slide1 n.
Download
Skip this Video
Loading SlideShow in 5 Seconds..
Where Business Services come together PowerPoint Presentation
Download Presentation
Where Business Services come together

Loading in 2 Seconds...

play fullscreen
1 / 13

Where Business Services come together - PowerPoint PPT Presentation


  • 69 Views
  • Uploaded on

KAUNAS REGION. Where Business Services come together. KAUNAS REGION. Welcome to Kaunas Region , Lithuania!. Where Business Services come together. Lithuania is at the center of three of large consumer markets : Western Europe Baltic Sea Region

loader
I am the owner, or an agent authorized to act on behalf of the owner, of the copyrighted work described.
capcha
Download Presentation

PowerPoint Slideshow about 'Where Business Services come together' - farica


An Image/Link below is provided (as is) to download presentation

Download Policy: Content on the Website is provided to you AS IS for your information and personal use and may not be sold / licensed / shared on other websites without getting consent from its author.While downloading, if for some reason you are not able to download a presentation, the publisher may have deleted the file from their server.


- - - - - - - - - - - - - - - - - - - - - - - - - - E N D - - - - - - - - - - - - - - - - - - - - - - - - - -
Presentation Transcript
slide1

KAUNAS REGION

WhereBusiness Services cometogether

slide2

KAUNAS REGION

WelcometoKaunasRegion, Lithuania!

WhereBusiness Services cometogether

  • Lithuania is at the center of three of large consumermarkets:
  • Western Europe
  • Baltic Sea Region
  • Russia andformerSovietStates (CIS)

KaunasRegion

Source: Statistics Lithuania, VRM, InvestLithuania 2014

slide3

KAUNAS REGION

Lithuania, a gateway to the EU and CIS

WhereBusiness Services cometogether

  • Lithuania allows access to main markets*:
    • Member of the European Union
    • Member of the Schengen Agreement (free trade and travel)
    • Member of NATO
    • Member of the Nordic Investment Bank, and part of Nordic-Baltic cooperation of Northern European countries
  • Lithuania is ranked 17th of the world on the Ease of Doing Business Index (higher than e.g. Germany, Latvia or Poland) *
  • Lithuania is a low risk country in the Central and Eastern Europe region, making it an excellent alternative for nearby high risk countries as Russia or Belarus

European Union is the largest single market in the world (almost double the GDP of China) with over 500 millionconsumers

(source: IMF)

Risk rating of Lithuania comparedtoothercountries

(100= most risky)

Source: * World Bank , InvestLithuania2014

Source: Economist Intelligence Unit Q2 2014

slide4

KAUNAS REGION

Business services sector Lithuania

WhereBusiness Services cometogether

  • Lithuania’s business services market has been thriving for years, becoming an acknowledged hot spot for shared services centers (SSC) and Business Process Outsourcing (BPO)
  • With a cluster of multinationals providing services in the English, German, Russian, Polish and Scandinavian languages for the entire European market, Lithuania has emerged as an attractive and still not overheated location for shared services and outsourcing business developments
  • Market observers forecast a further rapid growth in the industry, whereas the Lithuanian Government has set a strategic goal to be achieved by the country by the year 2015 – to become the Northern Europe Service Hub
  • By 2015 the share of exports of services is expected to be 1/2 of Lithuania’s total exports

Shared Service Centers and BPO in Lithuania

International rankings

  • 3rdin Europe and 14th in the world in ranking of the best destinations for providing outsourcing activities*
  • Vilnius a hotspot location with 82% growth for SSC in the past 3 years **
  • The strong growth puts pressure on the Vilnius labor market. Kaunas provides an excellent alternative

Sources:

*A.T. Kearney’s Global Services Location Index 2011, InvestLithuania

**Annual Shared Services and BPO Conference 2013, Deloitte, InvestLithuania

Source: Invest Lithuania 2013

slide5

KaunasRegion is next to the capital Vilnius, Lithuania’s second city and an important hub for business services

KAUNAS REGION

WhereBusiness Services cometogether

Omega

Greencarrier

Lintel

BDC

TeliaSonera

IBM

SEB

Nielsen

Atea

Barclays

COWI

Danske Bank

Matrix Software

Western union

Storebrand

CSC

Transcom

Paroc

CITCO

INWINDO

CSC Telecom

Swedbank

Worldone

Mirror

CallcreditInformationgroup

Dematic

Unicall

Runway

HP

Nielsen&Nielsen

KaunasRegion is proven tobe an excellent alternative for the crowded and more costly Vilnius’ market

Source: Invest Lithuania 2013

slide6

KAUNAS REGION

The KaunasRegionprovides an unmatched mix of cost-effective talent and high class infrastructure

WhereBusiness Services cometogether

Highly educated and multilingual talent

  • The right people
  • The right education
  • The right languages

ICT infrastructure

Cost attractiveness

In

KAUNAS REGION

it all comes together

  • The right connectivity
  • The right speed
  • The right labor cost savings
  • The right tax scheme

International accessibility

Real Estate availability

  • The right offices
  • The right cost advantages
  • The right location
  • The right direct flights
slide7

KAUNAS REGION

Highly educated and multilingual talent

WhereBusiness Services cometogether

  • Within Kaunas Region approximately 15,000 people are employed in the business services sector
  • The Kaunas region workforce is highly educated with 39% of workers having a third level diploma (Lithuania: 34%; EU: 24%). Virtually all highly educated graduates speak English
  • Lithuania ranks 5th in EU for population speaking at least 1 foreign language (>90% of population) and 7th in EU for 2 foreign languages (>50% of population)*
  • The study of foreign languages is widely practiced in Lithuania and Kaunas Region

* Source: Invest Lithuania 2013

Languagesstudied in Lithuania 2010

CurrentlanguagecapabilitiesLithuanians

Contact centers in Kaunas region benefit from multilingual capabilities - Unicall

Source: Eurostat, 2012,

slide8

KAUNAS REGION

Cost attractiveness

WhereBusiness Services cometogether

  • In general labour costs in Lithuania are less than half compared to Western European countries and the USA
  • Kaunas is a very cost attractive location for BPO/call centers and shared services centers as employers’ cost levels are 10-15% lower compared to Vilnius
  • Standard income tax rate is one of the lowest in Europe at 15%. If established in a Free Economic Zone (FEZ), property and dividend tax is at 0% and income tax is at 0% for the first 6 years and 7.5% for the following 10 years*

*Source: Invest in Lithuania, FEZ Kaunas, Kėdainiai 2014

Full employerscost per person per year (Euro)

Tax rates

Source: Invest in Lithuania, FEZ Kaunas, FEZ Kėdainiai 2014

1 Employer cost are based on the following expenses: gross salary, social security, medical and pension costs in addition to social security and performance bonuses

Source: National/Regional Statistical Offices, IMD, UBS, 2014

slide9

KAUNAS REGION

ICT infrastructure

WhereBusiness Services cometogether

  • The ICT infrastructure in Lithuania (and Kaunas Region) is the best in Europe with 33% of homes/buildings directly connected to fiber
  • The most up-to-date ICT technologies are implemented and functioning in the entire country (LTE technology, 3G mobile communications, infrastructure, mobile WiMAX 4G Internet etc.)*

* Source: Invest Lithuania 2013

  • Also on the achieved internet speeds Lithuania scores very high at 7th globally

Countrieswith the highestpenetration of fiber-to-the-home / building

Lithuania ranked 7th globally on achieved internet speeds (Mbps)

Source: Speedtest.net, 2014

Source: FTTH Council Europe 2014

slide10

KAUNAS REGION

International accessibility

WhereBusiness Services cometogether

  • Kaunas Region is situated at the geographical centre of Lithuania and is further developing and strengthening its transport infrastructure
  • Kaunas Region is well connected by road to Vilnius, Klaipeda, Riga and Poland.
  • Kaunas airport, which is the second largest airport in Lithuania, serves 8 international destinations (incl. London, Birmingham, Dublin, Oslo and Frankfurt) throughout the year on a weekly basis
  • Vilnius International Airport is located within a one hour drive providing 2-3 flights per hour and more daily direct flights to major European capitals and cities
slide11

KAUNAS REGION

Availability of affordable real estate

WhereBusiness Services cometogether

Averageannualoccupancycosts office (Euro/sqm)

  • Kaunas Region provides affordable office space which is 25% cheaper compared to Vilnius
  • Kaunas Free Economic Zone (FEZ) provides opportunities for setting up an office. The zone provides favourable and lower taxes for investors investing at least Euro 1 million
  • Within the city of Kaunas, new high quality developments are underway to accommodate the business services industry

Note: Cost for a Grade A office space, excluding average local rates and service charges

Source: CBRE, Jones Lang LaSalle, UBS, Ober-Haus, Colliers International ,2014

New office building Kaunas City

Source: Invest Lithuania, FEZ Kaunas, 2014

slide12

KAUNAS REGION

National incentives support program

WhereBusiness Services cometogether

  • Foreign investors interested in locating a business in Lithuania as well as foreign companies already operating in the Lithuanian market but eager to further expand may apply for Invest in Lithuania’s financial investment support of up to Euro 3.5 million per investment project
  • Invest in Lithuania provides financial support to cover personnel training costs (up to Euro 2 million) as well as eligible construction, infrastructure and salary costs (up to Euro 1.5 million), incurred by foreign investors establishing a services business unit in Lithuania
  • The financial support tool is designed to support foreign businesses investing into the production of export-oriented high-quality services as well as establishment of qualified jobs on the market

Financial support available per FDI project in the field of services

Construction, Infrastructure, Salary costs

Personnel training costs

Up to Euro 1.5 million

Up to Euro 2 million

Max. possible support

3.5 million Euro

Source: Invest Lithuania, 2014

slide13

KAUNAS REGION

Contact us

WhereBusiness Services cometogether

TBD

  • Information
  • Consultancy
  • Analysis
  • Search
  • Guidance
  • Networking
  • Assistance
  • Aftercare

One stop shop

Contact Information:

+370 ….

@

www