Headquartered in India, MphasiS is a $1 billion global service provider, delivering technology-based solutions to clients across the world. With currently over 40,000 employees, MphasiS services clients in Banking and Capital Markets, Insurance, Manufacturing, Communications, Media & Entertainment, Healthcare & Life Sciences, Transportation & Logistics, Retail & Consumer Packaged Goods, Energy & Utilities, and governments around the world.

The formal announcement took place at the company’s headquarters in Bangalore. MphasiS chose Prince Edward Island as its near-shore centre in North America to work directly with its United States and Canadian operations in the financial services sector.

“We are pleased to have MphasiS investing into Prince Edward Island and into our people. We are fortunate to have a strong presence of IT workers located in Prince Edward Island and excellent educational institutions that will continue to train future workers,” said Premier Ghiz. “Prince Edward Island is an ideal near shore location, with our low operating costs, access to markets, tax incentives and rebates. The relationship with MphasiS is evidence of our commitment to promote investments in our innovative thinking, our people and our infrastructure.”

The centre will initially house 100 employees which will grow to 300 in the next two years providing local employment opportunities. The centre will serve regional customers, especially catering to the banking and capital market hubs located here. Employees at the Prince Edward Island centre will be part of MphasiS Global Delivery network and will develop and deploy integrated business solutions around application services, business process outsourcing and infrastructure management.

“Our journey of hyper-specialization requires us to enhance our Global Delivery Model with a near-shore presence in North America. Prince Edward Island’s proximity to the hub of Global Financial Centre and our focus on Banking, Capital Markets and Insurance made it an attractive choice. The Government of Prince Edward Island has demonstrated significant business partnership focus. I am confident of this being a vibrant center,” said Ganesh Ayyar, CEO, MphasiS.

In the last five years, Prince Edward Island has attracted several multi-national companies, including Invesco and CGI which are currently using Prince Edward Island as a near-shore location. MphasiS will add additional opportunities for IT workers in the province.

Premier Ghiz has tasked his government to work with the company in the recruitment of employees, and Holland College will be asked to increase the capacity of IT programs currently being offered.

“This new centre may also attract new residents, who are keen to our high quality of living and location.”

Premier Ghiz and Innovation and Advanced Learning Minister Allen Roach are in India this week to promote Prince Edward Island’s tourism, business development opportunities and higher learning.

BACKGROUNDER

• Prince Edward Island is an ideal near-shore location situated between major North American and European cities. Prince Edward Island offers a compelling package of benefits to prospective Information Technology companies: improved profitability, skilled workforce and world class strategic infrastructure.

• MphasiS is a company that develops software applications, provides network administration, and performs business process support for clients in a variety of sectors.

• It is rated amongst the top five IT companies in India and has more than 40,000 employees in 14 countries.

• Its majority stakeholder is Hewlett Packard and they are a major IT outsourcer to many US based financial service companies and banks.

• Multinational companies seek a near-shore location for the transfer of business or IT processes to companies in a nearby country, where both parties expect to benefit from one or more of the following dimensions of proximity: geographic, temporal (time zone), cultural, linguistic, economic, political, or historical linkages.

• Multinational companies have established their most profitable near-shore locations in Prince Edward Island which is attributed to a combination of factors such as: our highly productive workforce, one of the lowest operating costs in the G7 and positive tax environment and support programs.

• Prince Edward Island is known for its dedicated, skilled, and loyal workforce, drawn from a regional base of over 2.4 million people. The Island lifestyle and relative lower cost of living have also contributed to a demonstrated ability to repatriate specialty labour and management skill sets for Prince Edward Island Information Technology companies.

• Prince Edward Island is one of the lowest cost locations in North American to operate a near-shore/shared-service centre, according to the 2010 KPMG Competitive Alternatives Study. Prince Edward Island operational costs average 16% below total operating costs in Toronto.

• Prince Edward Island is located off the eastern coast of Canada, within driving distance of New York City and Toronto.