The agreement will enable the province and IBM Canada to explore the mutual benefits realized by IBM opening a Pacific Development Centre in the Lower Mainland, with IBM providing a complete range of information technology and data management services for various government ministries. Any data management services assumed by IBM would have to provide an equal if not better level of service than currently exists at a lower cost to taxpayers.
The proposed Pacific Development Centre, which is expected to create an initial 200 professional jobs, will work closely with B.C.'s universities and high-technology firms to develop new ways to manage large amounts of data for governments worldwide. IBM will then market that new technology globally. In return for providing IBM the opportunity to manage public sector information, the province could realize royalties on worldwide sales.
"IBM setting up shop in B.C. will provide the anchor our high-technology sector needs to enter the major leagues, potentially creating thousands of well-paying, knowledge-based jobs -- the right type of jobs," said Clark. "IBM was attracted to B.C. by our unique Electronic Highway Accord, by the quality of our university graduates, our world-class technology infrastructure and by our quality of life. They came to us with the proposal."
"Governments around the world are looking for new ways to address the growing needs for improved efficiency, function and public access to government information and services," said Barsoum. "They represent one of the largest information technology opportunities in the world today. This partnership will help create state of the art solutions for applications in areas like health and social services that address global market opportunities with significant export potential."
"One of our key objectives as government is to create the right climate for private sector investments that lead to high-paying, family-supporting jobs," said Clark. "When a worldleader like IBM comes knocking on our door, without a nickel of taxpayers' money used as an incentive, I'd call that a success."
The Electronic Highway Accord was negotiated by government in consultation with B.C.'s educators, high-technology industry, telephone carriers, cable companies and community groups to serve as a blueprint for development of the information highway in B.C. Under the accord, government pledges to use its spending powers to stimulate the information technology industry in B.C.
Last year, IBM Canada Ltd. had exports of $6.8 billion, fourth largest among Canadian companies. IBM's Toronto Software Solutions Laboratory, which employs 1,100 professionals, last year invested $225 million on research and development. Worldwide research and development spending by IBM in 1995 was $5.6 billion.
The agreement signed by the province and IBM commits both parties to negotiate a definitive agreement by the end of August.
For more information, contact:
Anne Hay
IBM Canada Ltd.
(905) 316-2251
Internet e-mail