{"id":7220,"date":"2020-05-22T13:46:17","date_gmt":"2020-05-22T01:46:17","guid":{"rendered":"https:\/\/loonglist.com\/?post_type=project&p=7220"},"modified":"2021-04-25T14:13:58","modified_gmt":"2021-04-25T02:13:58","slug":"business-support-services-and-technology-centers","status":"publish","type":"project","link":"https:\/\/loonglist.com\/investment-project\/business-support-services-and-technology-centers\/","title":{"rendered":"Business support services and technology centers"},"content":{"rendered":"

The Czech Republic aims to become the regional hub for customer contact centers, shared services centers, expert solution centers, software development, research and development centers, design centers and high-tech repair centers.<\/p>\n

Mergers and Acquisitions<\/p><\/blockquote>\n

The Czech company market offers a great opportunity to expand a footprint in a competitive location with favorable cost structure and skilled labor force. After a boom in the manufacturing and IT sector over the last several years, many Czech owners are considering their factory growth in cooperation with a strong foreign partner or selling the equity and retiring.<\/p>\n

Investor information is prepared in English. Financial data are compliant to the local corporate income tax methodology and internationally transparent indicators. Company profiles are available to potential investors (manufacturing companies, private equity funds, mandated consultants, etc.) after signing the non-disclosure agreement.<\/p>\n

Asian capital closed largest the volumes from all international investors last year in Czechia and it is expected that these investors will continue looking for opportunities this year as well.<\/p>\n

<\/figure>\n<\/p>\n

Key advantages of the Czech Republic as an investment location<\/p><\/blockquote>\n

    \n
  • Central location in Europe<\/li>\n
  • Skilled workforce<\/li>\n
  • Safe investment environment<\/li>\n
  • The high share of secondary and tertiary education<\/li>\n
  • Compact and high-quality infrastructure<\/li>\n
  • Favorable labor costs and price stability<\/li>\n
  • EU membership<\/li>\n
  • The transparent system of investment incentives<\/li>\n
  • Existing platform for R&D<\/li>\n
  • Rich and long industrial heritage<\/li>\n
  • Mentality, culture, and attitudes close to western countries<\/li>\n
  • Enviable lifestyle<\/li>\n<\/ul>\n
    <\/figure>\n<\/p>\n
    <\/figure>\n<\/p>\n

    On the other hand, the Czech Republic is valued strongly for political and economic stability and has the lowest investment risk in the region. <\/strong>This is appreciated especially by conservative investors (such as pension funds) which are not willing to take a higher risk premium and aim for security. This draws a line to comparison with Poland where the socio-political situation is making some investors and occupiers evaluate their investments more cautiously. Additionally, regional cities such as Brno, Ostrava, and Pilsen start attracting the greater interest of investors looking for higher yields.<\/p>\n

    <\/figure>\n<\/p>\n

    The country has been ruled by democratic parties which have shown support for the private sector through the privatization process and encouragement of foreign direct investment (FDI). The country has undergone significant changes in terms of economic and legal reforms bringing it more in line with the rest of Europe. According to the latest statistical data, gross domestic product grew 4.1% in the second quarter of 2004, inflation is low at 2% and unemployment which has remained steady over the last several years stands currently at 9.1%.<\/p>\n

    Geographical position<\/em> and infrastructure <\/strong><\/em>\u2013 the Czech Republic have a strategic location in the geographical heart of Europe making it extremely accessible from both the established western markets and emerging eastern markets. Furthermore, the extensive transport and rail infrastructure (with proposed further investments by the government) highlights the Czech Republic as a crossroads of major European transit corridors. Now that the Czech Republic is part of the European Union, prospective foreign investors are in an excellent position to serve the world\u00b4s most populated markets from their bases here.<\/p>\n

    Highly educated and skilled workforce<\/em> \u2013 The Czech Republic offers a workforce with a very high percentage of people educated to University standard. Of the 200,000 students currently enrolled, about 40,000 are finance and economics students and 25,000 are IT, students. According to the OECD, the Czech Republic ranks among countries with the highest percentage of science and engineering students.<\/p>\n

    Low<\/em> labor<\/em> costs<\/em> \u2013 the Czech Republic ranks among countries with the lowest average labor cost. It is still much lower than in western European countries and is lower or on par with those in many rapidly developing Asian economies. It is also competitive (especially in the IT sector) in comparison to neighboring countries such as Poland or Hungary. The average monthly salary in the first quarter of 2005 was CZK 17,678 (equivalent to around EUR 580 per month) and continues to grow at a steady pace.<\/p>\n

    Investment incentives<\/em> \u2013 In 1998 the government introduced investment incentives that led to a marked increase in investments in greenfield and brownfield projects. Consequently, most of the large international companies (Toyota, Ford, Siemens, Phillips, Nestle, Phillip Morris, Danone, Eastman, Tesco, Matsushita and many more) have chosen the Czech Republic for building manufacturing plants and warehouses.<\/p>\n

    Taxation<\/em> \u2013 The country\u00b4s current rate of corporate tax is 26% (which will be reduced to 24% in 2006) and it is understood that the finance ministry has plans to lower the tax rate even further by 2006 in order to strengthen its position and remain the most competitive in the region. There is even talk of introducing a flat rate tax to simplify the overall tax system.<\/p>\n

    We welcome any China Investors to quote. <\/p><\/p>\n","protected":false},"excerpt":{"rendered":"

    These include customer contact centers, shared services centers, expert solution centers, software development, research and development centers.<\/p>\n","protected":false},"author":6983,"featured_media":7221,"comment_status":"open","ping_status":"closed","template":"","yst_prominent_words":[],"acf":[],"_links":{"self":[{"href":"https:\/\/loonglist.com\/wp-json\/wp\/v2\/project\/7220"}],"collection":[{"href":"https:\/\/loonglist.com\/wp-json\/wp\/v2\/project"}],"about":[{"href":"https:\/\/loonglist.com\/wp-json\/wp\/v2\/types\/project"}],"author":[{"embeddable":true,"href":"https:\/\/loonglist.com\/wp-json\/wp\/v2\/users\/6983"}],"replies":[{"embeddable":true,"href":"https:\/\/loonglist.com\/wp-json\/wp\/v2\/comments?post=7220"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/loonglist.com\/wp-json\/wp\/v2\/media\/7221"}],"wp:attachment":[{"href":"https:\/\/loonglist.com\/wp-json\/wp\/v2\/media?parent=7220"}],"wp:term":[{"taxonomy":"yst_prominent_words","embeddable":true,"href":"https:\/\/loonglist.com\/wp-json\/wp\/v2\/yst_prominent_words?post=7220"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}