What are the current issues affecting this sector?
What changes are anticipated over the next 5 years
Do you have any statistics relevant to the sector?
Are there any areas in your sector currently experiencing skills shortages?
Please give an overview of your sector?
Ireland has evolved into one of the world's most important centres for high-tech businesses. The technology sector, or as it is sometimes referred to as the ICT Sector (Information, Communications & Technology) is a key sector of the Irish economy accounting for more than a third of Ireland’s total exports.
This is particularly significant given the high reliance of Ireland on exports, where 84% of our goods are exported. Within the technology sector there is an enormous variety of activities, ranging from developing hardware and devices, operating systems and software to providing consultancy and services, systems integration, outsourcing, data supply and storage.
As well as high tech activities many technology companies are involved in other business activities such as marketing and sales, e-business and supply chain management.
What is the size and scope of the sector?
The ICT sector in Ireland is a thriving and growing industry with 9 of the top 10 global ICT companies maintaining a presence in Ireland. The economic contribution of the sector is substantial with the ICT industry currently responsible for approximately 25% of Ireland’s total turnover, representing one third of Ireland’s exports by value.
The ICT sector is one of the countries most prevalent employers and according to the CSO, in 2010, an average of 74,000 people were employed by ICT companies in Ireland. In the ten month period between January and October 2010, 2,500 new jobs were announced in the ICT sector. This was on foot of a net employment growth rate of 6%.
The sector is also currently amongst the top three Irish growth industries, with both indigenous and international companies creating large bases in the country.
What are the current issues affecting this sector?
One of the most pressing issues affecting the ICT sector in Ireland is the provision of an appropriately educated workforce. The requirement for skilled labour has been recognised at European level with the recent creation of the European Digital Agenda, which focuses on improvement in digital literacy and the implementation of long-term e-skills policies.
In order to meet the needs of the ICT industry in Ireland, both at present and in the future, recent policy innovations have focused on providing a highly skilled workforce. At present the Irish government and relevant authorities are working on delivering the ‘Smart Economy’.
Of huge importance to this is the growing requirement and provision of a workforce with degrees in STEM disciplines (Science, Technology, Engineering and Maths). It is with this in mind that the Irish University’s Association has recently accepted the proposal championed by ICT Ireland to award bonus points to students taking higher level maths examinations. In addition to bonus points for maths, Project Maths, an innovative new project created to emphasise the application of maths, has also been rolled out. The aim of the project is to increase the numbers of those taking honours level mathematics exams at Leaving certificate level from 17% to 30%.
The awarding of bonus points for maths, in association with the ongoing rolling out of the Project Maths initiative, is a hugely important part of delivering the Smart Economy and is of great importance for the on-going development of ICT companies in Ireland and for the provision of their future workforce
What changes are anticipated over the next 5 years
As Ireland continues the transition into a leading 21st century knowledge based economy, the Irish Government recognises that information technology represents the engine of future growth in the global economy.
Far reaching research in numerous disciplines continues to transform the potential of information and communications technologies. Fields that have already contributed to the technology sector's evolution include the fundamental sciences, the engineering of complex systems and software, low-cost manufacturing technologies, and end-user applications. It is clear, though, that fields only now emerging will also soon be shaping the technology of the future, as can be seen in the development of cloud computing technologies.
The Irish Government has put a new emphasis on science and technology, especially the kind that can benefit the rest of the economy. The Government's vision and confidence in the technology sector can be seen by the establishment in 2000 of a Technology Foresight Fund, with a budget of €646 million. Today, the budget allocated to scientific research is over €8.2 billion, with a specific body, Science Foundation Ireland (SFI), created to attract and invest in scientific talent for Ireland, by funding centres for specific area of research in engineering and technology. SFI believes that the advancement of Information, Communications and Technology will depend upon researchers being able to push the bounds of knowledge, including bridging traditional disciplines.
One of the important facets of the industrial landscape in 2020 will be the prevalence of these new emerging technologies, which are expected to dominate the markets. In an open economy such as Ireland these changes will have greater impact than in countries. It is important that the skill base of tomorrow are aware of this and that we ensure that those in both the workplace and society as a whole will have the skills to take advantage of the changes which these advances will bring.
Do you have any statistics relevant to the sector?
9/10 global ICT companies maintain a presence in Ireland.
All of the top 5 software companies have a significant presence in Ireland
4/5 top semiconductor firms and 4/5 top technology hardware companies have a significant presence in Ireland.
The total number of ICT enterprises in Ireland is approx. 5,400, 233 of these are foreign owned ICT companies
The ICT industry is currently responsible for approx 25% of Ireland’s total turnover, representing one third of Ireland’s exports by value.
According to the CSO's 2010 employment figures, over 74,000 people are employed in ICT companies in Ireland.
58,500 employees are engaged in ICT services
Employment in foreign owned agency-assisted ICT companies in 2010 was approx 37,000.
In the ten month period between January and October 2010, 2,500 new jobs were announced in the ICT sector. This was on foot of a net employment growth rate of 6%.
The innovation taskforce has estimated that at least 177,000 jobs could be created by 2020 if innovation and research and development goals are adhered to.
ICT accounted for €50 billion of Irish exports in 2009. This figure is set to grow as companies take advantage of our competitive corporation tax and knowledge based economy.
In 2010 over €72 million was spent on the ICT in the schools initiative
According to the Economic Forum’s Global Competitiveness Index for 2009-2010 Ireland was rated 21/133 countries for company spending on R&D
The value of exports from indigenous agency-assisted software companies has reached nearly €1 billion. The sector employs 12,500 people in computer programming, consultancy and related activities. .
Are there any areas in your sector currently experiencing skills shortages?
At present there is a significant skills shortage in a variety of ICT areas. The IBEC Education and Skills Survey Report 2010 found that the high-tech manufacturing sector is currently experiencing a 49% gap in 'technical skills' and a 47% gap in 'other engineering skills'.
There are also significant skills shortages in the area of IT project managerment as well as ICT professionals with business managment skills. In addition, there is an ongoing requirement of ICT professionals with foreign language skills.
However, recent studies show that there is an increase in the number undertaking training with the ICT sector. Most recent statistics show that the number of students starting computer/software courses has increased by 32% since late 2007 while the numbers starting electrical engineering courses have increased by 21% since late 2007.
