In the last week we’ve seen Prime Minister David Cameron announce plans to redevelop London’s East End into a ‘Tech City’, with the construction of a £200 million network of technology and innovation centres to rival Silicon Valley.
The thinking behind this is clearly that a technology hub of this sort will help to encourage foreign investment and give the economy a boost.
It seems that research and development is one area which will act as a key driver to helping the private sector pick up new contracts and create new jobs in the months and years ahead, especially important in the wake of the recent public sector cuts.
Indeed, a technology centre in London can only help to cement the UK’s position as a top research and development destination, with leading technology players such as Intel already expressing an interest in setting up base in East London.
It’s clear that Tech City is being planned with a view to , leading more businesses to recognise East London as an area with access to leading innovations and technology to outsource their work to.
But what do business’s gain from outsourcing their research and development? There are a number of benefits for end users, including access to knowledge, resources and experts which they may not have or need in the long term.
Indeed, outsourcing product development to specialists can offer a more productive method to businesses who would otherwise have to undertake a project themselves - which can prove problematic when the core skills are not in place and more expensive.
David Cameron is keen to use Tech City to improve the economy by using it to encourage business and investment. Of course, all of this is good news for the outsourcing industry with the prospect of international businesses using the UK to source high level, fully trained technology professionals.
However, it’s not just about stimulating growth in the UK economy - it’s clear that a growth in onshoring to the UK can also offer tangible benefits for business.
For instance, onshoring services here could provide greater cost efficiencies for businesses, wherever they are, as they look for ways to beat the effects of a global recession, these efficiencies will help to stimulate their markets which in turn will boost trade for everyone.
So, it seems that the future for UK-based technology outsourcers is bright, and Tech City will be a major part of that. It’s important to understand that a technology hub in London is not only good news for outsourcers, but also for British business in general - and the economy as a whole, too.