Information and communications technology to Ireland

(Last updated: 12 Jul 2007)

Trends and opportunities

The market

As a consequence of long-term government policy, Ireland has one of the highest concentrations of information and communications technology (ICT) activity and employment in the world, with a larger proportion of high technology industries in its manufacturing exports than anywhere else.

Ireland’s ICT sector:

• Employs over 100,000 people
• Comprises over 1300 companies
• Includes 300 overseas companies that are responsible for two-thirds of the sector’s total employment
• Has a turnover of approximately A$80 billion per year
• Accounts for over 10 per cent of Ireland’s gross domestic product (the European Union - EU average is five per cent)

The majority of world’s leading ICT companies have a substantial base in Ireland including Microsoft, Intel, Google, Dell, IBM, and Hewlett-Packard.

Software products and services

Ireland is the largest software exporter in the world. The Irish software industry is comprised of over 600 firms employing 19,000 people. Software is one of Ireland's fastest growing business sectors with growth averaging about 15 per cent every two years. Forty per cent of packaged software and 60 per cent of business application software sold in Europe is produced in Ireland.

Hardware

Electronics account for more than one-third of Irish exports. One in three PCs sold in Europe are manufactured in Ireland. Despite its maturity, the Irish computer hardware market continues to grow at an average four per cent annually and with sales of A$2.4 billion. The trend, however, is to relocate assembly operations to lower labour cost countries.

Telecommunications

Ireland has become a telecommunications hub between North America and Europe. The sector in Ireland is extremely buoyant, both in services and equipment. The sector continues to undergo significant change since the Irish Government implemented the EU's liberalisation agenda.

Opportunities

Market opportunities exist for Australian companies with innovative information technology products as Irish service providers, software developers, agents and distributors are currently seeking new products.

Internet access and e-commerce technologies are emerging as key sectors as the Irish Government continues to encourage e-business.

Some key opportunity areas within Ireland’s ICT sector are:

• Telephonic and telegraphic equipment
• Data communications
• Fibre-optics
• E-commerce products and services
• M-commerce products and services
• Cellular telecommunications equipment
• Terminal equipment

Competitive environment

Ireland’s ICT sector is dominated by US and European multinationals, although some Irish companies (especially in telecommunications) are of a global scale. ICT in Ireland attracts significant foreign direct investment (FDI). Nineteen of the top 25 computer firms in the world have manufacturing operations in Ireland.

Indigenous Irish software development companies are numerous but generally small (in terms of the number of employees) by world standards.

As the trend of convergence continues, more companies are focussing on the technology innovation to meet and lead the market. Outsourcing and managed services are seen as a better growth prospect in the IT services market than consulting and development, and companies are moving to orientate their businesses accordingly.

There remains a shortage of qualified ICT professionals in Ireland despite the high number of Irish computer science graduates. In response to this, the government has relaxed immigration procedures for ICT professionals coming from abroad to work in Ireland.

Tariffs, regulations and customs

Ireland is part of the harmonised trade system of the European Union, where Common Customs Tariff (CCT) is applicable to goods from non-EU countries, including Australia.

Certain products can only be sold in Ireland if they conform to the appropriate EU directives and show a CE mark. The CE mark, (although not officially, the CE letters come from the French for European Conformity) communicates that the product is certified as meeting designated EU standards.

It is worth noting, especially for knowledge or database management products, that European standards for data protection are very stringent.

Licenses for telecoms hardware and services in Ireland are issued by the Office of the Director of Telecommunications Regulation. The Value Added Tax (VAT) rate of 21 per cent applies to all telecommunications products irrespective of country of origin. Most duties are ad valorem (per cent), based on the GATT Valuation Code which is approximately the cost, insurance and freight (CIF) value.

Before shipping any goods, Australian suppliers should obtain a written customs duty ruling – known as a Binding Tariff Information (BTI) – from the Ireland Office of the Revenue Commissioners in Dublin as it will stop any conflict over customs or excise duty.

Industry standards

There is a range of standards and conformance requirements in Ireland, depending on the type of ICT equipment. Standards include electromagnetic compatibility, CE marking, and telecommunications conformance for any equipment connecting to a public switching network. The Information and Communications Technologies Standards Board (ICTSB) administers the relevant European standards.

While the supply of all terminal equipment is deregulated, all equipment that is to be directly connected to the public switched network must be approved by the Irish Director of Telecommunications Regulation.

The European Telecommunications Standards Institute can provide specific information on telecommunication product standards.

With the liberalisation of the Irish telecommunications market, there are no restrictions on the provision of telecommunications services.

Licenses to provide telecommunications services are issued by the Ireland Office of the Director of Telecommunications Regulation.

Marketing your products and services

Market entry

The most efficient method to enter Ireland’s ICT market is to form a strategic alliance. This method has the advantages of:

• Providing a local presence and product support
• Enhancing credibility
• Leveraging the market access of the strategic partner
• Access to market intelligence

Alliance partners vary from:

• Wholesale distribution companies for low-value/high-volume products
• Service-oriented systems integrators
• Value added resellers for low-volume/high-value products

There are few barriers to Australian companies registering a company in Ireland, setting up an office or operating in the country. Enterprise Ireland can provide detailed advice on the necessary procedures. Many Australian companies have established a direct presence in Ireland, whether working alone or with an alliance. This has demonstrated commitment to the market to potential customers.

In order to overcome a natural reluctance to deal with new entrants, Australian suppliers should be able to provide:

• Clear articulation of product benefits
• Case studies of implementation
• A working demonstration of the product/service
• Details and commitment to product support
• Examples of engaging with strategic partners and/or system integrators (where applicable)
  Technical specifications

Pricing information should be provided separately with reference to the Euro value and/or exchange rates.

Distribution channels

Distribution channels in Ireland are highly developed and include:

• Direct selling to customers
• Retailers and wholesalers
• Systems integrators for major projects
• Value-added resellers (VARs)
• E-business
• Response to tenders

Austrade can provide advice about appropriate distribution channels for specific products.

Transport

Ireland’s three most important airports are Dublin Airport, Cork International Airport and Shannon Airport. Belfast International Airport is the main airport in Northern Ireland.

There are several regional airports, including:

• Galway Airport
• Kerry Airport
• Knock International Airport
• Sligo Airport
• Shannon Airport

Northern Ireland’s Belfast City Airport and City of Derry Airport cater for short haul services. 

Aer Lingus is the national carrier and provides passenger and cargo services. Ryanair, Europe’s largest budget airline, is based in Dublin.

Rail freight infrastructure in the Republic of Ireland is being upgraded to create a suitably efficient system. Passenger services connect most major towns and commercial centres. The railway is run by Iarnród Éireann (Irish Railways).

In Northern Ireland, rail services are run by Northern Ireland Railways (NI Railways), part of Translink ­– a public-owned entity that manages rail and bus services.

Almost all goods imported into Ireland arrive by sea. The main port for the Republic of Ireland is Dublin which handles approximately 50 per cent of imported goods for the country. Other ports include Cork, Drogheda, Dundalk, Dun Laoghaire, Shannon Foyns, Galway, New Ross, Waterford and Wicklow.

Northern Ireland ports ­– Belfast (the largest), Derry, Larne and Warrenpoint – process more imported goods direct from Britain and are a significant competitor to the ports in the Republic of Ireland.

The Republic of Ireland is undertaking major investment in its road infrastructure. Although the road network is extensive, it is not considered to be of the standard required by Ireland’s economic growth. Roads in Northern Ireland are superior.

Links and industry contacts

Information and communications technology related resources

Director of Telecommunications Regulation – www.odtr.ie

Euractive.com – www.euractiv.com

European Information Technology Services Association – www.esi.es
European Telecommunications Standards Institute – www.etsi.org

Information and Communications Technology Standards Board – www.ict.etsi.fr
Information Society Commission – www.isc.ie
Irish Computer Society News – www.ics.ie
Ireland’s ICT research centre – www.nmrc.ie
Irish Computer Society – www.ics.ie
Irish Software Association – www.software.ie

Irish Business and Employers Confederation – www.ibec.ie
ISP Buyer’s Guide – http://thelist.internet.com

Standardization service Telecom Standards – www.ascom.com

Trade exhibitions

E-business – www.ebusiness-nec.com
E-Business Expo – www.ebizexpo.com
ISPCON – www.ispconeurope.com

Government, business and trade resources for Ireland

Business Europe – www.businesseurope.com/cmn/index.jsp
Central Statistical Office – www.cso.ie
Enterprise Ireland – www.enterprise-ireland.com
EU Customs – http://europa.eu
The European Commission representation in Ireland – www.euireland.ie

European Union portal – http://europa.eu

IDA Ireland – www.idaireland.com
Irish Australian Chamber of Commerce and Industry – www.austirl.com/index2.htm
Irish Business and Employers Confederation - www.ibec.ie
Northern Ireland Railways ­– www.translink.co.uk
Revenue Commissioners (Import Duty and Tax) – www.revenue.ie 

Media

Irish Examiner – www.irishexaminer.com
Irish Independent – www.unison.ie/irish_independent
The Irish Times – www.ireland.com

Australian resources

Australian Business in Europe (ABIE) – www.abie.co.uk

Australian Embassy
Chancery
2nd Floor Fitzwilton House
Wilton Terrace, Dublin 2
Tel: (353 1) 676 1517
Fax: (353 1) 662 3566

Contact details

The Australian Trade Commission (Austrade) is the Australian Government’s trade and investment development agency, operating as a statutory agency within the Foreign Affairs and Trade portfolio.

Austrade assists Australian businesses contribute to national prosperity by succeeding in trade and investment, internationally, and promoting and supporting productive foreign investment into Australia.

Austrade:

• Delivers services that assist Australian businesses initiate, sustain and grow trade and outward investment.
• Promotes Australia as an inward investment destination and, with the States and Territories, supports the inflow of productive foreign direct investment.
• Administers the Export Market Development Grants scheme.
• Undertakes initiatives designed to improve community awareness of, and commitment to, international trade and investment.
• Provides advice to the Australian Government on its trade and investment development activities.
• Delivers consular, passport and other government services in designated overseas locations.

A list of Austrade offices (in alphabetical order of country) is available.

More information

For further information please contact Austrade on 13 28 78 or email info@austrade.gov.au

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