Considering the increasing role of Global Business Service Centres (“GBSC”) in the economic growth of the Central European and Baltic regions, as well as the untapped job creation potential for the city of Riga, the Ministry of Economics of the Republic of Latvia, the Riga City Council and the Investment and Development Agency of Latvia, all of which represent the public sector, and The National Alliance of Real Estate Developers, the Association of Latvian Commercial Banks and the Foreign Investors’ Council in Latvia, all of which represent the private sector, on April 26, 2018 signed “Memorandum of Cooperation for the development of Global Business Service Centres” and agreed to undertake deliberate cooperation aimed at the development, growth and new job creation in the GBSC sector.
Reinis Rubenis, Council member at The Association of Latvian Commercial Banks (ALCB) and Chairman of the Board at Swedbank Latvija: “To achieve goals and actions set in the Memorandum, it is important to have both strong partnership and concentration of resources for further development. We see huge potential for GBSC development. Swedbank in Latvia is ready to create new jobs in Latvia and share our experience to enable Riga and Latvia to have a proper positioning in the global business map”.
In cities with a competitive business environment and good workforce availability, GBSCs are used to provide a wide range of high value-added business support and research and development functions supporting regional and global operations of large international companies. Around 50 companies are already operating successfully in Riga in the GBSC sector, including Circle K, Tele2, Accenture, Cabot, Evry, Tieto, Visma, Atea, SEB, DNB, Swedbank and If.
"ALCB will be supporting the advancement of the international business services sector in Latvia. We believe that Riga has a huge potential for providing such services, not yet fully realized. Now is the right time to act and fill that gap in the market share with high-value services. Clear action plan will help us to frame our joint activities together with the Ministry of Finance Investment and Development Agency of Latvia, Riga City Council, the Foreign Investors' Council in Latvia and the National Alliance of Real Estate Developers to realize this potential", Sanda Liepiņa explains.
ALCB in cooperation with other stakeholders will organize meetings with company leaders from the GBSC sector, facilitate the expansion of existing business centres and invite companies to offer more evolved services as well as will develop an action plan for the necessary legal amendments (labour law, improvements in tax application, rental law) to improve the environment of the GBSC sector.