375 jobs expected with IT firm expansion
Last Updated: Thursday, March 6, 2008 | 3:59 PM AT
The Canadian Press
One of Nova Scotia's largest information technology firms is adding 375 jobs at its Halifax office, with the province providing generous subsidies for the expansion.
Keane Canada Inc. announced Thursday it will be creating the software applications jobs within the next five years, thanks to an investment from the province worth up to $6 million.
The Economic Development Department is kicking in $2.6 million, and the company can get up to $3.5 million through a payroll rebate program offered by the province's business development agency.
Nova Scotia Business Inc. will pay the rebate as the company achieves hiring targets.
Jason Powell, managing director of Keane in Halifax, declined to give the salary ranges for the jobs, saying it is information he'd like to keep from his competitors.
However, he noted that in the past decade the company has paid salaries worth a total of almost $175 million to Nova Scotian employees.
Economic Development Minister Angus MacIsaac said the latest provincial investment — which works out to $16,000 per job — is going to a firm with a proven track record in the city.
"It's an investment that will be returned to the province very quickly, and the taxes that these individuals will pay, the money they will spend in the local economy, will generate further revenue in the economy," he said.
In business since 1965, the San Ramon, Calif.-based information technology company has been in Halifax for a decade, providing out-sourced support for North American-based clients.
Angela Miller, a 25-year-old employee who has been with the firm for five years, said the province's support of Keane has helped stem the flow of younger citizens to the West.
"Young people are the future of this city, and if they keep leaving and coming back only to retire, the city will crumble economically," she said in an interview after the announcement.
The company has been expanding its centres in India and other offshore locations in recent years.
However, the Halifax centre has grown by attracting clients who prefer out-sourcing their technical support to a North American centre — a strategy known as "near sourcing."
Asked why the province had to provide the funding for training, given Keane's size and profitability, MacIsaac said it's possible the jobs would have gone elsewhere without the subsidies.
"It's a question of whether these jobs are going to be located here, or put somewhere else in the world," he said.
