Institutional Approach in The Assessment of Competitiveness of The Offshoring Service Locations in Poland

Abstract

Changes in the global economy observed in the last decade are, to a significant extent, the result of the globalization of markets and the liberalization of international service-oriented turnover. The progressive globalization changes the conditions for the operation for the business entities of an international character. These companies, adapting to new market conditions, are seeking solutions which would allow them to maintain their competitiveness. One of the tools that companies use to improve their competitiveness is offshoring (BPO). This is a process related to the transfer of the implementation of production and service processes to the territory of another country. Location choice in the BPO decisions has become an important strand of the international business literature with a number of scholars examining the influence of host country variables such as property rights, intellectual property protection, public trust in politicians, government factors and others. Poland is the Central and Eastern European leader in the sector of modern business services. This country has many business service centers with foreign capital, which employ thousands of employees. Additionally, employment in this sector is systematically growing by 20% each year. Poland's attractiveness on the map of offshoring investment projects results mainly from a very well qualified and cheap workforce. Offshoring Centers located here offer both BPO and KPO services.