National Software Strategy for Scotland : Scotland's Potential In Software : Scottish Supply

Supply Chains

We examined the existence and importance of supply chains and vertical industry clusters in Scotland. Some spatial proximity of software companies in oil and gas, financial services and utilities exists. These offer embryonic prospects of developing some characteristics of more mature clusters. However, it should be noted that supply chains are generally short in software.

In particular, Scotland has major customers, with local decision making autonomy that offer existing and potential routes to international markets in:

• Financial Services;
• Oil and Gas;
• Utilities;
• Information and Communications Technology.

The potential within these relationships should be leveraged as part of the national software strategy, focusing on developing higher level, advanced products within customer/supplier linkages.

Figure 2.2: Growth in Employment Numbers of Employees for 20 “Case Study” Companies: 1991/2 to 1996/7

Source: Ernst & Young