The Utah Governor‚Äôs Office of Economic Development announced that Oracle is planning to establish a new customer software support center in Salt Lake County that will respond to customer help requests related to Oracle products.
Oracle will invest more than $6.1 million into the project, and expects to create 351 new jobs over the next 10 years.
These Oracle jobs are high-tech positions that will pay more than 125 percent of the prevailing average annual wage in the county.
The GOED Board of Directors has approved EDTIF (Economic Development Tax Increment Finance) incentives for Oracle.
This is a post-performance tax credit of up to $2.8 million, equivalent to 25 percent of the new state taxes Oracle will be paying during the 10-year agreement period.
The new Oracle jobs are expected to generate wages of nearly $239 million over the 10-year period of the agreement, along with new state tax revenues of around $11.3 million.
Oracle will earn a portion of the tax credit annually, as it meets the job creation criteria specified in the contract.
GOED Executive Director Spencer P. Eccles said Utah is becoming known as a tech hotspot thanks to continued growth by well-respected companies such as Oracle.
Eccles added that IT and software companies choose to locate or expand in Utah because of the low operating costs, educated workforce and unparalleled quality of life the state offers, as well as the critical mass that Utah has created.
Oracle Vice President of Real Estate and Facilities Randy Smith said in a statement that they have been impressed by the high-tech growth in Utah, and are pleased to be expanding their presence in the state. Smith added that Utah offers a unique blend of potential economic growth and a highly skilled workforce.
Actually, Utah wasn‚Äôt even under consideration for the software support center when the site selection process began. According to the Salt Lake Tribune, it was former Oracle executive Margaret Lasecke-Jacobs, a newly appointed member of¬†the GOED Board, who convinced Oracle to take a closer look at Utah as a location for the support center.
Jeff Edwards, president and CEO of the Utah Economic Development Corporation, said that EDCUtah is pleased to see this expansion in Utah by a global company such as Oracle. Edwards added that Oracle‚Äôs presence further enhances their ability to grow the IT industry and continue attracting first-rate technology jobs to Utah.
Redwood City, CA-based Oracle Corporation (NYSE:ORCL) helps more than 400,000 customers in over 145 countries around the world eliminate complexity and simplify IT. The company has more than 122,000 employees around the world, including 18,000 support personnel and 18,000 consulting experts.