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21.05.2010 – 10:00

Germany Trade & Invest

10th Annual European Shared Services and Outsourcing Week 2010: Germany's Back-Office Segment Shows Strong Growth

Berlin/Edinburgh (ots)

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
Phone: +49(0)30 200099-173
Fax: +49(0)30 200099-111

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