Dell Inc. is getting ready to power up a new call centre in Edmonton.
The U.S. computer firm, with revenues of $43.5 billion last year and headquartered in Round Rock, Tex., expects to hire 500 people to staff the operation, which will provide technical support to Dell’s high-end business, university and government customers.
All this spells an economic benefit to Edmonton that’s valued at $600 million over a 20-year period, according to the Edmonton Economic Development Corp. (EEDC).
Dell is already advertising for technical support representatives, senior technical support staff and technical support supervisors. The jobs will pay between $28,000 and $45,000 per year.
Snagging Dell, orchestrated with the help of EEDC, saw Edmonton top the list of 153 potential locations across North America, according to EEDC president and CEO Allan Scott.
One of those other locations included Calgary. In fact, it was Calgary that got Dell interested in coming to Canada, said Bruce Graham, president and CEO of Calgary Economic Development (CED).
“As we understand it, Calgary was the first Canadian city that they looked at seriously for this project. One aspect we’re pleased about is that they looked at other Canadian cities, including Edmonton, after they talked to us,” said Graham.
While Calgary did make it to the final six – three Canadian sites and three U.S. ones, according to Graham – its strength in the technology and head-office sectors ended up working against the city.
Dell’s concern, said Graham, was that if Calgary’s strong technology component heats up, staff at its new centre could easily be hired away.
“I’d like to think we’re doing quite well, and for some companies having a head-office component and a strong technology sector would be of value to them. For Dell it wasn’t an asset. It was viewed by Dell as less desirable and that’s the nature (of their) preference in locating their contact centres,” said Graham.
But he added that CED is still pleased that Edmonton was successful in landing the U.S. giant. “It looks great on Alberta and it looks great on Edmonton,” Graham said.
The availability of a highly educated workforce, with 54 per cent of the adult population holding a post-secondary degree or a diploma, is part of the reason Edmonton was chosen, said EEDC’s Scott. The Northern Alberta Institute of Technology (NAIT), which will train the new employees, was another factor, he added.
“Canada is a very important market for Dell. Our success here makes this expansion possible,” said Ro Parra, senior vice-president, Dell Americas, referring to Dell unit shipments to Canadian customers that increased by 26 per cent during the last quarter.
“We looked for a location in Canada that offers a good quality of life, highly skilled workers and world-class training programs,” said Parra. “Edmonton meets those criteria. We are very impressed with the incredible spirit of co-operation we have received from all orders of government, EEDC and NAIT.”
But those factors weren’t the only reasons Edmonton was selected. Dell will receive lease incentives valued at $1.1 million from EEDC that are equal to five years of property taxes during the first five years of the 20-year agreement.
EEDC will also assist Dell in locating a permanent site for its customer contact centre, which will initially be housed in a temporary site and is expected to be operational later this year.
The company requires a greenfield area of approximately 15 acres for the 100,000-sq.-ft. building it has committed to build, said Scott.
Site selection is now underway. The land will be leased to Dell for 20 years at the rate of $1 per year.
Dell, however, will pay all school and business taxes from the beginning of its operations in Edmonton.
Over the first five years, those taxes will approximately $750,000.
In return, Dell has agreed to provide and maintain at least 500 full-time positions within six months and begin construction of a permanent facility on the leased land within 18 months.
Scott said the incentives were necessary to level the playing field with highly competitive prospects in the U.S.
