NLIS 3
December 15, 2004
(Innovation, Trade and Rural Development)

 


Aliant and Government of Newfoundland and Labrador 
partner on
$1.5 million Nearshore Atlantic development initiative

Today the Government of Newfoundland and Labrador and the region�s foremost information and communications technology company, Aliant, announced details of a $1.5 million development initiative - Nearshore Atlantic - to aggressively establish the province as a recognized centre for Information and Communications Technology (ICT) development. This initiative is being done in collaboration with the Newfoundland and Labrador Association of Technology Industries (Nati) to bring new ICT work to the province to benefit the local ICT industry. The term of the agreement is three years and is being led by a newly hired director Fiona Langor. 

Nearshore Atlantic (www.nearshoreatlantic.com) is looking at ICT business opportunities in geographies close to the Newfoundland and Labrador markets namely in areas of the United States, Western Europe and some Canadian jurisdictions. The work will focus on growing business and creating economic wealth within the ICT sector of the Province of Newfoundland and Labrador by building upon the well-established ICT sector of the province. In addition it also will be modeled under a business attraction strategy to attract non-Newfoundland and Labrador based companies into the province to conduct software related work for international markets. 

Frank Fagan, chief operating officer and executive vice-president with Aliant comments, "Aliant is very pleased to invest in this joint initiative and to once again reaffirm our commitment to the province in building upon a great foundation of ICT expertise and success. As we call upon the strengths of Aliant �s ICT family, we are able to work with the province and Nati to ensure we are able to grow and expand ICT opportunities and developments for all those who work here today and those that would like to explore new opportunities in this province." 

"The province�s information and communications technology sector already has more than 200 companies, employs more than 4,000 IT professionals and generates more than $600 million," said Kathy Dunderdale, Minister of Innovation, Trade and Rural Development. "The new Nearshore Initiative will help grow the sector and enhance the province�s growing reputation for innovative programming, and model simulation." 

NATI president Marvin Chaulk said, "The local IT industry in the province is well entrenched and can take advantage of opportunities in markets of a close jurisdiction. We have the people, expertise, technology and industry participation to grow our business and continue to be successful." 

About Aliant
From its home base in Atlantic Canada, Aliant delivers a wide variety of innovative and traditional communications services, including local and long distance telephony, wireless, Internet, e-commerce, interactive multimedia, data and managed network services, to more than two million consumers and over 80,000 enterprises. Aliant complements its industry-leading telecommunications business with strengths in information technology solutions and knowledge-services applications. The company's approximately 8,600 employees build on Aliant's 100-plus year history by collaborating to deliver the highest quality of customer service, choice and convenience. Aliant is a TSX 100 company with a market capitalization of approximately $3.5 billion.
 

About Innovation, Trade and Rural Development
The Department of Innovation, Trade and Rural Development fosters and promotes economic development by encouraging investment, promoting strategic opportunities, and maximizing business and employment growth in all regions of the province. The department operates five lines of business: business development; regional economic development; strategic industries and sector development; trade and export development; and business attraction and investment prospecting.
 

Media contact:

   Anna Peddle, Aliant Communications & Public Affairs, 1 (888) 818-6825, Anna.Peddle@Aliant.ca
   Lynn Evans, Innovation, Trade and Rural Development, (709) 729-4570, LynnEvans@gov.nl.ca
   Geoff Meeker, Nati Communications, (709) 757-3254, geoff@nati.net

 

BACKGROUNDER 

The Nearshore Development initiative is governed by a Steering Committee chaired by Dr. Doug House. Both Aliant and the government will contribute $750,000 to the initiative over a three-year period. Fiona Langor has been appointed director of Nearshore Atlantic. 

The term "Nearshore" refers to software development outsourcing to firms in countries close to the country of origin of the client. In Newfoundland and Labrador the primary targets for this initiative would be the United States, points along Western Europe and other Canadian jurisdictions. 

Over the past five-10 years, a thriving industry has grown in India (revenues exceeding U.S. $4 billion) and is emerging in China that offers software development at high standards, easier access to skilled resources and at costs far below what United States.external service providers can attain. The rates are in the vicinity of US$20-$30 per hour. This has resulted in a substantial shift to source software development from companies in India and China due to the substantial cost reductions that can be achieved vis-�- vis North American software developers. Firms in these countries have made great strides in improving quality and reliability so as to compete with established North American software development providers. 

However, since September 11, 2001, more security conscious United States clients and firms have begun to look to Nearshore providers for more sensitive software development at reduced rates from the U.S. providers but at rates not as low as the offshore providers. Nearshore Development is also of benefit to clients in that certain functions can be performed more effectively in a Nearshore operation than at offshore development operations. Time zones, project management skills and unique skill sets set Nearshore developers apart while costs for U.S. companies are moderately reduced in Nearshore geographies such as Canada and Mexico. 

This provides an opportunity for Canadian regions with lower labour costs and highly trained and available labour forces. Newfoundland and Labrador fits this profile. 

The Nearshore taskforce was established with an objective to increase business development and gainful employment of the province�s residents in the ICT sector and to increase the overall usage of the province�s technology infrastructure. 

  • The areas of work being considered for this development initiative include software engineering, software design, and software maintenance and support.

  • Through the Nearshore development initiative, government and Aliant want to foster greater collaboration between all stakeholders including, the government, industry and its support organization to facilitate attraction of ICT work to Newfoundland and Labrador.

  • Government and Aliant also agree that NATI, as the voice of the technology sector in this province, will assist and help direct interaction in developing specific objectives and terms of reference.

  • Nearshore Atlantic will run as a business attraction agency whose mandate is fixed on attracting non-NL based companies into the province to conduct software related work for international markets.

The benefits include:

  • Establish Newfoundland and Labrador as a growth economy in Information Technology;
  • Create new employment opportunities;
  • Further establish the province as a location to do business;
  • Attract new companies, technology and research and development opportunities;
  • Enhance the opportunities for existing local IT companies.

The members of the Nearshore Atlantic Steering Committee include:

Dr. Doug House (Chair)
Terry Johnstone
Alfred Whiffen
Ray Miller
Marvin Chaulk

BIOGRAPHIES 

Nearshore Atlantic Team 
Fiona Langor
has been appointed as director - Nearshore Atlantic. Ms. Langor brings with her a wealth of experience in economic development, investment, and business attraction. 

Ms. Langor participated in the start up of NETWORK Newfoundland and Labrador in 1995, where she was employed as an associate director until 2001. From 2001-2004, she assumed the director�s position leading NETWORK Newfoundland and Labrador to attract significant contact centre operations to the province. During her tenure with the group, Ms. Langor contributed to the creation of more than 3,500 contact centre jobs. 

Ms. Langor also held the position of business development officer with the provincial Department of Industry, Trade and Technology from 1994-1995, and acted as a business consultant with the P.J. Gardner Institute at Memorial University of Newfoundland from 1990-1994. 

Ms. Langor holds a bachelor of commerce degree (co-operative) from Memorial University of Newfoundland. 

Anne Bailey is the new business development consultant for Nearshore Atlantic. Anne has spent the last 14 years working in the information technology sector within the Province of Newfoundland and Labrador. 

After graduating from Memorial University with a bachelor of commerce degree (co-operative), Anne spent some time with a local retail organization then worked briefly with the federal government. In 1990 she began her IT career with Paragon Information Systems, a Newtel Company, as a sales representative. 

The next 14 years were a time of growth, merger and change and with each change came opportunity for growth as she moved into sales and operations management. Anne�s most recent position was director of sales for xwave, Newfoundland where she and her team serviced the technology needs of the local business and government clients. 

Nearshore Atlantic Steering Committee members
Ray Miller
is vice president of infrastructure services with xwave. He has 25 years of experience in the IT and telecommunications industries and is intimately familiar with the challenges of developing and managing remote operations. 

Ray�s experience with operating in an environment where clients are separated geographically from their trusted service providers and business partners will prove invaluable in providing guidance to the Nearshore Atlantic team. 

He is a graduate of Memorial University�s engineering program and is an active member of the Professional Engineers and Geoscientists of Newfoundland and Labrador. 

Dr. Doug House is the deputy minister of the Department of Innovation, Trade and Rural Development with the Government of Newfoundland and Labrador. 

Dr House has had considerable public service experience. His positions have included chair of the Royal Commission on Employment and Unemployment (1985-86), chair of the Economic Recovery Commission (1989-96), chair of the Board of Enterprise Newfoundland and Labrador Corporation (1989-1993), and provincial co-chair of the Task Force on Community Economic Development (1994-95). He was a key contributor to Building on Our Strengths: The Report of the Royal Commission on Employment and Unemployment (1986), Change and Challenge: A Strategic Economic Plan for Newfoundland and Labrador (1992), and Community Matters: The New Regional Economic Development in Newfoundland and Labrador-Report of the Task Force on Community Economic Development (1995). For the two years leading up to the recent provincial election, Dr. House served in a part-time capacity as a policy advisor to the Office of the Official Opposition. 

Dr. House is on secondment from his position as professor of sociology at Memorial University of Newfoundland. During his academic career, he served as head of sociology, research director of the Institute of Social and Economic Research, and president of the Atlantic Association of Sociologists and Anthropologists. Dr. House holds the degrees of BA (Hons) from Memorial University, MA from Oxford University, which he attended as a Rhodes Scholar, and Ph D from McGill University. He is the author of six books and more than a hundred articles, papers and reports. His most recent article is about governance and economic development in the Republic of Ireland. 

In 2001, Doug House was invested as a Member of the Order of Canada. 

Alfred Whiffen is regional vice president sales, Newfoundland and Labrador for Aliant. Alfred leads all aspects of Aliant�s business sales operation in the province with specific responsibility for the field salespeople and customers in the enterprise and middle markets segments. 

Alfred began his career in 1985 as a sales and marketing assistant with Brookfield Ice Cream Limited in St. John�s. Since that time, he has held progressively responsible positions in sales, marketing, and sales and marketing management in the cable television, radio and telecommunications industries. Alfred joined Aliant (formerly NewTel Communications in Newfoundland and Labrador) as a sales specialist and has moved through various levels of the business sales organization. He was appointment to his current position as regional vice president sales on December 1, 2003. 

Alfred holds a bachelor of commerce degree (1985) and a master of business administration degree (2002) from Memorial University. 

Terry Johnstone is a professional engineer, with a mechanical engineering degree from Memorial University (MUN) of Newfoundland and over 25 years of experience in government, private industry and industry associations. 

Upon graduation from MUN, Mr. Johnstone began his career as a project engineer in Ottawa with Arctec (now Fleet Technologies), a national marine and ice engineering consulting firm. In 1986, Mr. Johnstone joined the provincial government as an environmental engineer with the Department of Environment in Corner Brook. In this position, Mr. Johnstone was responsible for monitoring and regulating industrial activity on the province�s west coast and all of Labrador. 

Mr. Johnstone then took a position with Hope Brook Gold, a gold mine on the province�s west coast, as a maintenance planner prior to assuming an industrial development officer position and ultimately a directors position with the Department of Industry, Trade and Technology in 1988. While with ITT, Mr. Johnstone was responsible for helping stimulate growth in the province�s environmental, marine and technology sectors. Mr. Johnstone was also involved in the creation and operation of Operation ONLINE in 1996. 

In 1997, Mr. Johnstone left the provincial civil service to assume the position of president of the Newfoundland Association of Technology Industries or Nati. During this period Mr. Johnstone was a strong advocate and promoter of the province�s advanced technology sector. He was also heavily involved with the province�s bid and successful hosting of Softworld �98 which was held in St. John�s in September 1998. 

In late 1999 Mr. Johnstone, left Nati and returned to the provincial government as director of policy and strategic planning, with the Department of Development and Rural Renewal. Currently he is executive director of the Technology Development and Corporate Planning Branch with the Department of Innovation, Trade and Rural Development, a position he has held for the last 18 months. 

Marvin Chaulk began his career in the advertising/communications field developing communications and advertising campaigns for clients such as MTT (now Aliant), Labatt�s, Atlantic Lottery Corporation, and ITI after completing a bachelor of science degree in pure mathematics and an MBA in management. His passion for the creative side of the business and his entrepreneurial spirit lured Marvin to start up several of his own companies including a marketing boutique and a streaming audio/visual technology firm based in New York. Marvin�s diverse interests weaved a career path from managing a graphic design studio to working for a Crown corporation focused on commercialization. He has spent a number of years as a business consultant helping SMEs in Atlantic Canada attract capital, manage growth, market their products and services, and develop winning strategies to accelerate growth. 

Marvin Chaulk is currently the president of Nati, the Newfoundland and Labrador Association of Technology Industries. Through his experiences in working with SMEs, Marvin developed a strong believe that Atlantic Canada is a region poised for growth, rampant with capabilities and know-how, alive with opportunities for global leadership, and that Nati is a vehicle to help realize this potential. 

2004 12 15                      12:20 p.m.


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