Prague - Foreign firms are increasingly moving their headquarters to the capital city of the Czech Republic.

Most recently, the US computer industry giant IBM plans to manage its activities in Central and Eastern Europe from Prague.

Czech Hospodářské noviny daily informed about this.

Read more: Prague places 49th as most important city of commerce

Strategic location and educated people

"Vienna HQs is being cancelled, and some staff will be relocated to Prague, and others to Dubai," spokesman of Austrian IBM Georg Haberl said to the daily.

How many people will move to Prague is not known yet. At the moment IBM has about 1,300 employees in the Czech Republic.

According to Hospodářské noviny, what IBM and other foreign companies like about the Czech Republic is its strategic location and knowledge Czechs people master. Adobe, DHL, or technology company Parker Hannifin have moved their seats to Prague long ago.

DHL happy in Prague

DHL has one of its three key global centers in Prague where they employ more than 1,000 IT experts.

"We opted for the Czech Republic because qualified and flexible workforce is available here, as well as reliable telecommunications web and good aerial connection," DHL's managing director of IT services Stephen McGuckin said.

Swedish engineering company AF-Kontroll  is about to make the same decision, added the daily.