A new survey of more than 700 CEOs and founders of Irish technology companies has found that almost three quarters (72%) expect revenues from international sales to increase over the coming year. More than a quarter (27%) stated they expect the increase to be substantial.
Along with this positive outlook, 80% said that they expected to increase headcount over the next three months, though more than half (51%) indicated that skills were still an issue in finding talent.
The Irish Software Association (ISA) Digital Technology Index (DTI), carried out in partnership with Tenego Partnering, examined the health and economic sentiment among Irish IT companies.
The survey found that confidence levels in the indigenous IT industry are up, with nearly two thirds (63%) saying that they are now more confident about their business, compared to three months ago.
However, along with the concerns around skills and talent, there are also concerns for funding and capital, as more than one third of CEOs expressed dissatisfaction with the availability of funding for the sector.
‘The ISA DTI survey confirms that the indigenous IT sector in Ireland is flourishing," said Edel Creely, chair of the ISA, and MD, Trilogy Technologies. "Confidence levels are up as our companies continue to scale with export figures expected to grow in 72% of software and digital companies."
The survey report quotes figures for the Irish ICT industry that says the area is growing with around 730 Irish owned digital technology companies, employing over 10,000 people and contributing €1.8 billion to the economy.
"Between multinationals and Irish companies, the IT sector is generating more jobs than there are skilled Irish people to fill them," said Creely. "Conservative estimates put the number of IT vacancies at 4,000. According to an EU study, ‘Anticipating the Development of the Supply and Demand of eSkills in Europe in 2010-2015′, the EU labour market could face an excess demand of 384,000 IT practitioners by 2015.
"The skills debate remains on the agenda, with over half of CEOs in the sector saying that sourcing talent is a challenge."
"To face this challenge," said Creely, "and to build a strong indigenous export-led IT sector, we need to drive more graduates into IT-related college programmes, and adapt our education system as a whole, so that it is responsive to the demands of this sector which is creating new software innovations at a rapid pace."
ISA-member companies are encouraged by the increase in students opting for STEM subjects and higher level maths in this year’s Leaving Certificate, said Donagh Kiernan, founder and CEO, Tenego Partnering.
"A strong background in STEM subjects is essential for a career in the IT sector," said Kiernan. "This year’s results are reflected in applications for science and technology courses through the CAO which leaves the Government well placed to achieve its aim to add 2,000 more graduate-level IT professionals to the education system over the next number of months."
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