Krakow, Poland:A Technology Hub for Central & Eastern EuropeRamon TancincoChairman, High Tech Committee: American Chamber of Commerce PolandHead of Strategy Central and Eastern Europe: Cisco Systems

Version as of 28 May 2010THIS WORK IS LICENSED UNDER THE CREATIVE COMMONS ATTRIBUTION-SHARE ALIKE 3.0 UNITED STATES LICENSE.

Agenda

Speaker Intro

Krakow Primer

Krakow by the Numbers

Krakow Trends

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 others

R&D Headquarters for Small and Medium-Sized Companies from Ireland, Israel, UK, Denmark, Norway, and US

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

Krakow Multinational Employment

0 2000 4000 6000 8000 10000 12000 14000

inne

Logistics

Telecom

HR

Telemarketing

Sales

R&D

Customer Support

Accountint & Finance

IT

TOTAL

Kraków – employment in Major IT Companies and SSC (ITO)

IT Company Approx. no. of employees

Comarch 1000

Motorola 800

Sabre 800

Capgemini IT 500

IBM IT 450

Ericpol 400

Dreamlab (Onet IT) 200

Quantum Int. 150

HCL IT 250

TP S.A. IT 60

Google 80

Electrolux IT 40

Total 4730

Student numbers – Kraków and Katowice - (one labour region)

0 100 200 300 400 500

Zielona Góra

Opole

Białystok

Kielce

Olsztyn

Rzeszów

Szczecin

Bydgoszcz

Gdańsk

Lublin

Łódź

Wrocław

Poznan

Warszaw a

Kraków and Katow ice

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

Growing population in Kraków

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

-5 -4 -3 -2 -1 0 1 2 3

Warszawa

Kraków

Poznan

Gdańsk

Łódź

Bydgoszcz

Wrocław

Szczecin

Zielona Góra

Rzeszów

Białystok

Lublin

Kielce

Olsztyn

Katowice

Opole

Polska

Krakow’s 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 PwC’s 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

1998 2004 2007

2002 2006 2005

1992 1994 1996 1998 2000 2002 2004 2005 2006 20071989

Trend Snapshot: The Krakow Mobile Cluster

Motorola

EricPol

Google (Android)

Volantis

iLoop Mobile

Trend Snapshot: International Start-up Back-Office R&D (last 2 years)

Synkia (Norway)

X-Formation (Denmark)

iLoop Mobile (USA)

Test4Load (Israel)

PipeJump (USA)

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)

• 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)

• CapGemini•Provides support in 25 different languages. “Krakow has a rich history, but today’s city has a modern face with the kind of infrastructure you’d expect from any European commercial hub...Importantly, it gives us access to the skills we need – 180,000 graduates (30,000 from Krakow) leave Poland’s universities every year.”

(“Krakow Centre of Excellence”, CapGemini)

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

Krakow culture and lifestyle

“Eastern Europe’s new bohemian capital” (New York Times)

EU Capital of Culture 2000; “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.

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.

Krakow/San Francisco

SISTER CITIES, AS OF JULY 2009