Cognos announces major expansion
Bert Hill
The Ottawa Citizen
Cognos Inc. plans to double
employment in Ottawa to 2,000
people over the next three to
four years as demand for
specialized business software
grows.
It announced a $30-million plan
yesterday to more than triple
office space yesterday at the
company's Riverside Drive
campus.
The Cognos announcement is
the latest evidence of a
white-hot high-technology
sector growing three times as quickly as the whole local economy.
Several companies are growing as fast as Cognos and a few are growing faster.
While other high-tech executives bemoan the impact of high Canadian taxes on
recruiting talent to Ottawa and other major cities, Cognos chief executive Ron
Zambonini talked about the assets of the region creating a hidden treasure.
"The buzz of high technology in the region makes it easy to attract people, but
they stay here because of the quality of life."
Cognos makes business-intelligence software that allows big organizations to
mine databases for critical strategic information. The market for such software is
growing at a 30-per-cent annual rate.
Cognos will build a 10-storey, 180,000-square-foot building and a four-storey
parking garage to accommodate future growth and 300 employees now scattered
across the city.
With demand for the product growing at 30 per cent annually, Cognos recently
pulled off the remarkable feat of delivering profits lower than a year earlier -- and
seeing its stock rise rather than get battered by angry investors.
Cognos convinced analysts that it is investing money in new employees and
product development that will keep it on top of the heap of competing
companies.
In the first six months of this year, high-tech employment grew by 2,500 or four
per cent to reach 55,200. The number of companies grew by 45 to reach 950.
More recently, job growth in critical skills -- notably professional, scientific and
technical expertise -- is growing at a 15 per cent annual rate in Ottawa-Hull.
Brian Barge, president of the Ottawa Economic Development Corp. said the
region is setting the stage for long-term growth.
Other companies are also growing. For example, Entrust Technologies now has
386 local employees compared with 300 a year ago and 100 in January 1997.
The Cisco Systems optical development operation in Kanata has almost doubled
to 140 engineers and support staff in the past year and expects to reach 250
employees next year.
But even these growth rates pale in comparison with JDS Uniphase.
From an employment base of only 450 three years ago, JDS grew to 1,800
employees a year ago and more than 3,750 employees today.
There have been bumps in the past year that forced some companies to
drastically reduce employment including Westend Systems, Plaintree Systems
and Jetform.
A slow-down in demand for semi-conductor products has taken its toll on
companies like Mosaid, Lumonics and Mitel. However, Mitel has continued to
grow, adding about 45 employees in the last six months to reach 1,863.
Computer service companies like Calian and EDS Systemhouse are prospering
helping clients keep their operations working. Andersen Consulting is expanding
its technology practice by 50 per cent to more than 500 employees.
Some big companies such as Nortel continue to hire aggressively.
Newbridge Networks has added 500 employees in Ottawa in the last year,
boosting employment to 3,650.
And Corel Corp. has increased employment by 20 per cent to 1,140 and is
subletting space to house the staff. "We will probably add at least another 100
engineers in the next year as we develop new products for Linux and other
lines," said chief executive Michael Cowpland.
High-Tech Payrolls
Employment at large Ottawa-area high-tech companies:
Nortel 12,500
JDS Uniphase 3,750
Newbridge 3,650
Mitel 1,829
EDS Systemhouse 1,500
Calian 1,500
Corel 1,140
Compaq 1,100
Cognos 1,000
Computing Devices 750
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