Scotland in ideal place to be global tech player

SCOTLAND has all the ingredients to develop a highly-skilled technology outsourcing industry similar to India, according to the businessman behind one of Scotland's most successful listed IT firms.

Keith Neilson, co-founder of Craneware, said the Scottish Government and enterprise agencies are missing a trick when it comes to the technology industry north of the Border.

Given the right incentives, Neilson believes Scotland has the skills and experience to develop a world-class technology export industry.

His own company, Craneware, is headquartered in Livingston but all of its specialist healthcare software is sold in the US - last year generating $28.4 million (15m) in sales.

"There's a huge opportunity for Scotland to be a quality outsourcing country for things like computer programming and computer development," Neilson said in an interview with The Scotsman.

• Monday interview: Keith Neilson, chief executive, Craneware

"We are making a lot of play about computer games but we're actually fantastic right across the range of software development.

"We certainly could be exploiting that far more on a global stage."

But he added: "Initiatives like that take the government and government bodies like Scottish Enterprise, and Scottish Development International to be shifting that agenda."

Neilson argued fledgling companies would be better supported through tax incentives than grant funding, which he believes discourages many firms from taking risks.

"I'm not a great fan of grant support," he said. "It can actually be stifling for people."

He added that entrepreneurs would be better served by capital gains tax reductions during limited periods when they are trying to grow their enterprises.