Issuu on Google+

Scotland: The right choice for your IT investment

A Presentation by Scottish Development International


Scottish Development International

WHY SCOTLAND FOR YOUR IT PROJECT? Scotland is a vibrant, growing and dynamic country with an exciting future and as a location for IT development we have some major strengths: Strong Cluster • The Scottish software and digital technology cluster is made up of over 1,000 companies from innovative homegrown companies such as Skyscanner and Wolfson Microelectronics to large multinationals such as Oracle, HP, Amazon and IBM. Growing Talent Pool • Scotland produces in excess of 70,000 graduates each year, approximately 5000 of which are in disciplines with a specific ICT focus (Higher Education Statistics Agency 2012). Positive Business environment • Growing economy with opportunities to service diverse sectors including oil and gas, renewables, healthcare, financial and business services, public services, creative and food and drink industries not only in Scotland but across the UK and the rest of the European Union. • Stable political and business environment without excessive regulation, actively supported by Government and with well developed and consistent legal and regulatory frameworks in place.

Innovative opportunities • Opportunity to utilise and partner with our unique Scottish innovation labs in the following areas

– digital health and care – big data – sensors and imaging – smart cities –  renewables –  oil & gas.

Sound Infrastructure and connectivity • Range of property options both in city centre and out of town locations. • Internationally connected country both in terms of IT connectivity and transport linkages to North America, Europe, the Middle East and Asia. Outstanding Quality of Life Globally recognised beautiful location and creative centre with Internationally significant events, such as the world’s largest cultural event (The Edinburgh Festival and Fringe) held annually in Edinburgh, as well as the Commonwealth Games and Ryder Cup as well as the Open Golf competiton set to be staged in Scotland in 2015.


Scotland: The right choice for your IT investment

Scottish Development International Support Scottish Development International will act as your partner to show you how Scotland’s expertise can match your business requirements. We can identify and help connect you to business opportunities whilst helping you to identify business innovation, skills, development or financing solutions to help grow your business. We can also provide information on benchmarking other locations for your project. Once you have landed we will provide ongoing aftercare support.

“The initial investments allowed SAS to see the real Scottish potential with access to the excellent pool of talent from Scottish universities and its strong cluture of innovation. Our plans for the new SAS facility further underline our commitment to investing in Scotland.” Mikael Hagstrom, SAS Vice President, EMEA and AP “With all the wonderful talent that we’ve managed to bring aboard in Edinburgh we know we’ve made the right decision...SDI have been integral in helping Actify discover the benefits and opportunities that Scotland has to offer.” Chris Jones, Actify President and CEO


Scottish Development International

IT INDUSTRY IN SCOTLAND • Scotland’s IT industry has an established and growing international reputation, thanks to many innovative companies. • The industry employs a high proportion of degreelevel qualified staff across a range of disciplines including software development, IT services and analytics. • Scottish Higher and Further Education Institutions offer a large number of industry-focussed training courses. The map highlights details of some of the key IT companies and their geographical spread across Scotland.

Inverness & Highland Atos Origin BT Manpower Cap Gemini Fujitsu Serco Sitekit

Glasgow Atos Origin Bank of Australia Barclays Wealth Bridgeall Technology BT Cap Gemini Capita CGI CIGNA Dell HP IBM JP Morgan Qube Networks Lockheed Martin Maxima Morgan Stanley SAS Serco Sword Ciboodle Wipro


Scotland: The right choice for your IT investment

Aberdeen Accenture CGI Energysys Internet for Business Inoapps Schlumberger Wipro

INVERNESS ABERDEEN

DUNDEE PERTH STIRLING

Dundee Bright Solid Ninja Kiwi Outplay Entertainment PrismTech YoYo Games

GLASGOW EDINBURGH LIVINGSTON

Livingston Atos Origin Bloxx Calnex Solutions Flexiant Oracle Scotland IS

Edinburgh Accenture Agilent Amazon Avaloq Axios Systems BT Cisco Citibank Craneware Disney Research FNZ Funduel HBOS IT Indigo Vision KAL Onyx Group Pulsant RBS Rockstar North SDLC Skyscanner Sopra Group State Street User Vision Wolfson Xilinx


Scottish Development International

WORKFORCE/POPULATION • Scotland has a working population of 3.2 million, of which approximately 2.5 million are located within Scotland’s central belt. • 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. • 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. • There is a Technology Skills Investment plan which has initiated actions being undertaken to ensure a suitably qualified future workforce of the future in partnership with Skills Development Scotland

2h30

INVERNESS

2h50

ABERDEEN

1h25 DUNDEE

1h45 GLASGOW

1h30

55min

EDINBURGH


Scotland: The right choice for your IT investment

Within 30 min travel time of Inverness c.74000 Within 60 min travel time of Inverness c.116000

Highlands & Islands Working Population 241000

Within 60 min travel time of Aberdeen c.310000

 INVERNESS

Dunbartonshire & Forth Valley Working Population 319000

ABERDEEN

Glasgow City Working Population 416000 Inverclyde, Renfrewshire & Ayrshire Working Population 456000 Dumfries & Galloway Working Population 92000 Lanarkshire Working Population 426000

Within 30 min travel time of Aberdeen c.217000

Within 30 min travel time of Glasgow c.1.0 million Within 60 min travel time of Glasgow c.1.8 million

Within 30 min travel time of Dundee c. 172,000 Within 60 min travel time of Dundee c. 435,000

DUNDEE

PERTH

Within 30 min travel time of Edinburgh c.525,000

STIRLING

 GLASGOW 55 mins

EDINBURGH

SCOTTISH CENTRAL BELT

Within 60 min travel time of Edinburgh c.1.2 million

Aberdeenshire Working Population 324000 Dundee & Tayside Working Population 263000 Fife Working Population 235000 Edinburgh City Working Population 338000 Lothian & Borders Working Population 302000


Scottish Development International

SCOTTISH UNIVERSITIES & HIGHER EDUCATION INSTITUTIONS Today, 16 of Scotland’s Universities, 3 higher education institutions and 37 colleges of further education, continue to provide students with an education relevant to the needs of business. Scotland is known internationally for the quality of its Universities and the courses they deliver. Many of Scotland’s top universities provide support to the IT industry, working closely with companies to generate new talent and innovations, shown on the map right:

Universities with software specialisms University of Aberdeen www.abdn.ac.uk

Queen Margaret University www.qmu.ac.uk

Abertay-Dundee University www.abertay.ac.uk

Robert Gordon University www.rgu.ac.uk

University of Dundee www.dundee.ac.uk

St Andrews University www.st-andrews.ac.uk

Edinburgh Napier University www.napier.ac.uk

University of Stirling www.stir.ac.uk

University of Edinburgh www.ed.ac.uk

University of Strathclyde www.strath.ac.uk

Glasgow Caledonian University www.gcu.ac.uk

The Open University www.open.ac.uk

University of Glasgow www.gla.ac.uk

University of the Highlands and Islands www.uhi.ac.uk

Heriot-Watt University www.hw.ac.uk

University of the West of Scotland www.uws.ac.uk


Scotland: The right choice for your IT investment

INVERNESS University of Highlands & Islands

ABERDEEN

DUNDEE PERTH

University of Aberdeen Robert Gordon University

Abertay-Dundee University University of Dundee

St Andrews university

University of Stirling

STIRLING

University of the West of Scotland

GLASGOW Glasgow Caledonian University University of Strathclyde University of Glasgow

EDINBURGH Open University Edinburght Napier University Heriot-Watt University Queen Margaret University University of Edinburgh


Scottish Development International

GRADUATE AVAILABILITY Graduate Pool Scotland is reputed internationally for its education system and high quality university graduates. In Scotland, there are more than 290,000 students in higher education institutions and further education colleges. Key Facts • There are 19 Higher Education Institutions (HEIs) in Scotland of which 16 are universtities • Scotland also has 37 colleges of further and higher education • Scotland produces in excess of 70,000 graduates each year approximately 5000 of which are in disciplines with a specific ICT focus. • Of all qualifications in 2011–12, over 60% achieved graduate level qualifications (first degree level or above) • International students accounted for 21% of all graduates in 2011–12 • Scotland’s skills profile has been improving faster than the rest of the UK; 18% of working age population now has a university degree equivalent qualification or above • Higher education in Scotland is free, and more than half of all Scottish school leavers go into higher or further education, making the country one of the world’s most educated nations and offering companies access to a skilled and talented pool of labour.


Scotland: The right choice for your IT investment

Total Students Studying Computer Science in Universities and Further Education Colleges in Scotland

NORTH FURTHER EDUCATION

249

HIGHER EDUCATION

513

WEST FURTHER EDUCATION

HIGHER EDUCATION

1109 903

EAST FURTHER EDUCATION

HIGHER EDUCATION

561 1544


Scottish Development International

SKILLS RECRUITMENT Staff Recruitment Clearly team recruitment is a vital element of any business success, and hence we would always suggest a multi-tiered recruitment strategy to open up the opportunity to recruit the best candidates to suit your needs eg, recruit and relocate key members from existing core team, partner with one or more local recruitment agents, use our own TalentScotland portal, join the local trade body www.ScotlandIS.com and participate in networking activities, partner with a local university for graduate recruitment and use our Graduate Placement Programme, Scot Grad. Scot Grad ScotGrad is a free placement service for connecting you to appropriately skilled recent graduates eager to put their talents and qualifications to work. Scot Grad will stimulate applications to your placement vacancy by engaging with the graduate community so that you get strong applications to select from. www.scotgrad.co.uk Modern Apprenticeships 25,000 Modern Apprenticeships are available this year with fantastic opportunities to introduce new enthusiasm and capability to your workforce. As an employer, you can pass on your experience, supporting your apprentice’s development whilst producing a skilled and productive workforce with financial assistance for training through Skills Development Scotland. www.skillsdevelopmentscotland.co.uk/ourservices/modern-apprenticeships/

TalentScotland www.Talentscotland.com is an initiative managed by Scottish Development International. The project aims to attract highly skilled professional to choose Scotland as a location to live and work. This site offers news and information on: • Job opportunities • Scotland’s key sectors • The lifestyle here is Scotland; and • Practical information to help you make the move Specifically for employers, who can advertise their vacancies at no cost. Vacancies are automatically sent to those jobseekers who have registered on our database seeking for similar positions. The site presently has 80,000 candidates, mainly UK based, who have registered an interest in working in Scotland and requested further information on specific vacancies. If they apply the applications are bundled and sent to your HR department to process and respond.


Scotland: The right choice for your IT investment

Our recruitment track record Scottish Development International would be pleased to assist your company at any stage of the recruitment process. We have a wide range of contacts that can facilitate this process. Scottish Development International is pleased to undertake a preliminary recruitment search on your behalf, identifying potential candidates for your project that meet your skill specifications.

Below is a selection of 6 Scottish locally-based recruitment agencies that are prominent in the IT industry and can assist with any staffing issues here in Scotland. Other agency details can be provided as required.

Bright Purple Resourcing 4th Floor, Eagle Building, 19 Rose Street, Edinburgh  EH2 2PR Contact: Nick Price Tel: +44 (0)131 473 7031 Email: nick.price@brightpurple.co.uk Website: www.brightpurple.co.uk

RZ Group Ratho Park, 88 Glasgow Road, Edinburgh  EH28 8PP Contact: Craig Murchie Tel: +44 (0)131 333 1555 Email: craig.murchie@rzgroup.co.uk Website: www.rzgroup.co.uk

Abrecco 45A George Street, Edinburgh  EH2 2HT Contact: Kevin Feely Tel: +44 (0)131 226 7331 Email: kevin.feely@abrecco.com Website: www.abrecco.com

Eden Scott 26 St Andrew Square, Edinburgh  EH2 1AF Contact: Niall Bree Tel: +44 (0)131 410 1008 Email: niall.bree@edenscott.com Website: www.edenscott.com

Experis 4th Floor, Capital Building, 12-13 St Andrew Square, Edinburgh  EH2 2BH Contact: Michael Taggart Tel: +44 (0)131 558 4821 Email: Michael.taggart@experis.co.uk Website: www.experis.co.uk

Be-it resourcing 7–9 North St, David Street, Edinburgh  EH2 1AW Contact: Gareth Biggerstaff Tel: +44 (0)131 524 9407 Email: gareth.biggerstaff@ be-itresourcing.com Website: www.be-itresourcing.com


Scottish Development International

SALARY COSTS Salary Levels The table prepared below shows how Scotland compares with rest of the UK in terms of salary costs. London (UK)

South East (UK)

Scotland

Role

Salary Band

Salary Band

Salary Band

Project Manager

£45,936-£62,377

£35,678-£52,591

£34,986-£49,467

Technical Architect

£54,863-£72,977

£46,995-£67,893

£41,276-£58,967

Senior Systems Developer

£43,342-£51,759

£36,837-£47,867

£34,756-£44,103

Systems Developer (3+ yrs)

£31,639-£43,038

£30,954-£39,520

£28,984-£37,123

Systems Developer 0-3yrs)

£26,867-£38,577

£22,100-£30,541

£20,464-£29,993

Network Engineer

£33,557-£48,639

£28,954-£43,121

£24,789-£38,765

Systems Testing Engineer

£31,710-£42,675

£26,950-£38,659

£23,401-£35,975

Source: Reed Technology – Salary & Market Insight 2013 (https://reedglobal/com/en_GB/web/reedgb/news/salary-guides)

London (UK)

South East (UK)

Scotland

Role

Salary Band

Salary Band

Salary Band

Project Manager

£43,000-£60,000

£40,000-£60,000

£35,000-£65,000

Infrastructure Architect

£50,000-£80,000 (Junior-Senior level)

£40,000-£75,000 (Junior-Senior level)

£41,276-£58,967 (Junior-Senior level)

Developer/Software Developer

£28,000-£60,000

£25,000-£55,000

£20,000-£40,000

Network Engineer

£33,000-£45,000

£25,000-£55,000

£22,000-£35,000

Test Analyst

£30,000-£45,000

£25,000-£45,000

£20,000-£40,000

Source: Hudson IT Salary Guide 2013 (http://uk.hudson.com/salary-surveys)


Scotland: The right choice for your IT investment

Other Costs Employers may provide additional enhancements to employees through pension schemes, medical insurance, subsidised meals, company cars and childcare schemes. Many companies also adopt employee share schemes, known as share incentive plans, where employees receive free shares or options to buy shares at a discount from their employer without paying tax. Employers in the UK have to pay employee tax contributions in the form of National Insurance and PAYE. Current corporation tax is 23%, dropping to 22% in April 2014. Further details of which can be found on the HMRC website  www.hmrc.gov.uk For further information on share schemes please see: www.hmrc.gov.uk/shareschemes/welcome.htm Annual labour costs results for a Software development centre (£m) With costs based on a head count of 100 staff across 11 different job functions SCOTTISH CENTRAL BELT DUBLIN AMSTERDAM LONDON STOCKHOLM MUNICH PARIS ZURICH 0

1

2

3

4

5 £m

Source: Financial Times www.fdibenchmark.com

6

7

8

9


Scottish Development International

MULTI-LINGUAL CAPABILITY Scottish Development International recently commissioned research on language capability in Scotland. The report by Oxford Intelligence is summarised below. Scotland’s strengths • English is the native language in Scotland • A pool of 109,000 fluent language speakers and 18,000 of which speak more than 2 languages fluently. • A highly skilled resource – the best in the UK. 74% of fluent speakers in Scotland are educated to degree level or above compared with 57% across the UK as a whole. • Availability and willingness to work in a company that needs language skills – only 19% currently use languages in their job but 65,000 would be interested in a job where they use their fluency in another language.

Summary • Scotland has a significant talent pool of 109,000 fluent language speakers. • 81% of fluent speakers – 88,000 people – are not currently using their languages at work. • Yet 60% of all competent linguists would be interested in a job where they could use these language skills. • Fluent linguists in Scotland tend to be younger and better educated than those in the rest of the UK as a whole. Hence, inward investors and exporting companies have access to a highly skilled talent pool. • Scotland offers ample resources in the four key Western European business languages – French, German, Italian and Spanish. • Eastern European and Asian languages are also significantly represented and of growing relevance as these regions develop. (Source: Oxford Intelligence, 2008)

Number of fluent linguists in selected languages Western European languages

Number of fluent speakers

Asian languages

Number of fluent speakers

French

32,000

Urdu

8,000

German

22,000

Hindi

5,000

Spanish

10,000

Punjabi

4,000

Italian

10,000

Mandarin

3,000

Dutch

5,000

Cantonese

3,000

Greek

2,000

Malay

3,000

Portuguese

1,000

Bengali

2,000

Japanese

1,000

Eastern European languages

Number of fluent speakers

Gujarat

1,000

Polish

9,000

Russian

6,000

Czech/Slovak

2,000

Hungarian

1,000


Scotland: The right choice for your IT investment

Foreign Nationals There are some 190,000 Foreign Nationals in Scotland, many of them students, and many attracted by the high quality of life, particularly in the culturally exciting and thriving cities of Glasgow and Edinburgh. Language Graduates Scotland produces almost 3,300 language graduates this year. This consists of a combination of language only qualifications and courses where a language is combined with other subjects. Combining full and part-time study, almost 15,500 individuals in Scotland were studying for degree level or above qualifications in languages in any given year. Foreign Graduates Qualifications obtained by international students accounted for 19% of all qualifiers (16,475) in 2010-2011.

Foreign Students In 2011-12 there were 46,970 overseas domiciled students studying higher education courses in Scotland. These students were domicilled outwith the UK before participating in Scottish higher education. This number has increased by almost 15% since 2008/09. The majority came from outwith Europe, with China (8,075 students), USA (3,650) and India (2,970) being the most common domcile of overseas students. Of those students domiciled within Europe (and outwith the UK) before coming to study higher education in Scotland, the most common countries of domicile were the Republic of Ireland (2,655) students), Germany (2,325 students and France (1,515) students.

Student numbers from the top ten countries are as follows: Country

Number of students

1. China

8,075

2. United States

3,650

3. India

2,970

4. Republic of Ireland

2,655

5. Germany

2,325

6. Nigeria

2,105

7. France (includes Corsica)

1,515

8. Greece

1,295

9. Poland

1,205

10. Malaysia

1,165

(Sources: Higher Education Statistics Agency (HESA) and Scottish Funding Council (SFC), 2013)


Scottish Development International

BUSINESS SUPPORT ORGANISATIONS Scottish Development International acts as your first point of contact for investment in to Scotland however there are other organisations that can help support and smooth your journey in to Scotland. These other organisations can be seen below split by support mechanism: CONNECTIONS TO SCOTTISH AND UK IT COMPANIES AND ORGANISATIONS Scotland IS The trade body for software, telecoms and IT in Scotland – represents members across all ICT fields from small businesses to global corporations. It works to raise the profile of cutting-edge industry in Scotland, lobbying policymakers on key issues and helping its members to forge business links with customers, suppliers and partner companies. www.scotlandis.com Interactive Scotland Interactive Scotland (IS) provides a route into Scottish digital expertise with the capability to meet your digital needs. IS can connect you with: • skilled digital innovators relevant to your needs • leading thinking coming out of Scotland’s digital developments • collaboration with peers • appropriate government bodies leading Scotland’s international efforts www.scottish-enterprise.com/services/ develop-your-organisation/interactivescotland/overview

INNOVATION AND TECHNOLOGY TRANSFER SICSA The Scottish Informatics and Computer Science Alliance (SICSA) is a research pool of 14 Scottish Universities. It brings together researchers from Universities across Scotland to create one of the largest topquality research clusters in Informatics and Computer Science in the world. SICSA works closely with companies of all sizes to transfer advanced research to industry and informs researchers of current industrial problems. SICSA’s members are interested in all aspects of informatics and computer science but focus on the following four research themes: • Next Generation Internet • Multi-modal Interaction • Modelling and Abstraction • Complex Systems Engineering www.sicsa.ac.uk


Scotland: The right choice for your IT investment

university-technology.com The universitytechnology.com website promotes technology transfer and makes university technologies easier for commercial organisations to access. The site contains information on opportunities for collaborative projects where a university is seeking an industry partner to become involved at an early stage to jointly develop technologies. www.university-technology.com Technology Strategy Board The Technology Strategy Board aims to stimulate technology-enabled innovation in the areas which offer the greatest scope for boosting UK growth and productivity. They promote, support and invest in technology research, development and commercialisation. https://ktn.innovateuk.org/web/creativektn R&D Partnerships formerly Global Partnerships Programme R&D Partnerships is a fast, expert partner-matching service that helps innovative international organisations find exactly the right academic or commercial partner in the UK for research and development collaborations. www.ukti.gov.uk/es_es/uktihome/ item/107406.html

SKILLS Skills Development Scotland (SDS) SDS provides advice and guidance for careers and learning as well as extensive support for skills development. www.skillsdevelopmentscotland.co.uk INCUBATION AND BUSINESS SUPPORT Innovation Centres Scotland Ltd (ICS) ICS, a specialist provider of physical and virtual incubation services to High Growth Early Stage SME businesses, operates the award-winning Alba and Hillington Park Innovation Centres. These Virtual Incubators are leading models of their kind that provide sector specific market and technology advisory services. www.innovationcentre.org


Scottish Development International

INFRASTRUCTURE A primary focus in driving forward Scotland’s technology strategy is the creation of skills clusters which bring together talented individuals in a high tech, creative community. Seabraes Zone Dundee is renowned for its expertise in digital media and creative industries. More than 350 businesses in the sector, employing more than 3300 people, are currently based in Dundee and the surrounding area generating a combined annual turnover in excess of £185 million. The Seabraes zone is strategically positioned to build upon this reputation. It is within walking distance of the V&A at Dundee, University of Dundee, Duncan of Jordanstone College of Art and Design, Dundee Contemporary Arts and the University of Abertay Dundee. Businesses involved in the computer games, animation and design oriented industries benefit from this easy access to potential collaborators and the zone is a hub for the digital media and creative industries. It is also home to the award winning Dundee Science Centre.

A range of premises sizes and pricing to suit companies from the most basic start-ups to established businesses are available. www.dundeewaterfront.com/zones/734/ Seabraes Regus SDI has partnered with managed office giants Regus to provide discounted work space for companies looking for initial set up space. Your company can benefit from preferential access to Regus Centres for the following services to help establish a foothold in Scotland: • Virtual offices - Take advantage of all the benefits of a prime office without the need to physically be there, with the facility for local mailing address and telephone answering service. • Meeting/training rooms - Fully AV equipped facilities for worldwide meetings • Short stay touchdown services - Drop-in offices to check e-mails, print reports, hold meeting or even conduct business in a private office • Long stay incubator offices - Furnished and supplied with communication services • Regus Businessworld - Regus Businessworld membership will allow card-holder access to various services within multiple Regus locations during business hours www.regus.co.uk


Scotland: The right choice for your IT investment

Skypark Skypark is located just 10 minutes walk from Glasgow city centre, occupying an excellent location accessible by both car and public transport. Skypark provides a wide range of high quality office suites to suit all occupational requirements in terms of specification and size. There is also an onsite cafÊ, Four Seasons children’s nursery, meeting room and boardroom facilities, dedicated and visitor car parking as well as 24hr access and on-site security. www.skypark-glasgow.com

Code Base Digital Tech Hub This Code Base Digital Tech Hub is a fastfilling, world class space for technology startups in Edinburgh. It provides bespoke office space, services and community support for companies and entreprenueurs. In the shadow of Edinburgh Castle, right next door to Edinburgh College of Art, CodeBase is situated in the heart of the city. www.thisiscodebase.com


Scottish Development International

FINANCIAL INCENTIVES FOR INVESTMENT Scotland (and the UK) has a corporate tax rate of 21% which will drop to 20% in April 2015. In consequence, HM Treasury have stated that the UK will have the lowest main corporation tax rate in the G`8. Alongside this attractive rate for investors, there are other financial incentives of relevance that may be applicable to your business as follows: INVESTMENT INCENTIVES AND SUPPORT Regional Selective Assistance (RSA) RSA is a national grant scheme administered by the Scottish Government. It is aimed at encouraging investment and job creation in the areas of Scotland designated for regional aid, as shown in the map opposite, under European Community (EC) law (the Assisted Areas). RSA is available to limited companies, sole traders or partnerships. The amount of grant we can offer towards an eligible project depends on a number of factors, including location, size of project, size of company, the number of jobs created or safeguarded, the quality and type of these jobs. The grant is discretionary and the level offered within the EC limits depends on our assessment of how much is needed to make sure the project goes ahead. `

An example of the grant that can be attributed to a project can be seen as follows: RSA worked example RSA job creation grant = 2 years x no. of jobs created x annual salary x location factor (*) The location factor (*) is dependent on company size and proposed geographical location (postcode) of operation and is determined by the EU. For example, for a large company, establishing a 100 person IT operation over 3 years in Glasgow city, with average salary £40k per annum. The location factor is 15*; RSA job creation grant = 2 years x 100 people x £40k x 0.15 = £1.2 million or circa £12k per job created. Please note these grants are subject to a successful application, appraisal and approval, where we would be very happy to work with companies to enquire and prepare their applications as required. Please note the calculation shown demonstrates the maximum grant available and the actual grant will be subject to need and negotiation


Scotland: The right choice for your IT investment

Multiple Grants RSA is not limited to a single grant, it can be awarded several times provided the qualifying criteria are satisfied. For more information visit: www.scottish-enterprise.com/services/ attract-investment/regional-selectiveassistance/ how-to-apply

Scotland’s Assisted Area Coverage Legend Assisted Area Coverage 2007-2013 Tier 1 (Small Companies 40%; Medium Companies 30%; Large Companies 20%) Tier 2 (Small Companies 35%; Medium Companies 25%; Large Companies 15%) Tier 2 (Small Companies 30%; Medium Companies 20%; Large Companies 10%) Tier 3 (Small Companies 20%; Medium Companies 10%; Large Companies 0%)

Inverness Aberdeen

Dundee Stirling Glasgow

Edinburgh

Ayr Dumfries

Š Crown Copyright and database right 2011. All rights reserved. Ordnance Survey Licence number 100018398.

Source: SE GIS Team Contact: kmap@scotent.co.uk Date: 09/05/2011


Scottish Development International

FINANCIAL INCENTIVES FOR INVESTMENT AND TAX Scottish Investment Bank (SIB) The SIB is a bank owned by the Scottish Government which invests in spin-out companies Head Quartered in Scotland in a co-investment model with other partners. The SIB is the largest independent investor in the UK from a number of deals perspective and has investments in circa 400 companies. To find out more visit www.scottishenterprise.com/services/attract-investment R&D Grants Scotland can provide grants up to 25% of project total costs, which includes salaries, equipment, location and expense costs. Up to 50% of the project can be carried out within a partner company within the EU territory.

Training Grant Training Plus is available to any business undertaking a mobile direct investment project based anywhere in Scotland. Patent Box The introduction by the UK Government of the Patent Box aims to provide tax incentives for innovative companies. This is particularly good news for companies in sectors renowned for innovative developments such as the ICT sector. The legislation guiding the use of the Patent Box aims to make the UK more competitive in manufacturing and R&D.


Scotland: The right choice for your IT investment

Companies who profit from patented inventions will be able to reduce Corporation Tax liability on a proportion of their profits. The applicable tax rate will be reduced progressively, eventually reaching 10% Tax Obligation Accrual A UK scheme that alows companies to consolidate their profits and losses over several years to determine corporate tax obligations.

R&D Tax Credit The United Kingdom’s Research and Development (R&D) Relief is a Corporation Tax relief that may reduce your company or organisation’s tax bill of up to 10 per cent of qualifying R&D expenditure. To find out more visit the Government website at www.hmrc.gov.uk/ct/forms-rates/claims/ randd.htm


Scottish Development International

TRANSPORT CONNECTIVITY Air Travel Scotland has 5 international airports and is better connected than ever, offering a strong route network within Europe and around the globe, with more than 50 year round international services and over 70 links with international cities. Road & Rail Links Scotland offers a modern and comprehensive road network and benefits from a fast and frequent InterCity rail service to/from all parts of the UK.

THE UK

30 direct daily flights to London (1hr flight) 2hr flight time to other EU centres; Paris, Berlin and Amsterdam and 5hrs to New York.

LONDON


Scotland: The right choice for your IT investment

>

> LONDON•

INVERNESS AIRPORT ABERDEEN AIRPORT

GLASGOW AIRPORT GLASGOW PRESTWICK AIRPORT

EDINBURGH AIRPORT


Scottish Development International

IT CONNECTIVITY Securing the correct property with good transport links is a key consideration for all data centre operators. Scotland offers a wide range of possibilities with opportunities to develop greenfield sites or take advantage of existing properties or sites. We have identified the top 11 locations for large or very large options over 60,000 square feet to 150,000 square feet and these can be seen in the map below

Inverness Aberdeen

Perth

Glasgow

Dundee

Edinburgh

Potential Data Centre Locations

Newcastle Carlisle Belfast


Scotland: The right choice for your IT investment N. America via Faroes N. America via Iceland

Scotland the perfect central point for follow the sun European Stavanger technology technology centre

Inverness

N. America

Oslo Aberdeen

Edinburgh

Scotland’s ‘Internet Exchange Point’

Glasgow Prestwick

Copenhagen

Londonderry

Newcastle Belfast

Dublin

Manchester

Groningen Norwich

Birmingham Amsterdam

London Bristol N. America

N. America


Scottish Development International

PROPERTY Property Support Available from Scottish Enterprise Scottish Enterprise offers Design Services to companies considering investment in Scotland. These services are free of charge and include: • finding suitable existing buildings or sites for bespoke development • carrying out outline feasibility studies • advising on procurement options best suited to a company’s needs Existing properties and sites - On your behalf, we can: • match companies accommodation needs to existing properties • identify development land for new build options • advise on the availability of utility supplies (gas, electricity, water, telecoms and drainage) • advise on site access arrangements • establish site ground conditions

Feasibility studies - On your behalf, we can: • establish a preliminary design brief of building requirements • prepare outline scheme design proposals including outline specification • prepare indicative cost estimates and outline development programmes Procurement options - On your behalf, we can: • advise on the most suitable procurement option • offer guidance with the appointment of design consultants, property developers and construction companies • liaise with: utility providers and certifying authorities (Planning and Building Control)


Scotland: The right choice for your IT investment

Commercial Property Scotland can offer a diverse range of property solutions to suit your needs. Modern and traditional city centre locations and business parks are within easy commute of a working community of 3.2 million people. All property offer competitive costs, good lease options and plenty of opportunity to grow. A searchable list of available public sector properties in Scotland is available through the Scottish Government Property website (sales and lettings). This includes properties owned or managed by Scottish Enterprise. You can also search for business properties through the Scottish Property Network website. This site includes listings from private sector developers. Total annual operating cost for office for 100 people (£m) 21,528 ft² Office DUNDEE INVERNESS AMSTERDAM MUNICH DUBLIN GLASGOW EDINBURGH STOCKHOLM ABERDEEN ZURICH PARIS LONDON 0

0.5

1.0

1.5

2.0

2.5 £m

Source: Financial Times www.fdibenchmark.com

3.0

3.5

4.0


Scottish Development International

SCOTLAND’S COMPETITIVE ADVANTAGE We are confident that Scotland can provide the critical capabilities required for European expansion, namely: • Strong Cluster • Growing Talent Pool • Positive Business Environment • Innovative Opportunities • Sound Infrastructure and Connectivity • Outstanding Quality of Life • Scottish Development International Support Scotland: Recent Awards & Accolades • North European Region of the future for foreign direct investment (FDI) according to Financial Times FDI Magazine 2014 • Region of the future for overall FDI strategy according to Financial Times FDI Magazine 2014 • Scotland tops UK for inward investment according to the lastest Ernst & Young 2012 UK attractiveness survey • SDI has been voted the ‘World’s most consistently high performing agency’ by GDP Global Development. • Edinburgh, Glasgow and Scotland as a whole have been identified as being in the top ten ‘Most Business Friendly’ cities or regions in Europe.

Don’t take our word for it. “The initial investments allowed SAS to see the real Scottish potential with access to the excellent pool of talent from Scottish universities and its strong cluture of innovation. Our plans for the new SAS facility further underline our commitment to investing in Scotland.” Mikael Hagstrom, SAS Vice President, EMEA and AP “With all the wonderful talent that we’ve managed to bring aboard in Edinburgh we know we’ve made the right decision...SDI have been integral in helping Actify discover the benefits and opportunities that Scotland has to offer.” Chris Jones, Actify President and CEO “Our continuing relationship with the Scottish government in Scottish Enterprise and Scottish Development International, alongside our partners in industry and academia, will ensure FMC and our customers continue to benefit from Scotland’s skilled workforce.” David Currie, Director Subsea Ops, FMC Technologies


Scotland: The right choice for your IT investment

Here’s what our customers think...


EMEA office contacts: Derek Dougall Scottish Development International HQ 5 Atlantic Quay 150 Broomielaw Glasgow G2 8LU Tel: +44 141 228 2213 Email: Derek.Dougall@scotent.co.uk investment@scotent.co.uk www.sdi.co.uk General enquiries Tel: +44 141 228 2828 Email: investment@scotent.co.uk Chris Camilleri 72 Cannon Street 1st Floor, London  EC4N 6AE Telephone: +44 20 7248 6271 Email: Chris.Camilleri@scotent.co.uk

Mette Bach Dyremose Nordic Business Development Executive Scottish Development International Arne Jacobsens Allé 7, 5th floor 2300 Copenhagen S, Denmark Telephone: +44 45 3045 9604 Email: mette.bach-dyremose@scotent.co.uk Adam Hill Kasernenstraße 27 Düsseldorf 40213 Telephone: +49 211 86 32 940 Email: adam.hill@scotent.co.uk Laurent Melin Scottish Development International 123 rue Salvador Allende, Nanterre, Paris 92000 Telephone: +33 1 41 02 85 00 Email: Laurent.Melin@scotent.co.uk Yuri Andreev Office 13 “V” UI. Koroviy Val 7 Moscow 119049 Telephone: +7 495 937 3773 Email: yuri.andreev@scotent.co.uk Sreenath Somanath Scottish Development International c/o British Embassy Al Seef Road Dubai Telephone: +971 4 309 4259 Email: Sreenath.somanath@scotent.co.uk


Scotland: The right choice for your IT investment - EMEA