Dell focuses on Scottish growth

Dell's plan to add 150 jobs in Glasgow and 55 in Edinburgh should help solidify Scotland's status as a financial services IT centre.

The US computer giant has cut 10% of its workforce globally, but is now spearheading an expansion in Glasgow, where it plans to increase its workforce to 1,000, up from 850 currently.

Fifty-five employees in the capital are to kick-start the development in January, as Dell aims to transform itself from a PC manufacturer to a provider of IT services for bluechip companies, financial services included, according to recently appointed Scottish director and general manager Charles Quinn.

With Scottish financial services skills already hard to come by, Dell's aspirations could provoke pay inflation.

However, Bank of Scotland's November job market report shows that just 20% of

candidates received a pay rise when moving jobs, in spite of a fall in

availability of candidates.

The survey also suggests that demand for staff in computing and IT has fallen

since the beginning of the year. However, the appetite for candidates

in Scotland remains way above the UK average.

If anything, Dell might be better placed than financial institutions to attract

candidates. IT headhunters tell us the commercial sector is more likely

to be flexible in the amount of cash it offers, whereas financial

firms tend to stick to their rigid pay structures.

Dell is currently under investigation by the Securities and

Exchange Commission in the US for allegedly altering its earnings to

meet Wall Street's targets, which has created a cloudy picture of its

future profits and cashflow.