New Initiative to Sell Scotland as Nearshore Option for UK Companies


Companies often find that nearshoring reduces some of the management costs and complexities associated with offshoring.


Attorney Andrew Rigby is hoping to convince UK companies that currently send back-office work to India and other offshore countries to consider Scotland as a nearshore alternative. Rigby, whose specialty is consultation regarding outsourcing contracts, recently created the Outsourcing Hub Initiative in hopes of showing British companies that Scotland, which is known primarily as a provider of contact center services, can also offer more sophisticated BPO tasks, reports vnunet.com.


Rigby's primary selling point is Scotland's large pool of potential outsourcing employees with technical expertise, according to the article. Scotland would also seem to share a closer cultural fit with the UK and other Western European countries than Eastern Europe, another nearshore alternative.


There is certainly a growing market for BPO in the UK and other European Union countries. According to Everest Research, the EU accounted for 36 percent of all global outsourcing deals in 2008's first quarter. The Outsourcing Hub Initiative will initially focus on the financial services industry, a smart move considering that financial services companies were the largest European consumers of outsourced IT and BPO services in Q1, representing more than 14 percent of transactions.