Nov 11 2008
As high tech spending falls in the US, firms outsource to Montreal
From marketwire.com:
Kovasys Inc., an IT recruitment agency in Montreal, has recently been witnessing a spike in the number of American companies crossing the border into Canada – especially Montreal- to do their software development and high tech projects. Due to the unstable economy in the US, and massive layoffs, more and more companies are deciding to save money and nearshore their IT operations to a cheaper yet proximate location. Montreal meets this criteria as it is only few hours away from Chicago, New York, and Boston, yet costs are up to 55-70% lower.
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This trend however is not surprising, since this is exactly what the government of Quebec has wished to achieve when they introduced the subsidies for high tech companies less than a year ago. A high tech company with offices in Montreal can expect a refund in terms of tax credits, for as much as $20,000 per employee. This adds up to 55-70% in terms of salary reduction when compared to the same positions in cities like New York or Boston when you take 30% exchange rate into account. Montreal is already home to a number of video game industry giants like Ubisoft, EA Arts, and A2M.
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