Southern Poland PROSPECTS FOR BUSINESS SERVICES HUMAN CAPITAL REAL ESTATE

Southern Poland PROSPECTS FOR BUSINESS SERVICES HUMAN CAPITAL REAL ESTATE

Table of Contents Introduction Kraków Wrocław Katowice Kielce Rzeszów Experts view 12 steps to find the perfect office space HR Glossary

Introduction This report presents the potential of human capital and office real estate market in the context of modern business services sector development in the Southern Poland. Poland is one of the most frequently chosen locations for launching state-of-the-art business service centres. This is a great success and an exceptional phenomenon on a European scale. The number of people employed at such centres in Poland has been increasing for 1 years, which may be attributed to new investment projects that have emerged on the way, as well as to the development of existing ones. Thus, this sector has become one of the pillars of the Polish economy. There are over 47 business service centres with foreign capital operating in Poland. They are owned by 325 investors from 28 countries and employ nearly 13, staff, which accounts for around 273 employees per one company, and that figure is still growing. 95% of those employed by business service centres work in ten major Polish centres, including: Wrocław, Tricity, the Katowice agglomeration, Lublin, Poznań, Bydgoszcz, Szczecin, Warsaw and Kraków. Kraków has become the epitome of the sector s development in Poland. In the latest rankings (Tholons 214), Kraków, as an outsourcing European city, is at the top of the list. Each year, tens of thousands of graduates leave university and look for new job opportunities. Given the intense competition among peers and a significant number of experienced job seekers, there is an ongoing fight for jobs. Undeniably, the dynamic growth of this business sector has been matched by the expectations of thousands of young people leaving universities each year. According to a survey conducted by TEST, ASPIRE and AIESEC, among students from southern Poland, 63% would like to work for a company where they would be able to use a foreign language on a daily basis and would prefer the company to be a commercial one or their own. Modern corporations offer a specific working atmosphere, a varied range of duties and attractive salaries (as compared to those offered by Polish companies), which is a huge incentive for the students. More information on the southern Polish market may be found in the report prepared by Advisory Group TEST Human Resources. What motivates students?* 63% 62% 52% 34% 3% working atmosphere salary varied range of duties job stability flexible working hours Where would students like to work?* 15% 55% 15% 56% public institution commercial company nongovernmental organisation their own company Students would like to work for a company * 56% 16% where they are able to use a foreign language on a daily basis where they are able to use their native language *Based on a survey conducted by TEST, ASPIRE and AIESEC among students from southern Poland, April 214.

The chart shows the most popular bonuses offered by SSC/BPO sector companies. The vast majority of centres offer a basic bonus package whose size depends mostly on the company s organisational culture. In view of their more consolidated culture, companies with foreign capital are better in this respect. Nevertheless, the differences are minor. The most frequent informal bonuses offered by SSC/BPO sector companies are flexible forms of employment (home office) or guaranteed childcare during working hours (usually in the form of a nursery/ kindergarten allowance). budget at their disposal for benefits or selected people can be included in their benefits. SSC/BPO sector companies often assign additional days to the annual leave for every year of work. In addition to the standard package offered by SSC/ BPO companies, Shared Service Centres (SSC) assign additional benefits related to their branch, e.g. a discount on company products and services. Some companies from the SSC/BPO sector, in addition to benefits offer cash bonuses or cash equivalents for selected bonuses. In the SSC/BPO sector, seniority brings with it a larger benefits package, meaning that employees have a larger Incentives*: 9% 85% 85% 8% 7% 2% 1% 15% Opieka medyczna kulturalnorozrywkowe for Medical care Allowance leisure (pakiety activities kafeteryjne) sportowych Sports card edukacji - studia, Allowance MBA, kursy for education university studies, MBA, language courses Dodatkowe ubezpieczenia Fundusz emerytalny Insurance Pension fund Company car or samochodowe* cash bounus* Inne Other *managerial positions Source: Advisory Group TEST Human Resources, based on RaportPlacowy.pl, TEST expertise and selected external sources.

Employees from the IT industry are offered highest salaries in the SSC/BPO sector. Salaries for particular IT positions are similar to initial salaries in other branches but there is a difference when it comes to higher positions. In other words, SSC/BPO companies offer similar pay rates to Junior IT positions as they do to specialists in other areas. In terms of different industries, the most significant variations in salaries are reported in finance and accounting, where highest remuneration is offered to general ledger staff. Average salaries for receivables and liabilities are lower. Across all areas, most similar salaries are reported for junior and specialist positions, i.e. people with relatively low professional experience. Along with the level of management, there is increasingly greater discrepancy between the lower and upper quartile. Geographically, Kraków and Wrocław are most similar due to the level of development of SSC/BPO companies. In the Katowice agglomeration, centres are more dispersed as compared to other regions, which on the one hand means greater access to a larger number of potential employees, but on the other hand involves the risk of their lower mobility. Kielce and Rzeszów are emerging markets and salaries in those cities are the lowest in the entire south-eastern region. F&A HR IT CS KRAKÓW UPPER SILESIA CONURBATION WROCŁAW KIELCE RZESZÓW Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Q1 Q3 Manager 1 165 9 16 9 16 75 13 84 145 TL 6 88 6 88 6 88 48 7 54 79 Senior Spec. 55 71 48 68 55 68 42 55 47 62 Spec. 38 55 34 475 32 52 27 41 31 46 Junior Spec. 25 42 25 4 25 4 2 32 22 37 Manager 9 16 85 155 9 16 7 127 8 142 TL 65 78 6 78 6 8 49 63 555 7 Senior Spec. 48 65 45 55 5 65 38 49 43 555 Spec. 35 43 3 4 38 48 27 35 3 39 Junior Spec. 28 38 25 35 3 35 22 288 25 32 Manager 13 19 115 18 115 19 96 149 18 168 TL 95 13 95 13 1 135 77 15 87 119 Senior Spec. 75 95 7 9 7 9 57 73 64 83 Spec. 55 75 45 68 45 7 39 57 44 64 Junior Spec. 38 55 25 45 28 45 24 39 27 44 Manager 1 15 9 14 1 15 77 117 87 132 TL 6 8 55 8 6 8 47 64 53 72 Senior Spec. 55 68 5 6 5 6 41 5 47 56 Spec. 38 5 35 45 35 45 29 37 32 42 Junior Spec. 25 38 25 35 25 35 2 29 22 32 F&A -Finance and Accounting, HR - Human Resources, IT - Information Technology, CS -Customer Service Q1 First quartile splits off the lowest 25% of data from the highest 75% Q3 Third quartile splits off the highest 25% of data from the lowest 75% Source: Advisory Group TEST Human Resources, based on RaportPlacowy.pl, TEST expertise and selected external sources Gross salary in PLN.

Kraków OFFICE MARKET KEY INDICATORS UNEMPLOYMENT RATE KRAKÓW MAŁOPOLSKIE 5.9% 11.6% OF UNIVERSITIES OF STUDENTS OF GRADUATES KRAKÓW MAŁOPOLSKIE 21x 32x 17,519 189,69 47,223 53,988 593,8 m 2 SUPPLY STUDENTS BY SCHOOL TYPE GRADUATES BY SCHOOL TYPE CLICK to find out more about modern office properties officemap.pl Kraków is the second biggest office market in Poland (after Warsaw). In the first three quarters of 214, the city saw completion of nine projects totalling 87, m 2. By the end of the year, additional 27, m 2 of new office space will be completed, thus in 214 Kraków will note the highest supply growth since the market has existed. Despite the relatively high level of new supply, the vacancy rate remained below 4%. Due to the limited availability of office space in existing projects, tenants are starting the negotiation process much earlier than in previous years to secure the best lease option and achieve the best financial terms possible. Unrelenting interest from new investors and the development of existing companies is mirrored in high activity among developers. Currently more than 1, m 2 is under construction, with 116, m 2 in the development pipeline (with a completion date up to 216). In comparison with the other regional markets, Kraków is the undisputed leader in terms of activity among BPO/ SSC companies. In the first half of 214, BPO/SSC/R&D demand accounted for 7% of the registered volume. BASE RENTS FOR OFFICE SPACE IN EXISTING SCHEMES (m 2 /month) Class A Class B 11-13 SELECTED TENANTS IN BPO/SSC SECTOR Tenant Function Amway Business Center SSC Europe Capgemini Capita BPO Delphi Automotive R&D Electrolux Poland GENPACT SSC BPO HCL Poland Lufthansa Global Business SSC Services Philip Morris SSC 13.5-15.5 9 1 11 12 13 14 15 16 87,4 m 2 NEW SUPPLY Q1-Q3 214 17, m 2 SPACE UNDER CONSTRUCTION 3.5% VACANCY RATE 9, 8, 7, 6, 5, 4, 3, 2, 1, OFFICE SPACE (m 2 ) 6, VACANT SPACE EXISTING SUPPLY SPACE UNDER CONSTRUCTION UP TO 216 SPACE PLANNED UP TO 216. 5,58 42,374 5, 4, 24,442 3, 16,598 17,529 2, 11,184 UNIVERSITY RANKING* 3,914 1, 2,26 2,394 uniwersytety UNIVERSITIES uniwersytety techniczne TECHNICAL UNIVERSITIES techniczne AGRICULTURAL rolnicze ACADEMIES rolnicze ACADEMIES ekonomiczne OF ekonomiczne ECONOMICS HIGHER TEACHER pedagogiczne EDUCATION pedagogiczne SCHOOLS medyczne MEDICAL UNIVERSITIES medyczne AWF PHYSICAL ACADEMIES AWF artystyczne FINE ARTS ACADEMIES artystyczne THEOLOGICAL teologiczne ACADEMIES teologiczne OTHER Uniwersytet Jagielloński (2. position in Poland) Akademia Górniczo-Hutnicza im. Stanisława Staszica w Krakowie (6. position in Poland) Uniwersytet Rolniczy im. Hugona Kołłątaja w Krakowie (36. position in Poland) Politechnika Krakowska im. Tadeusza Kościuszki (39. position in Poland) Uniwersytet Ekonomiczny w Krakowie (42. position in Poland) Uniwersytet Pedagogiczny im. Komisji Edukacji Narodowej w Krakowie (45. position in Poland) Uniwersytet Papieski Jana Pawła II w Krakowie (51-6. ex aequo in Poland) Akademia Wychowania Fizycznego im. Bronisława Czecha w Krakowie (71-8. ex aequo in Poland) Krakowska Akademia im. Frycza Modrzewskiego (71-8. ex aequo in Poland) Akademia Ignatianum w Krakowie (8+ position in Poland) 5 586 1,186 3,344 4,982 6,1 7,549 1,444 12,631 2, 4, 6, 8, 1, 12, 14, KNOWLEDGE OF FOREIGN LANGUAGES among graduates (B1 level or higher) in Małopolskie Voivodeship** ENGLISH 84.3% 1.6% RUSSIAN 5.3% 4.3% SPANISH GERMAN FRENCH ITALIAN 2.7% 1.9% Source: Colliers International, Q3 214 Source: Central Statistical Office, 213 *Source: Perspektywy University Ranking 214 (http://serwisy.gazetaprawna.pl/edukacja/artykuly/797998,ranking-akademickich-szkol-wyzszych-214.html) **Source: Advisory Group TEST Human Resources 214, a survey based on sample of 35,518 respondents, 25-4 years old, with a batchelor s degree.

Wrocław UNEMPLOYMENT RATE WROCŁAW DOLNOŚLĄSKIE 5.6% 13.2% OF UNIVERSITIES OF STUDENTS OF GRADUATES WROCŁAW DOLNOŚLĄSKIE 24x 35x 125,89 141,77 34,191 39,855 OFFICE MARKET KEY INDICATORS 482,1 m 2 SUPPLY 23,1 m 2 NEW SUPPLY Q1-Q3 214 136, m 2 SPACE UNDER CONSTRUCTION 11.5% VACANCY RATE Wrocław is a dynamically developing market, which is confirmed by both the number of investments under construction and the volume of leased space. Currently, the Wrocław market is recording the highest level of activity among developers from all regional cities. Over 6% of space under construction is located in the central part of the city where investments like Dominikański (35,5 m 2, Skanska) or Times II (18,5 m 2, UBM) are situated. By the end of 214, 34, m 2 of new office space will be delivered to the market and the city s resources will exceed 5, m 2. During the year, the vacancy rate in existing buildings was relatively stable, oscillating around 12%. At the end of September 214, there were 55, m 2 of vacant space, 5% of which was available in projects completed in the past three years. BASE RENTS FOR OFFICE SPACE IN EXISTING SCHEMES (m 2 /month) Class A SELECTED TENANTS IN BPO/SSC SECTOR Tenant CreditSuisse EY GBS Geoban Google Hewlett Packard IBM McKinsey & Company Tieto Volvo 12-15 Function F&A SSC KPO SSC 9, 8, 7, 6, 5, 4, 3, 2, 1, CLICK to find out more about modern office properties officemap.pl OFFICE SPACE (m 2 ) VACANT SPACE EXISTING SUPPLY SPACE UNDER CONSTRUCTION UP TO 216 SPACE PLANNED UP TO 216. 32,821 35, 26,239 3, 21,563 25, STUDENTS BY SCHOOL TYPE 15,575 2, 1,664 15, 1, UNIVERSITY RANKING* 4,346 5,349 3,976 1,97 78 5, Politechnika Wrocławska (5. position in Poland) Uniwersytet Wrocławski (7. position in Poland) uniwersytet UNIVERSITIES uniwersytet techniczne TECHNICAL UNIVERSITIES techniczne AGRICULTURAL rolnicze ACADEMIES ACADEMIES ekonomiczne OF ekonomiczne ECONOMICS pedagogiczne HIGHER TEACHER EDUCATION SCHOOLS medyczne MEDICAL UNIVERSITIES medyczne AWF PHYSICAL ACADEMIES AWF artystyczne artystyczne FINE ARTS ACADEMIES teologiczne THEOLOGICAL ACADEMIES teologiczne OTHER Uniwersytet Medyczny im. Piastów Śląskich we Wrocławiu (14. position in Poland) Uniwersytet Przyrodniczy we Wrocławiu (32. position in Poland) Uniwersytet Ekonomiczny we Wrocławiu (35. position in Poland) Akademia Wychowania Fizycznego we Wrocławiu (61-7. ex aequo in Poland) Dolnośląska Wyższa Szkoła we Wrocławiu (8.+ position in Poland) GRADUATES BY SCHOOL TYPE 79 546 1,271 1,156 2,354 2,131 5,486 5,775 7,531 7,37 1, 2, 3, 4, 5, 6, 7, 8, KNOWLEDGE OF FOREIGN LANGUAGES among graduates (B1 level or higher) in Dolnośląskie Voivodeship** ENGLISH 79.6% RUSSIAN 4.8% 2.8% SPANISH GERMAN 18.% FRENCH ITALIAN 2.1% 1.3% Class B 1-14 Source: Colliers International, Q3 214 9 1 11 12 13 14 15 16 Source: Central Statistical Office, 213 *Source: Perspektywy University Ranking 214 (http://serwisy.gazetaprawna.pl/edukacja/artykuly/797998,ranking-akademickich-szkol-wyzszych-214.html) **Source: Advisory Group TEST Human Resources 214, a survey based on sample of 35,518 respondents, 25-4 years old, with a batchelor s degree.

Katowice OFFICE MARKET KEY INDICATORS 245,7 m 2 SUPPLY UNEMPLOYMENT RATE KATOWICE UPPER SILESIAN 5.4% 11.2% OF UNIVERSITIES OF STUDENTS OF GRADUATES KATOWICE UPPER SILESIAN 19x 41x 65,5 144,545 2,6 44,687 CLICK to find out more about modern office properties officemap.pl The major business centre of the Upper Silesia region offers over 24, m 2 of modern office space. Over 4% of the existing supply was delivered to the market between 21 and 214. In the last two years, Katowice has recorded increasing construction activity. Developers encouraged by the favourable market situation (stable demand and a decreasing vacancy rate) have started the construction of planned investments. Several of these schemes, including A4 Business Park I and GPP Business Park I-II, have already been completed, yet there are still 61, m 2 under active construction. The next projects are in the development pipeline; however, the start of new investments is largely dependent on progress in the commercialisation of schemes currently under construction. In H1 214, the vacancy rate in Katowice recorded a gradual decrease. In H2 214, this trend is going to reverse, which is directly associated with significant supply growth in this period. In the past, Katowice was regarded as a secondary location, while tenants used to choose neighbouring cities (Kraków and Wrocław). Currently, the city is recognised as an established business location attracting international investors. SELECTED TENANTS IN BPO/SSC SECTOR Tenant Function Archidoc BPO Capgemini Contact Center ING Services Poland Mentor Graphics Call Centre SSC R&D PwC SSC Rockwell Automation Unilever UPC Class A Class B SSC SSC Call Centre 21,4 m 2 NEW SUPPLY Q1-Q3 214 61, m 2 SPACE UNDER CONSTRUCTION 1.6% VACANCY RATE 45, 4, 35, 3, 25, 2, 15, 1, 5, BASE RENTS FOR OFFICE SPACE IN EXISTING SCHEMES (m 2 /month) 9-11 OFFICE SPACE (m 2 ) Katowice 46 616 5 VACANT SPACE EXISTING SUPPLY SPACE UNDER CONSTRUCTION UP TO 216 SPACE PLANNED UP TO 216. 12-14 4 STUDENTS BY SCHOOL TYPE 26 98 3 19 533 2 235 2 UNIVERSITY RANKING* 9 29 6 767 4 281 1 1 991 1 529 1 55 Uniwersytet Śląski w Katowicach (2. position in Poland) uniwersytety UNIVERSITIES uniwersytet techniczne TECHNICAL UNIVERSITIES techniczne rolnicze AGRICULTURAL ACADEMIES rolnicze ekonomiczne ACADEMIES OF ekonomiczne ECONOMICS pedagogiczne HIGHER pedagogiczne TEACHER EDUCATION SCHOOLS medyczne MEDICAL UNIVERSITIES medyczne AWF PHYSICAL ACADEMIES AWF artystyczne FINE ARTS ACADEMIES artystyczne teologiczne THEOLOGICAL teologiczne ACADEMIES Politechnika Śląska w Gliwicach (23.position in Poland) Śląski Uniwersytet Medyczny w Katowicach (28. position in Poland) Politechnika Częstochowska (4. position in Poland) OTHER Uniwersytet Ekonomiczny w Katowicach (43. position in Poland) Akademia im. Jana Długosza w Częstochowie (61-7. ex aequo in Poland) Akademia Techniczno-Humanistyczna w Bielsku-Białej (71-8. ex aequo in Poland) Górnośląska Wyższa Szkoła Handlowa im. W. Korfantego w Katowicach (8.+ position in Poland) Wyższa Szkoła Biznesu w Dąbrowie Górniczej (8.+ position in Poland) GRADUATES BY SCHOOL TYPE 427 763 452 1,948 1,447 1,92 4,671 6,952 8,378 12,485 2, 4, 6, 8, 1, 12, 14, KATOWICE UPPER SILESIAN KATOWICE UPPER SILESIAN KNOWLEDGE OF FOREIGN LANGUAGES among graduates (B1 level or higher) in Upper Silesian Voivodeship** ENGLISH 77.5% 1.8% RUSSIAN 3.8% 2.6% SPANISH GERMAN FRENCH ITALIAN 1.6% 1.5% Source: Colliers International, Q3 214 8 9 1 11 12 13 14 15 Source: Central Statistical Office, 213 *Source: Perspektywy University Ranking 214 (http://serwisy.gazetaprawna.pl/edukacja/artykuly/797998,ranking-akademickich-szkol-wyzszych-214.html) **Source: Advisory Group TEST Human Resources 214, a survey based on sample of 35,518 respondents, 25-4 years old, with a batchelor s degree.

Kielce OFFICE MARKET KEY INDICATORS UNEMPLOYMENT RATE KIELCE ŚWIĘTOKRZYSKIE 11.1% 16.5% OF UNIVERSITIES OF STUDENTS OF GRADUATES KIELCE ŚWIĘTOKRZYSKIE 11 x 15 x 32,997 33,76 12,594 13,23 Kielce is one of Poland s developing markets. The total supply of modern office space in the city is estimated at 57, m 2, 45% of which is aggregated in two investments: Astra Park (16,2 m 2 ) and Kieleckie Centrum Biznesu (1, m 2 ). The highest level of activity in the city is shown by local developers, whose developments are mainly aimed at local tenants. This is confirmed by the scale of existing investments, most of which do not exceed 3, m 2 GLA. The majority of vacant units offer space up to 2 m 2 and the options for companies looking for more space (over 5 m 2 ) are very limited. Tenant Infover Inter Galactica Medicover Teledirect UCMS Group Poland 57,5 m 2 SUPPLY 7,2 m 2 SPACE UNDER CONSTRUCTION 8.8% VACANCY RATE SELECTED TENANTS IN BPO/SSC Function Call Centre Call Centre Call Centre BPO 12,692 14, 12, 9,836 1, STUDENTS BY SCHOOL TYPE 8, 5,321 6, 3,224 4, 1,924 UNIVERSITY RANKING* 2, 14, uniwersytety UNIVERSITIES uniwersytety 12, TECHNICAL techniczneuniversities AGRICULTURAL rolnicze ACADEMIES 1, rolnicze ACADEMIES ekonomiczne ekonomiczne OF ECONOMICS 8, pedagogiczne HIGHER TEACHER EDUCATION pedagogiczne SCHOOLS medyczne 6, MEDICAL UNIVERSITIES medyczne AWF PHYSICAL ACADEMIES 4, AWF artystyczne FINE ARTS ACADEMIES artystyczne THEOLOGICAL teologiczne ACADEMIES 2, teologiczne OTHER GRADUATES BY SCHOOL TYPE 1,12 1,923 2,469 2,375 4,77 1, 2, 3, 4, 5, KNOWLEDGE OF FOREIGN LANGUAGES among graduates (B1 level or higher) in Świętokrzyskie Voivodeship** ENGLISH GERMAN 5, 4,5 4, 3,5 3, 2,5 2, 1,5 1, 5 There are 32, m 2 in the pipeline (within the Biznes Park complex); however, the start of construction of this investment depends on acquiring key tenants and signing pre-let agreements. 12, OFFICE SPACE (m 2 ) 1, Politechnika Świętokrzyska w Kielcach (51.-6. ex aequo in Poland) 68.5% 8.2% RUSSIAN FRENCH BASE RENTS FOR OFFICE SPACE IN EXISTING SCHEMES (m 2 /month) 8, 6, 4, Uniwersytet Jana Kochanowskiego w Kielcach (51.-6. ex aequo in Poland) 8.4% SPANISH 1.6% ITALIAN Class B/B+ 8-1 7 8 9 1 11 12 2, Kielce VACANT SPACE EXISTING SUPPLY SPACE UNDER CONSTRUCTION UP TO 216 SPACE PLANNED.9% 1.1% Source: Colliers International, Q3 214 Source: Central Statistical Office, 213 *Source: Perspektywy University Ranking 214 (http://serwisy.gazetaprawna.pl/edukacja/artykuly/797998,ranking-akademickich-szkol-wyzszych-214.html) **Source: Advisory Group TEST Human Resources 214, a survey based on sample of 35,518 respondents, 25-4 years old, with a batchelor s degree.

Rzeszów OFFICE MARKET KEY INDICATORS 43,7 m 2 SUPPLY UNEMPLOYMENT RATE RZESZÓW PODKARPACKIE 8.3% 16.5% OF UNIVERSITIES OF STUDENTS OF GRADUATES RZESZÓW PODKARPACKIE 5x 15x 48,217 62,731 16,291 2,524 Rzeszów is a relatively young office market. The existing buildings are mostly located in the central part of the city, along the main communication routes such as al. Piłsudskiego or al. Rejtana. In addition to typical office buildings, space for lease is also offered within mix-use projects that serve both retail and office purposes. 2, m 2 SPACE UNDER CONSTRUCTION 17.2% VACANCY RATE 9, 8, OFFICE SPACE (m 2 ) 18,582 2, 16,379 13,256 15, STUDENTS BY SCHOOL TYPE 1, 5, uniwersytety UNIVERSITIES uniwersytety TECHNICAL techniczneuniversities AGRICULTURAL rolnicze ACADEMIES rolnicze ACADEMIES ekonomiczne ekonomiczne OF ECONOMICS pedagogiczne HIGHER TEACHER EDUCATION pedagogiczne SCHOOLS medyczne MEDICAL UNIVERSITIES medyczne AWF PHYSICAL ACADEMIES AWF artystyczne FINE ARTS ACADEMIES artystyczne THEOLOGICAL teologiczne teologiczne ACADEMIES OTHER GRADUATES BY SCHOOL TYPE 138 4,235 5,113 6,85 1, 2, 3, 4, 5, 6, 7, 8, Despite the relatively high vacancy rate, Rzeszów offers only 7,5 m 2 of space to lease. Most of the available units do not exceed 25 m 2 and space over 1, m 2 (in a single unit) is offered in only two existing schemes. The market situation will change with the completion of the SkyRes Warszawska building (Q2 215). The project will deliver 2, m 2 of modern office space for lease. With the delivery of new supply, Rzeszów may be become an interesting alternative for investors looking for high quality space outside the major office markets. BASE RENTS FOR OFFICE SPACE IN EXISTING SCHEMES (m 2 /month) Class B/B+ 8-11 7 8 9 1 11 12 SELECTED TENANTS IN BPO/SSC SECTOR Tenant ACP Pharma Carlson Wagonlit Travel ContactPoint PKO BP SoftSystem ZETO Rzeszów Function F&A BPO Call Centre Call Centre 7, 6, 5, 4, 3, 2, 1, VACANT SPACE EXISTING SUPPLY SPACE UNDER CONSTRUCTION UP TO 216 SPACE PLANNED UNIVERSITY RANKING* Politechnika Rzeszowska im. Ignacego Łukaszewicza (51-6. ex aequo in Poland) Uniwersytet Rzeszowski (51.-6. ex aequo in Poland) KNOWLEDGE OF FOREIGN LANGUAGES among graduates (B1 level or higher) in Podkarpackie Voivodeship** ENGLISH 76.2% RUSSIAN 4.5% SPANISH.9% GERMAN 11.% FRENCH 1.1% ITALIAN.7% Source: Colliers International, Q3 214 Source: Central Statistical Office, 213 *Source: Perspektywy University Ranking 214 (http://serwisy.gazetaprawna.pl/edukacja/artykuly/797998,ranking-akademickich-szkol-wyzszych-214.html) **Source: Advisory Group TEST Human Resources 214, a survey based on sample of 35,518 respondents, 25-4 years old, with a batchelor s degree.

Experts view Well-educated staff, support from local authorities, the availability of modern office space and the well-developed infrastructure are the main advantages of Kraków in terms of opening new business centres here. This statement is confirmed by international ratings: Kraków was among the first 1 companies in the 1 top outsourcing destinations prepared by Tholons. The city is also the best location for companies providing advanced business services. Rafal Pokrzywa, Recruitment Manager, UBS Kraków What are the strengths of Katowice? First of all, I appreciate the welldeveloped infrastructure: the airport, the expanded road network and railway connections. I have been living in Katowice for over 1 years. The pace of development of the city, the labour market and real estate prices were factors which convinced me to stay here. Anita Kornacka, Lead Recruiter, Steria Polska Sp. z o.o. HCL established its operations in Poland in 27. Since then Kraków has been an important business centre for HCL global operations. HCL Poland has one of the most diverse and multinational environments. We currently have 39 nationalities working under one roof which is more than 5% of our total employee strength, providing support in 17 different languages to our customers, and 1% speak English. Due to the labour potential, the further expansion in Polish market is an integral part of company s European expansion strategy. Therefore, we are deeply involved in developing friendly working environment, innovation support and good management practices. Kraków Katowice Kraków Trevor L. Rulton, General Manager / Center Head HCL Poland

Experts view The best definition for what can be observed in Katowice is the snowball effect. The presence of well-known tenants and developers attract others. Katowice is becoming an increasingly mature market that is enjoying growing credibility among investors. The purchase of Ghelamco s Katowice Business Point by Starwood Capital is the best example. Numerous investments in the public and private sector have changed the perception of the city as a good place to live and to do business. Furthermore, thanks to the city authorities attitude and engagement, the opinion of investors about Katowice is very positive as well. Tomasz Zydorek, Regional Office Manager Katowice Colliers International Recently, Kielce has done a lot to become an attractive location for both external and local investors. Thanks to the effective use of EU funds, the city has carried out a number of investments, including the revitalisation of city centre, the upgrading of road infrastructure and improved conditions for the development of local universities. Young and well-educated human capital is the city s greatest asset. With further development of academic centres in the coming years, Kielce has the potential to win new investors in the BPO/SSC/R&D sector. Katowice Kielce Łukasz Żelezik, Associate Director, Office Agency Colliers International Since we started operating in Wrocław, our workplace has been a key issue. New technology enables us to work from home without any obstacles and we enjoy taking advantage of this. However, we have noticed that this kind of work cannot replace office space. Team work, sharing ideas and experience, well-equipped laboratories and meeting venues increase our creativity. Our office is supposed to make our employees lives easier. Therefore, we chose a convenient location next to the old town square. Inside our office we have meeting venues where new ideas are born and heated discussions take place. We also have fun and relaxation rooms, space provided for parents as well as a massage room. We do our best to be pioneers also in terms of environment in which we work. Wrocław Rafał Konieczny, Director, Opera Software

12 STEPS TO FIND THE PERFECT OFFICE SPACE A lease agreement is a long-term commitment. Therefore, while searching for suitable office space, numerous aspects should be taken into account which may turn out to be crucial not only when an agreement is signed but also over the following few years. AN ANALYSIS of the current and future needs of your business AN ANALYSIS of employees needs and the effectiveness of the working environment. Before starting to search for an ideal office, you should consider how, within the next few years, your organisation will function on each of its levels (individual employees, departments and the whole company). LOCATION... has a major influence on the rent value, the availability of public transport, parking space and available amenities. TRANSPORT The underground, tram or car? If you know your employees preferred form of public transport and most frequent routes they take, you can choose the best location for your office according to their needs. PARKING SPACE Parking space is usually a major cost for a company, especially in the city centre, where the price of a single parking spot might be higher than in a non-central location. However, price is merely one thing availability is another. A company that has a large car fleet should carefully consider alternative options, such as leasing parking space from external operators or free public parking. BUILDING TYPE Before making a choice, you should consider what kind of building will fit the image of your company. Should it be a standard office building similar to neighboring properties or rather a stand-out skyscraper? EFFECTIVENESS of the office space The most effective office buildings have a regular shape. The point is to adapt the layout of your office to your working style and be ready to accommodate possible further changes. TECHNICAL ASPECTS Each tenant must look carefully at their technical requirements and the technical specification should be included at the RFP stage. FINANCIAL ASPECTS The rental rate per square metre of office space is the nominal base value that can be effectively reduced by incentives, e.g. rent holidays. Service charges are an important part of lease payments and their value depends not only on the range of services provided by the building, but also on the location of the property. FIT-OUT The standard fit-out offered by landlords may vary from one building to another. Therefore, you should look at what is included within the standard and what is provided for an extra fee. Another definition is the turnkey standard. But do not be misled by this term, as like in the case of standard, the turnkey concept may be far away from your expectations. LOGO/ ADVERTISING If you need your logo on the facade of the building, indicate this at the RFP stage. The larger tenant and the more recognisable the brand, the more bargaining power it has. A logo or advertisement may be included in the rental rate but they may also incur an additional charge. LEASE CONTRACT Negotiating the commercial terms is one thing, legal provisions are another. Remember that when signing a lease agreement you become contractually bound with the landlord for many years, so you need to be wellsecured in the event problems or disputes that may arise during the lease term.

HR GLOSSARY ASSESSMENT CENTRE is the most effective way of diagnosing professional potential and competences. Its effectiveness is based on a comprehensive assessment of candidates skills in various tasks by several assessors. Despite the simulated, i.e. artificial, conditions of observing candidates behaviour, it enables a thorough analysis of their skills and relevant conclusions to be drawn about their professional potential. EMPLOYEE SATISFACTION SURVEY is a perfect tool for measuring staff opinions on various aspects of company operations. It can be either a regular survey to monitor systematically employee needs, or a single survey to collect information necessary to prepare changes critical for a company or to discover employees opinions after the implementation of such changes. 1. Logotyp pod 1.1.Logotyp podst DEVELOPMENT CENTRE is the most effective way of diagnosing professional potential and employees competences, used to plan their development. Its effectiveness is based on a comprehensive assessment of employees skills in various tasks by several assessors. During feedback sessions, DC participants deepen their understanding of their behaviour in the context of social perception and the requirements of the organisation and have a chance to plan their own development. EXECUTIVE SEARCH is a tried and tested method of recruiting candidates key individuals at the executive and management level and top specialists. Executive Search provides a means of reaching candidates who are successful in their jobs. They are mostly people who are not looking for a job, so the consultant s task is to find them, present the job offer and persuade them to join the recruitment process. 36-DEGREE FEEDBACK is a tool that collects comprehensive yet detailed feedback on the performance of an assessed employee in a company. Participants of this type of assessment may include superiors, subordinates, colleagues from other departments, members of permanent or project teams and customers. SALARY REPORTS are a key tool for cost optimisation and salary budget planning in a company. By presenting market salaries, Salary Reports result in maximum profit. PERIODIC ASSESSMENT SYSTEM is a tool for comprehensive staff management in companies. Depending on the needs of a given organisation, it is possible to design systems based on competences, management by goals related to the remuneration and reward system, promotion policy, training and staff development. Periodic Assessment Systems can be a traditional assessment carried out by a superior (18-degree assessment system) or a comprehensive 36-degree assessment. Logotyp Advisory Gro elementy stanowią in zewnętrznej. Logotyp jest podstaw materiałach wychodz Logotyp, ze względu hasła challenging pr

Advisory Group TEST Human Resources TEST is a consulting firm with over 23 years of experience. It supplies high-quality HR services to business and IT service centres through five specialised business lines: TEST Executive, TEST Recruitment, TEST Consulting HR, TEST Training & Development, TEST Salary Survey. TEST has supported the creation of over 45 centres in Poland by staffing over 3,2 positions, starting from heads of centres to division managers and specialists, by analysing the professional potential of several thousand centre employees through an assessment and development centre and publishing several Salary Reports for the service centre industry. The company organises a series of HR conferences on business and IT service centres (www.hrwcentrach.pl), which are the first Polish events for HR managers of business and IT service centres. RECRUITMENT DEPARTMENT Marcin Sojka e-mail: marcin.sojka@testhr.pl tel.: 12 35 56 17 Mobile:+48 885 3 19 SALARY ANALYSIS AND REPORT DEPART- MENT Joanna Mandel e-mail: joanna.mandel@testhr.pl tel.: 12 35 56 59

485 offices 63 countries 6 continents 1,54 billion in annual revenue 136 milion m 2 under management 15,8 professionals and staff Colliers International Colliers International is a global leader in commercial real estate services, with over 15,8 professionals operating in 485 offices in 63 countries. A subsidiary of FirstService Corporation, Colliers International delivers a full range of services to real estate users, owners and investors worldwide, including global corporate solutions, brokerage, property and asset management, hotel investment sales and consulting, valuation, consulting and appraisal services, mortgage banking and insightful research. The latest annual survey by the Lipsey Company ranked Colliers International as the second-most recognized commercial real estate firm in the world. Dominika Jędrak Director Research and Consultancy Services dominika.jedrak@colliers.com Robert Z. Karniewski Partner Director Poland Regional Markets robert.karniewski@colliers.com Anna Galicka-Bieda Regional Director Kraków anna.galicka-bieda@colliers.com Ewa Grudzień Analyst Research and Consultancy Services ewa.grudzien@colliers.com Tomasz Zydorek Regional Office Manager Katowice tomasz.zydorek@colliers.com Kamil Pakosz Regional Manager Wrocław kamil.pakosz@colliers.com www.colliers.pl

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