Interview with Colin Russell

Interview with Colin Russell: UK Trade & Investment (UKTI) regional sector specialist for professional and business services.

Can you give us an overview of what is happening in your sector in relation to export growth in the region?

The sector is becoming increasingly active in the region, as professional organisations become more aware of the international potential of their services.

The area which is most active is the legal services sector. An increasing number of firms are developing an international business interest or looking to do so. UKTI is working actively with The Law Society to promote international trade for law firms and has jointly devised a development programme for law firms to aid their entry into international markets. The programme is called Passport to Export for Legal Services and will commence in early 2007. UKTI is also working closely with Leeds Legal, which is a campaign promoting the legal expertise in the region on the international stage.

Amongst the other professional areas, UKTI is working with the Institute of Chartered Accountants in England & Wales (ICAEW) to stimulate interest from accountants in international trade and to help them support their clients. UKTI has recently published a booklet called ‘International Trade – An Accountant’s Guide’ to help with this.

Other areas showing increasing interest in international business include HR specialists, financial advisers and property companies. UKTI is working on producing a booklet about selling services overseas, which we hope will be of assistance to firms in these areas. This booklet will be available during the early part of 2007.

Is this a sector that is particularly important to the Yorkshire and Humber region?

Whilst the sector is not one of the key clusters as defined by the development agency, Yorkshire Forward, the sector is certainly very significant to this region and this is reflected by the fact that UKTI has chosen to appoint a sector specialist to work with firms in this area. This sector is important for two key reasons. Firstly services are already becoming a key element of exports from the region and indications suggest that this is growing. Secondly, the professional advice given by firms from this sector benefits companies from all sectors in the region, so there is a double benefit.

How do exports in this sector from the Yorkshire and Humber region compare with exports from the sector in other regions?

Yorkshire & Humber competes alongside Scotland, the North West and the West Midlands as the leading exporter of professional and business services outside of London and the South East. Leeds is widely regarded as the leading international law centre outside of London and was recognised along with Edinburgh in the Chancellor’s latest budget speech as one of the two key regional financial services centres outside of London.

Are there any particular products in this sector that have seen a significant growth?

The most significant areas of growth come from the legal sector where a number of areas of commercial legal advice are becoming increasingly sought after internationally. These include Intellectual Property Rights (IPR) protection, flotations and listings (particularly AIM), PPP/PFI schemes and arbitration and mediation. The region is also experiencing growth in a number of specialist legal areas including sports, publishing and media law.

The other area which is seeing particular growth is in overseas property markets and there are increasing opportunities for both legal and financial advisers in connection with these transactions.

Which are the biggest geographical markets for this sector?

Historically the strongest markets have tended to be Western Europe (Germany, Benelux, Spain, Italy, Ireland and Scandinavia) and the USA and these continue to be attractive propositions for professional service providers. However there are a number of markets which are growing in attractiveness, which brings me on to the next question.

Which geographical markets are growing the fastest?

Along with many other sectors, there is increasingly strong demand for the supply of professional services to the key emerging markets including China, India and Russia. However the Middle East and Gulf states are also seeing exceptionally strong growth in the sector, especially in the UAE (Dubai) and Bahrain. The strategy being developed for marketing UK financial services overseas recognises the emerging importance of these markets.

Are there any particular market entry strategies favoured in this sector (e.g. using an agent/ joint ventures etc)?

One of the most common market entry methods for professional firms is to enter into an international alliance to raise profile and exchange/acquire clients with/from other members. Examples of these include the legal networks Interlegal and State Capital and the accounting networks MGI and MRI. There are members of all of these networks in the Yorkshire & Humber region. Alternatively firms may build informal networks as a result of attending key international business events and developing a network of contacts for referrals from there.

Another common method is through client following – in other words, a professional firm (e.g. law or accountancy) has a client or clients with an international or export business of their own, which in turn generates international work for their business advisers. From this firms develop their reputation and client base leading to subsequent referrals of business.

Having built this initial client base, firms may consider creating a more permanent presence overseas, such as basing a key member of staff in their chosen market or by creating a ‘virtual office’ hosted by a third party servicing organisation. Some of the larger firms, of course, have gone on to open a full servicing office or creating a full subsidiary organisation overseas.

Are there any challenges/ milestones specific to this sector that companies would have to overcome in order to succeed in overseas markets?

As with any export business, there are a number of key challenges to succeed in business overseas. Perhaps one of the significant milestones for a service provider is to obtain the necessary authorisations or permissions to practice in a particular country. In a number of sectors there are very strict rules relating to which services (particularly in law, for example) can be provided by a foreign organisation and in some cases the provision of certain services by overseas nationals is considered unlawful.

Are there any key organisations/networks which could help people in this sector with planning their overseas trading?

The most important organisation for a professional service organisation to work with is, of course, UK Trade & Investment as we are the specialists and can advise and provide information on every aspect of international business. In addition we work closely with the key sector organisations to develop the support available for firms, including The Law Society and ICAEW, for example. Also, there are now membership bodies in most areas for professional firms in this sector and these all support the international interests of their members. Examples include Leeds Financial Services Initiative, Pro South Yorkshire and York Professional Initiative.

Could you give us a brief indication of your background and experience in this sector?

Before joining UK Trade & Investment earlier this year, I gained over 17 years experience in financial services with both Bradford & Bingley and Citibank in a range of operational, development and change related roles. I worked on several international assignments and have collaborated extensively with firms from the legal, accounting and other professional services areas. Prior to this, I worked in planning and marketing roles for major manufacturing companies, all with a strong international focus. I am a graduate in Modern Languages from the University of Salford and am a fluent French and German speaker.

In what ways can you assist Yorkshire and Humber companies in this sector?

I am the specialist international trade advisor with UK Trade & Investment for this sector in the Yorkshire & Humber region. UK Trade & Investment is the Government organisation that supports UK companies doing business internationally or overseas enterprises seeking to locate or expand in the UK. I work exclusively with firms in the professional and business services sector and have the sector contacts and ‘know how’ to provide help, information, advice and support to enable them to develop an international dimension to their business or improve their existing overseas interests. I am always more than happy to be contacted by any individual or company interested in finding out more about how they can improve the performance of their business by developing overseas.

Anyone who would like advice or support from Colin Russell can get in touch using the contact us section of this website.