City Introduction • Boise is the capital of Idaho state • It is also Idaho’s largest city and the center of commerce and politics for the state1

Quick facts
Geographic Location Time Zone Boise is situated in a wide river valley at the foot of Rocky mountains, and can be reached from Seattle by air in about an hour and 30 minutes GMT -0700 Climate is tempered year-round by air from the Pacific Ocean, with three seasons: summer, autumn and winter. The annual average temperature is 10.5 degrees Celsius. The average annual rainfall is 30.7 cm and annual average snowfall is 54.1 cm 567,640 99 percent English Defense equipment manufacturing and related services, Forestry, Computer components / systems, Tourism

Key drivers for the city to emerge as a favorable IT-BPO destination
• Boise has a number of reputed education institutions, including the Boise State University that produce a technical talent pool • An incentive system and easy funding has promoted a large number of start-ups in Boise. This has helped create a culture of enterpreneurship and an injection of talent and ideas into the city • Kiplinger Personal Finance magazine named the city of Boise as the fourth best city in the country to “Live, Work and Play” for 20082 • Companies locating in Boise have the benefit of onshore operations combined with a lower cost of living compared with other cities in the US3.


Population1 Literacy rate2 Languages Major industries

1 CIA 2006 2 CIA data for U.S. (literacy rates by city are not available)

Current IT-BPO scenario in the city
Key IT-BPO companies (Services offered)
Hewlett Packard (IT services)

Development of the current IT-BPO industry • Boise’s high tech4 industry started in the 1970s with companies like Hewlett Packard and Micron Technology setting up base in the city • The city plans to take advantage of the onshore trend taking place in the US now

Microsoft (IT services)

• Boise is building its software industry by encouraging start-ups and entrepreneurship • Microsoft acquired a local software development firm, ProClarity in 2006.

SCP Global Technologies (BPO services)

MobileDataforce (IT services – mobile software) Keynetics Inc. (R&D services)

Industry Profile – Size and Specifics • There are close to 34,081 high tech workers employed in Boise’s industry5 • The city is characterized by small and medium enterprises. According to the Idaho Department of Commerce, the Boise area has around 400 software and informationtechnology companies6 • Services offered from Boise include embedded software and firmware development.

Synoptek (IT services)

Sources: Company websites of Microsoft, Synoptek, Boise Valley Economic Partnership

1 City of Boise website 2 City of Boise News Release These rankings are based on growth in population, jobs and income; overall cost of living and the number of quality jobs in technology, education, and professional and technical services 3

4 High-tech includes high-tech manufacturing, communications services, and software and computer-related services 5 Boise, Idaho: An Overview of the High-Technology Economy in the Treasure Valley. White Paper written by Heike Mayer, Ph.D., Assistant Professor, Urban Affairs and Planning Program, Virginia Tech - Alexandria Center (February 2008) 6 Idaho Department of Commerce

© 2010 KPMG International Cooperative ("KPMG International"), a Swiss entity. Member firms of the KPMG network of independent firms are affiliated with KPMG International. KPMG International provides no client services. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties, nor does KPMG International have any such authority to obligate or bind any member firm. All rights reserved.

and space for training and meetings3.0. of office space in Boise and the city has a vacancy rate of 9 percent4 • Power supply: Idaho Power. "Butch" Otter. City taxis. and would need to add 1300MW to meet "current" demand3. . additional cubicle space for more than 15 people. Chicago. including international hotel chains. if any6 • Businesses that invest a minimum of USD 500. Being a valley ise_voice_and_data/index. Idaho’s crime rate is the lowest in the West. expected to be added after 20123 • Telecom Infrastructure: Time Warner Telecom (now TW Telecom) provides complete voice.estech. Average commuting time is about 18 minutes6 • Availability of Hotels: There are several hotels. Los Angeles and San Francisco.New jobs tax credit starting at USD 1. a business development center.html 6 Starting A Business In Idaho Publication 2007 .000 in new facilities and create at least 10 new jobs averaging USD 40. The rate of serious crime is 21.5 percent of tax liability in any 1 year . no longer has a power surplus.redorbit. Boise faces a problem of winter percent real property improvement tax credit up to USD 125. with nearly 100 route miles of local fiber network in the city of Boise5 • National and International connectivity: Boise has several direct air connections to cities such as Denver. KPMG International provides no client services. the company that supplies electricity to Boise. Seattle. Phoenix. which can also be booked online. Infrastructure • Office space (IT Parks): There is 1.000 or million sq. nor does KPMG International have any such authority to obligate or bind any member firm. The WaterCooler has room for eight small businesses.2008 by Idaho Department of Commerce C.A 2. Governor 7 Visit Idaho website http://www.Human Resources • The city is home to institutions such as BSU College of Engineering.500 and climbing to USD 3.Upon request from the company. The city’s airport has been newly renovated • Upcoming projects: Boise WaterCooler. No member firm has any authority to obligate or bind KPMG International or any other member firm vis-à-vis third parties. 1 http://www.html 2 Kiplinger Personal Finance magazine http://www.aspx 8 The term “wildfire” is used for uncontrolled fire that destroys forests and many other types of vegetation. as well as animal species 9 Fox News article (25 August 2008) © 2010 KPMG International Cooperative ("KPMG International").L. . and motels available in Boise. are available in Boise for local commuting.75 percent up to USD 750. a wildfire destroyed 10 houses and damaged nine others in Southeast Boise9. In 2007 the BSU graduated just 28 students with computer-science 3 Idaho Statesman article 4 Office Market Trends Boise – Grubb and Ellis Research 2008 5 Red Orbit news article http://www. a Swiss entity. the respective county commissioners may also authorize a full or partial property tax exemption. is being set up to provide office space and offer support services to start-up businesses. Quality of life • Cost of living: The 2008 cost of living index in Boise is 89. data and network solutions. which is less than the US average taken at 1001 • Crime rate: According to FBI statistics.3 percent less than the national average7 • Pollution levels: Pollution levels can be high.mts. All rights reserved.visitidaho. may qualify for a variety of incentives.000 per job . State/ city specific incentives for IT-BPO over and above country level incentives. Qualifying companies receive: .An enhanced Investment Tax Credit of 3. plus benefits.000 in any 1 year along with a 25 percent rebate on sales tax paid on construction materials for the new facilities . ITT Technical Institute1 • Boise has a higher rate of number of students graduating (37 percent) compared to the national average of 27 percent2 • The total number of graduates passing out annually out of the Boise State University is about 6. The city however faces a talent shortage. which leads to pollution and smog being trapped close to the ground • Ease of commuting: ValleyRide provides regional public transport and fixed-line bus service in Boise. Member firms of the KPMG network of independent firms are affiliated with KPMG International. Risk: City specific • Catastrophic risks: The city of Boise is exposed to wildfire8 risks as it is located close to the Boise National Forest • History of disruptions: In August 2008.