Infosys doubles job creation promise in Calgary to 1,000

Infosys, the global technology services company, is set to officially open its digital centre in downtown Calgary on Monday, and announced plans to create twice as many jobs as it initially projected.

The company, which started in India and now has operations in more than 50 countries, provides digital services and consulting for clients in many industries, such as natural resources, energy, media, retail and communications.

In March 2021, it announced plans to expand its Canadian workforce with an office in Calgary's core and the creation of 500 jobs.

In a Monday morning release, the company said the Infosys Digital Centre is scheduled to officially open later in the day andit now plans to bring 1,000 jobs to Calgary over the next two years.

"We chose to open in Calgary because it is a [centre] of tech excellence with rich IT talent and a strategic location that enables us to scale work with clients across key industries, such as energy, natural resources and agriculture,"Infosys president Ravi Kumar said.

"Calgary's IT innovation potential is unlimited, and we are delighted to be a part of its future."

Alberta Premier Jason Kenney said Infosysalready met its original goal of creating 500 jobs in Calgary.

"I'm very pleased they are doubling that promise," he said.

'Bright minds and big ideas'

The Infosys Digital Centre is located in Gulf Canada Square, and the company said it willallow it to work more closely with its clients on challenges likeintelligent automation and green technology.

"The centre will train, upskill and reskill Infosys and client employees in the technologies required to help Canadian businesses accelerate their digital transformation," the release said.

Brad Parry, the president and CEO of Calgary Economic Development, said the centre's opening signals that the city is recognized as a draw for the tech industry.

"The opening of the Infosys Digital Centre in the heart of our city shows that Calgary is recognized as a top tech location where bright minds and big ideas come together from around the world to help solve global challenges," Parry said.

Meanwhile, the University of Albertawhich began a partnership with Infosys in 2016will be working closely with the new centre, said Bill Flanagan, its president and vice-chancellor.

"We have tremendous strength in computer science and digital, and so Infosys has a lot of interest in recruiting our students [and it]also offers internships for our students," he said.

"[The centre] is Infosys's major presencein Alberta. So we'll be closely working with the centre here in Calgary in terms of recruiting our students, internships, research opportunities, training programs."

Infosyssaid it plans to double its total workforce in Canada to 8,000 by 2024.

Tech boom improving downtown vacancy rate

While the creation of 1,000 jobs may not significantlydecrease vacancies in downtown office towers, a commercial real estate expert says any improvement isa positive sign.

She says this is a small step in the right direction.

"Traditionally, we used to see companies when they're taking office space it's about 125 to 250 square feet per employee,"said Susan Thompson, the associatedirector of research with Colliers Canada.

A thousandemployees, she estimates, would be anywhere between120,000 and 240,000 squarefeet.

In terms of the vacancy rate, however, Thompson said this deal won't make much of a change.

"One per centvacancy in downtown Calgary is over 400,000 square feet. So this is less than that, so it won't even move the needle a full percentage point," she said.

In the second quarter of 2022,Colliers' numbersshowed that the vacancy rate for downtown office space was31.9 per cent. The third-quarter numbers are set to be announced on Wednesday.

Thompson said the rate hasimprovedslightly, to 31.4 per cent a changeof half a per cent.

"But anything is good news. We like to see the diversification. We certainly like to see tech companies expanding and growing and coming into downtown. They've been really active in taking space downtown," she said.

"It's definitely a positive trend, and this particular deal will probably play into the Q4 numbers."