IBM promotes onshoring facility in Dubuque, Iowa

IBM held a ribbon cutting ceremony today to announce the new IBM technology services delivery center located in Dubuque, Iowa is operational. Iowa politicos and business leaders were also in attendance to welcome the new facility, which is expected to employ up to 1,300 people by the end of 2010.

The Dubuque facility joins more than eighty IBM delivery centers worldwide, the company said in a statement, indicating the center will be a key hub for clients located in the United States. “We are delighted to partner with the city of Dubuque and the state of Iowa and look forward to a successful and enduring relationship,” Mike Daniels, senior vice president and group executive of IBM Global Technology Services, said in a statement.

In January 2008, IBM signed a ten-year lease to occupy the Roshek Building, investing with local companies to upgrade the facility to make it meet Leadership in Energy and Environmental Design (LEED) certification, as well as other green building standards. The company pledged to invest about $100 million to the local economy and has also indicated that it will continue to work with higher education institutions in the tri-state area to recruit and train potential employees. They are also looking to partner with some schools to augment their curricula to prepare students for opportunities with IBM, and in the information technology industry in general.

“Today is a great day for our community, the tri-state region, and the state of Iowa,” Dubuque Mayor Roy Buol said. “We wholeheartedly welcome IBM and its employees to Dubuque and look forward to a long-term, mutually beneficial relationship. We are honored that IBM saw the potential in our community and workforce and chose to make this investment.”

In a report filed by the Des Moines Register, at least half, if not more, of IBM’s $100 million investment will be recouped. According to the report, Iowa agreed to give IBM $12 million in forgivable loans, $8.5 million in job training assistance, and $2 million in tax incentives and other assistance. All told, city and state projections have tallied about $53 million in incentives for the Dubuque project.

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