Two technology companies, Strategic Staffing Solutions, and GalaxE Solutions are betting that Detroit is where they can win back information technology contracts that had moved offshore. Both companies say the cost of doing business in Detroit for IT staffing contracts is close enough to the cost of sending work to low-cost countries to compete for the work.

Strategic Staffing Solutions (S3) recently invested more than $7 million to expand its IT consulting. The new IT center is located in the Penobscot Building and has room for 400 consultants. Blue Cross Blue Shield of Michigan, another downtown company, is the first client for the initiative.

GalaxE Solutions, Inc. is an IT company based in New Jersey that services clients in health care, e-commerce and retail. Its founder, Timothy M. Bryan told WXYZ-TV that Detroit was a place of ?great opportunity? because it had infrastructure, people and support from the government. He said the difference in costs between Detroit and offshore are closer than ever. The company hopes to retrain unemployed IT professionals to meet its clients? needs. It?s launching a program that it pilot-tested in New Jersey.

GalaxE has opened a development office at 1001 Woodward and hired 20 people. It expects to hire a total of 500 over the next five years.

DEGC helped S3 earn a $3.8 million tax credit from the Michigan Economic Growth Authority, based on a promise of generating 400 new jobs over five years. We also facilitated tax abatements for GalaxE based on its commitment to growing its business here. Both companies work in a knowledge industry - and they know a good opportunity when they see one.

Malinda Jensen

Director, Business Attraction and Retention