Ireland as a Digital Economy- Why the Tech Industry Chooses Ireland

 Hello all and welcome to this weeks blog post!

According to Enterprise Ireland(2023), Ireland is the second biggest exporter of IT services, home to 16 of the top 20 global tech companies,  employing over 106,000 employees (IDA Ireland, 2023).There is an abundance of reasons for Irelands success in this industry, examples of which I will briefly describe below.

Broad Talent Bank

The population of Ireland is extremely well educated and talenedt, ranking 14th in the IMD World Talent Ranking. 62.3% of Irish citizens aged 23-34 have a college degree, making young Irish adults extremely attractive.

Low Tax

Low tax in Ireland is extremely attractive to tech companies. Corporation Tax throughout the OECD is an average of 21.5% according to the Tax Foundation, however Ireland have just 12.5%, giving the country a competitive advantage over fellow EU countries.

EU Membership

Ireland's location is ideal for multinationals. Ireland's EU membership gives companies ree trade throughout EU countries. It also gives companies protection from external competition from foreign markets.

Access to the United Kingdom

Multinationals who choose Ireland gain easier access to the UK market compared to other EU countries thanks to the Northern Ireland Agreement.

Language

Since the exit of the United Kingdom from the EU, Ireland is now the only English-Speaking country in the EU. As a result, Ireland has become extremely attractive to companies from English speaking countries, particularly the US, now homing American tech companies such as Google, Apple, Microsoft and Amazon.

Irelands Economy

Ireland’s economy is stable, with the CSO reporting a 12.2% GDP growth aiding in it's high number of exports. Multinationals in industries such as tech are very successful in Ireland, with IDA Ireland reporting that 72% of the national exports in 2020 in Ireland came from multinationals.

Funding for Start-ups

Ireland provides a great start-up environment for businesses. Some attractive examples of this include the local enterprise offices offering direct financial support and training to businesses, and Enterprise Ireland who invest in over 70 high potential companies ever year, providing training, development support and funding.

Government R&D Investment

The Irish government invests heavily in research and development, with the government allocating €869m in 2020 to it. This investment is made to test new technologies and create more jobs. R&D programmes such as the Small Business Innovation Programme is definitely attracting to businesses looking to set up in a new country.

Working Culture

There is a very attractive work culture in Ireland. The Irish workforce are extremely educated and thrive to rise in their workplace. Businesses tend to be quite efficient due to a positive work life balance. An average week in Ireland consists of a maximum of 48 hours work, with 4 weeks paid annual leave. Informal workplaces ensure that employees are in the perfect environment to feel comfortable and thrive.

Infrastructure

Ireland's commitment to the growth of it's infrastructure is a vital reason why multinationals choose here. The National Development plan commit to €165m spending in infrastructure projects. Sustainable energy is of huge importance to the Irish Economy, with hopes to have a 50% reduction in emissions by 2030 according to IDA Ireland.

 

As you can see above, Ireland has many reasons for being a great country for multinationals to set up in, with companies such as Dell, Salesforce, Microsoft and Intel proving this.

 

I really hope you enjoyed this weeks post and if you have any questions for me please leave a comment below!

Introduction- Who am I

 A Brief Introduction

My name is Claire O'Brien and I am currently a student at SETU Waterford Campus. I am in my final year of study for a level 8 Bachelor of Business Honours Degree in which I have chosen to specialise in Economics and Finance. As part of the Digital Economy module, I am required to produce a weekly blog detailing the content that is covered in the module throughout the week and what I have learned, as well as any further knowledge that I gain around the topic through further learning outside of lectures.

The Use of Information Systems During Work Placement

Three weeks ago I completed an eight month work placement opportunity in my chosen field as part of my degree. For the past eight months I have had the incredible opportunity of working in CSC Global Financial Markets on their fund accounting team. Technology and information systems play a huge part in the day-to-day running of the business here. CSC offer a hybrid work opportunity meaning that they rely heavily of Microsoft Teams to keep communication between all team members. Microsoft Outlook is also used by all members of the company throughout the world, keeping a constant line of communication between all teams at CSC.

Information systems are also used by CSC to meet daily/weekly/monthly/yearly deliverables in the most efficient manner. CSC use the accounting system Paxus to upload information such as third party prices for securities, fx rates, dividends, expenses accrued, GL entries, corporate actions etc. This accounting system then uses all of the information gathered in order to produce a NAV figure for the fund. Paxus is also used to run many reports that are needed by clients as well as stored for future audits. Many other forms of information systems are used by CSC such as Box and KYCP, all aiding them in producing the most efficient and effective service possible to their clients.

I really enjoyed my time at CSC and if you would like to find out more about the company you can access their website through the link below:

https://www.cscgfm.com/