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Krakow, Poland: A Technology Hub for Central & Eastern Europe Ramon Tancinco Chairman, High Tech Committee: American Chamber of Commerce Poland Head of.

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Presentation on theme: "Krakow, Poland: A Technology Hub for Central & Eastern Europe Ramon Tancinco Chairman, High Tech Committee: American Chamber of Commerce Poland Head of."— Presentation transcript:

1 Krakow, Poland: A Technology Hub for Central & Eastern Europe Ramon Tancinco Chairman, High Tech Committee: American Chamber of Commerce Poland Head of Strategy Central and Eastern Europe: Cisco Systems Version as of 28 May 2010 THIS WORK IS LICENSED UNDER THE CREATIVE COMMONS ATTRIBUTION-SHARE ALIKE 3.0 UNITED STATES LICENSE.

2 Agenda Speaker Intro Krakow Primer Krakow by the Numbers Krakow Trends

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4 Who is in Krakow? Multinational R&D: Google, IBM, Motorola, ABB, SABRE, Delphi, Fujitsu Offshore BPO: CapGemini, IBM, Motorola, Shell, ACS, Fortis Bank, UBS, Comarch, Unicredito Bank, Tesco, International Paper, HSBC, Lufthansa, State Street, HCL, Philip Morris, Hewitt, Alexander Mann, Hitachi, Accounting Plaza, EDF Energy, UPM-Kymenne IT Services: concentrations in video game design and development, web design and development, mobile applications, bioinformatics, and other areas Startups such as iLoopMobile, Volantis, Synkia, X-Formation, Test4Load, PipeJump, and many othersmany others R&D Headquarters for Small and Medium-Sized Companies from Ireland, Israel, UK, Denmark, Norway, and US

5 Why Krakow? Large technical/engineering talent pool Low cost + stability of European Union Multilingual, educated work force Great place to live: Beauty, culture, and recreation

6 Krakow Multinational Employment

7 Kraków – employment in Major IT Companies and SSC (ITO) IT CompanyApprox. no. of employees Comarch1000 Motorola800 Sabre800 Capgemini IT500 IBM IT450 Ericpol400 Dreamlab (Onet IT)200 Quantum Int.150 HCL IT250 TP S.A. IT60 Google80 Electrolux IT40 Total4730

8 Student numbers – Kraków and Katowice - (one labour region) Katowice, located very close to Krakow, create one labour makro region with the highest no. of students in Poland, with min. 2,5 times higher students potential compared to Poznań Source: National Statistics Office

9 Growing population in Kraków Positive net migration by region – Krakow on 2nd position in Poland (number per 1000 inhabitants)

10 Krakows Transformation into an R&D Center IBM Launches their Software R&D Laboratory in Krakow Poland emerges from Communism 2000:Sabre purchases Gradient 2002: IBM Buys PwCs Finance BPO Operations Sabre reaches 340 Engineers Motorola Office Opened in Krakow at Jagiellonian Campus Tower Rafal Styczen sets up IIF, the first Venture Capital fund in Krakow Poland joins the European Union Sabre reaches 100 Engineers Google Opens their first and only Central and Eastern European R&D Center in Krakow Sabre reached 600 Engineers

11 Trend Snapshot: The Krakow Mobile Cluster Motorola EricPol Google (Android) Volantis iLoop Mobile

12 Trend Snapshot: International Start- up Back-Office R&D (last 2 years) Synkia (Norway) X-Formation (Denmark) iLoop Mobile (USA) Test4Load (Israel) PipeJump (USA)

13 Krakow success stories Google For years, Western technology firms have come to Eastern Europe to lure away talented computer-science graduates...but now, the region's universities are producing so many top programmers that many firms are changing tack – and setting up shop at the source. IBM, Motorola, and Google have all opened research labs here in Krakow in recent years. Eastern Europeans have dominated international programming competitions in recent years, attracting the attention of tech firms. "When we saw these trends, of people from Eastern Europe winning these contests, we decided to take a closer look," says Kannan Pashupathy, Google's head of international engineering operations. "People have a huge interest in software, and there's a much deeper grounding in mathematics in the curriculum in these countries"...Cultural, geographic, and economic proximity to Western Europe has given the region an advantage over global competitors like India. (Christian Science Monitor, Why Google put a research lab in Poland, 3/13/07)Why Google put a research lab in Poland IBM For Big Blue and other IT services companies, Poland's skilled workforce makes up for rising wages with skills that offset Bangalore's low costs. Krakow, Poland, is a nice place to live and work, with a charming old quarter and a lively club scene driven by the city's population of more than 150,000 students. In fact, Krakow seems almost too nice to compete with the raucous, traffic-jammed cities of India as a location for outsourcing... Since 2002, IBM has boosted staff in Krakow tenfold...Part of the reason Krakow makes sense for IBM, as well as for Cap Gemini, Motorola, KPMG, and other multinationals is that the university town churns out a steady supply of well-qualified graduates. (Spiegel Online, As Good as Bangalore: Why Krakow Still Works for IBM, 9/26/07)As Good as Bangalore: Why Krakow Still Works for IBM CapGemini Provides support in 25 different languages. Krakow has a rich history, but todays city has a modern face with the kind of infrastructure youd expect from any European commercial hub...Importantly, it gives us access to the skills we need – 180,000 graduates (30,000 from Krakow) leave Polands universities every year. (Krakow Centre of Excellence, CapGemini)Krakow Centre of Excellence

14 Krakow, a university city 200,000+ students in higher education 400,000+ students within 100 km Over 30,000 new graduates each year. ~8,000 IT sciences students; ~5,000 mechanical engineers currently enrolled Leading universities in the country Jagiellonian University, AGH University of Science and Technology, Krakow University of Technology, Krakow University of Economics, and others. 8 universities in Krakow with IT degrees SOURCE: TESTHR.PL, CAPGEMINI

15 Krakow culture and lifestyle Eastern Europes new bohemian capital (New York Times)New York Times EU Capital of Culture 2000; considered by many the cultural capital of Poland.considered by many the cultural capital of Poland Entire Old Town is a UNESCO World Heritage Site. With 7 million+ visitors per year, convenient transportation links and infrastructure. 7 national parks within 200 km; world-class skiing 100 km away.

16 Support for investments EU subsidies for service sector job creation Polish government support Direct aid for R&D and BPO job creation Corporate and real estate tax exemptions Poland has a large and growing economy: ranked #21 in global GDP, low inflation.

17 Krakow/San Francisco SISTER CITIES, AS OF JULY 2009


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