Nearshore Americas

IBM to Set Up Government-Focused Delivery Center in Halifax, Canada

US technology giant IBM has a struck deal with a Canadian business consortium to set up a global delivery center in Halifax generating about 500 new jobs for local community.

The delivery center is expected to provide application development and support services to manage and transform IT systems for local government departments, businesses and universities.

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Reports say it is the first IBM center of its kind in Canada.

The decision to set up the delivery center follows IBM’s agreement with the Government of Nova Scotia and a business consortium called Nova Scotia Business, Inc.

The ten-year contract will see IBM provide its SAP application management services to Nova Scotia’s Core Competency Centre (CCC) and Health Administrative Services Program (HASP).

Interestingly, IBM has agreed to take on board all 74 government employees who are currently managing these services.

“These employees will have an opportunity to grow and expand their highly valued skills within Nova Scotia as members of global services teams,” IBM stated in a press release.

IBM will receive a payroll rebate that could see the firm earn up to $12.2 million over the eight years if it hits the job target, while the province estimates it would gain $6 million in tax revenue.

The US company, which already has about 80 employees in Halifax, has also signed an agreement with Dalhousie, Saint Mary’s, Acadia, Cape Breton and St. F.X. universities to build expertise in analyzing ‘big data’.

“This partnership is good news for Nova Scotia’s students, families, and businesses, and it’s exactly the kind of progress needed to help create jobs and grow Nova Scotia’s economy of the future,” said Premier Darrell Dexter.

The exponential growth of Dig Data has generated huge demand for data analytics services and the IBM is the big player in this segment.

Students studying analytics, computer science, supply chain, and engineering in Canada can now seek employment at the delivery center.

“Our collaboration with IBM will spark the growth of specific skills businesses will need to grow and compete in a global marketplace. With this step, we will be providing Nova Scotia students with a home-grown opportunity to build these in-demand skills for meaningful economic impact,” said Don Bureaux, President, Nova Scotia Community College.

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