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Canada has emerged as a new hub for global software industry. In 2007, valued at USD 32.2 billion, Canada is home to 52,926 firms that employ approximately 262,100 professionals. Supportive government policies, world best technology infrastructure and workforce are the key factors driving software excellence in Canada.The Canadian government has played a key role in driving investments to the region. The federal government and many of the provincial-level governments have policies in place supporting software and applications development in the form of research and development tax credits. As per some estimates, the total value of these tax credits was approximately USD 4.5 billion in 2010. Additionally, to support business investment, the region has one of the lowest marginal effective tax rates amongst the G7 countries.
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Technology Talent Insights - Canada
Zinnov LLC CONFIDENTIAL
2011
This report is solely for the use of Zinnov and Zinnov Clients. No part of it may be circulated, quoted, or reproduced for distribution without prior written permission
Zinnov LLC
PREVIEW REPORT The current document is a preview to the complete study and provides a brief overview of the
location insights with some information on the talent pool numbers
1
SCOPE
This report is intended to provide location and talent pool insights for Canada’s software sector More specifically, the report looks at following key dimensions for analysis
Location insights Current business landscape
Government Initiatives Talent landscape Education system Infrastructure & Connectivity Market access Quality of life
Key capabilities Recent investments in the country Key services delivered Main regional clusters Competitive landscape
Talent ecosystem Overall talent pool availability (at a country level) with splits for the largest regional clusters Overall R&D talent pool (at a country level) with splits for the largest regional clusters Hiring trends at a country level and by the 2 largest regional clusters Fresher talent pool availability Operating cost comparison including by compensation and other R&D expenditure
AGENDA
Overview
Key Canadian Clusters
Hiring Trends
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2
3
Fresher Talent Pool 4
Cost Involved 5
Leading R&D Companies 6
PREVIEW REPORT The current document is a preview to the complete study and provides a brief overview of the
location insights with some information on the talent pool numbers
3
Overview
Source: Zinnov Research and Analysis
• Valued at $32.2 billion in 2007, Canada’s software sector consists of 52,926 firms and employs approximately 262,100 people
• 20 of Software Magazine’s Top 500 global software companies originate from Canada
• Major Global Investors: Adobe, SAP AG, Oracle Corporation, Microsoft Corporation, IBM Corporation, Corel Corporation, Fujitsu Corporation
Overview of Canadian Software Sector
The Citco Group announced a large IT investment in Nova Scotia for 325 new jobs in
Application Development in 2008
Microsoft Corporation of Washington opened a new Greenfield facility in British
Columbia with 200 new jobs in 2007
Software Strengths: Enterprise Application, e-Security, Health, Imaging, Financial Services
California based Paragon Global Resources Inc. expanded its
operations in Nova Scotia by 150 jobs in 2007
Sage Software Inc. of California, created 130 new jobs in Ontario
with its 2007 Greenfield investment
SAP AG of Germany opened a new Greenfield facility in
Quebec with 750 new jobs created in 2007
Recent Investments in Canada Software
Sector
Canada is a leading player in the G7 to do business and has some of the world's prominent MNCs, majority of which are US-based, investing in Canadian ICT expertise
The country is able to attract leading software investors largely due to its world renowned work force & a culture of innovation fostered through rich R&D tax credits & industry clusters
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Overview
• 25000 companies in software and computer services
• Canadian Software Excellence: Enterprise Application, Web Solutions, E-security ,Digital Media, E-Health
• Canada's 30 000 information and communications technology firms make over $140 billion in revenues annually
• ICT is Canada's largest private investor in R&D - $5.7 billion annually, $650 million in software alone
Business Landscape
Government Initiatives
Talent Landscape
Education System
• R&D Advantage: Toronto, Montreal, Vancouver, Ottawa and Waterloo are particular hotbeds of software innovations
• The total value of federal R&D tax credit expenditure is estimated to reach $4.5 billion by 2010
• Various provinces have their own additional tax incentive programs for R&D activities carried out
• Canadian federal government and many of the Canadian provincial-level governments have policies in place supporting software and applications development in the form of research and development tax credits
• Canada, with several universities offering a variety of advanced program, boasts a large pool of new engineering graduates who can become successful participants in the workforce, helping companies stay innovative through new ideas and knowledge.
• Canada has the world’s highest percentage of college or university graduates and is ranked third globally for secondary school enrolment, well ahead of the United States (26th place)
• 92 universities in Canada together produce 50,000 math, computer science and engineering graduates
• Canada has some of the best engineering schools in North America and is home to 18 top engineering schools
• Engineers Canada is an umbrella organization for Canada’s provinces and territories, responsible for licensing over 160,000 engineers in the country. It has 239 accredited engineering undergraduate programs offered at 40 universities across the country
Source: Zinnov Research and Analysis
Additionally, it has a built an edge over competitors in software product development due to its advanced telecom infrastructure that provides the backbone for all technology businesses
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Overview
Canada has boasted federal budget surpluses for the past 10 years and aims to have the G7's lowest marginal effective tax rate on business investment by 2012
Business solutions abound in Canada, where Canadian software firms turn raw data into strategic information that profits their customers. Canadian pioneers like Cognos and Open Text set the standard.
Competitive Economy
First–class ICT Infrastructure
Easy Access to Worldwide Markets
Superior Workforce & Quality of Life
• Canada's CANARIE Inc. is an advanced, high–speed backbone network that provides research infrastructure, linking 80 universities and 50 colleges, over 2000 schools, 60 hospitals, 40 research centers, 40 government departments, 10 cultural institutions and more than 40 countries
• Approximately 20,000 researchers in the Government of Canada and 35 000 faculty at Canadian universities are active users
• Canada and the United States have the world's largest trading partnership under the North American Free Trade Agreement
• IBM, Ericsson, Electronic Arts, Ubisoft, SAP, EDS, Microsoft, Motorola, Nokia, Intuit, Convergys and many others are either operating in Canada or working closely with Canadian partners through direct investment, partnerships, strategic alliances and joint ventures, subcontracting, and R&D collaborations.
• Among OECD countries, Canada has the highest percentage of individuals with college or university education. The universities produce 45 000 graduates a year in mathematics, engineering, and pure and applied sciences
• Canada tops the G7 as the safest place to live. With its spectacular environment, a vast array of cultural amenities and universal health care, Canada's quality of life is unparalleled.
Source: Zinnov Research and Analysis
As a result, Canada’s software excellence has grown in established domains like Enterprise Software & Web Solutions, as well as emerging ones like E-security & Green IT
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Four of the country’s top 10 fastest growing technology companies provide business applications and 57% of emerging Canadian software companies have their primary area of business in the EAS space
Canadian Software Excellence
Research consortia and industry clusters across the country encourage collaboration & inspire innovation to enhance business growth. Partnerships that bring together governments, universities and industry can be found in urban centers in all regions of Canada. Toronto, Montreal, Vancouver, Ottawa and Waterloo are particular hotbeds of software innovation.
Enterprise Application Software (EAS)
Canada is home to 3,200 firms in all market segments in the web solutions space. 51,000 people are directly employed in the digital interactive media market
Web Solutions
Tackling tough problems like technology security is an area where Canada excels – from anti-virus software to cryptography and encryption, to mobile authentication and intrusion detection
E- Security
Canadian companies and universities such as Bell Canada, Nortel Networks, RIM, McGill University and University of Toronto are part of $50 million research consortium for carbon-neutral Next Generation Internet
Green IT
R&D Advantage
Source: Zinnov Research and Analysis
Overview
AGENDA
Overview
Key Canadian Clusters
Hiring Trends
1
2
3
Fresher Talent Pool 4
Cost Involved 5
Leading R&D Companies 6
PREVIEW REPORT The current document is a preview to the complete study and provides a brief overview of the
location insights with some information on the talent pool numbers
Nearly ~85% of the total talent pool is concentrated in the key regional clusters of Ontario, Quebec and British Columbia
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Key Canadian Clusters
262,000 58.4%
13.6%
12.4%
Total Talent Pool
Total Talent Pool
Source: Zinnov Research and Analysis
Over a third of the total talent pool is associated with R&D; Ontario again leads the pack with the maximum concentration of R&D talent pool
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91,700 50%
13%
R&D Talent Pool
R&D Total Talent Pool
Source: Zinnov Research and Analysis
Key Canadian Clusters
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Additional Information
The full report focuses on providing in-depth coverage on location and talent pool in Canada with
additional insights on key regional clusters, hiring trends, fresher talent pool availability, costs of operation, competitive landscape etc.
Full report on Canada can be accessed at Zinnov ‘s Global Location & Talent Pool Portal. Sign up today for a free trial account
http://zinnov.com/US/demo_signup.php Or, email us at [email protected]
Zinnov LLC
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