An information technology company that is cutting 1,000 jobs in other provinces says it will create 150 jobs in Prince Edward Island when it opens a new centre of excellence.

CGI Group Inc., which provides IT services to governments, communities and large corporations, says it wants to do business in P.E.I. because of the Island's relatively low cost of labour.

William George, senior vice-president of communications and government relations at CGI, says the company is laying off 1,000 workers primarily in Toronto and Montreal after losing work from BCE, one of its largest clients. Most of the jobs are in programming.

"The beauty of P.E.I. is that with your emphasis on education, there is a good qualified pool of people, but because it's a less competitive market, the cost of labour is lower."

George says the company was drawn to the Island in part because of the provincial government's tax incentives that are open to all companies.

"This program that the government of P.E.I. has put in place is a competitive program and it does provide an incentive to be active in P.E.I."

The company is also creating about 300 jobs in Russell County, Va. and 200 jobs in Bangalore, India. George said India, where the company is constructing a new facility, has a lower cost of labour as well. CGI has a centre of excellence in Virginia.

CGI has a workforce of 25,000 in 16 countries, with headquarters in Montreal. It manages data, applications and information technology. Its revenues were close to $4 billion last year. In Canada, it has just under 16,000 employees.