There are 13 Companies in Canada
that provide Due Diligence Services!

There are over 43,200 companies in the Canadian Information and Communications Technologies (ICT) sector. The large majority (over 39,000) fall within the software and computer services industries.

The ICT sector consists mainly of small companies, with approximately 37,500 of them employing fewer than 10 people. The number of large companies employing over 500 individuals accounts for approximately 105 firms, including subsidiaries of foreign multinational corporations.

In a more industry-narrow way, the Canadian advertising and marketing industry is growing based on international awareness of creativity and the multicultural population. The progressive approaches are resonating with both US and globally-based companies - Mark Tharme from Muse Marketing says.

Why you should work with Canadian IT companies

Canada has found itself in a favorable position compared to other countries that have a well-developed IT infrastructure. Web & IT agencies have a fast-developing rate due to facilitating policies and attract more young professionals than any other country in the region. 

Additionally, IT companies in Canada provide a full-service range with a considerably lower price than in the U.S. and offering in exchange excellent execution, fair customer experience, and professional project management. 

From another perspective working with Canadian IT companies could bring added value in terms of security. In uncertain times, both politically and economically, working with IT companies in Canada reduces technology risk.

What you should be aware of when working with Canadian IT Companies

The Canadians started to focus on developing their IT industry in 2012, which mainly reveals a lack of consistent experience in the web & software industry. Since almost all IT companies in Canada are small - with less than 10 people, the industry is in the full development process and most of the agencies are not ready yet to take big projects. 

At the same time, Canadian companies pay a living wage and our standard of living is higher than many other countries. As a result, expect the cost for services to be somewhat higher than in emerging economies.

Are Canadian web companies reliable?

Along with the workforce, Canada attracts an increasing number of companies from around the world, and many of them find the place comfortable and suitable for growing a business in the IT industry. Only in 2019 more than 7,000 IT startups were registered in Canada according to VisaPlace. Small companies in the Canadian IT industry are new entries and don’t have a global reputation compared to tech giants that relocated or opened new offices in Canada. Nonetheless, you cannot name small Canadian IT companies not reliable, as they all obey to the same principles and rules as the bigger ones. 

How the Canadian IT industry compares to the neighboring countries

With the leading US on the continent and probably globally, Canada started to get more attention from the market as being a healthy alternative to what the US has to offer. This refers both to skilled developers & web designers and as well as clients. Due to the market accessibility and developed IT infrastructure, Canada has its own advantages towards the US, like prices and availability, but it’s still behind the U.S in terms of competitiveness 

Overall, Canada is a promising destination for IT companies and a good option for web projects with a growing number of IT centers. The Toronto - Kitchener - Waterloo IT area registered good progress both in training and hiring new talents that compete even with the US Silicon Valey. 

What Makes Canada Attractive for IT Companies?

Canada is attractive because the society embraces a global mindset, which is natural due to the multicultural population, both in the industry and in the general population. Historically, the Canadian design and advertising industry was built on American, European, and Japanese cultural influences. Today, the country benefits from influences from all over the world.

At the same time, Amanda Nelson from The Art Of Business mentions that Canada has found itself in a favorable position compared to other countries that have well-developed IT infrastructure. Web & IT agencies have a fast-developing rate due to facilitating policies and attracting more.

How Does the Canadian Government Support The Local IT Sector?

Federally, the Canadian government is providing access to capital through grant programs, including digital transformation grants for businesses, which is in turn creating opportunities for digital marketing and IT firms as service providers. 

Alberta and Ontario - The Best Canadian Territories/Provinces For IT

Out of 10 Territories and Provinces Canada is divided, there are 2 worth mentioning - Alberta and Ontario with Calgary and Toronto as the main tech hubs. 

The Toronto/Hamilton business corridor (known as the GTHA) is growing rapidly, both in population and as an international business centre. It already has the highest-density population in Canada and is projected to grow significantly by 2050. With close proximity to Northeastern US markets, high awareness of the city of Toronto as an international destination, and an excellent culture of creativity across all disciplines, this area is well positioned for growth. Immigration policies are also favorable for companies seeking a location in North America.

In addition, according to Ty Mikitka from Vertical Motion Inc, in recent years, Calgary, Alberta, has made growing strides to become a recognized Western Canadian technology hub thanks to the influx of large technology companies. Notable organizations, including Unity Technologies, Infosys, Test Driven Solutions, RBC Innovation Hub, and Amazon Web Services (Late 2023-Early 2024), now call Calgary home, creating thousands of IT jobs for local Canadians.

"Canadian IT Talent Pool is Good to Excellent"

When talking about the Canadian talent pool, Mark Tharme appreciated the local talent pool as good to excellent. He thinks that IT and communications-related education is available at all levels: colleges, universities and private schools offer courses in a wide range of information technology disciplines. Students have opportunities to do work placements, coops, and internships with many well-regarded companies while studying or upon graduation from a recognized program.

Plan to Open a New IT Business in Canada? Focus on New Technologies!

Local tech leaders also mention that there is enough room on the market for new, innovative companies. However, most of the opportunities are especially in new and emerging technology areas, including AI, cyber security, and data management. Canadian companies are "punching above their weight" in many of these areas. Another sector good to explore is security. As Justin Harney from LionEater, the country is in need of IT security leadership. 

As for how easy is to open a business in Canada, Jeffrey Miles from Jeff Social Marketing mentions that It’s simple to open a business in Canada. The first step is to apply for a business license.

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This article was created together with professionals coming from reputable Canadian IT companies. Special credits: Jeffrey Miles, Mark Tharme, Justin Harne, Ty Mikitka, Amanda Nelson

Due diligence services are like thorough investigations that help businesses make informed decisions. They assess risks and opportunities when entering into partnerships, acquisitions, or other critical business transactions.

Many IT companies offer due diligence services, specializing in analyzing technology, data security, and compliance aspects of potential business ventures. Notable IT companies providing due diligence services include Deloitte, KPMG, and Ernst & Young (EY).

Due diligence service providers use a combination of tools and technologies to assess various aspects of a business. These may include data analytics platforms, cybersecurity tools, compliance management software, and financial modeling software. They also leverage document management systems and communication tools for efficient collaboration during due diligence processes.

Due diligence and audit services share similarities in their examination of the financial and operational aspects of a business. However, they differ in scope and purpose. Due diligence is typically conducted before entering into a business transaction to evaluate the potential risks and rewards. In contrast, audit services are often part of ongoing financial reporting and compliance requirements within a business.

Due diligence services are closely related to other advisory and consulting services, including:

• Financial Advisory: Providing financial insights and recommendations.

• Cybersecurity Assessment: Evaluating a company's cybersecurity posture.

• Mergers and Acquisitions (M&A) Consulting: Assisting in the strategic aspects of M&A transactions.

• Compliance Consulting: Ensuring adherence to industry regulations and standards.

Selecting the best IT company for due diligence services requires evaluating their expertise, industry knowledge, track record, and the comprehensiveness of their due diligence process. Seek providers who can tailor their services to your specific industry and transaction type.

Due diligence service providers are essential for various projects, including:

• Mergers and Acquisitions: Evaluating the financial health and potential risks of target companies.

• Investment Assessments: Analyzing potential investments in startups or new ventures.

• Partnership Agreements: Assessing the suitability and risks of partnering with another organization.

• Regulatory Compliance: Ensuring adherence to data protection and industry-specific regulations.

Conducting due diligence is essential for businesses of all sizes and industries. Some examples include private equity firms, which need to assess potential investments and portfolio companies; startups, which must evaluate the feasibility and risks of new business ventures; large corporations, which conduct due diligence on acquisitions and strategic partnerships; and financial institutions, who ensure compliance and risk management in lending and investments.

The cost of due diligence services can vary significantly based on the scope and complexity of the project. Factors such as the size of the target company, industry regulations, and the depth of analysis required influence the price. In the US, costs can range from a few thousand dollars to millions for complex M&A transactions. UK and Australian costs can be similar but may also vary depending on regional factors and the specific nature of the project. It's advisable to obtain quotes and assess the value provided by service providers before proceeding with due diligence.