Vendor interest in less expensive areas like the Midwest may be picking upFebruary 22, 2009 (Computerworld) With $12 million in state funding as an incentive, IBM is building an IT center in Dubuque, Iowa that it says will employ 1,300 workers providing support to IBM's U.S. outsourcing clients.
The state finalized the agreement to contribute to the project on Thursday. And while the money Iowa is pitching in is clearly an incentive for IBM to locate in Dubuque, another reason for the company's interest may be the state's lower IT wages.
Indeed, IBM's decision to locate in a renovated building in downtown Dubuque, which has a population of just under 60,000 people, may be part of a trend by vendors to expand in lower cost -- and lower wage -- regions of the U.S.
Mike Blouin, president of the Greater Dubuque Development Corp., said that as part of the deal IBM is obligated to offer salaries that begin in the low-$30,000 range and go all the way up to $70,000 or so, with the average salary in the mid-$40,000.
The Greater Dubuque Development Corp. was involved in the talks surrounding the project. IBM officials declined to comment on the wage agreement.
IBM has already received some 3,000 applications for positions so far, with a third meeting meeting basic requirements for work, said Blouin. Hiring will begin this spring.
http://www.computerworld.com/action/article.do?command=viewArticleBasic&articleId=9128399&intsrc=hm_list
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