Financial services giant Deutsche Bank plans to more than double the size of its software development center in Cary by adding 431 jobs by the end of 2016.
State officials announced Thursday that the expansion planned by the German company’s DB Global Technology Inc. subsidiary, which also includes an investment of $13.5 million, will entitle it to up to $5.6 million in incentives if it meets investment and job-creation milestones.
Deutsche Bank decided in 2009 to locate its global technology center in Cary. Today the center has 250 workers that develop and test software that the company can use at its sites around the world for functions such as trading, managing orders and processing transactions.
John Eagleson, chief operating officer of the center in Cary, praised the region’s “very broad and deep, experienced pool of technical labor.” A further plus, he added, is that Deutsche Bank has found that the region “is very attractive to out-of-area candidates.”
Eagleson said that Cary’s prime competition for the expansion was Jacksonville, Fla., where Deutsche Bank also has operations.
The key driver for the expansion, he said, “is that our business is becoming increasingly dependent on technology. So we are increasing our focus on the skills we have and the capabilities we have to deliver that.”
The average annual salary of the new hires is expected to be $89,227, said Joshua Ellis, a spokesman for the state Department of Commerce. That’s nearly double the average Wake County wage of $48,024.
That level of salary provides “an opportunity for people who are under-employed to step up and get better-paying jobs,” said Sandy Jordan, vice president of economic development for the Cary Chamber of Commerce.
Ken Atkins, executive director of Wake County Economic Development, said that workers making those salaries have significant disposable income that can ripple throughout the local economy.
“You’re going to see it in the housing market,” he said. “You’re going to see it in the automobile market.”
Deutsche Bank received a state incentives grant worth up to $9.4 million when it chose to establish its then-new subsidiary in Cary.
Thus far the company has received $569,678 from that grant, according to the Commerce Department. Its second round of incentives won’t kick in until the company has exhausted the funds it is entitled to under the first round.
Deutsche Bank hasn’t yet met its first-round target of 319 jobs but expects to hit that level by adding at least 69 employees by the end of the year, Eagleson said.
“We are actively hiring today, quite actively,” he said.
Positions that the company currently is seeking to fill include software developers, software architects, business analysts and quality assurance analysts.
In the past decade, a number of financial services companies and related businesses have established major presences in the Triangle, with an emphasis on technology operations. Credit Suisse started the ball rolling in 2004 by relocating a substantial portion of its operations to the region, followed by Fidelity Investments and Deutsche Bank, among others.
Earlier this month, Evalueserve, a research and analytics company, said it would create 400 jobs at a center in Wake County that will focus on data analytics and financial services research.
In April, Ipreo Holdings, a New York firm that provides market intelligence and technology to investment banks and others, announced plans for a downtown Raleigh office that is expected to hire 250 workers by the end of 2017. And MetLife announced in March that it would establish a hub for its global technology and operations unit in Cary that is expected to hire 1,300 workers.
Thursday’s announcement “just underscores the fact that this is just one of the best places in the whole world to put your operation when you are in the kind of business that Deutsche Bank’s in,” Atkins said.