Wednesday, 19 June 2013

Lowering costs.....

The professional services firm with which I am associated has a strong European network.  It recently told us that it is opening a new office in Glasgow which will provide business support and legal services to its European offices, although the immediate plans are focused solely on support for London. It's all part of what is said to be "increasing demands for ... firms to take more responsibility for delivering services cost efficiently".  And keeping costs down so as to maintain profitability.........?

Perhaps this comes in the same category as near-shoring jobs to New Zealand?

Although out (near?)-sourcing from London to Glasgow is somewhat removed from out-sourcing from, say, Australia to an Asian country, there's a trend here.   There are many services that can be provided from a distance, especially in the "back office" area:  transcription of dictation, accounting functions, IT support and so on.  There are also fairly routine professional taks that can be undertaken remotely.  Presumably costs in Glasgow are cheaper  than in London, although I wonder if a Scottish location may also have something to do with contingency planning in the event of the Scots deciding to leave the UK?

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