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Examples
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August 23, 2002
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The Western Isles (Comharlie nan Eilan) lie at the very edge of Europe, 30 miles from the North West Coast of Scotland. The islands stretch 210 kilometres from North to South with a total land area of 290,000 hectares, and have a population of 27.500. This makes the islands one of the most sparsely populated areas in the European Union.
The islands suffer from the traditional problems associated with remote, peripheral rural areas: depopulation, high transport costs, lack of employment opportunities and a narrow economic base. The main economic sectors in terms of employment are public administration fishing and fish farming, distribution and construction. Traditional industries are fishing, fish processing, weaving, merchant marine and agricultural sectors. For the last few decades the number of those living and working in the Western Isles has declined. The decline has been caused partly by the loss of many jobs in the traditional industries, and partly by lack of employment opportunities for young people, who leave to go to university in mainland Scotland and after graduating have few opportunities to return because of the lack of work. There are around 12,000 jobs (9,800 full time equivalent jobs) within the economy and an unemployment rate of 7.5%, which is almost double the U.K. average. Over 75% of the islands' land is in crofting tenure, and the traditions of the crofting way of life are still strong. People who live on a croft will usually have cattle, sheep and do some weaving, this making their income from a combination of small incomes. (Source: www.w-isles.gov.uk/annualreport/pages/english.html; paper by N.L. MacDonald; Angela McCloud, Work-Global)
In spite of the above, the workforce of the islands is highly qualified. The Western Isles have the highest number of graduates per capita in the UK, a secondary school achievement record of double the national average and a very intensive training investment programme. (source: www.work-global.com) The people of the islands have a strong cultural identity directly related to the Gaelic language; and the colourful history and traditions of the islands. The traditional sense of community is still alive and is perceived as an asset to the further development of the islands. In addition, The quality of the natural environment in the Western Isles is outstanding and the Western Isles are surrounded by some of the most beautiful coastline in the U.K. (source: http://www.hie.co.uk/welcome.asp.LocID-hienetlecwie.htm ; Angela McCloud, Work-Global)
In 1994 a one-year experimental research project, funded by the LEADER programme confirmed the widespread availability of technical, scientific and editorial skills in the workforce. Making use of the islands' well-developed telecommunications infrastructure for telework activities was an obvious solution to the unemployment among better educated. However the study also showed a clear need amongst individuals and the business community for a local advisory service that would help employers as well as employees find their way into the new economy. An initial database of 160 people was compiled, comprising people with the necessary skills to perform tasks such as technical authoring, editing, copy editing, proof reading, computer graphics, web authoring and software development. An early decision was made to avoid work involving mechanical data entry due to fierce competition from the developing world. A limited liability company, Lasair Ltd., was created to manage contracts, and a first development phase of the Western Isles Information & Communications Technology Advisory Service (WI-ICTAS) was launched in 1995.
(Source: www.work-global.com)
The initiative has evolved since 1994, but from the beginning the overall objective has been to put the highly qualified workforce of the islands in touch with potential employers and clients through teleworking and call centre activities, thereby creating jobs and allowing the inhabitants of the Western Isles to live locally while working globally.
The teleworking initiative is organised in a partnership, WI-ICTAS (Western Isles Information & Communications Technology Advisory Service). WI-ICTAS runs a facilitation service, Work-Global, which seeks out worldwide teleworking opportunities and attracts inward investment.
WI-ICTAS employs a Manager and Personal Assistant. The Manager reports to a Steering Group comprising the funding partners - Western Isles Enterprise and Western Isles Council. A limited liability company, Lasair Ltd., which employs two Directors, undertakes workflow and contract management for clients and issues contracts to individual teleworkers. WI-ICTAS works only as a go-between offering support and advice. (Source: www.work-global.com)
Initial financial support of £34,000 (55,000 Euros) for the pilot project was obtained from the local enterprise company, Western Isles Enterprise (WIE), under the LEADER programme, and from Western Isles Council. The first phase of the development programme amounting to £171,000 (275,000 Euros) was funded by the European Regional Development Fund (ERDF). The Highlands & Islands Partnership with ERDF Objective 1 providing 65%, the Western Isles Council 17.5% and WIE 17.5%, have funded the current phase. The total budget from 1 April 1998 to 31 December 2001 is £360,000 (575,000 Euros). (Source: www.work-global.com)
The isles have first class telecommunications infrastructure. As a legacy of the cold war, the Western Isles is one of the most wired parts of the U.K. In addition to this a large investment programme has brought the digital infrastructure to a very high standard. This includes satellite broadband connections; advanced software controlled telephone-switching systems allowing the seamless connections important for call centre activities; ISDN and videoconferencing available on most of the islands' telephone exchanges and a digital mobile phone network. (source: work-global.com)
Whilst initial attempts to attract interest in teleworking were frequently met with a poor reception, the Western Isles now benefit from their well established reputation. It is widely recognised that WI-ICTAS is at the forefront of teleworking initiatives in remote rural areas. The service receives an increasing number of visits from European Union (EU) officials and has been recognised by the European Commission (EC) Exchange Mart for Territorial Employment Pacts, as a model of good practice for remote areas with similar problems to the Western Isles. WI-ICTAS has also been submitted as an innovative project for the Global Bangemann Challenge under the category of New Business Structures. A high profile article that appeared in British Airways Business Life Magazine in 1998 attracted over 80 new enquiries of which 26 were from companies interested in outsourcing work to the Western Isles. The response was so great that Business Life returned to the islands and published a follow-up article 12 months later in the July/August 1999 issue. (Source: www.work-global.com)
WI-ICTAS runs a facilitation service that seeks to match the workforce skills to the needs of clients both nationally and internationally through pro-active marketing programmes and:
- be a main contact point for clients looking to outsource work;
- help with advice and guidance for teleworkers on how to find work;
- attract inward investment in the Information and Communications Technology (ICT) sector;
- give advice on appropriate equipment and technical issues for teleworkers;
- provide information on employment and health and safety issues. (Source: www.work-global.com)
Services offered by WI-ICTAS include advice and guidance on the most appropriate IT solutions, training programmes tailored to the needs of individual companies and teleworkers and the drawing up of contractual arrangements suited to a company's particular requirements. There is no charge for this facilitation service. The only costs required typically are for worker hours contracted and any specialist software or support services that might be required.
A quarterly newsletter, the "Hebridean Teleworker", circulated to 800 people and companies, keeps teleworkers informed of a wide range of current issues including job opportunities, new software, Internet and other IT developments, relevant employment, insurance and financial matters and training opportunities. (Source: www.work-global.com)
Most work for teleworkers is based on payment per page, article, or item. For the teleworker an hourly rate can be difficult to quantify, and the client is usually happy with a payment-per-hour arrangement. For the teleworker the per piece payment means, that you can earn more money when you get used to the work. In combination with high quality demands and skilled workers it also means that the clients get very good value for their money. Teleworkers typically deliver productivity gains between 15 and 40%. Most teleworkers are self-employed and own their own equipment. Since teleworking, in many cases, has brought employment to the teleworkers, loneliness (a feature commonly connected with telework) does not seem to be a problem. As a matter of fact the teleworkers often interact socially with other teleworkers employed on the same contract, thus breaking the isolation they felt before. (Source: work-global.com)
The first contract obtained in 1994 by was from an American publishing company specialising in indexing and abstracting business journals. The reviews, (in printed form) are sent from California and distributed by Lasair ltd. to some 34 people (most of whom are women) working from home. Publications are summarised, different articles indexed, adapted to the specific characteristics of the electronic layout and then put on the Internet. Other contracts have included the production of digests, and the indexing and abstracting of publications of the UK Government Forensic Science Department; the conversion of all back issues of the "Scots Law Times", a Scottish legal journal, onto CD-ROM; and, the conversion to electronic media of numerous scientific works for a number of scientific publishers. An increasing number of teleworkers are now securing their own contracts with individual employers or being recruited as employees of a growing number of inward investment companies. Recently a company providing digital transcription services from an operating base in England is gradually expanding its base of direct employees in the Western Isle area, thereby demonstrating the concept of the "virtual office". (Source: www.work-global.com)
Teleworkers typically work on contracts, not knowing how long the contract will last and where the next work will come from. It can be challenging, or time consuming for teleworkers to market themselves. Where possible WI -ICTAS looks for longer term contracts or group contracts for a number of workers. A Skills Register, presently standing at 550 names, continues to be the focal point for marketing the highly qualified potential workforce. The main vehicle for the promotion of skills and marketing is face to face meetings with potential employers and companies willing to outsource work to the Western Isles Manager, Donnie Morrison, who travels extensively throughout the USA and Europe to secure contracts, undertaking this role. (Source: www.work-global.com). One of the important marketing principles is not to market the workforce as ‘teleworkers’ per se, as for most clients this is a meaningless term, but to market their high skills and adaptability together with the fact that these are available 24 hours a day regardless of physical location.
The manager of Work-Global / WI-ICTAS, Donnie Morrison is a good example of a local ’champion’, i.e. a prominent individual within the community who is able to drive forward a vision, galvanise local support and get things done. Innovative actions, such as the setting up of the telework initiative in the Western Isles, often depend upon such local champions who are able to exploit their local networks and the position of authority and trust they already have in the community to introduce and implement new ideas. Donnie Morrison is also an example of a local inhabitant born and brought up in a community who left to enter university elsewhere and develop his own career in different parts of the world. Once he decided to return to the Western Isles, understanding the potential it had for developing new types of work, he was able to bring with him his expertise, and above all his business networks, and put them to the service of the Western Isles. Without this period of life away from his birthplace, he would not have been able to bring the value of these personal networks back with him. Seen in this context, therefore, it may be a mistake for peripheral and rural areas to always try to discourage their young people from leaving their birthplace as such networks would otherwise never be built up. What may be more important for such areas, is to provide opportunities for their sons and daughters, and others, to leave and return at different stages of their lives in order to get wider business exposure and to build up their knowledge and networks which can then be put to the direct service of the area. Even if they do not return, the area may be able to exploit the networks of this ‘diaspora’ from afar by using them to establish and develop business and other links around the world. (See section below).
In addition to finding work for home-based teleworkers the work WI-ICTAS has also resulted Creating call-centre jobs. The internet service provider Iomart (www.iomart.com) have chosen to place its new call centre In the Gleann Seileach Business Park, built by Western Isles enterprise in 1997. In terms of costs, the islands can offer substantial savings over city centre operations. Staff turnover is exceptionally low, dramatically reducing training and recruitment costs. Digitally equipped, high-tech office developments are competitively priced and operating costs are nowhere near as high as in urban areas. (Source: www.work-global.com)
The prospects for creating more jobs is undoubtedly increasing and plans include the development of a network of rurally based Teleservice centres. A new marketing programme is focussing on outsource opportunities both in the public and private sectors. Projected growth in e-commerce would suggest that these smaller centres could find a ready market especially with the additional benefit of low staff turnover experienced in other larger centres in the Highlands & Islands of Scotland. These new developments will also allow homebased teleworkers to make a choice if they would prefer to work in an office. There are many new opportunities developing with the virtual call centre model and the implementation of an advanced Java based system allows homebased workers to interact seamlessly with colleagues in a Call Centre allowing very flexible and scaleable cost effective solutions for SMEs and larger corporate clients. (Source: www.work-global.com)
Additional promotional activities include "Friends of the Western Isles"(FOWI), an initiative targeted at the "Diaspora" who have family (or other) connections with the Islands, and who want to help bring new opportunities and jobs to the area. These contacts can have a developmental role to play in their own organisations both nationally and internationally, promoting what the Western Isles has to offer their companies, in terms of skills, IT infrastructure, professional attitudes etc. FOWI is organised as an informal network. (Source: www.work-global.com)
In the first development phase of the Western Isles Information & Communications Technology Advisory Service (WI-ICTAS) which was launched in 1995 and continued until 1998. Original targets were met and in some cases surpassed, as approximately 120 full and part time jobs were created and the client base expanded.
In the year 2000, the direct efforts of WI-ICTAS and work-global.com had created over 150 jobs and ensured that in excess of 50 people had been employed in either home - or office-based teleworking at any one time since the service began. Currently the skills register includes résumés on over 650 people based in the Western Isles. As mentioned in the "activities" sections, recent inward investment has also lead to the creation of call-centre jobs. However, since WI-ICTAS works as a go-between between customers and self-employed teleworkers, it is becoming increasingly difficult to determine the exact number of jobs created by the service, because people to a larger extent handle their own contracts or set up their own businesses individually.
Apart from creating jobs for well-educated islanders, who were unable to find work matching their skills, the initiative has also enabled people living outside, who wished to return, to do so.
A number of factors seem to have contributed to the success of WI-ICTAS' teleworking initiative
- First class telecommunications infrastructure available before the project started. Since then continuous investment has provided an excellent technological infrastructure.
- The strong regional identity of the islands, based upon a deeply ingrained local spirit and culture, that makes the Western Isles an attractive place to live and return to.
- High level of existing skills and a well-educated workforce
- Highly flexible and adaptable workforce, partly based on the tradition of pluri-activity (crofting, fishing, farming, weaving, entrepreneurship, etc.).
- The work of Work-global.com which ensures a single point of contact to potential customers.
- Setting up a common skills database of individuals.
- Partnerships between community organisations, the public and private sectors.
- Ability to secure both public and private (inward investment) financing.
- Pro-active and professional marketing, conducted in-person where necessary.
- Competitive prices.
- a local champion able to drive forward a vision, galvanise local support and get things done.
- the ability of the area to attract back individuals, born and brought up locally who have experienced a period elsewhere where they have obtained education and/or useful networks which can provide economic and other benefits for the area.
- the establishment of links with the area’s ‘diaspora’ which is used to establish and develop business and other links around the world.