Yukon's IT crowd: Territory's tech sector is growing

Yukon is known for its mining industry and bustling tourism sector, but a growing group of entrepreneurs in the territory isbringing a new industry to the forefrontinformation technology (IT).

"The industry is composed of about 600 employees and about 50 companies," said Chris Lane, co-founder of MakeIT, a Yukon-based software development company.

"Thatmakes up about three per cent of [Yukon's]GDP, which is close to the size of tourism."

According to the Yukon government, information, communication and technology accounted for 2.7 per cent of the territory's GDP in 2015.In 2014, tourism accounted for 3.9 per cent.

Lane started his company10 years ago. Since thenithas grown substantially,nowemployingfivetimes as many employees as when it launched.

Lane said some of that growth is becauseof advantages offered by being in Yukon.

"We are in the Pacific timezone, we have great travel out, and our cost structure is relatively low, compared to San Francisco. Also, we don't get the employee turnover that a lot of the really hot tech sectors do."

People just seem to want to live in Yukon, Lane said.

"The neat thing about technology is that you can do it in different locations, and people will do it where they love the quality of life," he said.

Some hurdles to growth

Lane is also the president ofTechYukon, an industry organizationthat fosters and promotes the local IT sector. TechYukon'sexecutive director, Rick Steele, pointsto other jurisdictions where IThas become an integral part of the local economy.

"We can look at the Vancouver and B.C.area as an example," Steele said."Their IT sector is on par with mining, with forestry, and is more than tourism."

Part of TechYukon's strategic plan is to get the Yukon industry to double itsGDP contribution in the next fiveto 10 years.

Steele believes it's anachievable goal, but there are some hurdles.

"There are the infrastructure needs that have to be in place," he said."It's really hard to grow an IT sector when you lose internet connectivity for hours or days at a time."

Along with investingin infrastructure, Steele says, it is important forthe Yukon government to continue to uselocal businesses for itsIT needs. He says thatprovidesa stable base income, and allowslocalcompanies to expand their workforce.

The Yukon government appears to be on the same page as industry advocates.

"In terms of economic development and growth, small businesses tend to be the catalysts to generate net new jobs," said Steve SorochanfromYukon's department of economic development.

"Specifically, in regards to tech and companies that have a large tech component to them, the whole idea of economic diversificationand not being dependent on mineral pricescreates a healthier economy," he said.