Analysis: IT Strengths and Weaknesses

Information Technology in Ireland

Analysis: IT Strengths and Weaknesses

In analyzing the strengths and weaknesses of the IT environment in Ireland, the following key
factors, and issues were discovered:

Strengths:

English speaking population (English is still the lingua franca of IT and global marketing)
Well-Educated populace
Government support of IT initiatives
Excellent communications network
EU member state unaffected by many of the onerous wage and labor issues facing employers on the Continent
Academic awareness of IT possibilities (major focus on technical training)
Beneficiary of concentration effect (many tech firms are locating in/relocating to/forming in Ireland)
Capital available for start up ventures
In-migration of expatriated professionals

Weaknesses:

Relatively small population/corresponding small domestic market
Subject to EU foot dragging on e-commerce issues (privacy, taxation, consumer protection, etc.)
Lack of domestic funding to fuel growth

Opportunities:

As the EU member nations argue among themselves, Ireland has the opportunity to exploit first mover advantages with respect to its national strategy of attaining world significance in the technology and high-tech arenas.
Unprecedented growth in the U.S. economy has generated abundant venture capital chasing too few quality high-tech and Internet-related investment opportunities. Ease of cultural exchange allows Irish entrepreneurs better access to these funds than might be available to non-English speaking business people.

Threats:

England, Germany, France, Scotland, United States, Netherlands, Finland...
Danger of global perception as a high-tech outsourcing destination, rather than as a hub of entrepreneurial activity and innovation
Danger that the EU will "shoot itself in the foot" vis a vis e-commerce--if the EU legislates slow- or no-growth consumer protection laws as a trade sanction against the U.S., Ireland may be unable to avoid compliance.

As a whole, Ireland is the place to be. The government had a significant investment into establishing the necessary infrastructure needed for Ireland to become a world player in all information technology arenas. Ireland has been able to capitalize on the availability of a well-educated population that speaks English as well as other continental languages to become the leading location for call centers in a global marketplace. Additionally, the geographic location of Ireland provides them the opportunity to capitalize on both European markets and North America, and combined with the favorable treatment given to companies in Ireland in the form of low tax obligations, is cementing Ireland's position as the best place for information technology growth.

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Last update: December 17, 1999 by ED/MM.