New RTP center may draw up to $7.8M in state incentives
DURHAM, Jul 09, 2010 (The Herald-Sun – McClatchy-Tribune Information Services via COMTEX) –
A subsidiary of IBM is planning to hire 600 workers and invest $3.7 million in a new process service center in Durham’s Research Triangle Park in the next two years.
As a result of the project, IBM Lender Business Process Services Inc., a specialty loan processing company, could receive up to $7.8 million in incentive payments from North Carolina state government during the next decade.
Gov. Beverly Perdue touted the jobs and facility announcement on Thursday, calling attention to IBM’s longstanding presence in the state.
“IBM has been a major employer in North Carolina providing thousands of skilled jobs for more than 30 years,” Perdue said. “We value this company’s ongoing commitment to North Carolina and Research Triangle Park.”
LBPS will begin hiring immediately for the 600 positions, with salaries averaging $50,000.
Employees in the new center will perform various business process outsourcing activities for financial industry clients.
The new center will be in one of IBM’s existing buildings at its sprawling campus in RTP. LBPS also will transfer its Charlotte office to the new facility, while continuing to maintain a presence in Charlotte, according to an IBM spokesman.
“IBM Lender Business Process Services is taking industry-leading steps to apply its broad and deep history of technology and business management capabilities to provide new and innovative solutions to our clients in the financial services industry,” said Bruce McConnel with IBM. “We are strengthening our commitment to business processing services, improving our clients’ flexibility, competitiveness and ability to manage their businesses more efficiently through ever changing dynamic market cycles.”
The new project was made possible by a state Job Development Investment Grant.
For each year the company meets the required performance targets, the state will provide a grant equal to 65 percent of the state personal income withholding taxes derived from the creation of new jobs.
Should the company create the jobs called for under the agreement and sustain them for 10 years, the agreement could yield as much as $7.79 million in maximum benefits for IBM, according to the governor’s office.
This is the most recent project undertaken by IBM in RTP.
In February, the Armonk, N.Y.-based computing giant opened a $362 million, 100,000-square-foot cloud computing center in RTP. Durham County is giving IBM $750,000 in incentives during seven years for the center.
At the same time, IBM also has been restructuring its global workforce, including in RTP.
In March, the company also reportedly began laying off 1 percent of its workforce or about 1,000 workers worldwide. The total number of workers affected in RTP is unknown.
In March 2009, the company disclosed that it had laid off 334 workers at RTP, where it employed about 10,000 people.
“The new services operation furthers our commitment to the state of North Carolina and our ongoing presence in Research Triangle Park,” Bob Greenberg, senior state executive of IBM’s North Carolina operations, said in an official statement on Thursday. “These skilled positions, coupled with our investment earlier this year in an energy efficient cloud-computing data center, demonstrate that as the marketplace demands new skills and technology, growth opportunities in North Carolina continue to be a hub of activity.”