Cognizant Chooses Nova Scotia for Expansion, Expects to Create up to 1,250 Jobs

Global technology services company Cognizant has chosen Nova Scotia for its expansion plans, helping to advance the Province’s goals of attracting new economic opportunities, increasing the population and helping Nova Scotians access better paying jobs.

Over the next seven years, up to 1,250 new jobs are anticipated from two payroll rebate agreements approved by the Province for Cognizant, one of the world’s leading technology and professional services companies.

“We have a bold plan for economic growth in Nova Scotia, and a thriving ICT sector is part of our way forward,” said Susan Corkum-Greek, Minister of Economic Development and Minister responsible for Nova Scotia Business Inc. (NSBI). “This is an exciting opportunity, and we are thrilled to have Cognizant expanding to Nova Scotia, bringing with it more high-quality opportunities, which will add to our increasingly diverse and skilled workforce.”

Cognizant will establish a new global technology and service delivery centre in Halifax, where it will employ a range of technology professionals and business process outsourcing employees.

During the term of the agreements, the company could spend an estimated $327 million in combined salaries and benefits – the highest amount through payroll rebate agreements with one company in more than a decade. The Province would collect income and consumption taxes from that payroll spending and could return a maximum rebate of about $27 million to Cognizant. The company will be eligible for a smaller amount if it creates fewer than 1,250 jobs.

A key priority for the government, as identified in Ministers’ mandate letters, is economic growth. The Province will work to double Nova Scotia’s population, encourage innovative, sustainable and green businesses to establish or relocate to the Province, and provide access to financing for innovative, sustainable and green business startups.

Quotes:

“We chose Halifax as our next expansion location in Canada to support our growing number of clients, and we look forward to contributing to the region’s vibrant technology community. We are pleased to be supporting the growth of the region with the creation of new employment opportunities and are grateful to the Province for their partnership and support of Cognizant expanding in Nova Scotia.”

– Jay MacIsaac, Country Head Delivery Centres – Canada, Cognizant

“As the Province’s lead business development agency, NSBI is both a partner and a connector with the broader private-sector, academia and public-sector worlds, helping our province continue raising awareness, growing exports, and attracting foreign direct investment like that of Cognizant. The ICT sector has grown to become an integral component of the Nova Scotia economy, and it’s one of NSBI’s strategic sectors.”

– Laurel Broten, President and CEO, Nova Scotia Business Inc.

“The teams at Digital Nova Scotia and NSBI work on a regular basis to help foster technology talent and encourage and support businesses looking to establish a presence in our province. The tech sector is rapidly growing and many graduates, new Nova Scotians and seasoned experts are advancing their careers here.”

– Wayne Sumarah, CEO, Digital Nova Scotia

“This is a pivotal moment for the digital ecosystem in the province as an increasing number of organizations choose to open or start here and computer science education expands. In the faculty of computer science at Dalhousie, we have more than 2,100 students enrolled in undergraduate and graduate programs with ambitious plans to grow those numbers and research capacity. We recently launched the Here We Code campaign, showcasing what Nova Scotia has to offer in this space, and we are excited to welcome Cognizant to further enhance our provincial success story.”

– Andrew Rau-Chaplin, Dean, Faculty of Computer Science, Dalhousie University

Quick Facts:

• NSBI, a Crown corporation led by a private-sector board of directors, is the Province’s business development agency
• these payroll rebates were pre-authorized through NSBI’s board and received final approval by executive council (the provincial cabinet)
• payroll rebates are designed in a way that the tax revenue generated for the Province by the new jobs is always more than the amount spent on the rebate and are only paid after a business has generated actual payroll for the Nova Scotia economy
• in 2021, the Province invested $16.8 million to allow four Nova Scotia universities to expand and enhance their computer science programming as the demand for training continues to grow
• Nova Scotia’s information and communications technology (ICT) sector has contributed $1.8 billion, or four per cent, of provincial GDP in 2020 and directly employed 11,000 people through 1,300 companies

Additional Resources:

Information on NSBI transactions can be found at: https://www.novascotiabusiness.com/fundingdisclosures

Information on Cognizant employment opportunities can be found at: https://careers.cognizant.com/global/en

Nova Scotia ministerial mandate letters are available at: https://novascotia.ca/exec_council/letters.html