Kovasys Inc.

March 11, 2009 00:42 ET

Foreign IT companies move to Montreal to save money

A large number of American companies are moving to Montreal to do their IT development and reduce costs due to government subsidies and 30% exchange rate.

Attention: Business/Financial Editor, City Editor, News Editor, Tech/Telecomm Editor, World News Editor MONTREAL/TECHNOLOGY--(Marketwire - March 11, 2009) - Kovasys Inc. (http://www.kovasys.com), an IT recruitment agency in Montreal, has been witnessing a large influx of American and foreign IT companies coming to Canada - especially Montreal - to do their technology projects. Due to the unstable economy in the US and Europe and massive layoffs, more and more companies are deciding to save money and near-shore their IT operations to a cheaper yet stable and proximate location like Montreal.

Morgan Stanley, a global financial services provider from New York City, and Eidos, a publisher of video and computer games from London, has recently decided to take advantage of the savings and settled their offices in Montreal.

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. Any company doing IT projects with offices in Montreal can expect a refund in terms of tax credits, for as much as $20,000 per employee per year. This adds up to 40-70% off the operating cost when comparing with similar positions in cities like New York, Boston or Chicago if you take 30% dollar exchange rate and 40% lower real-estate space rental cost into account. According to Investissement Quebec, economic development agency, Québec is home to the highest number of engineers in Canada and over 882,800 qualified university graduates. IN: ECONOMY, FINANCE, INTERNATIONAL, LABOUR, TECHNOLOGY

Contact Information

  • Alex Kovalenko, Director of Operations, Kovasys Inc.
    Primary Phone: 514-907-3192 ext. 701