A large number of American companies are moving to Montreal to do their IT development and reduce costs due to government subsidies and 30% exchange rate.

Montreal - Kovasys Inc., an IT staffing agency in Montreal, says it has been witnessing a large influx of American companies coming to Canada to do their high tech projects. Due to the unstable economy in the US and massive layoffs, more and more companies are deciding to save money and nearshore their IT operations to a cheaper yet stable and proximate location.

Morgan Stanley, a global financial services provider from New York City, has recently decided to take advantage of the savings and settled their offices in Montreal. The trend however is not surprising, since this is exactly what the government of Quebec has wished to achieve when they introduced the subsidies for high tech companies less than a year ago. Any company doing IT projects with offices in Montreal can expect a refund in terms of tax credits, for as much as $20,000 per employee. This adds up to 70% off the cost when comparing with similar positions in cities like New York or Chicago if you take 30% exchange rate into account.