Nova Scotia’s government has announced that a large global technology company has chosen the province for its expansion plan, with the potential to create more than a thousand new jobs.
Cognizant, which the province describes as “one of the world’s leading technology and professional services companies,” will open a new global technology and service delivery centre in Halifax.
The province has approved two payroll rebate agreements for the company and anticipates up to 1,250 new jobs. Through the rebate, tax revenue generated for the province by the new jobs will be more than the amount spent on the rebate. Rebates are also “only paid after a business has generated actual payroll for the Nova Scotia economy.”
A news release says this helps to advance goals of “attracting new economic opportunities, increasing the population and helping Nova Scotians access better paying jobs.”
Cognizant could spend an estimated $327 million in salaries and benefits in Nova Scotia, which the province says is the highest amount through the payroll rebate agreements with a single company in more than a decade.
Through the rebate agreement, Nova Scotia could return a maximum rebate of about $27 million to Cognizant, or less if fewer than 1,250 jobs are created.
Jay MacIsaac, Cognizant’s head of delivery centres in Canada, said in the release that Halifax was chosen to support the company’s growing number of clients.
“We look forward to contributing to the region’s vibrant technology community,” MacIsaac said.
In 2020, the information and communications technology (ICT) sector contributed four per cent to provincial GDP. Amounting to around $1.8 billion, it directly employed 11,000 people in Nova Scotia.
“This is an exciting opportunity,” said Susan Corkum-Greek, Minister of Economic Development.
“We have a bold plan for economic growth in Nova Scotia, and a thriving ICT sector is part of our way forward.”