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Greece at your business' service
November 2018
A Worldwide Destinationfor Global BusinessServices and Shared Service Centers
GREECE IN THE SPOTLIGHT:
www.enterprisegreece.gov.gr
A. INTRODUCTION
A global trend
It is increasingly common for multinational companies to establish Global Business Services – GBS and Shared Service Centers – SSCs to provide services within the group. With the rise in volume of cross-border transac-tions and intensifying competition among multinational groups, companies often centralize the entire range of intragroup services in a single location to achieve efficiency and avoid duplication of services. This trend has led to a rise in intragroup SSCs.
Why Greece?
Many multinational companies have already chosen Greece as a preferred location for the establishment of Global Business Services – GBS and Shared Service Centers – SSCs. Greece presents a unique investment opportunity as it combines:
An advantageous geostrategic location
A highly educated and multilingual work force
Competitive wages
Flexible investment framework
Telecommunications infrastructure
Competitive real estate
Excellent climate and quality of life
EU member country enjoying stability, security and prosperity
3
B. GREECE AS YOUR NEXT BUSINESS LOCATION
B1. GEOGRAPHIC POSITION
2.000 km
1.500 km
1.000 km
Athens
Thessaloniki
Mediterranean SeaTunisia
Spain
MontenegroSerbia
HungarySlovakiaGermany
Belgium
Switzerland
Sweden
Denmark
Netherlands
Poland
LithuaniaBelarus
Ukraine
Romania
Moldova
Russia
Estonia
Latvia
SloveniaAustria
BosniaCroatia
FYROMBulgaria
AlbaniaPortugal
Lebanon
Jordan
Syria
Turkey
Israel
Cyprus
EgyptLibya
Morocco
France
UK
Algeria
Italy
Strategically positioned as the gateway to 3 continents
In a time zone (+/- 3h) Greece covers:
2,4 bn people (30% of global population)~30% of global GDP
Flight time from Athens to (app.):
New York: 10 hoursLondon: 3,5 hoursBrussels: 2,5 hours
Moscow: 3 hoursDubai: 4 hoursBeijing: 8,5 hours
AFRICA MIDDLE EAST
EUROPE
4
MedNautilus Submarine System
Source: https://www.grnog.gr/wp-content/uploads/sites/7/2018/07/Polyrakis-Internet-Infrastructure-in-Greece.pdf
Asia-Africa-Europe 1 (AAE-1)
B2. TELECOM INFRASTRUCTURE Greece can satisfy all telecom infrastructure needs (fixed, mobile, data, fiber-optic networks etc.).
International network: Greece is a part of • MedNautilus Submarine System-Sparkle • Asia-Africa-Europe 1 (AAE-1)• The Quantum Cable, a planned subsea ultra high speed fiber-optic cable system connecting Asia
and Europe via the Mediterranean Sea
Backbone network: OTEGLOBE, WIND, Vodafone, Forthnet, CYTA, among others
According to the National Broadband Strategy, Next Generation Access aims are 100% broadband cov-erage with minimum speeds of 30 Mbps with at least 50% of households benefiting from 100 Mbps by 2020. In line with the targets of the Gigabit Society, this should rise to 1 Gbps connectivity by 2025.
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Dublin0,64%
Paris0,61%
Lisbon0,28%
Madrid0,18%
Zurich0,29%
Rome0,05%
Athens0,33%
Vienna0,16%
Berlin0,33%
Copenhagen0,49%
Oslo0,51%
Helsinki0,36%
Stockholm0,65%
Amsterdam0,61%
Comparatively high density of developers
Source: https://talent.balderton.com/European_Tech_Talent_Landscape.pdf
Top talent at a highly competitive cost.
3rd in percentage of graduates in Science (ITIF Report Jan 2016).
Density of talent is key to buildingstrong ecosystems
BROADBAND PENETRATION IN EU 28
Italy
Estho
niaFin
land
Belgi
um
Hung
ary
Czec
h Rep
ublic
Roman
ia
Franc
eMa
lta
Irelan
d
Latvi
a
Portu
gal
Germ
any
Lithu
ania
Slova
kia
Bulga
ria
Croa
tia
Gree
ceCy
prus
Austr
ia
Slove
nia
Denm
ark
Nethe
rland
s
Luxe
mbourg
EE-2
8
Swed
en UK
Polan
d
Spain
50
45
40
35
30
25
20
15
10
5
0
Source: Hellenic Telecommunications and Post Commission- June 2018, https://www.eett.gr/opencms/export/sites/default/EETT/Electronic_Communications/TelecomMarket/broadbandServices/Broadband-stats-2017-Q4.pdf
B3. TOP TALENT
GREECE 10th
6
AMONG THE EUROPEAN LEADERS IN SCIENCE & TECHNOLOGY WORKFORCE
Italy
Italy
Franc
e
Franc
e
Malta
Malta
Portu
gal
Portu
gal
Germ
any
Germ
any
Gree
ce
Gree
ce
EE-2
8
EE-2
8
Spain
Spain
Human resources in science and technology as a share of the active population
50,80%
France
48,70%
Germany
44,30%
Spain
38,50%
Greece
36,50%
Bulgaria
36,50%
Hungary
36,40%
Portugal
36,30%
Italy
28,10%
Turkey
27,70%
Romania
Source: Science & technology statistics 2017
A MULTILINGUAL WORKFORCE
Percentage of Managers, Professionals, Technicians and Associate Professionals who speak a foreign language
Percentage of Clerical Support Workers, Service & Sales Workers who speak a foreign language
Source: Education statistics 2015
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B4. GREECE REMAINS HIGHLY GOMPETITIVE IN THE EU ON HOURLY LABOR COST
Labour Cost per hour in Euro in the Service Sector
Belgium
Source: Science & technology statistics 2017
Source: Employment Outlook 2017
Greece
13,8
Portugal
14,3
Cyprus
16,3
Spain
20,1
EU
25,8
Italy
26,9
EU Area
28,7
Germany
30,5
France
36,1
40,6
GREECE REMAINS STRONGLY COMPETITIVE ON AVERAGE ANNUAL WAGE COST
Italy
Mexic
o
Eston
ia
Unite
d King
dom
Chile
Belgi
um
Hung
ary
Japa
n
Czec
h Rep
ublic
Franc
e
Korea
Irelan
d
Latvi
a
New
Zeala
nd
Portu
gal
Germ
any
Israe
l
Austr
alia
Lithu
ania
Finlan
d
Gree
ce
Austr
ia
Slove
nia
Denm
arkNe
therla
nds
Norw
ayIce
land
Switz
erlan
dUn
ited S
tates
Luxe
mbourg
Slova
k Rep
ublic
Swed
en
Polan
d
Cana
da
Spain
25,1k
0k
10k
20k
30k
40k
50k
60k
Belgium
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B5. COMPETITIVE REAL ESTATE PRICES, AFFORDABLE LIVING COST WITH A UNIQUE LIFESTYLE
Prime CBD rents (€/sq.m./year), Q1 2018
Note: Prime rents refer to modern office space, minimum 1,000 sq m
COMPETITIVE REAL ESTATE MARKET IN PRIME CDB RENTS
Source: Market report, European Offices Savills
Vacancy rates, Q1 2018
Lisbo
nAthe
ns
Barcelo
na
Brusse
ls
Copen
hage
n
Frank
furt
Luxe
mburg
Paris
CBD
Lond
on City
11,00%
8,80%8,30% 8,00%
7,00%
5,90% 5,70%
4,50%
2,30%
Source: Market report, European Offices Savills
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ATHENS' OFFICE MARKET CONTINUES ON A PATH OF IMPROVEMENT
B6. GREECE A UNIQUE PLACE TO LIVE
Greece scores high on all major factors taken into consideration when choosing a new country for relocating, such as quality of life, regulated environment, secure living conditions in urban and rural areas, access to efficient services, residence privileges for family members, freedom to travel:
Rich history and cultureNatural beauty and mild climateGreek cuisine-Mediterranean dietA wide variety of educational optionsModern healthcare infrastructure and highly skilled medical personnel Multilingual populationIntellectual capital
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er Yu
gosla
vRe
publ
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Mac
edon
ia
Bulg
aria
Serb
ia
Koso
vo (*
)
Rom
ania
Alba
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Turk
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9
Germ
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47 48 51 52 52 52 52 53 55 56 62 65 67 69 69 72 79 82 84 85 85 88 92101 103 105 108 109 111 112 117 122 125 125 127
142 143
159 166
AFFORDABLE AND COMPETITIVE LIVING COST IN A DEVELOPED MEDITERRANEAN ECONOMY Price level index for household final consumption expenditure, 2017
(*) This designation is without prejudice to positions on status, and is in line with UNSCR 1244 and the ICJ Opinion on the Kosovo Declaration of Independence.
Source: (Results are based on price surveys covering more that 2,400 consumer goods and services which were conducted across 37 European countries participating in the Eurostat-OECD Purchasing Power Parities (PPP) program
QUALITY OF LIFE…
Greece Ranks 1rst in # of Practicing physicians,
per 100.000 inhabitants in EU, in 2009 and 2014
Source: 2009 2014
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B7. ESTABLISHMENT OF INTRA-GROUP SERVICE CENTERS IN GREECE AND AVAILABLE FINANCING
FRIENDLY AND CONTEMPORARY FRAMEWORK
An attractive framework for businesses
Intra-Group Service Centers established in Greece, under Law 3427/2005, may provide the following services to their head-offices or affiliates abroad, as well as in Greece: Consulting services, Centralized accounting services, Quality control of production, products, procedures and services, Preparation of studies, designs and contracts, Advertising and marketing services, Data processing services, Receipt and supply of Information and Research & Development services.
The entities under this law are obliged to maintain a minimum size regarding the employment and operating expenses, at least 4 employees and €100.000 per year operating expenses in Greece.
Companies wishing to establish presence in Greece for the provision of Intra-Group Services, subject to the provisions of Law 3427/2005, are required to submit to the Directorate for Foreign Capital at the Ministry of Economy and Development
Intra-Group Service Centers enjoy the following benefits:
Flexibility with regards to the type of business entitySimple, fast and transparent licensing processLegal certainty with pre-defined profit margin on costsThe submission of the necessary documentation can be done electronicallyResidence and work permits for its foreign staff
INVESTMENT INCENTIVES FOR INTRA-GROUP SERVICES
The following investment incentives will be shortly introduced as an amendment to the existing Law 3427/2005 in order to provide a comprehensive investment framework for GBS and SSCs in Greece.
Types of incentives:
Total wage cost (wage and social security contributions) subsidies for the creation of new employment in labor intensive GBS and SSCsTotal wage cost subsidies up to 50% for new scientific personnel and technical staff Subsidy for research tools and research equipment up to 50%
Provision of tax incentives: Tax exemption of 130% of total annual R&D expenses
shortly available under Law 3427/2005
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FRIENDLY FRAMEWORK FOR START-UP FINANCING
TOP 10 MOST FUNDED GREEK STARTUPSA total amount of more the 200 million euros have been invested in Greek startups during the period 2010-2016. For 2017, almost 100 million euros were added to this amount, as two of the biggest exits were announced, Taxibeat’s and Innoetics, for a combined total of almost €80m
Equifund a fund-of-funds to support innnovation and SMEs was launched with:
200 million euro from European and national funds
60 million from the European Investment Fund
40 million from the European Investment Bank
European Fund for Strategic Investments, the core of the so-called ‘Juncker Plan’ and
another 100 million is calculated to receive from other private investors.
In total, 400 million euro is expected to be deployed in the period 2018-2023 in venture capital investing
COMPANY TOTAL FUNDING (IN MILLIONS)
1 Persado 83,46 €
2 Workable 30 €
3 Hellas Direct undisclosed
4 Metamaterial Technologies 16,26 €
5 Book 'n' Bloom 12,55 €
6 Resin.io 10,78 €
7 Blueground 6,94 €
8 Taxibeat (Beat) 5,49 €
9 Transifex 5,47 €
10 Intale > 5 €
Source: Foundation_Start ups in Greece report
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…MORE THAN €250MN INVESTMENTS SINCE 2012
INVESTMENT INCENTIVES LAW
Foreign investors have acquired majority stakes in Greek startupsFour Greeks were in the 2017 edition of Forbes 30 under 30 and two Greeks made it to the 2018 list
Aid schemes:
1. Tax exemptions2. Cash grants3. Leasing subsidy (leasing)4. Wage costs subsidy5. Financial instruments (capital participation, loan guarantee, loan etc.)6. Fixed tax regime for a certain period of time7. Rapid licensing
State Aid percentages:
Regional State Map percentages foresee maximum aid rates reaching 55% of the total investment cost for small and very small enterprises and 35% for large enterprises.
18x
2012
0
50
5
4050
75
90100
150
2013 2014 2015 2016
Percentages depend on the size of the company and the region of the country in which the project will be implemented
The First Round for Calls of Interest has attracted 772 investment plans, with a total investment budget of €2 bn and €700 mn of total investment support. The first 70 projects have been approved with a total budget in excess of €500 mn
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INTERNATIONAL BPOS & CONTACT
CENTERS IN GREECE
LARGE SIZE CONTACT CENTERS IN GREECE847 companies offer business services to other companies in GreeceMore than 120 are shared service centers, mainly call centersLarge size contact centers with over 250 positions operate at full capacity in Greece as regional mul-tilingual hubs, currently employing more than 20,000 highly skilled employeesSmaller size call centers, with 50 to 100 positions, offer services mainly to the Greek market
CUSTOMER SUPPORT SERVICESAND CALL CENTERS
STAFF NUMBER
Teleperformance Greece 6,200
COSMOTE E-value 6,000
Mellon Group of Companies 4,500
ICAP Outsourcing Solutions 2,100
First Data Greece 1,100
360Connect 500
Mediate 500
Piraeus Direct Services 350
INTERNATIONAL BPOS & CONTACT CENTERS IN GREECE
In 2002 it became the Regional Headquarters for the Teleperformance Operations in South Europe & the Mid-dle-East and in 2004 it started becoming a major Multilingual destination for Europe, the Middle East and Africa, serving currently over 140 markets in 35 languages & dialects and employing more than 6,200 people from 91 nationalities. Teleperformance Greece operates today out of 3 Multilingual Hubs in Athens and 1 Site in Chania.
Mediterranean Shipping Company operating a network of over 480 offices in 155 countries, employing a team of over 70,000 dedicated individuals. MSC has an established fleet of 490 container vessels with an intake capacity of circa 3.1 million TEU and its sailing schedules cover 200 routes, calling at 500 ports.
Accenture Analytics – “Center of Excellence” in Athens, a global analytics centre for Accenture, serving more than 30 markets, doing analytics in all developed and developing markets, such as, US, UK, Italy, France, Germany, Spain, Portugal, Greece, Turkey, Middle East, Japan, India, China.
Oracle opened a new software center in Greece. Oracle’s cloud development hub will develop software applications and tools and provide support for customers of the California-based IT company. This is the company’s second biggest hub out of the five currently in operation. The other four are in the US, the UK, the Netherlands and India.
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INTERNATIONAL BPOS & CONTACT CENTERS IN GREECE
€43 mil. investment by Coca-Cola HBC for one of the largest private sector ICT projects in Greece, serving 24/7 business transactions for 36,000 employees and 18.5 mil. orders annually
The Coca-Cola Company established in the 2014 the Consumer Interaction Center (CIC), a pioneering social networking hub based in Athens. The CIC is operating like a startup, yet in full alignment with the Company’s philosophy and employs a total of 25 people, of which 8 in Athens, where the social media strategy for 26 countries is designed.
SAP sets up its first global data science delivery hub in Athens. The role of the new hub will not cover just the domestic and wider geographical region and would be the start of a further expansion of SAP’s activities in Greece.
Nokia Solutions and Networks a wholly subsidiary of Finnish Nokia, launched new activities for its research and development center in Athens, creating more than 1100 job positions.
SHARED SERVICE CENTRES IN ACCOUNTING ESTABLISHED BY FOREIGN COMPANIES, L. 3427/2005 FOR INTRA-GROUP SERVICES
NAFTOMAR SHIPPING & TRADING CO LTD INC (OIL SECTOR) has established its centralized accounting SSC in Greece. # employees 30
Nike Hellas (SPORTS CLOTHING) has established its centralized accounting SSC in Greece. # employees 46
World Gaz Corporation SA (OIL SECTOR) has established its centralized accounting SSC in Greece. # employees 37
BMS UNITED BUNKERS (CYPRUS) LTD, (OIL SECTOR) has established its centralized accounting SSC in Greece. # employees 30
Consolidated Contractors Group S.A.L. (CCC) (CONSTRUCTION SECTOR) has established its centralized accounting SSC in Greece. # employees 589
PEOPLECERT (SERVICES SECTOR) has established its centralized accounting SSC in Greece. # employees 100
17
CRESCENT HOLDING GHBH (INVESTMENT SECTOR) has established its centralized accounting SSC in Greece. # employees 49
EPSILON HELLAS OVERSEAS LTD (SERVICES SECTOR) has established its centralized accounting SSC in Greece. # employees 40
GAS Security SA has established its centralized accounting SSC in Greece. # employees 11
HILL INTERNATIONAL (CONSULTING SERVICES ) has established its centralized SSC in Greece. # employees 34
IKEA FRANCHISE AND PROJECT MARKETING LTD (RETAIL SECTOR) hasestablished its centralized SSC in Greece. # employees 27
SAMSUNG HEAVY INDUSTRIES CO LTD has established its centralized accounting SSC in Greece. # employees 4
DAEWOO SHIPBUILDING AND MARINE ENGINEERING CO LTD has established its centralized accounting SSC in Greece. # employees 5
HANWHA CORPORATION has established its centralized accounting SSC in Greece. # employees 4
McGRAW-EDISON DEVELOPMENT CORPORATION has established its centralized accounting SSC in Greece. # employees 15
HYUNDAI HEAVY INDUSTRIES COPMANY LTD has establishedits centralized accounting SSC in Greece. # employees 4
Coca-Cola Hellas S.A. has established its centralized accounting SSC in Greece. # employees 67
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Enterprise Greece is the official agency of the Greek State, under the supervision
of the Ministry for Economy and Development.
To showcase Greece as an outstanding destination for investment and to promote the highly
competitive products and services produced in Greece for export.
Athens: 109 Vasilissis Sophias, 115 21 Athens, GreeceThessaloniki: 36 Tsimiski, 546 21 Thessaloniki, Greece
Tel: +30 210 335 5700
email: [email protected]: www.enterprisegreece.gov.gr/
Your partner for growth