According to the agency’s data, there are now 215 BSCs in Hungary (up from 201 in the previous year), employing a workforce of 110,836, a growth rate of more than 10%. This expansion is not limited to Budapest, as more centers are opening in Hungary’s regional cities, tapping into local talent pools.
University towns, in particular, are becoming hubs, allowing companies to benefit from younger, well-educated workers looking to stay in their hometowns. This geographic diversification aids business continuity while offering attractive opportunities for companies and employees.
The structure of BSCs in Hungary is also evolving. Currently, 56% operate as so-called captive centers, serving their parent companies. Hybrid models, centers offering a blend of captive and outsourced services, have risen to 33%, up from 20% in the previous year.
Fully outsourced centers, the traditional business process outsourcing model, now make up only 11% of BSCs, a decrease from 23% last year. This shift is indicative of Hungary’s role as a maturing market for BSCs, with the focus increasingly on more integrated and higher-value services.
Around 81% of centers say they plan to introduce high-value-added functions over the next one to three years, including roles in data science, analytics, and AI-driven operations. R&D positions, specifically, have doubled in the past year, accounting for 7% of the sector’s workforce.
Technology is a primary driver of growth, with 57% of BSCs in Hungary having a defined AI strategy and 46% already using AI solutions. This focus on digitalization and automation reflects a strategic commitment to future-proofing operations and enhancing productivity.
Additionally, adopting flexible work models has significantly impacted the sector.
Today, 93% of BSCs offer remote work, and 76% allow flexible hours. This adaptability is becoming a core component of the sector’s appeal, particularly among younger employees. A small proportion of companies still require total office attendance; however, most have adapted to hybrid models, optimizing for both productivity and employee satisfaction.
Workforce development is another priority for Hungary’s BSCs. The survey reports that 97% of centers provide onboarding training for new hires, while 89% offer technical training, underscoring the sector’s commitment to skills development. The average age of employees remains less than 35, showcasing a young and dynamic workforce well-suited to technological advancement and open to new challenges. Competitive compensation is also a factor: the average salary increase in the BSC sector was 11% in 2024, keeping pace with Hungary’s business sector average of 12.7%.
Hungary’s BSCs have placed a strong emphasis on educational collaboration to secure a steady pipeline of skilled professionals. The Hipa survey found that 72% of BSCs partner with universities, while 63% offer internship and fresh graduate programs.
These initiatives are particularly valuable as the industry expands outside the capital, leveraging local university talent to meet increasing demand. By aligning with educational institutions, BSCs ensure access to a pool of multilingual, highly educated young professionals.
Environmental, social, and governance factors are increasingly influential in the sector. Approximately 60% of BSCs report that they have or are implementing green office initiatives, while 92% have adopted selective waste collection practices. Electric vehicle chargers are present in 53% of offices, and 51% of companies promote green mobility options like bikes and scooters.
These sustainability measures not only align with Hungary’s commitment to carbon neutrality by 2050 but also reflect the sector’s goal to create a responsible and appealing work environment for employees.
The competitive advantage of Hungary’s BSCs lies in its highly skilled and multilingual workforce, favorable tax environment, and robust government incentives. Investment incentives have played a pivotal role, with 63% of surveyed centers reporting that they have received some form of subsidy or allowance, helping to fuel sector expansion and innovation.
This strong government support, coupled with the country’s central location and solid infrastructure, has positioned Hungary as a preferred destination for BSC operations in Central and Eastern Europe, Hipa says. The favorable conditions are expected to continue, with many BSCs planning to bring more high-value functions to Hungary in the coming years, according to the survey.
Regarding operational overheads, the survey found that cost efficiency remains a priority. Many BSCs focus on reducing operational expenses by implementing AI and automation, and 43% of centers plan to decrease full-time equivalents (FTEs) through digital solutions.
This drive for cost efficiency is balanced with growth strategies; while some centers outsource lower-value tasks to other locations, others bring high-value jobs to Hungary to bolster their competitive edge. Budapest remains a popular base for BSCs due to its broad talent pool and mature infrastructure, although rapidly developing regional cities are increasingly gaining traction as cost-effective alternatives.
This article was first published in the Budapest Business Journal print issue of November 15, 2024.
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