investment? 70 existing successful centers Good balance of labour costs and quality High level of educational system Outstanding cooperation between educational institutions and companies Excellent infrastructure Quality of life 25 International and 109 biligual schools
7 Overview of the existing service sectors Booming sector Almost 70 SSCs in Hungary Around 30,000 employees Expanding scope and activities
8 SSCs in Hungary by location Adminex Avis Albemarle BP BT Celanese Cemex Citigroup Cognizant Convergys Corning Diageo DHL EDS Erste Bank Exxon Mobile FAO Genpact Getronics HP IBM InBev IT Services KLM Győr Lexmark Morgan Stanley Nalco NCR Nokia Roche SAP Sykes Budapest Tata Transcom UNHCR Unysis Vodafone Vodafone Sykes HP Miskolc Debrecen BT The Gem IT Services SEI National Instruments Székesfehérvár Alcoa Emerson IBM Sapa Visteon Kecskemét Békéscsaba GE Money Bank Budapest Bank BUW Szeged Pécs
9 University towns Budapest Business and Admin Students: 34,412 IT Students: 5,191 Miskolc Business and Admin Students: 3,037 IT Students: 413 Distance from Budapest: 180 km Székesfehérvár Business and Admin Students: 2,335 IT Students:527 Distance from Budapest: 66 km Debrecen Business and Admin Students: 5,277 IT Students: 1316 Distance from Budapest: 220 km Pécs Business and Admin Students: 4,456 IT Students: 609 Distance from Budapest: 200 km Szeged Business and Admin Students: 4,138 IT Students: 1,574 Distance from Budapest: 170 km Academic year 2009/2010
10 400,000 students in 70 higher education institutions 100,000 majoring in business administration faculties University degree requires strong language and computer skills 90% of students speak English Availability of labour High quality labor pool available throughout the country 20% of fresh graduates have international experience 61% of students have professional experience Seniors and executives with several years of experience readily available
11 Agenda Overview of the Hungarian Economy Shared Service Sector in Hungary Goverment incentives Infrastructure Quality of life Conclusion About HITA
12 Available incentives I. Cash grants 1. Cash subsidy based on the decision of the Hungarian Government OR 2. EU co-financed tenders II. Development tax allowance III. Training subsidy
13 Agenda Overview of the Hungarian Economy Shared Service Sector in Hungary Goverment incentives Infrastructure Quality of life Conclusion About HITA
14 Prague, 5 hrs Munich, 6 hrs Hamburg, 8hrs Infrastucture Warsaw, 10 hrs Daily direct flights to Europe and all over the world Kyiv, 12 hrs Vienna, 1 hr Rotterdam, 12 hrs Bucharest, 10 hrs Constanza, 12 hrs Zagreb, 1 hr Trieste, 6 hrs Koper, 6 hrs Beograd, 4hrs
15 Infrastucture Office Stock in Budapest (2010 Q2): 3,060,000 m2 Average rental price (headline rents): Top quality telecommunication services Easy access to 3T, xdsl New generation IP network Expanding 3G coverage Highest global technological standards Budapest: EUR 11-15/m 2/month University cities: EUR 8-12/m 2 /month Vacancy rate in Budapest in 2010 Q2: 21% International providers: T-Systems, BT, Invitel, UPC Growing number of data centers Dataplex, Budapest - biggest data center in the CEE
16 Agenda Overview of the Hungarian Economy Shared Service Sector in Hungary Goverment incentives Infrastructure Quality of life Conclusion About HITA
17 Rank Country Score 1 US New Zealand Malta France Monaco Hungary Argentina Norway Slovenia 72 Quality of life in Hungary Poland Czech Republic Bulgaria Slovakia Romania 65 Hungary excels in civil liberties, safety and health. Source: International Living, 2011
18 Agenda Overview of the Hungarian Economy Shared Service Sector in Hungary Goverment incentives Infrastructure Quality of life Conclusion About HITA
19 Conclusion Hungary: Yes, because Strong SSC presence Talented employees at competitive wage levels 70 tertiary instituions with 59,000 graduates per year University studies complemented with professional experiences Highway network and telecom infrastructure Cosmopolitan cities Available languages
20 Agenda Overview of the Hungarian Economy Shared Service Sector in Hungary Goverment incentives Infrastructure Quality of life Conclusion About HITA
21 Introducing HITA Newly founded by the Hungarian Government to implement foreign economic strategy (operating since January 2011) Former agency: ITD Hungary (the legal form has changed, the tasks are the same), two institutions in one: trade development and investment promotion Ministry of National Economy is supervising HITA, this ministry is responsible for the new foreign economic strategy Headquarters in Budapest, 6 regional offices in Hungary and linked to 60 offices around the world 155 employees, consultants on sectorial basis
22 Main tasks of the agency Promote and facilitate foreign investments Offer one-stop-shop services for the clients Promotion of government incentives Operative guidance through the implementation phase Help to get licences, real estate, consultants, etc. Encourage Hungarian SMEs to expand their activities on international level (trade promotion) Internationalization: capital export, facilitate joint ventures, international technical cooperation Create positive economical country image
23 Our Services Pre-decision Implementation Operations Information packages Assistance in location search and evaluation, site visits Partner meetings Site selection assistance Assistance with incentives agreements Expansion assistance After care services Intermediary body between the government and the companies OUR MISSION is to win new investments into Hungary and support the expansion of the already settled ones.
24 Contact us at: Hungarian Investment and Trade Development Agency Phone: investment@hita.hu
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