Xerox Teleweb Centre to Open in Dartmouth
Dartmouth will be the location of as many as 600 new high-paying, Internet-based sales jobs.
Xerox Canada today announced that the company will open a technology-rich teleweb sales centre for U.S.-based corporate clients in the Halifax Regional Municipality. The teleweb centre will be the focal point for new and emerging marketing strategies within Xerox. It is expected that the 600 jobs will be created by the company over five years.
"The new teleweb centre will significantly improve the productivity of our sales force and extend Xerox's reach to new customers across North America," said Xerox president Cameron Hyde. "Dartmouth's educated workforce, advanced telecommunications infrastructure and friendly investment climate make it a perfect location to achieve these important turnaround objectives."
The company will invest approximately $20 million over three years in telecommunications infrastructure, including equipment and operations, for the new centre.
The province will provide a training allowance of $2,000 per employee to a maximum of $1 million and a payroll rebate. Under the rebate plan, the company receives a payment of eight per cent of its payroll -- all of the salaries and wages it pays its employees -- at the end of each of the next five years. The company's payroll will generate more new tax revenues for provincial coffers than the rebate pays to the company. The average rebate cost per job at the new centre is $11,000; the maximum rebate, based on 600 jobs, is $6.6 million. The province will earn new direct revenues of at least $8.5 million through the payroll rebate agreement.
Economic Development Minister Gordon Balser attended the announcement.
"Economic growth is one of the priorities of government, and this investment is right on target with our growth strategy," said Mr. Balser. "Xerox has decided to grow its business here, and Nova Scotians will soon see the benefits in new jobs and revenues created by our shared investment."
The new teleweb centre will add an annual payroll of more than $24 million to the HRM area at full employment. It will create as many as 600 high-end jobs and generate $81 million in direct household income alone over five years. Direct construction on the $10 million complex is expected to create an additional 95 jobs and generate close to $4 million in additional household income.
"The province is making an investment in its people," said the minister. "That's why our assistance is connected to the jobs being created -- specifically, an allowance to provide high-end training to Nova Scotia employees and a payroll rebate based on the creation of jobs."
Xerox Corporation, based in Stamford, Connecticut, produces innovative document solutions, services and systems designed for offices and production-printing environments. Most people would be familiar with its colour and black-and-white printers and digital copiers. It also offers associated supplies, software and support.
NOTE: The following is a backgrounder on the payroll rebate.
Backgrounder: Xerox Announcement Payroll Rebate
Since August 1999, the province has provided payroll rebates to five call centre companies involved in six major business expansions. With the exception of Xerox, all are in communities outside of metro.
Under the payroll rebate program, the provincial contribution is tied directly to the number of jobs that are created and maintained. The company must create the jobs and generate the payroll required under the terms of the contract before any provincial dollars are spent. The dollars returned to the company are a portion of the revenues generated by the jobs and associated payroll. Without those jobs, these revenues would not exist.
The specific details of each contract are different, but they all work according to the same principle: the taxpayer always comes out ahead. The investments make more money in economic benefits (direct and indirect combined) than they cost, every time.
The six contracts call for the creation of a minimum of 2,435 jobs, which will generate at least $21.3 million in new tax revenues that the provincial government can use to pay for health care, road repairs and other priorities. The payroll rebate for those 2,435 jobs would amount to $18.7 million. The maximum number of jobs under these six payroll rebate contracts is 3,900, which would cost a maximum of $32.2 million and generate roughly $34 to $38 million in additional revenues.
The six projects that have involved the payroll rebate program since August 1999 include: EDS, Sydney and Port Hawkesbury; On- line Support, Kentville; Convergys, New Glasgow; Register.com, Yarmouth and Xerox, Halifax.