IT recruiter Harvey Nash is to open a new office in Edinburgh, to provide the Group's services to clients based in Scotland.

The firm is creating a subsidiary company, Harvey Nash Consulting (Scotland) Limited. Harvey Nash will own 70% and the remainder will be held by "key employees".

Harvey Nash will buy back shares it does not already own at specified intervals over four years starting 1 May 2010. The value of shares will be determined by future financial performance criteria.

It will be the company's first physical presence in Scotland, finance director Richard Ashcroft told Recruiter.

On the share arrangements, he said: "It's basically an earn-out incentive scheme."

He declined to say how many people would receive shares, but pointed out that the Edinburgh office would "not be massive".

When key employees sell their shares, they will receive shares in Harvey Nash plc in return, which they can then sell if they wish to. Nash is issuing shares with a maximum value of £600,000 to cover the scheme.

Harvey Nash chief executive Albert Ellis said: "The addition of this office will generate increased opportunities for the Group, particularly in Financial Services."