Having just opened an office in Scotland, the Isle of Man’s largest software development company is now considering options for future expansion further afield. PDMS, which currently employs around 55 people, is committed to adding 18 staff members to its Glasgow office over the next four years.
With a client base which extends across the globe, the 21-year-old company has long had representation in London and previously had a team based in Russia for strategic reasons.
PDMS’ expansion into Scotland could not have been better timed. The British Chambers of Commerce’s latest quarterly economic survey shows that sales and orders in the services sector, which includes IT consulting, has hit an all-time high. The study, which surveyed 5,600 British companies, found the number of those knowledge-based businesses that had seen an increase in sales was up 38 per cent on the last three months of 2013.
Chris Gledhill, managing director of PDMS, said: ‘There is a real buzz in the UK at the moment - which after quite a long period of having to batten down the hatches is very welcome.’
He said that in addition to serving the Scottish market, the Glasgow office will provide a springboard for the Isle of Man company to export into other parts of the UK, especially the north of England.
In the short term PDMS will focus on bedding down the Scottish operation.
‘Once that’s achieved I think it is quite conceivable that we would look at our longer term options for an overseas office to serve our growing international market,’ said Mr Gledhill.
‘The two obvious places for expansion are Europe and the States but in both cases the stakes are much higher, the risks are much bigger.’
PDMS is already working with a number of Scottish clients including the David MacBrayne Group, LifeSkills Group, the Youth Community Support Agency and Aberdeen Airport. PDMS’ Scottish office is located in The Hub in the centre of Glasgow’s digital media quarter.
Asked why it was necessary for a digital company to have a physical presence in key marketplaces, Mr Gledhill said: ‘Yes, we are a technology company - but one that places great importance on the relationships we have with our customers. Being close to our customers enables us to better understand how they operate. We’re not in the business of selling IT as a commodity, we’re in the business of providing strategic solutions for organisations - which you cannot do unless you have a deep understanding of the organisation. A close relationship at a senior business level is very important.’
However, the bulk of PDMS’ research and development work, software engineering, hosting and ongoing support takes place in the Isle of Man.
‘So, anything we do elsewhere in the world presents export opportunities for the island operation,’ said Mr Gledhill. ‘There is a lot of work we do here on the Island - particularly with the public sector - which is instantly accessible and interesting in a Scottish context. And vice versa.’
Mr Gledhill said PDMS drew on past experience when planning its expansion into Scotland.
‘PDMS had a team in Russia for a number of years - a lower cost development centre. But we retreated from that because, although the technical quality of the people was very good and the costs were relatively low, it didn’t tick that all-important box of being close to our customers.
‘Also, with the Scottish office we’ve taken it reasonably gently. Initially the focus was on trying to get a good understanding of the market, the culture and the dynamics in Scotland. We’d actually won quite a bit of business there, before committing to opening an office.’
