Ireland has reinforced its strong position in the global shared services and outsourcing (SSO) market and is well positioned to benefit from a 50 per cent increase in the market over the next three years.
A report by Frost & Sullivan on the SSO market placed Ireland third in the rankings, behind India and China. The report predicted the worldwide SSO market would grow at a compound annual growth rate (CAGR) of 15 per cent from $930bn in 2006 to $1,430bn in 2009.
Commenting on Ireland’s position, Kam Soon Siew, consulting director at Frost & Sullivan, pointed to Ireland’s corporation tax rate of 12.5 per cent, tax credits on incremental expenditure on R&D and its favourable holding company regime with double taxation agreements with 44 countries.
Companies choosing Ireland also benefited from its unique workforce because it has one of the youngest populations in Europe, with over 36 per cent of the population under 25 years of age.
He predicted the situation was “likely to continue for the next 15 years with a key focus on education and research”.
The country was also gaining significant interest for higher value activities, such as R&D. Many healthcare and technology companies had established R&D centres in Ireland and several media and entertainment companies were considering it for their offshore locations.
Frost & Sullivan found Ireland was number two for SSOs in the technology industry, third for healthcare, fourth for entertainment and media and fourth for banking and finance.
But Ireland’s small workforce and the high cost of living made it less appealing for low value operations such as call centres.
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