MEDIA RELEASE PR39653
10th Annual European Shared Services and Outsourcing Week 2010:
BERLIN and EDINBURGH, Scotland, May 21/PRNewswire-AsiaNet/ --
- Germany's Back-Office Segment Shows Strong Growth
With projected growth rates exceeding nine percent,
back-office functions are driving steady growth in Germany's business process
outsourcing industry (BPO). Germany Trade & Invest will have representatives
on hand at this year's Shared Services and Outsourcing Week, taking place
from May 24-27 in Edinburgh, United Kingdom. Industry experts will present
market opportunities for BPO and shared services in Germany.
According to NelsonHall, annual growth rates for the German
BPO market are forecast at around 7.2 percent, with back-office activities
even predicted to grow at 9.2 percent. By 2013, the BPO market in Germany is
expected to have reached an estimated volume of EUR 14.4 billion.
Approximately one third of German companies plan to outsource business
processes within the next two-year period, creating a number of opportunities
for international and domestic companies in a growing industry.
Increasing demand for business services in Germany is driven
in part by the country's economic structure, which is characterized by a
strong base of small and medium-sized enterprises (SMEs), which are typically
not large enough to establish their own shared service centers. These
companies provide the most significant outsourcing potential of non-core
processes, but many have been hesitant to outsource back-office processes due
to the absence of "onshore" German market service providers.
As Europe's largest market, Germany is an attractive location
to serve local clients. A number of companies are currently active in the
German market, either with their own subsidiary activities in Germany or in
close strategic partnerships with local partners. However, market entry
conditions remain attractive, as the BPO market is not dominated by any
single player. The top 20 BPO providers claim less than 30 percent of total
market share.
When choosing where to best establish a business to serve a
large customer base, Germany's highly trained personnel have contributed to
its reputation as an attractive business location. The country's dual
education system, which combines the benefits of classroom-based and
on-the-job training, is critical to this industry. This model provides
companies with access to a broad array of qualified and motivated employees
at competitive costs. And with labor turnover rates as low as five to ten
percent, substitute recruitment and training costs are kept to a minimum.
Germany Trade & Invest will have industry experts at booth No.
1. Additionally, industry players are recognized at the SSON's Annual Shared
Services Excellence Awards. Here, Germany Trade & Invest will be presenting
the award for "The Best New Captive Shared Services Organization."
Germany Trade & Invest is the foreign trade and inward
investment promotion agency of the Federal Republic of Germany. The
organization advises foreign companies looking to expand their business
activities in the German market. It provides information on foreign trade to
German companies that seek to enter foreign markets.
Germany Trade & Invest
Eva Henkel
Email: eva.henkel@gtai.com
Phone: +49(0)30-200099-173
Fax: +49(0)30-200099-111
SOURCE: Germany Trade & Invest
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