The Reach Group, one of Scotlandís fastest growing recruitment companies, is opening for business in the United States as part of its continuing global expansion plans.
The new Internet venture, usarecruitmentgateway.com, is aimed at small, rapidly growing companies which want to break into new markets, but face real difficulties in finding and hiring key personnel in the US.
And as part of the groupís ìclicks and mortarî approach Reach will also be opening three US offices - in San Jose, Boston and Chicago. Each will be manned by two senior and experienced US recruitment consultants.
Usarecruitmentgateway is being supported by Ernst & Young, Scottish Enterprise and Dundas & Wilson, one of Scotlandís big three law firms.
Leading technology venture capital group Sigma Technology will be offering fund raising assistance.
Reach chairman Chris Jackson explained: ìFor sometime now, many of our clients have faced real difficulty in expanding their business interests in the United States.î
ìAlmost without exception, the common denominator has been the sourcing of key members of staff, usually sales or marketing personnel, since such individuals are the obvious first step to breaking into the new markets being sought.î
ìWhilst major Scottish multinationals are likely to have more established connections within their markets, smaller, rapidly growing companies seem to experience great hardship, and if the problem becomes intractable in the short-term, it can have a very negative impact on their growth.î
The problems being encountered by companies include a very limited knowledge of the chosen US market place, no connections through which to find reliable consultants to do the work and the high costs associated with recruiting abroad.
Mr Jackson added: ìEven if you are lucky enough to find a US recruitment firm which has an International perspective, there are the costs of airfares and hotels while you are interviewing over there and no guarantee that having spent that money you will find the right people.î
ìHowever, the Reach Group has established an enviable reputation in the field of executive recruitment, and more recently, it has developed a tremendous wealth of expertise in Internet recruitment through its returntoscotland.com website.î
ìIt seemed to us that a fusion of these two business streams might offer a very attractive way forward for companies seeking to recruit in the US, which is why we have set up usarecruitmentgateway.com.î
Mr Jackson said that Reach was currently in discussion with Ernst & Young who may be able to offer US market penetration and networking services.
Scottish Enterprise has also shown a strong interest and has offered Reach the use of Star Centres. The plan is to have the first office open by September 2001. Exactly where will depend on initial client demand. In addition, Dundas & Wilson have confirmed that they are interested in providing Intellectual Property support for Reach clients.
This latest move comes in the wake of the current revamp of the returntoscotland.com website which will allow the model to be transported abroad.
The Reach Group reaches the USA - 05/2001
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