EDINBURGH is proving an attractive location for financial services companies looking to bring work back from emerging markets and from London, according to a new report.
The city is benefiting from the creation of hubs in regional centres of the UK as emerging economies no longer offer labour cost advantages that drove firms to set up overseas.
The report by TheCityUK, which promotes financial and professional services, and McKinsey & Company, says there remains a trend for companies setting up operations such as call centres abroad.
But in recent years many financial companies have begun to “near shore”, whereby their operations are established closer to home.
Chris Cummings, chief executive of TheCityUK, said: “Our report investigated 147 location decisions made by financial services companies. What emerged is a trend to locate, and often repatriate, core business functions to the UK’s regions – creating and expanding significant service hubs for global organisations.
“JP Morgan is a great example. It has based its worldwide securities services fund administration operation and European asset pricing hub at Edinburgh Park. In a fiercely competitive market, to attract such companies is clearly a boon for job creation and the prospects of the local economy. I believe that this trend is set to grow.
“As wage differentials between the UK and Asia reduce and areas such as Edinburgh continue to provide skilled pools of flexible workers, near shoring will grow and Edinburgh will benefit.”
