Factors facilitating business service centre growth in the Baltic region in the context of the European Union
ENDue to increasing globalization and multinational corporation interest to operate in cost-efficient way, outsourcing and shared service centre creation trend has increased growth of business service centre (BSC) sector globally as well as in the Baltic region. Based on multiple favourable reasons, use of outsourcing and shared service centres have become an operational strategy for many organizations, driven by company’s ability to benefit from economies of scale and process transfer to less expensive locations. Baltic States represent one of the most attractive destinations for BSC expansion compared to other European Union (EU) countries. BCS growth in the region can be explained by it’s educated, cost-competitive workforce, advantageous geographical location, language proficiency and IT infrastructure as well as attractive economic and business environment. Currently Baltic States demonstrate advantage among other EU Member States in the development of BSC sector, but crucial role is played by institutions in each of the mentioned countries. Institutions in Latvia have identified several priority sectors in terms of foreign investment attraction, while Lithuania has indicated BSC sector as their priority field but Estonia is more focusing on IT and start-up environment development.
