Newgen Software, based in New Delhi, India, is a global provider of business process management (BPM), enterprise content management (ECM) and customer communication management (CCM) solutions. However, in order to strengthen its presence in North America, Newgen Software required a strategic location that would allow growth on a larger scale.

With financial services being their primary target market, it was important to choose a location that had both a vibrant financial sector and access to a strong, diverse talent pool. In addition, the business environment would need to be conducive to establishing partnerships with innovative organizations. Of course, low business costs and taxes would also be a factor in the equation.

With these considerations in mind, Newgen chose Toronto, Ontario - Canada's leading financial hub and one with a highly skilled, forward thinking and dynamic workforce. The advantages of establishing its headquarters in Ontario allowed Newgen Software to move forward rapidly on the innovation front while generating revenue at a much faster pace.

The Challenge

In choosing a location, certain stringent conditions had to be met. Firstly, Newgen had to be close to their main target market, the financial services sector. They also needed access to a deep, highly skilled talent pool that was ready to sell and support its sophisticated software platforms. And like most leading technology companies, Newgen realized that the ability to foster key relationships and partnerships with like-minded organizations was integral to success.

Background

Newgen Software has a successful track record over the last two decades, and they have partnered with some of the world's leading banks, insurance firms, governments, health organizations, telecom companies and shared services centres. The company's BRM, ECM and CCM products are breakthrough technologies, allowing businesses to achieve successful business results.

The Solution

Newgen Software set up its Ontario office in 2013 in Toronto and officially entered into a strategic partnership with HP Canada where they will jointly offer solutions for businesses and also explore new and emerging business opportunities in the market. The main focus of the partnership will be to target financial services and institutions, primarily credit unions.

"We opened our office in Ontario to enter the Canadian market for our ECM and BPM based solutions," says Sameer Kundu, Head of International Business for Newgen Software. "We chose Ontario for the simple reason that we are focusing on the financial services market which is primarily around Toronto."

He adds, "Locally we want to set up a service and support centre for our partners and clients in Canada. In the long run we also want to support our partners and customers in the United States from this centre."

"I highly recommend that companies who are targeting the financial services market to definitely base themselves in Ontario. The business environment for foreign companies is very congenial here and the province has a great talent pool available," says Kundu.

Since opening its office, the company has also secured its first project from a municipal government in Ontario. The project will implement Newgen's BPM, ECM and CCM solutions.

Why Ontario?

Ontario's IT sector accounted for approximately $30.5 billion of Ontario's GDP in 2012, representing about 45% of total Canadian IT GDP and about 5.3% of total overall Ontario GDP.

With the province's 44 universities and colleges producing more than 35,000 skilled graduates in science, technology, engineering and mathematics each year, the talent pool is deep and wide.

Canada's financial services sector spent more than $8 billion on IT in 2012. That number is expected to grow to more than $10 billion by 2015. That growth is creating huge opportunities for financial technology companies, particularly those with offices in Ontario. When it comes to Canadian financial services, Toronto is where key technology decisions are made.

Thanks to the spirit of innovation that Ontario promotes, companies like Newgen have many doors open for growth.

"We are anticipating a steep rise in business to happen as the opportunities are immense," says Kundu.

This statement is no exaggeration. By investing in Ontario, you will have access to the $20-trillion NAFTA market and be a single day's drive away from 141 million consumers located in such thriving financial centres as New York and Boston.

"The setting up of our Canadian headquarters is another step towards strengthening our presence in the North American region," says Diwakar Nigam, MD and CEO of Newgen Software. "Our partnership with HP Canada is a unique opportunity and will help both companies offer best of breed solutions to their respective customers in the region."

Ontario is diverse, safe, affordable, and has welcoming communities. More than 40% of Canada's population lives in Ontario with over 685,000 people fluent in the major languages of India. With premium access to key target markets, an environment of innovation, and access to a diverse and skilled talent pool, Ontario met all of Newgen's criteria and more.

January 20, 2015

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