In Latvia, the Global Business Services (GBS) industry is expanding quickly. Riga, the capital of Latvia, is the new GBS site in Europe. Riga offers competitive conditions and a great business climate for new investors, as well as an opportunity for GBS firms to grow. Currently, Latvia has 50 corporate service centers that employ, on average, 300 FTEs per firm and 15,500 workers in Riga. They have expertise in IT, finance, customer service, logistics, human management, and procurement predominate. University grads are keen to work in the GBS industry because it offers lucrative positions with pay above the national average and promising career advancement opportunities.
Latvia, excellent for GBS
Because it supplies highly qualified workers, proficiency in foreign languages, and commitment to the Western work culture, Latvia is a desirable site for GBS firms. Additionally, Latvia is well situated with access to both the EU and the CIS markets. Highly developed communication and logistical infrastructure add to the industry’s allure. To advocate GBS interests in Latvia, industry participants created the Association of Business Service Leaders (ABSL) in 2019.
Principal Latvian GBS market segments
Shared Service Centers (SSC), Business Process Outsourcing (BPO), and Information Technology Outsourcing (ITO) are the three primary subsectors.
Growth of the GBS market in Latvia
Riga may be the undiscovered jewel or “Paris of the North,” but in 2021 it got the CEE region’s Most Dynamically Developing City title. Life quality, city accessibility, and the business climate are all highly valued by GBS enterprises in Latvia. GBS firms based in Riga serve businesses from all over the globe, including those in North America, Africa, and Asia, by offering high-value services. With 15000 FTEs as of right now, Latvia still has a 1.6% market saturation rate that allows newcomers entry.
Industry data for GBS
Latvia particularly appeals to its neighbors since 50% of the businesses here are Nordic-based. In their businesses, 80% of GBS enterprises are experimenting with and deploying robotics technologies. In the constantly evolving global corporate environment, expansion is essential. Companies operating in Latvia are aware of this and often broaden the range of their duties; in 2020, 61% of businesses did so. a 10% year-over-year rise is seen in employment.
Education and Employment
The majority of GBS sector employees speak three languages, namely Russian, English, and Latvian. Some people speak German and French as well, making them almost polyglots. There are 1000 Scandinavian language speakers in GBS since Latvia is near Scandinavia. The GBS industry is renowned, profitable, and energetic (89% of workers are under the age of 34), making it particularly tempting to recent graduates. In Latvia, 29% of the GBS workforce is employed in the IT industry. One of the greatest instances of campaigning for gender equality and inclusion at every stage is the GBS industry. 53% of women work for firms in the GBS industry.
Leaders in the Latvian GBS industry
Leading companies in Latvia’s GBS market are:
A major supplier of technology and consulting services, Accenture hires excellent personnel from Latvia. The organization now has 1500 full-time equivalent employees and provides intensive IT training for new IT specialists.
One of the newest additions to the Cognizant delivery network in Europe is Cognizant Latvia, which aims to provide the complete spectrum of IT services from European nearshore sites. Application development and maintenance services are provided by Cognizant Latvia to assist customers on their increasingly digital journey. In Latvia, the firm employs more than 250 FTEs.
Circle K Business Center
The Circle K Business Centre offers services to serve its 3000 outlets, 20 000 workers across Europe, and nine offices. The 630 staff members of the business provide services in a variety of departments, including procurement, sales & marketing, human resources, information technology, and supply and distribution. Scandinavian languages are spoken by more than 200 workers.
Cabot Business Service Center
For Cabot Corporation, a top-tier international manufacturer of specialty chemicals and performance materials, the Cabot Business Care Center is in charge of providing financial, IT, buying, and customer service support. The business continues to grow, and it now has more than 250 FTEs working for it.
SEB Global Services
The SEB group’s activities are supported by SEB Global Services in Riga, which provides a broad variety of services, including assistance with cash management and payment operations, as well as services for trading goods and IT. The center offers asset servicing for Nordic securities trading as well as transaction settlement services to international banks and global financial institutions. Currently, SEB Latvia employs around 700 FTEs.