Hungary could become a digital innovation hub for business services
Business Service Centres (BSCs) in Hungary are increasingly evolving into strategic digital innovation hubs, moving beyond their traditional back-office functions. According to a recent report by the Association of Business Service Leaders in Hungary (ABSL) and Deloitte Hungary, the sector makes a significant contribution to GDP and employment; however, maintaining growth will require continued focus on talent development, regulatory transparency, and stronger collaboration between the public and private sectors.
State of Business Services Hungary 2025
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Over the past two decades, Hungary has become one of Central Europe’s leading destinations for business service centres. What began as models primarily focused on cost efficiency and transactional support have transformed into complex, multifunctional, and innovation-driven operations. The sector currently comprises more than 215 centres employing over 110,000 people and contributes approximately 3% to Hungary’s GDP, making it one of the key engines of the national economy.
“Hungary’s business services industry is built on solid foundations, characterised by skilled talent, cost efficiency, and operational excellence. The next chapter is about moving toward higher value-added services – focusing on automation, analytics, and digital transformation. Despite challenges related to talent retention and upskilling, Hungary’s adaptability and continuous focus on education and innovation position the country strongly for the future growth of the sector.” said Eszter Lukács, Director of BSC Advisory at Deloitte Hungary.
Drivers of transformation: digital advancement and talent development
The report highlights that BSCs in Hungary treat digital transformation and the adoption of Artificial Intelligence (AI) as strategic priorities. These centres are no longer mere support functions but are increasingly integrated into global corporate strategies as digital innovation hubs in areas such as advanced analytics, automation, cybersecurity, ESG (Environmental, Social and Governance), and cloud-based solutions. More than 80% of centres report productivity growth, driven primarily by the deployment of AI tools, workforce development, and process standardisation.
The number of people employed in the sector grew from around 70,000 in 2021 to over 110,000 by 2024, a clear sign of dynamic expansion and economic resilience. BSCs offer wages significantly above the national average, contributing to higher living standards and stimulating local economies. They also play a key role in talent development, supporting workforce modernisation through continuous training and career opportunities.
“The business services sector has become a strategic growth engine across Europe, moving beyond its traditional support role. Amid global challenges, the sector plays a critical role in enabling transformation, responding rapidly to changes in technology, talent, and business dynamics. Hungary’s business services industry exemplifies this evolution, continuously expanding into higher value-added activities and employing a highly skilled workforce,” added Eszter Lukács.
Challenges and opportunities for sustaining competitiveness
While Hungary maintains a strong position in the business services market, the sector faces notable challenges. Among the most significant of these are talent shortages — particularly in advanced digital skills (AI, automation, analytics, cybersecurity) and multilingual capabilities. These are compounded by bureaucratic immigration procedures that hinder the mobility of non-EU professionals, with long processing times and opaque requirements making recruitment and retention more difficult.
According to the report, rising wage inflation and declining cost competitiveness—approaching levels seen in certain Western European countries—are prompting some companies to relocate transactional services to lower-cost destinations. This is further aggravated by regulatory unpredictability, frequent tax policy changes, and macroeconomic and geopolitical risks, such as the war in Ukraine, which increase investment uncertainty and may slow the launch of new projects.
Ensuring the sector’s future success will require a series of proactive measures. Immigration rules need to be simplified and made more transparent, digital application platforms introduced, and dedicated “talent visas” created for in-demand professions. The education system must be more closely aligned with industry needs, through joint training programmes, tax incentives for corporate training, and the inclusion of work-based learning modules in university curricula. Furthermore, it is essential to strengthen Hungary’s global brand as a digital services and talent hub and deepen public-private partnerships to secure long-term competitiveness.
It is clear that Hungary’s future success will depend not on cost savings, but on value creation, digital leadership, and deeper integration into the global knowledge economy. The sector is ready to meet these challenges—but this will require a supportive regulatory environment and active collaboration from all stakeholders.
The full report is available via this link.
