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Business Process Operations Opportunities in the Highlands and Islands of Scotland July 2013 A Presentation by Scottish Development International and Highlands and Islands Enterprise Inside Front Cover A Presentation by Scottish Development International and Highlands and Islands Enterprise Contents BPO Sector in Scotland 5 BPO Sector in the Highlands and Islands 6 Select Profiles of Companies Active in The Highlands and Islands 8 Qualified and Talented Workforce in Scotland 10 Demographics in the Highlands and Islands 11 Education in the Highlands and Islands 13 University of the Highlands and Islands 14 Training and Development for the BPO Sector 15 Indicative Salary Costs - BPO Sector in Scotland and the Highlands and Islands 16 Transport Infrastructure in the Highlands and Islands 17 Homeworking in the Highlands and Islands 18 Broadband Connectivity in the Highlands and Islands 19 How Highlands and Islands Enterprise can Assist Your Company 20 Our Competitive Advantage 22 3 Highlands and Islands...an ideal location for Business Process Operations BUSINESS PROCESSING OPERATIONS SECTOR IN SCOTLAND Sector Overview Scotland is an internationally recognised Business Processing Operations (BPO) location with an impressive track record and distinguished pedigree. Key Facts Much of our growth and success can be directly attributed to a flexible, stable and motivated workforce with highly developed skills in a mature sector. Some of the global and pan European BPOs based in Scotland include Webhelp TSC, Response, IBM, Stellar, Logica, First Data, Capgemini, Serco and Sykes Enterprises. • Scotland is an internationally recognised BPO location • Some of the largest BPOs in Europe are based in Scotland. There are over 90,000 people employed within 400 BPOs. (Source: Taylor & Anderson Report, 2011) • Overall 490,000 people are employed within finance and business services in Scotland of which 90,000 are within the financial services sector, ensuring a steady supply of highly skilled staff for the BPO sector. (Source: Ernst & Young, June 2012) • 1 in 30 of the employed population work within BPOs across the central belt of Scotland undertaking business critical functions and transactions • Main industry sectors supported are: Additionally, Scotland is home to many global and pan European BPOs due to the wealth of multilingual skills. Current BPOs and contact centres offer a mix of 26 different languages. According to recent independent research, the majority of BPO operators in Scotland anticipate a rise in staff numbers over the next two years – testament to the strengths of Scotland in this sector. Below is a cross section of our business processing operations demonstrating the breadth of companies operating within Scotland. Financial Sevices - 31,400 • Media/Communications - 11,500 • Telecoms - 10,000 • Utilities - 6,500 Additional sectors include: retail, motoring, technical support and travel • Over 15% of centres provide dedicated foreign language services while many others draw upon their employees’ linguistic skills when required • Access to a labour pool of over 2.7 million people within the central belt of Scotland (Source: General Register Office (Scotland), 2010 Mid Year Estimates) • THURSO Aon Hewitt BT Manpower The Dental Plan CSC ALNESS BT Manpower • Scotland has almost 282,000 students studying at any one time for a higher education qualification (Source, Education Statistics Authority and Scottish Funding Council, 2013) BRORA Serco DINGWALL Serco DORNOCH Nexus Management STORNOWAY Citizens Advice Direct NAIRN TalkTalk Cap Gemini STIRLING Prudential Group Capita ABERDEEN Capita Journey Call INVERNESS AVC Group Atos Cap Gemini Fujitsu FORT WILLIAM Serco FALKIRK/LARBERT Thomas Cook Webhelp TSC FORRES Atos Capita FIFE Intelligent Finance Dundee Perth BCW Bellcom Capgemini Capita City Park Technologies e4e Essentia Group First Data Indigo Lighthouse Northgate Parseq Response Teleperformance Dunfermline DUNOON Database Direct Dunoon Webhelp TSC DUNFERMLINE BSkyB RENFREW Ceridian IRVINE Stellar Kirkcaldy Renfrew Cumbernauld Linlithgow Livingston M73 Edinburgh M8 Glasgow East Kilbride KIRKCALDY Mgt M9 Falkirk Paisley ROTHESAY Webhelp TSC ERSKINE PAISLEY beCogent Stellar Webhelp TSC Glenrothes Larbert M80 Greenock M8 Erskine GREENOCK CIGNA T-Mobile Webhelp TSC IBM AVIVA Scottish & Southern Energy Tesco DWP St. Andrews Stirling M90 GLASGOW O2 Barclays Wealth BT Manpower Dell Lloyds TSB Direct Line Insurance Esure Tesco AVIVA Royal & Sun Alliance TAYSIDE British Telecom HBOS Jobcentre Plus Hamilton Kilmarnock M74 Irvine Prestwick Ayr KILMARNOCK Wescot beCogent Webhelp TSC LANARKSHIRE BSkyB HSBC/First Direct Inland Revenue Kwikfit Insurance Scottish & Southern Energy NCR Powergen Teleperformance HAMILTON Capita Companies in red are Outsourcing Companies 5 EDINBURGH Amazon HSBC Intelligent Finance Scottish Gas Standard Life Scottish Water Capgemini Capita Logica Sykes LIVINGSTON BSkyB Intelligent Finance Quintiles BUSINESS PROCESS OPERATIONS SECTOR IN THE HIGHLANDS AND ISLANDS Over the past two decades, the business services sector has built up a successful track record in the Highlands and Islands. Growth Prospects There are significant opportunities for growth throughout the region, notably business process outsourcing, shared service and contact centre operations. Key players such as ATOS, BT, Capgemini, Fujitsu, Webhelp TSC, Serco, TalkTalk and Capita are all based in the area servicing their own clients, blue chip companies and key public sector organisations. One of the most striking aspects of the business services industry in the Highlands and Islands is the importance of Business Process Operations; they account for 63.2 per cent of employment in the sector within the region, which compares to 27 percent of the overall Scottish workforce. • The Highlands and Islands area draws on a quality workforce characterised by high levels of skills and motivation. Within the Highlands and Islands Telecoms and IT/Computing Services are the key sectors • Telecoms - 26.3% of employment (vs 8.8% for Scotland as a whole) • IT/Computing Services - 23.3% of employment (vs 4.5% for Scotland as a whole) Highlands and Islands Enterprise (HIE) supports the sector via the development of a sectoral strategy, relationship and account management of key companies, catalysing and funding sectoral growth and innovation projects, sector profile-raising and leadership programmes. (see page 18 for further information on support available from HIE) Source: Taylor and Anderson, Report 2011 The region excels in critical business performance areas including customer satisfaction and call resolution, staff retention, low absenteeism, competitive and running costs. As well as chairing a regional forum, the agency is making ongoing investments in strategic industry development, in product and market research and in running innovative pilot projects with interested partners. This includes The Customer Contact Association, the industry body based in Glasgow and BT, the UK’s largest telecoms provider. The customer services sector is of key importance to the region’s economy. Customer contact activity is well established and continues to deliver solid results. Amongst a total working population of 236,000, it employs around 4,000 people across 30 centres, and has enjoyed steady growth and the continued presence of key players since the early 1990s. “There is a local culture of flexibility and a can-do attitude that, coupled with a natural manner of communication and empathy with customers, really set this operation apart. Although our training ensures the staff can deal with these situations, the culture and attitudes here make all the difference to handling them well. Industry leaders report that levels of customer satisfaction and loyalty are generally higher in UK centres than those in other countries. The Highlands and Islands, which consistently hits levels of performance that outstrip other UK sites, is well placed to take advantage of the opportunities this presents. Whatever the requirement, from customer issues to internal shift changes or unexpected staff shortages, they rise to it. That’s something you don’t always find in companies elsewhere in the country. Here it is our strongest asset.” Kaye MacDonald, BT 6 BUSINESS PROCESS OPERATIONS IN THE HIGHLANDS AND ISLANDS HIGHLANDS AND ISLANDS OVERVIEW Haroldswick North Roe The Highlands and Islands of Scotland is famed worldwide for its outstanding natural beauty, fine food and drink, enviable quality of life, and unique history and culture. It’s also a thriving, modern economy which has been the scene of remarkable progress in recent decades. Employment levels are high and population is rising. The Highlands and Islands stretch from Shetland to Argyll and from the Outer Hebrides to Moray. Covering more than half of Scotland, and with a population of just under 450,000, the region has vast potential. 2 hrs 2 hr s Sandness Walls Lerwick k) ursrwic 7 ho Le 6– all / w irk (K 1 hr Twatt 1 hr Below is a cross section of our Business Process Operations demonstrating the breadth of companies operating within the Highlands and Islands. Kirkwall Stromness 2 hrs 1 hr Scrabster Melvich John o’ Groats Thurso smaller scale 13 hours Bettyhill Tongue Wick THURSO Scrabster Durness Melvich John o’ Groats Thurso Port Nis Bettyhill STORNOWAY Citizens Advice Direct Talktalk Tongue Wick Càrlabhagh BRORA Serco Altnaharra Kinbrace Stornoway / Steòrnabhagh Brora DORNOCH Nexus Management 1 Golspie Ullapool Dornoch Tain 2h rs Lochmaddy / Loch nam Madadh Alness 2 hrs Uig Lossiemouth Invergordon Cullen Achnasheen Nairn Fortrose Forres Inverness Lochcarron Kyle of Lochalsh Grantown -on-Spey Cannich Drumnadrochit Lochboisdale / Loch Baghasdail Carrbridge Invermoriston Ellon Oldmeldrum Inverurie Dyce Kintore Alford 2h Aberdeen Newtonmore Invergarry Peterhead Huntly Fort Augustus Ardvasar rs Mintlaw Turriff INVERNESS AVC Group Atos Capgemini Fujitsu Tomintoul Aviemore 6 Aboyne Kingussie Mallaig ho 4 Aberchirder Keith Muir of Ord Portree mer) Banff Portsoy Dingwall Shieldaig Fraserburgh Buckie Elgin Cromarty Kinlochewe Dunvegan um hrs (s FORRES Atos Capita NAIRN Capgemini Gairloch Drynoch urs Tarbert / Tairbeart hr Helmsdale 8 ho DINGWALL Serco Inchnadamph ours 6 to Lochinver ALNESS BT Manpower Fujitsu 3h Castlebay / Bàgh a’Chaisteil THURSO BT Manpower Aon Hewitt The Dental Plan CSC Scourie Ballater ur Braemar Banchory s 5h Stonehaven Spean Bridge ours Fort William FORT WILLIAM Serco Laurencekirk Blair Atholl Acharacle Kinlochleven Montrose Pitlochry Tobermory Kirriemuir Ballachulish Arinagour r 1h Inverbervie Brechin 1 hr Aberfeldy Lochaline Forfar Blairgowrie Scarinish Coupar Angus Oban Crianlarich Arbroath Dundee Killin Carnoustie Tay Rd Bridge Newport-on-Tay Tyndrum Dalmally Perth Lochearnhead Crieff Fionnphort Newburgh St Andrews Auchtermuchty Auchterarder Callander Inveraray Cupar Anstruther Falkland DUNOON Database Direct Webhelp TSC 3 Scalasaig hr s Glenrothes Alloa Stirling 1 hr (summer) Lochgilphead Collintraive Tarbert Kennacraig 2 ho urs Glasgow Largs Airdrie Burntisland Forth Rd Br Dunbar Tranent East Linton Haddington EDINBURGH Eyemouth Dalkeith Livingston Penicuik Paisley Motherwell Duns Lochranza Port Ellen 5 hr s rugge 16. Zeeb Kirkcaldy Falkirk Cumbernauld Bathgate Greenock Stewarton Kilwinning Ardrossan Brodick 1 hr East Hamilton Kilbride Kilmarnock Strathaven Greenlaw Peebles Lanark Galashiels Biggar Douglas Melrose Innerleithen Jedburgh Hawick n) Cumnock ara tam (ca rs Maybole New Cumnock Sanquhar Moffat ou 3h Kelso Wooler Ayr Crown Copyright © Licence No. GD03135G0008a. All rights reserved. Derived from MiniScale (edition R6) by Ordnance Survey. Coldstream Selkirk Troon Prestwick Lamlash Berwick-upon-Twee Lauder Irvine Galston Campbeltown Crail Pittenweem North Berwick Rosyth Kincardine Br Kilsyth Dumbarton Rothesay Claonaig 2 hrs Portnahaven Dunfermline Helensburgh Dunoon Port Askaig ROTHESAY Webhelp TSC Methil Dunblane Girvan 7 Alnwick Se SELECT PROFILES OF COMPANIES ACTIVE IN THE HIGHLANDS AND ISLANDS Capita Group Capita opened its first major operation in Scotland in 1998 when it won the contract to run the BBC’s Information Lines service from Glasgow. Since then, several new business centres in Edinburgh, Stirling, Aberdeen, Hamilton and Forres have also been established. Capita, which employs 46,000 people worldwide, is growing its business at the Enterprise Park Forres. HIE is investing alongside the business in a £1 million project to develop customer service and specialist training. “Capita has a proud track record of innovation, investment and delivery. We are excited to be investing in Moray and welcome the opportunity to build close relationships with those, including HIE, who are active in developing economic prosperity for Scotland.” www.capita.co.uk Webhelp TSC Telecom Service Centres, as the business was then known, first opened in Bute in the early 1990s with seven employees. It quickly expanded into a major player in the contact centre sector. TSC merged with the giant Hero Group and, as Webhelp TSC, has continued to expand. Webhelp TSC is now the UK’s fourth largest contact centre company with over 3,000 employees in seven UK sites and one in Gurgaon, India. Webhelp TSC, Scotland’s largest contact centre company, operates centres in Rothesay and Dunoon. The company recently expanded its Bute operation to support the centre’s current client Office Depot. Webhelp TSC Chief Executive Officer David Turner praised the skills and dedication of the company’s Rothesay staff whose professionalism on the Office Depot account has convinced the company to expand its role in Bute, commenting: “HIE supported the company growth and has worked very closely with this business from its earliest days. Modern telecommunications such as broadband mean that rural and island areas in Scotland are ideal sites for contact centres.” Serco Serco acquired the former Vertex site in Dingwall in June 2012. The centre is an excellent example of how the latest in service management technology can provide high value posts for rural areas delivering complex contracts for Westminster City Council. Serco also employs a number of homeworkers across the region. This model offers the business and workers the benefits of more flexible working and reduced costs. The quality and productivity of work from staff at home is higher than average and offers flexible jobs for people, particularly in remote areas, who may have been discouraged from working because of travel or other family commitments. Serco also have sites in the Highlands located in Brora and Fort William servicing a range of public & private sector clients. Kathleen Lohse, customer services manager said: “The pilot has allowed us to pursue new business, and we are already recruiting more homeworkers to take on work currently in the pipeline. We have found the home working model works very well, and as we expand it we are looking at techniques we can put in place to attract workers from across the region. This includes the creation of on-line training and the possibility of a rural hub to support workers.” The Dental Plan Ltd The Dental Plan Ltd, located in Thurso and operating in both the UK and The Republic of Ireland represents the next generation of dental payment plans – it is a payment plan provider and was borne out of a collective 75 years of experience and understanding of dentists, dentistry and the business of dentistry. CSC CSC is a leading global consulting, systems integration and outsourcing company. CSC’s mission is to provide customers in industry and government with solutions crafted to meet their strategic goals and enable them to profit from the advanced use of technology. With one of their 100 UK offices based at the Forrs Business Park near Thurso the local team deliver IT support to the very specialist nuclear industry and are planning to expand utilising the highly adaptable skills to deliver a wide range of services in new sectors. Aon Hewitt Aon Hewitt is located at Forrs Business Park, near Thurso. Providing pension provisions for the nuclear industry as well as other companies the pensions office has ambitious plans to expand into other areas including the private sector, utilising the existing workforce. 8 SELECT PROFILES OF COMPANIES ACTIVE IN THE HIGHLANDS AND ISLANDS Capgemini Capgemini was founded in 1967 and is now one of the world’s foremost providers of consulting, technology and outsourcing services. Headquartered in Paris, with operatives in 33 countries across North America, Europe and Asia Pacific. Capgemini UK Plc has 14 offices. Within Scotland, there are four operations which are located in Glasgow, Edinburgh, Nairn and Inverness in the Scottish Highlands. The Inverness operation started with 10 employees offering basic BPO services. This has grown to a discrete ITO service provision and now employs over 500 people. Capgemini’s operations in Inverness and Nairn now provide first and second line level IT support and remote server support to blue chip companies across the UK. Private and public sector clients include four of the UK’s largest city councils, a major services organisation and a steel production giant. Capgemini have recently announced plans to create up to 500 roles over the next 3 years in Inverness, which will see the site become one of their global centres of excellence in advanced IT. www.ukcapgemini.co.uk Atos Atos is an international information technology services company with 74,000 employees in 42 countries. Serving a global client base, it delivers hi-tech transactional services, consulting and technology services, systems integration and managed services. With its technology expertise and industry knowledge, it works with clients across the following market sectors: Manufacturing, Retail, Services; Public, Health & Transport; Financial Services; Telecoms, Media & Technology; Energy & Utilities. In Scotland, Atos has over 1500 employees operating from offices across the country including Aberdeen, Dundee, Edinburgh, Glasgow, Inverness, Linwood and Livingston. In December 2011 Atos announced plans to create 50 new high value jobs in Moray at a new development and innovation centre. The new centre will deliver secure IT development and testing services for private and public sector clients. In May 2013 a bespoke new built facility was opened by ATOS on The Enterprise Park, Forres. It is ATOS intention to create up 200 new roles in the future from the Moray site. www.atos.net/en-us Citizens Advice Direct Citizens Advice Direct, a registered charity and part of the Citizens Advice network in Scotland provides free impartial advice by telephone, e-mail and SMS, delivered by a combination of paid staff and volunteers. In excess of 900 consumer calls from all over Scotland are dealt with daily at Citizens Advice Direct’s new centre at Gleann Seileach, Stornoway in the Outer Hebrides. The centre currently employs 40 people with a further 11 completing a 6 week Contact Centre training course through an initiative supported by Job Centre Plus. HIE provided the fully fitted out high quality office space in a design agreed with Citizens Advice Direct to meet their current and future operational requirements. The building has scope for 88 desks allowing considerable expansion beyond the current 40 jobs. At the official opening in June 2012, Cabinet Secretary for Finance, Employment and Sustainable Growth Finance Secretary John Swinney MSP said: “The decision to establish new helpline operations on the Island is testament to the quality and skills of the local workforce and to the work of Highlands and Islands Enterprise.” Andrew Bartlett, Citizens Advice Direct’s CEO, said: “The skills level of the posts means that salaries are expected to be considerably above the average and the total impact on the local community is estimated at just under £1.125 million.” 9 QUALIFIED AND TALENTED WORKFORCE IN SCOTLAND Demographics Scottish Workforce Scotland’s population now stands at 5,295,400 (2010) est. Within Scotland’s central belt, the working population is approximately 2.7 million people. The quality of Scotland’s workforce is internationally recognised. The people of Scotland make up one of the best trained, most reliable and cost competitive labour forces in the world. With a world-renowned educational system and its ratio of graduates per capita, Scotland surpasses most countries of comparable size in Europe. Scotland is reputed internationally for its education system and high quality university graduates. Across the central belt alone, there are almost 282,000 students in higher education institutions and further education colleges, one of the UK’s highest student concentrations. Many of Scotland’s academic institutions are internationally renowned for their research and teaching excellence, with many institutions providing bespoke contact centre training. It is no surprise then, that one of Scotland’s greatest assets is its talented workforce. Indeed, BPO talent pool is broad, skilled and exceptionally well-qualified. BPOs operating in Scotland benefit from this excellence: • There are 37 colleges of Further Education and 19 Higher Education Institutions in Scotland, of which 17 are Universities, including The Open University.. • In 2011-2012 there was a total of almost 282,000 students studying higher education courses in Scotland. • In 2011-2012 over 90,110 students successfully completed a higher education course in Scotland. • Scotland’s skills profile has been improving faster than the rest of the UK; 21% of the working age population now has a degree equivalent qualification or above. In addition, labour market regulations in the UK, including working hours, are the most flexible in Europe, and staffing costs are highly competitive. Scottish salary costs, including indirect social wage costs such as employer national insurance are among the lowest in Europe. Working Age Population by Geographic Area Unitary Authority Area No. People Between 16-64 in Work No. People Between 16-64 Ayrshire 173,700 232,600 Borders 53,200 70,500 68,900 90,400 Dunbartonshire incl Glasgow 552,700 752,000 Fife 184,900 234,600 Forth Valley 147,000 189,200 Grampian 255,800 306,100 Highlands & Islands 233,000 289,200 Lanarkshire 320,700 415,200 Lothians & Edinburgh 430,400 564,700 Tayside& Angus 196,800 253,900 2,617,000 3,398,400 Dumfries & Galloway Total NOMIS Annual Population Survey – Oct - 2010 – Sept 2011 10 DEMOGRAPHICS IN THE HIGHLANDS AND ISLANDS Labour Market Profile The following Labour Market Profiles provide information by Unitary Authority in the Highlands and Islands. More detailed information is available on request. EILEAN SIAR ARGYLL & BUTE Total Population (2010) Total Population (2010) AREA Argyll & Bute Scotland AREA 89,200 5,222,100 All People All People (Source: ONS mid-year population estimates) (Source: ONS mid-year population estimates) Population aged 16-64 (2010) Population aged 16-64 (2010) AREA All People aged 16-64 Argyll &Bute Argyle & Bute % Scotland % 55,500 62.3 65.7 AREA Eilean Siar Scotland 26,200 5,222,100 Eilean Siar Eilean Siar % Scotland % 16,100 61.4 65.7 All People aged 16-64 (Source: ONS mid-year population estimates) (Source: ONS mid-year population estimates) Labour Supply Employment and unemployment (Oct 2010-sep 2011) Labour Supply Employment and unemployment (Oct 2010-sep 2011) Argyll & Bute (numbers) Argyll & Bute % Scotland % All People Economically active 43,000 78.1 76.9 All People Economically active All People unemployed 2,700 6.3 7.9 All People unemployed Eilean siar (numbers) Eilean Siar % Scotland % 11,400 69.0 76.9 800 7.0 7.9 (Source: numbers and % are for those aged 16 and over. % is a proportion of economically active) (Source: numbers and % are for those aged 16 and over. % is a proportion of economically active) HIGHLAND SHETLAND ISLANDS Total Population (2010) Total Population (2010) AREA All People Highland Scotland 221,600 5,222,100 AREA All People (Source: ONS mid-year population estimates) Shetland Islands Scotland 22,400 5,222,100 (Source: ONS mid-year population estimates) Population aged 16-64 (2010) AREA All People aged 16-64 Highland Highland % Scotland % 140,900 63.6 65.7 Population aged 16-64 (2010) AREA All People aged 16-64 (Source: ONS mid-year population estimates) Shetland Islands Shetland Islands % Scotland % 14,300 63.9 65.7 (Source: ONS mid-year population estimates) Labour Supply Employment and unemployment (Oct 2010-sep 2011) All People Economically active All People unemployed Highland (numbers) Highland % Scotland % 118,100 83.8 76.9 6,100 5.1 Labour Supply Employment and unemployment (Oct 2010-sep 2011) All People Economically active 7.9 All People unemployed (Source: numbers and % are for those aged 16 and over. % is a proportion of economically active) Shetland (numbers) Shetland Islands % Scotland % 12,400 82.9 76.9 400 3.4 7.9 (Source: numbers and % are for those aged 16 and over. % is a proportion of economically active) 11 DEMOGRAPHICS IN THE HIGHLANDS AND ISLANDS MORAY ORKNEY ISLANDS Total Population (2010) Total Population (2010) AREA Orkney Islands Scotland AREA Moray Scotland 20,100 5,222,100 All People 87,700 5,222,100 All People (Source: ONS mid-year population estimates) (Source: ONS mid-year population estimates) Population aged 16-64 (2010) Population aged 16-64 (2010) AREA All People aged 16-64 Orkney Islands Orkney Islands % Scotland % 12,700 63.1 65.7 AREA Moray Moray % Scotland % All People aged 16-64 55,700 63.5 65.7 (Source: ONS mid-year population estimates) (Source: ONS mid-year population estimates) Labour Supply Employment and unemployment (Oct 2010-sep 2011) Labour Supply Employment and unemployment (Oct 2010-sep 2011) Orkney Islands (numbers) Orkney Islands % Scotland % 10,800 82,4 76.9 400 4.0 7.9 All People Economically active All People unemployed Moray (numbers) Moray % Scotland % All People Economically active 45,600 81.6 76.9 All People unemployed 2,400 5.1 7.9 (Source: numbers and % are for those aged 16 and over. % is a proportion of economically active) (Source: numbers and % are for those aged 16 and over. % is a proportion of economically active) 12 EDUCATION QUALIFICATIONS IN THE HIGHLANDS AND ISLANDS The Highlands and Islands region offers extremely high standards of education, through primary and secondary levels to university and college courses, providing a sound base for careers and vocations. The area’s workforce is both adaptable and resourceful, responding to changing economic demands thanks to the strong education structure, which produces high numbers of top achievers. The region’s adult education provision is also developed to high standards, giving employment opportunities to people requiring re-training or skills development. In this climate, both young and mature workers have the confidence and knowledge to enter the workforce and participate in the development of growth industries such as customer service, IT and new technologies. ARGYLL AND BUTE HIGHLAND MORAY ORKNEY SHETLAND EILEAN STAR SCOTLAND GREAT BRITAIN NVQ4 AND ABOVE 19,400 46,800 16,100 3,900 4,700 5,700 1,188,900 12,167,600 NVQ3 AND ABOVE 30,400 79,600 30,500 6,800 8,000 9,100 1,900,900 19,817,800 NVQ2 AND ABOVE 38,900 107,300 38,800 8,800 11,300 12,200 2,386,100 26,120,000 NVQ1 AND ABOVE 43,600 121,000 45,600 10,300 12,500 13,400 2,719,900 31,147,400 OTHER QUALIFICATIONS 4,000 9,200 3,800 1,300 1,000 800 260,700 3,296,600 NO QUALIFICATIONS 5,000 9,100 5,200 1,100 700 1,700 416,900 4,391,900 Source: (Nomis 2012, - figures are for 2010, latest available) No qualifications: No formal qualifications held Other qualifications: includes foreign qualifications and some professional qualifications NVQ 1 equivalent: e.g. fewer than 5 GCSEs at grades A-C, foundation GNVQ, NVQ 1, intermediate 1 national qualification (Scotland) or equivalent NVQ 2 equivalent: e.g. 5 or more GCSEs at grades A-C, intermediate GNVQ, NVQ 2, intermediate 2 national qualification (Scotland) or equivalent NVQ 3 equivalent: e.g. 2 or more A levels, advanced GNVQ, NVQ 3, 2 or more higher or advanced higher national qualifications (Scotland) or equivalent NVQ 4 equivalent and above: e.g. HND, Degree and Higher Degree level qualifications or equivalent 13 UNIVERSITY OF THE HIGHLANDS AND ISLANDS The University of the Highlands and Islands The University of the Highlands and Islands (UHI) is Scotland’s newest University. The University provides access to undergraduate and postgraduate study, and research opportunities through a distinctive partnership of 13 colleges and research institutions. There are currently over 8000 students studying on undergraduate and postgraduate courses, as well as many undertaking groundbreaking research with UHI. UHI is keen to work in conjunction with local employers to identify skills gaps, and to develop learning practices that produce individuals capable of meeting changing employers’ demands in modern working environments. Each institution has its own character and contributes to the distinctive organisation that is the University of the Highlands and Islands. Some are relatively large colleges in the urban centres such as Perth, Thurso, Elgin and Inverness. Others are smaller institutions, including some whose primary focus is on research. All, however, have a student-centred culture and an individual approach to student learning. In addition to the main campuses, UHI also provides educational opportunities through a network of more than 50 learning centres located throughout the Highlands and Islands, Moray and Perthshire. The construction of Inverness Campus is under way with HIE taking the lead role in developing the site. It is one of the most important education and research initiatives in Scotland and will play a pivotal role in the region’s future. The world class campus facility will bring education, business and the community together. Open from 2015, Inverness Campus will integrate leading academic facilities with research opportunities at a stunning location overlooking the Moray Firth. One of its most important roles will be to help retain talent and skills in the region and benefit the local economy. Thriving businesses will work hand in hand to share knowledge and resources, while the wide range of facilities on offer will give school leavers considering higher education a greater choice. In addition, 6 of Scotland’s universities have a presence in the area. Based centrally to the Highlands and Islands the Inverness Campus has the capacity to support up to 6,000 jobs over the next 30 years, and generate more than £38 million for the region. Stoneyfield and Inverness Retail Business Parks lie to the north east of the Campus creating a business buzz along the aptly named “A96 Golden Mile”. HIE believes Inverness Campus will help retain a population of young people within the Highlands, as well as attracting businesses and high earning professionals to the region to help drive economic growth. http://www.invernesscampus.co.uk 14 TRAINING AND DEVELOPMENT FOR THE BPO SECTOR As previously highlighted, the BPO sector is a very mature sector in Scotland with highly skilled and qualified staff. Established in the early 1990s it provides a very high level of experienced staff used to working with the demands of a BPO. This is especially challenging in the current difficult financial climate. Key areas of clear communication, avoiding and handling conflict as well motivating staff are covered. Cohorts of team leaders are brought together from different organisations and sites across the Highlands and Islands. Between workshops there is plenty of opportunity to put theory into practice and share experiences. Given the mature nature of the sector in Scotland, typical agents will have competent literacy, numerical, verbal and written skills. Companies normally provide their own bespoke training on product knowledge, customer service sales and technical skills. This training course has been highly successful and popular with both team leaders and site managers. In addition, there are 43 colleges of further and higher education in Scotland as well as numerous private training providers geared to meet the needs of BPOs. There are numerous courses available and many success stories in this area. A broad range of bespoke courses have been developed in conjuction with companies, colleges and Highlands and Islands Enterprise. All these courses can be undertaken at a location suitable to the customer. Some examples of courses offered include: Skills Development Scotland • Skills Development Scotland (SDS) supports individuals as they make decisions about learning and their career. Whether making choices at school, furthering education, managing their career or facing employment challenges, it has the expertise to help people make well-informed decisions. • As well as offering free face-to-face advice SDS can support people through its websites and telephone helpline. SDS can also source training courses, search for jobs, provide information on Modern Apprenticeships and other training programmes that may suit individuals needs. • SDS works closley with individuals of all ages, as well as employers and learning providers, and offer funding to ensure that everyone has the chance to benefit from building new skills. • Through Modern Apprenticeships training employees can achieve industry recognised qualifications. • With SDS support, recruiting staff doesn’t have to be time consuming or costly. • Highly skilled, motivated employees can make a big difference to companies businesses. Identify courses, funding and training providers to suit their business needs. • SDS support packages are designed to relieve the pressure businesses are under by providing funding for staff training and recruitment. • Watch business performance improve as you boost basic literacy and numeracy skills amongst your workforce with the help of The Big Plus. Pre-recruitment training Run over a four week period for example (or to meet the employer’s needs) a focussed pre-recruitment course for preparation of potential employees for employment in the customer contact sector Vocational Qualifications in Call Handling and IT User/ Professional Call Handling Working to nationally recognised standards, candidates are assessed in the workplace to confirm competence at Level 2 or 3, Supervising (Level 3) and Managing (Level 4) in addition to mandatory units (Positive Caller Relations, Quality of Provision and Health and Safety). Candidates are expected to complete the qualification within 12 months. Team Leader Development Programme (delivered in association with Customer Contact Association) Recognising the key role played by Team Leaders within a contact centre environment, HIE devised a training programme in association with the Customer Contact Association (CCA). The course which is delivered over three one day sessions explores how to manage responsibility for self performance while balancing the needs of team members and those of the organisation. Source: www.skillsdevelopmentscotland.co.uk 15 INDICATIVE SALARY COSTS - BPOs IN SCOTLAND Salary levels in the Highlands & Islands are highly competitive and broadly similar to the rest of Scotland. The following salary rates are for indicative purposes only. We will be pleased to provide more specific rates if required. Role Basic Salary Range Typical Scotland Highlands and Islands Contact Centre Director £60,000 -£100,000 £70,000 Call Centre Manager £45,000 - £55,000 £50,000 Team Manager £25,000 - £30,000 £25,000 Team Leader £19,000 - £25,000 £22,000 Trainer £20,000 - £25,000 £22,000 Resource Planner £20,000 - £25,000 £22,000 Telesales & Telemarketing (Inbound) £14,000 - £16,000 £14,500 Telesales & Telemarketing (Outbound) £14,000 - £16,000 £14,500 Call Handler £12,000 - £15,000 £13,500 Back Office £12,500 - £16,000 £14,000 Team Manager (multilingual) £20,000 - £28,000 £25,000 Team Leader (multilingual) £19,000 - £23,000 £22,000 Telesales & Telemarketing Inbound (multilingual) £15,500 - £20,000 £18,000 Telesales & Telemarketing Outbound (multilingual) £16,000 - £22,000 £19,500 Call Handler (multilingual) £15,000 - £18,000 £16,000 Up-Selling & Sales (multilingual) £16,000 - £20,000 £17,500 Call Handler (multilingual) £15,000 - £18,000 £16,000 Source: Search Consultancy Ltd, June 2012 In addition to services provided by recruitment agents etc, Highlands and Islands Enterprise maintains a Skills Register. Through the Skills Register HIE has access to up to date information on skilled and experienced individuals throughout the region, interested in full time, part time or home working opportunities within the business services sector in the Highlands and Islands area. Visit the website at: www.hie.co.uk/skillsregister 16 TRANSPORT INFRASTRUCTURE IN THE HIGHLANDS AND ISLANDS Transport Infrastructure The Highlands & Islands are served by a comprehensive transport infrastructure, which links major towns and rural communities, islands and mainland, with connections to the rest of Scotland, the UK and overseas destinations. Road • The Highlands & Islands offer a modern and comprehensive road network with considerably less traffic densities than the rest of the UK. • Major trunk roads connect the Highlands & Islands to the rest of Scotland as well as the UK. • A comprehensive bus service network operates throughout the Highlands & Islands region. Rail • The rail network provides regular services throughout The Highlands & Islands with connections to the rest of Scotland and the UK. • The Caledonian overnight sleeper service between London Euston and Inverness/Fort William runs 6 evenings per week. Sea • Ferry services linking the mainland to the islands, ensures easy access within the Highlands and Islands. Air • The Highlands & Islands have impressive air links to the rest of Scotland, the UK and European destinations. Some examples are listed below: Internal Flights From: To: Inverness Benbecula, Kirkwall, Shetland Islands and Stornoway, Aberdeen Kirkwall, Shetlands, Stornoway, Wick Stornoway Aberdeen, Benbecula, Edinburgh, Glasgow and Inverness. Benbecula Barra, Glasgow, Inverness and Stornoway. Wick Aberdeen, Edinburgh UK Destinations From: To: Inverness Belfast, Birmingham, Bristol, Jersey, London Gatwick, London Luton, Manchester and Southampton. Aberdeen Birmingham, Bristol, Durham, London Heathrow, Cardiff, Leeds, Manchester, Newcastle, Norwich, Nottingham and Southampton. European Destinations From: To: Inverness Amsterdam, Zurich, Dusseldorf, Bergen Aberdeen Amsterdam, Bergen, Copenhagen, Dublin, Esbjerg, Frankfurt, Jersey, Gronigen, Paris and Stravanger. Source – OAG Flight Guide, June 2012 For more information on the transport infracture in the Highlands & Islands please visit: www.hial.co.uk 17 HOMEWORKING IN THE HIGHLANDS AND ISLANDS The Highlands and Islands area has been at the forefront of teleworking and developing cost effective and sustainable ways of remote working for over 15 years. Adrian Millington, Head of Outsourcing at Shop Direct Group, said “Our focus at Shop Direct is providing exceptional customer service and from my own experience, the skills and experience of the local people are perfect for meeting the needs of the homeworking business model.” There is a significant understanding of a range of business models adopted over this time with self employed, intermediates, full and part time employee status operational models offering wide flexibility to meet requirements of individuals and companies. Kathleen Lohse, Customer Services Manager at Serco in Dingwall, said: “We have found the homeworking model works very well, and as we expand it we are looking at techniques we can put in place to attract workers from across the region. This includes the creation of on-line training and the possibility of a rural hub to support workers.” Homeworking, underpinned by high-speed universal digital connectivity, has the potential to contribute to a low- carbon economy. Dickon Moon of Arise UK commented: “There is a long established teleworking experience in the Highlands and Islands which lends itself well to our model. We have been impressed with the rich range of skills and abilities of people in the region, and this lends itself perfectly to establishing this flexible alternative to the traditional contact centre model.” One of the most significant outcomes has been the productivity gains achieved for employers. HIE has supported existing operators like BT and Vertex (now Serco) to trial models to evidence the benefits of homeworking for both employers and employees, while also making a significant contribution to the low carbon agenda. BT Scotland director Brendan Dick, on a homeworking pilot in Caithness, said: “Homeshoring will be an additional plus factor because the skill pool will not be confined to people who live within commuting distances of the contact centre or want to work traditional hours.It’s also an ideal vehicle for bringing employment back to socially-excluded sections of the community. It enables people who have difficulty finding jobs - parents with childcare issues, mothers returning to work after having a baby, disabled people, the over-fifties and people who care for sick or elderly relatives to work from home at times which suit themselves and their employers.” Serco’s Westminster City Council homeworking pilot has been independently evaluated with impressive results in terms of productivity and reduced absence levels compared to site based staff. HIE has also facilitated the growth of self employed homeworkers in our area with excellent results. Many homeworkers in the HIE area are familiar with the concept of working for a number of clients greatly adding to the flexibility of delivery. Promotional DVDs featuring both models have been produced. Copies available on request. Home working creates significant opportunities for low cost business growth as well as creating a wider jobs base and build stronger, sustainable communities in some of Scotland’s more rural areas. 18 BROADBAND CONNECTIVITY IN THE HIGHLANDS AND ISLANDS The Scottish Government has an ambition for the whole country to have access to world class, next generation broadband by 2020. We’re making sure the Highlands and Islands meet this target. We want to make our region, from Argyll to Shetland and the Outer Hebrides to Moray, a place that attracts new business, helps enterprise flourish and gives everyone the opportunity to make the most of the latest technology. With the kinds of technological advances being made across the world, including teleworking and access to online health services, it’s clear to see that we should aim to be at the forefront. Core connectivity will support the development of other sectors including energy, tourism and business services. This is why Highlands & Islands Enterprise have teamed up with the Scottish Government, Broadband Delivery UK and BT to bring about one of the most ambitious digital projects ever attempted in the UK. Without public sector intervention, the commercial rollout would only reach one in four of the region’s premises. We are committed to ensuring that the economic and social benefits which modern digital communications will help deliver are accessible to all of our people - to those in the remote, rural communities as well as the major urban centres. The first giant step in fulfilling this goal will be to deliver fibre broadband services to around 84 per cent of Highlands and Islands homes and businesses by the end of 2016. “Highlands and Islands Enterprise is leading one of the most ambitious high-speed fibre broadband projects the UK has ever seen. It will roll out a network across Scotland’s dramatic landscapes to transform our region’s digital future. Modern, fast and reliable broadband will make a game changing contribution to our communities’ prosperity, offering new ways of living and working.” Alex Paterson Chief Executive Highlands and Islands Enterprise Visit the Digital Highlands and Islands pages on our website – www.hie.co.uk/digital – for more information. 19 HOW HIGHLANDS AND ISLANDS ENTERPRISE CAN ASSIST YOUR COMPANY Highlands and Islands Enterprise (HIE) is an ambitious organisation with a unique remit which integrates economic and community development. We work in a diverse region which extends from Shetland to Argyll, and from the Outer Hebrides to Moray, covering more than half of Scotland’s landmass. As a Scottish Government’s body, HIE’s role is to lead regional growth and development, to seek investment opportunities that will be catalysts for change, and to ensure that the Highlands and Islands derives maximum benefit from existing and emerging opportunities FINANCIAL ASSISTANCE Regional Selective Assistance (RSA) The vast majority of the Highlands and Islands, aside from East Moray, qualifies for Tier 1 Regional Selective Assistance (RSA), the main investment grant scheme for businesses which assists projects that create or safeguard jobs in Scotland. Both indigenous and foreign companies can apply, with the resulting impact on employment helping to ensure Scotland’s economy remains globally competitive. RSA is a discretionary grant scheme, so a number of criteria must be met for an application to be successful. The amount offered is dependent on the size of the business, the location of the project and an assessment of how much is needed for the project to go ahead. There are three tiers of assisted areas in Scotland reflecting the different maximum levels of grant assistance potentially available. In addition to RSA funding, HIE is also able to use its discretionary financial powers in relation to areas such as job creation, training, property provision and innovative project development. Large Businesses Medium Businesses Small Businesses Tier 1 Up to 20% Up to 30% Up to 40% Tier 2a Up to 15 Up to 25 Up to 35% Tier 3 Nil Up to 10% Up to 20% Training Support On a case by case basis ‘HIE can also make a financial contribution to the training costs of new and existing staff. Innovation Vouchers The Innovation Voucher Scheme helps businesses access knowledge from universities to develop new products and processes through Research and Development projects through the provision of £5,000 vouchers for up to 25 HIE businesses. Innovation Vouchers Follow On The vouchers provide the opportunity to access second stage Research and Development Support with funding of up to £20k per project matched by the remaining 50% by the organisation. 20 HOW HIGHLANDS AND ISLANDS ENTERPRISE CAN ASSIST YOUR COMPANY PRACTICAL ASSISTANCE Entrepreneurs Growth Programme (EGP) The Entrepreneurs Growth Programme (EPG) series of a two day workshops are held in Scotland and focus on key topics for entrepreneurship development and business growth including: • Entrepreneurial Marketing • Entrepreneurial Sales Strategies • Financing for Growth • Entrepreneurial Leadership, Strategy & Culture Account Management Support HIE appoints dedicated Account Managers to key accounts to provide intensive support under the Account Management programme. The Account Manager’s role is to support the company on an on-going-basis providing advice and assistance and acting as a facilitator to other business development services available from within HIE and other organisations. Chamber Of Commerce Business Mentoring The `One to one` business mentoring service aims to match an ambitious and growing business leader with a suitable mentor, taking into account the skills, background, experience, sector and personality of the individuals involved. The service itself supports a mentoring period of up to 12 months. Property Identification For many years, HIE has worked in partnership with other relevant agencies and has extensive experience in assembling highly qualified and committed teams to help clients deliver their business vision. HIE offers an extensive portfolio of high quality premises and site serviced land in some of the most sought after locations. HIE is keen to work with the client to develop a solution that best fits with their needs, whether it’s an existing build, a refurbishment project or a bespoke option. TalentScotland TalentScotland is a is a program designed to showcase Scotland as an attractive destination for globally mobile professionals. Programmes Specific To The Highlands And Islands Region HIE recognises that innovation and knowledge transfer are essential for a growing economy and supports businesses through a range of measures. There are increasing links between Universities and businesses and HIE recognises the need to nurture this and capitalise on innovation and knowledge transfer. HIE is constantly seeking out opportunities to grow businesses, link to world class expertise through formal placement programmes, informal collaborations, financial assistance and entrepreneurship programmes. Some of these include: Companies can use their website to showcase operations in Scotland and advertise roles that may be required. www.talentscotland.com Summer Placement Programme The Talent Scotland Summer Placement Programme supports account managed businesses and social enterprises to provide an eight week placement for undergraduates between June and September each year. The Placement relates to changes in products and processes and gives the organisation an opportunity to address these issues through a subsidised undergraduate placement. Leadership for Growth Programme This programme offers high level leadership training for senior directors/owner managers at level one and for emerging/developing leaders at level two. Graduate Placement Programme The Talent Scotland Graduate Training Placement Programme supports account managed businesses and social enterprises to employ skilled graduates to work on 6 to 12 month projects that contribute to business performance and increased innovation. This programme helps to address the problem of outward youth migration from the Highlands and Islands and is addressed by promoting positive economic opportunities in the Highlands and Islands. Entrepreneurship Development Programme (EDP) Each year HIE sponsors six businesses to take part in the five day Entrepreneurship Development Programme (EDP) a globally renowned business executive education course delivered by the Massachusetts Institute of Technology’s (MIT) Sloan Schoolof Management in Boston. 21 OUR COMPETITIVE ADVANTAGE Return on Investment without a reduction in Quality • Internationally recognised as a BPO location • Critical mass and expertise • Low risk option • Exceptional Levels of employee loyalty and very low rates of staff turnover • Proven model of language recruitment • Ideal platform to serve European & US markets • High quality staff at lower cost with lower staff turnover equals lower operating costs • The Highlands & Islands has become a centre of innovation for the industry, pioneering new models of home working • One of the lowest tax rates in the European Union • Excellent telecoms infrastructure • Excellent quality of life 22 Inside Back Cover For further information please contact; Joyce MacLennan Head of Financial and Business Services Highlands and Islands Enterprise, Cowan House, Inverness Retail and Business Park Inverness, IV2 7GF, Scotland Tel: + 44 (0) 1463 244 309 Email: [email protected]
