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Inflation drives global firms eastward in Europe in search of cost savings By Reuters
Central European companies that provide remote, lower-cost business services for multinationals are ramping up their expansion plans as high inflation drives global firms to push more work to the region to cut costs and bolster margins. Take Silicon Valley-based Pure Storage (NYSE: ). "If we started out here as an experiment, the experiment is working." "There is new investment coming in because shared business service centres offer a way to drive more cost savings back home for the group when there is inflation and market pressure," said Adam Jamiol, a partner at PwC based in Krakow. In Poland – which employs more than 400,000 people in business services – the sector is expected to reach an annual growth rate of nearly 8% by the end of the first quarter of 2023 despite double-digit wage growth since February, inflation running at 17.2% and war in neighbouring Ukraine. At Comdata, whose 1,500 workers in the Czech Republic and Hungary operate telephone service lines, rising inflation and costs from Western companies have kept business humming. Source: Investing.com #Inflation
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