The Irish economy is in a positive position at present and is predicted to experience a growth of 3.9% in 2019 and a reduction of unemployment by 5%, according to a report from the Economic and Social Research Institute (ESRI).
Irish Tech Scene
Looking specifically at the tech scene, the Taoiseach, Leo Varadkar, said that Ireland is well on its way to becoming the tech capital of Europe. Ireland is currently the number one destination in the world for foreign direct investment by US technology companies, altogether investing a colossal $54 billion in the country, reports Smart MBS.
It is home to nearly all the largest multinational tech companies. For example, it hosts nine of the top ten global software companies and US technology companies, the top three enterprise software companies in the world and four of the top five IT service companies.
The reason for this is due to the unique position Ireland finds itself in. It benefits from the EU market which has more than 500 million people and post-Brexit, will become the only English-speaking country in the Eurozone.
The Irish government is also passionate about supporting technology companies and offers one of the lowest corporation tax rates in Europe at 12.5%. However, a leading US financial and academic figure, Gary Gensler warns that Ireland’s use of low corporate tax rates to retain multi-nationals is at risk and there should be other reasons for these corporations to stay.
Dublin Tech Scene
Dublin alone has more than 70,000 people employed in technology and IT companies take 40% of office space, placing it in the top three of EMEA Tech Cluster Rankings by CBRE and the number one location for digital companies.
Move to Regional Locations
However, rising living costs and the ongoing accommodation crisis in Dublin means that it is losing its role as the number one location for digital companies. As a result, multinationals are choosing to locate further afield than Dublin to places such as Cork, Limerick, Galway, and Sligo. These areas are also attracting highly-skilled professionals with its promise of a better quality of life, career opportunities, lower property prices, and more disposable income.
Tech Vacancies and Wages
The acting Director of Technology Ireland, Eoghan Ó Faoláin stated that three-quarters of service companies, which include tech firms, expect to increase their basic pay by almost 4% this year. Computer Software workers are also enjoying a wage boom as their earnings soared by almost €10,000 euros in the last year.
However, he also said that it is estimated that there are over 12,000 vacancies in the technology sector in Ireland right now and not enough skilled professionals to meet this demand. As a result, tech employers in Ireland are increasingly looking to EU member states to address this shortfall.
Overall the tech scene in Ireland looks promising with economic growth, reduced unemployment, increasing wages and surplus vacancies across the country. However, it is important that there are enough incentives for these multinational companies to stay in Ireland, not just the corporation tax rate.
If you have tech vacancies in Ireland you need to be filled, we have an extensive database of candidates available. Or, if you are looking for your next tech role in Ireland, get in touch with Reperio Human Capital today on 01 571 3000 and we can help you find your perfect role!
Written by Michelle Young