Scotland missing out on outsourcing bonanza

The Scottish Executive has been criticised for its lack of support

Scotland could become the next big outsourcing destination, but is being held back by a lack of enthusiasm from the Scottish Executive and associated bodies, according to consultancy firm Morse.

Interviews with 100 Scottish executives revealed overwhelmingly that moving back-office operations to Scotland would be a better alternative to destinations such as India and eastern Europe.

However, two-thirds of respondents said that the Scottish Executive, and bodies such as Scottish Enterprise, have not done enough to promote the country to UK firms.

The organisations are too focused on promoting Scotland as an offshoring destination to foreign companies, and have neglected enterprises closer to home, such as in London, according to Morse director Grant Niven.

"The perception is that Scotland is as expensive as the rest of the UK, but in reality wages have been driven down," he explained.

"There are a lot of people with the right skills and capabilities looking for jobs, and for firms looking at reducing costs there may be a public outcry if they give that work to different countries instead of retaining it in the UK."

Nivet added that despite the recent financial crisis, the economic situation in Scotland is more stable than that of many of its rival destinations in the outsourcing market.