Potential St Louis Tech Jobs Go to Columbia

Nearby Columbia has landed hundreds of positions that some experts thing could have been St Louis tech jobs.

Gov. Jay Nixon recently announced that IBM plans to open a new services delivery center in Columbia. The facility will create 800 high-tech jobs by 2012.

The new facility is slated to open this November with 100 workers, and IBM plans to pay employees an average salary of $55,000, which is highly competitive within the IT industry.

"It is exciting that one of the world's most respected and recognizable brands in the IT industry has chosen mid-Missouri as the location for its new services delivery center, which will create 800 high-tech, competitive jobs," Nixon said. "IBM's decision to invest in Missouri is a strong indication of the momentum of our economic recovery. I look forward to strengthening our partnership with IBM for many years to come."

IBM officials say the company chose Columbia from more than 24 cities throughout the country because of its quality workforce, competitive business model, and the strong public-private partnership offered by the state and city.

Some critics are wondering why IBM chose Columbia over St. Louis, which also has low energy costs, a strong IT industry, and a skilled and larger high-tech workforce.

Steve Johnson, vice president of economic development at the Regional Chamber and Growth Association, told the St. Louis Post-Dispatch that IBM was never considering the city.

The reason seems to be that St. Louis is simply too large, as IBM was considering smaller towns for its new facility. In fact, the company's existing two facilities in the United States are located in Lansing, Mich., and Dubuque, Iowa.

The new facility will be located within an existing building in Columbia. IBM will be able to lease the 93,000-square-foot building for $1 per year for 15 years. It will house a services delivery center that will help provide IT services to the company's national and international clients.

The delivery center will provide server systems operations, security services and end-user services, including maintenance and monitoring of computer hardware and software systems.

IBM will receive several incentives for the project, including an $8.6 million Missouri BUILD award and $14.7 million from the Quality Jobs program. Both programs provide incentives to companies that create a pre-determined number of jobs and meet other qualifications.

Missouri also will provide IBM with $4.3 million in New Jobs Training funding; $300,000 in Customized Training funding; and $412,500 in Employee Recruitment and Referral Savings funding.