The nonprofit tech training hub Xchange Chicago officially launched on Monday in its new space in Greater Grand Crossing.
The $20 million building at 7247 S. Chicago Ave. spans 28,000 square feet and will house Xchange’s training program, as well as commercial tenants.
“Xchange has already created dynamic career pathways and economic opportunities for more than 50 South Side residents in just over a year,” Mayor Brandon Johnson said at Monday’s opening ceremony.
Training and support from Xchange’s partners “are helping to build a stronger Chicago and paving the way for thousands of life-changing technology jobs here on the South Side,” Johnson said.
Xchange’s partners include the Comer Science and Education Foundation, tech nonprofit P33, IT services firm SDI Presence and community groups. The Comer Education Campus sits across from Xchange.
Xchange seeks to train people in IT skills, place them in jobs and revitalize underresourced communities on the South Side. In 18 months since the initiative started, it has trained and placed 55 apprentices in jobs with SDI. Next year, Xchange aims to train 100 apprentices at the new center.
Other partners that could provide future employment for Xchange graduates include Peoples Gas, insurer Aon, financial services firm Northern Trust, health data company MRO and the city of Chicago.
Artificial intelligence is not eliminating IT jobs, said Hardik Bhatt, CEO of SDI Presence, which is headquartered in the Loop. In fact, Xchange’s training helps people use AI in tech roles. Companies might be cutting middle management positions, but for IT “you still need hands on the keyboard,” he said.
Skills most in demand include software development, cybersecurity, infrastructure management and business analysis, Bhatt said.
SDI is also the hub’s anchor tenant with a 10-year lease in the new building. About 25 SDI employees, who provide call center services for the city of Chicago, started working at the space this month.
Other commercial tenants leasing space in Xchange include the United Way of Metro Chicago and CMB Catering.
Xchange has seen “great support from Chicago’s corporate sector,” Bhatt said. “Everyone wants to be doing this — bringing jobs back, putting them in the South Side of Chicago.”
Federal funding for Xchange from the Good Jobs grant ended, but philanthropies and the private sector have stepped up to fill the gap.
The federal government and the city of Chicago have different priorities on many issues, but both want to create jobs in the U.S., Bhatt said. “When it comes to hiring in America, both are on the same page.”
This summer, Xchange won a $500,000 prize sponsored by the Walton Family Foundation and the Siegel Family Endowment. In 2023, the hub received a $5 million grant from the city of Chicago to help build the new facility.
Xchange trainees range in age from 18 to 55. Its 8- to 18-week program focuses on residents of South Side neighborhoods. They include South Shore, Chatham, Englewood, Woodlawn, greater Auburn Gresham, Greater Grand Crossing, Avalon Park and Washington Park.
There is “huge demand” for Xchange’s training program, Bhatt said. More than 400 people are on its waitlist.
Before enrolling in Xchange, people made $15,000 to $30,000 per year in jobs such as retail and childcare, Bhatt said. After the program, graduates placed with SDI earn annual salaries of approximately $50,000 to $70,000, as well as full benefits.
Brad Henderson, CEO of P33, said in a news release on Monday, “We are opening up real, life-changing opportunities in technology fields from AI to cloud computing and cybersecurity for residents, and at the same time bringing millions of dollars in overseas IT investment back to the U.S. and Chicago.”
