Scots software house boosts workforce after buying US rival

ONE of Scotland's largest listed technology outfits has unveiled plans to increase its workforce by one third this year as it enjoys a surge in business following the takeover of a US rival.

Aim-quoted Craneware, which writes billing software for hospitals, said the growth would take its headcount in Scotland past the 100 mark and would include its first intake of graduates since the firm was founded in 1999.

The Edinburgh-headquartered company expects the number of employees globally to double to around 440 over the next three years, including expansion in the United States where it sells its software.

But chief executive and co-founder Keith Neilson ruled out a wholesale move to the US, despite the country being the firm's biggest market.

He said: "There is a wealth of talent that we can use right here in Scotland to service the US.

"We consider ourselves to be outsourcing services from the US to Scotland - we think that gives us a cost advantage but it also allows us to tap into talented programmers here too.

"Scotland can compete with the best in the world when it comes to software."

Neilson believes that other Scots firms should follow Craneware's lead and called on the next Scottish Government to promote the country as a centre for outsourcing for the "creative industries".

He said Scotland can provide software writing and other services to firms south of the Border and overseas.

While acknowledging the work already being done to promote Scotland abroad, Neilson said more education needed to take place at home to make graduates aware of the options available to them.

Craneware last month posted a 25 per cent rise in revenue to $16.6 million (10.2m) in the six months to 31 December and a 31 per cent increase in pre-tax profit to $4.3m.

Analysts are predicting 25 per cent annual revenue growth for the next few years for the firm.

In December, Craneware splashed out about $9m from its cash reserves and issued $6m in shares to snap up US rival ClaimTrust.

Neilson said the shares had been offered to help incentivise staff at the US firm, which has since been renamed Craneware InSight, and that staff retention following the takeover had been 100 per cent.

Craneware recently moved its head office from Livingston to Edinburgh's Tanfield.