As companies look to cut expenses in an effort to improve the bottom line, relocating support functions to less expensive locations is once again on the rise.
An example of this trend is Orrick, Herrington & Sutcliffe, an international law firm with offices in San Francisco, New York, Silicon Valley, Los Angeles, Washington, D.C., Seattle, Sacramento, London, Singapore and Tokyo, is locating its Global Operations Center in Wheeling, W.Va.
"To prosper in the global marketplace requires a streamlined service delivery system," said Ralph H. Baxter, Jr., Orrick's chairman and CEO. "The Orrick Global Operations Center will provide the firm with a central business infrastructure that delivers comprehensive and reliable support services around the world, around the clock."
Located 45 miles southwest of Pittsburgh, the Orrick Global Operations Center will house portions of the firm's technological, financial, and other administrative services. The facility will house the network operations center, the electronically accessed Help Desk, software applications support and e-mail administration.
"West Virginia's low cost of business, its reliable work force and the extraordinary cooperation we received from Governor Bob Wise, Development Office officials, and economic development representatives at the local level convinced us to locate this vital part of our operation in the state," said Baxter.
The firm will refurbish the 88,000 square foot Wheeling Stamping Building as part of an ongoing revitalization effort in downtown. Work on the plant has begun and the center's completion is expected by next spring.
At that point, the firm will begin transitioning technology and finance operations. Initially, concurrent operations will run in Wheeling and other Orrick locations to ensure a seamless service transition.
Wheeling was selected after a year of intensive research. With the help of the consulting firm Deloitte & Touche Fantus, cities across the country were evaluated for breadth and depth of the talent pool, housing availability, infrastructure, transportation options, and economic conditions.
The $10 million investment will result in a minimum of 250 jobs with an average salary of $37,000 plus benefits in such areas as finance and information technology.
Orrick will receive $250,000 in Governor's Guaranteed Work Force Program funds, which provides training grants of up to $1,000 per employee to new companies that create at least 10 new jobs within a year.