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Developers Targeting Shared Services Center Clients

Developers are increasingly designing a project with a view to securing SSC/BPO tenants with more than 100 currently operating in Hungary according to the website SSC Heroes.

Agora Tower

The success of Hungary and Central Europe in attracting such centers has been due to the provision of quality, well located office space alongside an educated work force at significantly lower cost that Western Europe. However the market situation is changing as companies take on increasingly complex operations and tenants and staff require higher quality space and specifications.  

The automotive company, Ford has chosen Váci Green Building D for its European Business Services Center, with Ford CEE Sales leasing 4,000 sqm at the complex.

“When seeking its new office, we were focusing on the location, the top quality of technical specification, the flexibility of the building as well as in-house services. During the process Váci Greens Building D proved to be the best choice,” Viktor Molnár, regional director of Ford CEE, comments on the choice of location.

Easily Accessible

Most international SSCs target semi-central locations that are easily accessible from the city center and main communication routes such as the airport and railway stations. Good visibility is preferred, although this tends to come hand-in-hand with the accessibility requirement. Virtually all new entrants seek modern “A” category buildings with high, internationally certified sustainability standards; the internal working environment is increasingly approached as an HR and branding investment rather than just an expense.

A growing number of developers are increasingly designing projects with a view to securing SSC tenants with a dense person per sqm ratio and the need for amenities such as changing room facilities for cyclists, cafe bar and restaurant facilities and green areas that also act as informal meeting areas. The concept is that staff will be happy to spend time at the complex, often working irregular hours and taking the opportunity to utilize the leisure facilities.

“Our main targets are the shared services centers for our Arena Business Center as well as Váci Greens: As of today, four buildings within the Váci Greens office complex were handed over which is approximately 80,000 sqm, and out of this 90% is leased by the SSC/BPO sector,” says Nikolett Püschl, leasing manager of Atenor Hungary.

“We definitely believe that our buildings are ideal for tenants in the SSC/BPO sector, therefore they are our main targets. In Hungary, SSC/BPO companies are significant players. These companies prefer Hungary because of the excellent quality of education and good price to value ratio as Hungarian salaries are still far below Western Europe levels. Comparing Hungary to other Central and Easter Europe countries it has many advantages like good country incentives, taxes, promotions, etc.,” Püschl ads.

Targeting the Sector

Balázs Simonyi, leasing director at CPI, is equally open. “Regarding our latest development, Balance Hall, we are specifically targeting the sector, as we consider all fundamentals in place to successfully attract them. Having one of the largest stakes in take-up, the sector and its actual tendencies are highly influential on the office sector,” he comments.

“Location is absolutely key, as availability of mass transportation is a must. Give the current status of the HR market amenities, together with the rest of high quality working environment fundamentals, have also became ‘hard criteria’,” Simonyi adds.

Püschl agrees that the most important factors are location (safety, easy accessibility by public transportation, services inhouse and in the nearby vicinity), cost efficiency – which is in direct connection with space efficiency, technical specification, green and sustainable features – and quality.

There is a big question mark in the recent labor market, she says, reflecting that SSCs must battle to retain staff. That is one of the reasons why the importance of the quality of the property, its interior design and the functionality of the office space, as well as other services, is growing continuously.

Balance Hall by CPI.