Morgan Stanley opens offshore development shop in Montreal (4)
Morgan Stanley, a Wall Street investment bank, has opened yesterday an IT development center in Montréal, investing up to $200 million and creating 500 jobs in 5 years.
The bank already has 18 other IT development centers throughout the world, and was considering opening a new center in an Eastern Europe country, but chose finally Montréal.
This tells a lot about Montréal, where salaries are much lower than those found in New York city. The province also introduced recently new tax credits, up to 30% of the salary for each employee, with Morgan Stanley being the first big company to benefit from it. A third reason why Montréal was chosen was that it had the same time zone as New York city. I am not sure that the word “offshore” development center was used, but when the bank representative talked about developping systems for the New York City office, it pretty much looks like it.
Great news then for finance/math/CS grads. Great also because this might spun off a couple of finance-related emerging companies.
Not really creating 500 jobs, it starts by “transferring” existing jobs… more on http://blogues.cyberpresse.ca/lapresseaffaires/cousineau/?p=159
I’m happy to see this come here, but it puts more pressure on hiring for local companies. Hopefully, the really great people will want to work at head office for a local company vs. in some development arm of a big, foreign company.
Yes, there is a good article on today’s (Thursday’s) Gazette — these aren’t really new jobs. What’s new is that they are taking advantage of tax credits. And transferring Compuware (a subcontractor) to Morgan Stanley. The 500 is an ‘up to’ theoretical number.
[…] fact, this is why venerable investment bank Morgan Stanley is investing up to $200 million and creating 500 jobs in 5 years in […]
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