Labor market shortcomings, poor infrastructure hit Poland's attractiveness as services location

Shortcomings in Poland's labor market and poor road infrastructure threaten the country's attractiveness as a location for service activities, such as IT, business processes and call centers, consulting firm AT Kearney's Chief Executive Officer Aleksander Kwiatkowski told a press conference Tuesday.

"Poland should improve two parameters - the attractiveness of its labor market and the business environment - to maintain its attractiveness' level," said Kwiatkowski. "In general, all elements of the business environment parameter remain at least at a satisfactory level, except for infrastructure."

Kwiatkowski was commenting on the company's annual Global Services Location Index for 2007, released late March, that analyzes the top 50 service locations worldwide against 41 measurements in three major categories - cost, availability and skills of personnel, and business environment. Poland was ranked 18th chiefly on the back of lower wage inflation and low infrastructure costs.

AT Kearney's analysis showed that the country lags behind in the category of foreign language skills, even though during the analyzed period of 2004-06 a significant improvement was noted. Observed trends also illustrate shortcomings in educational adjustments to the market needs. This situation is becoming more marked as skilled, young Poles leave the country to seek better-paid work in Western Europe, Kwiatkowski said.

According to Kwiatkowski, the picture is unlikely to alter within the next four to five years, but Poland is expected to remain an attractive location thanks to relatively-low business costs.

"I think in four-five years the situation could change," said Kwiatkowski. "Poland will certainly draw foreign investors' attention because of its financial attractiveness - at the end, it is always costs that count the most."
Source:biznes.onet.pl