Shared Services: World Class Organisations and Value Chain

Estonia’s success is best proven by its established track record of significant investments, not only from new entrants but subsequent expansion by existing participants. Today there are 34 Shared Service centers in Estonia, the majority of which are located in Tallinn. Around 30% of participants are BPO firms such as Arvato Bertelsmann and the remainder Captives of multi-laterals such as the EU and NATO and multi-nationals such as Stora Enso and AGA Linde.

Europe accounts for 80% of investments by number with the remainder originating from multi-laterals, N. America and Japan. From a functional perspective Finance and IT centers dominate due to Estonia’s niche expertise in these fields, however there are also numerous multi-functional and customer service operations. In recent years Estonia has also had success in attracting regional centers and high order services such as R&D.

The cluster benefits from a full value chain offering market entry support, active aftercare and regular events. In addition to the centers themselves, active stakeholders include professional advisors, HR and real estate providers, educational institutions, the government and FinanceEstonia.

Treasury: World Class Organisations with Increased Regional Focus

Estonia is an emerging location for Treasury and has already secured significant investments from world class organisations. Today there are numerous Treasury centers in Estonia, the majority being of domestic listed companies and financial institutions but increasingly augmented by regional centers of multi-nationals such as Statoil Fuel & Retail.

Europe accounts for 100% of investments and all are captives. From a functional perspective operational Treasury dominates however there is growing interest in long-term capital planning due to Estonia’s simple, flat rate tax system in which organisations joint pain when Corporation tax is paid.

The cluster benefits from free access to global financial markets and a value chain which includes financial service, advisory and technology providers. In addition to the centres themselves FinanceEstonia is active in developing the environment and supporting participants.