BUSINESS
Year in review 2010: Solid growth in Ireland's tech sector
24-12-2010
by Deirdre McArdle
When thinking back on 2010, NAMA, the EU/IMF bailout and the draconian Budget 2011, are what automatically spring to mind. But amidst all the doom and gloom, the tech sector has been quietly going about its business, and crucially, creating jobs.
Full steam ahead for Irish tech firms
For the past couple of years the Government has held up the so-called 'smart economy' as Ireland's best chance for future growth. And certainly, the plethora of innovative Irish technology firms expanding and creating jobs during 2010 is a definite sign that in this area, at least, we can hold our heads up internationally.
The year started off on a good note with Dublin's TerminalFour, InTune Networks, Kerry-based Monex and Belfast firm Parity Solutions all creating new positions. Meanwhile, in March, PAS Technologies opened a new EUR1.6 million R&D centre in Cork, creating 10 new high-value jobs, while Dublin-based gaming firm Havok added 26 new jobs to support the launch of a new product.
Expansion on the cards
A number of established Irish firms saw their business expand during the year, including Carlow-based protection services firm Netwatch, which announced in May that it was to create 50 new jobs over the coming 18 months, with a focus on R&D. Also in May green data centre Cork Internet Exchange said it was to double its capacity and add 10 new software and tech jobs. Towards the end of the year, tech firm Avego announced it is to double staff numbers to 70 at its head office as part of an ongoing expansion drive.
Dublin tech firms oozed positivity this year with companies like Integrity Solutions, Espion, Celtrino, Ergo, Trilogy Technologies and iQuate all announcing plans to add to their workforce.
Meanwhile, well-known Irish tech firms Version 1 and PFH announced 100 and 80 new jobs, respectively. Another renowned Irish firm, Web Reservations Ireland, bucked the global downturn in the travel business, announcing the creation of 50 new positions in Dublin.
Young guns impress
Encouragingly, it wasn't just established Irish firms that created jobs in 2010. A batch of up-and-coming firms got off to an impressive start during the year, including skills networking start-up Weedle, which said it was poised to create 50 new jobs as it develops next-generation web applications. Wireless design and test company Benetel, which is based in the Guinness Enterprise Centre, announced its plans to create eight new jobs following a successful funding round where it secured a EUR1 million investment. Meanwhile, UCC spinout ThinkSmart Technologies revealed it has the potential to create 30 new jobs over the coming years.
Tyndall gains international recognition
Irish universities and institutes of technologies have long been a source of innovative start-ups and cutting-edge research facilities, and none more so than University College Cork's Tyndall Institute, which in April won EUR8 million in EU funding, which directly created 20 new positions. That same week, a new International Energy Research Centre (IERC) was established in Tyndall, creating 50 research jobs, which will focus primarily on sustainable energy systems. The first company to base itself at the IERC, United Technologies Corporation, announced it was to base an energy and security research centre in Tyndall, creating 37 new jobs through a EUR15 million investment.
Multinationals still attracted to Ireland
It wasn't just Irish tech firms creating new jobs this year. Despite all the bad press we received internationally during 2010, the big names in the global tech industry continued to be drawn to Ireland.
PC giant HP, which employs around 4,000 people in Ireland at its facilities in Dublin, Leixlip, Galway and Belfast, bookended the year with two announcements, creating 60 new jobs in Dublin in March, and 105 new positions in Galway in December. Other PC makers, Dell and IBM, also announced new jobs, with Dell creating 100 across its Limerick and Dublin facilities, and Big Blue adding 200 through its Smarter Cities Technology Centre in Dublin.
Meanwhile, in Cork, Apple, which broke through the 2,000 employee mark in its Holyhill facility, announced plans to create 300 new jobs in the next 12 months; and security software firm McAfee added 120 new positions to its Mahon base, which is the firm's EMEA headquarters. Also boosting its Irish presence this year was Citrix Systems, which recruited 30 new staff for its Dublin office, which serves as the firm's Customer Technical Support EMEA headquarters.
Top destination for internet heavyweights
According to IDA Ireland, we are fast becoming the "internet capital of Europe". Certainly the evidence is there to support this claim, with jobs pouring in over the year from the top names in the internet sector.
Internet firms who already have bases in Ireland moved to expand their business here during the year, including eBay, which created 150 jobs at its facility in Blanchardstown, Dublin, where it employs more than 1,600 people. AOL also added to its Irish workforce, creating 50 new software engineering jobs at its Dublin Development Centre, while social networking giant Facebook revealed its plans to create 100 new positions in 2011 at its Dublin base, where it currently employs 200 people. In addition, Google added 200 new jobs to its Dublin workforce. The internet behemoth is quickly becoming one of the largest employers in Ireland: its EMEA base in Dublin employs over 1,500 staff.
Meanwhile, business networking site LinkedIn chose Dublin for its international headquarters, creating 35 new jobs initially with the potential for expansion in the coming years. Encouragingly, in December, rumours began to circulate that micro-blogging phenomenon Twitter is considering Dublin as a potential destination for its first base outside of the US.
Digital media has emerged as a major growth area for Ireland, particularly the gaming sector. During the year, big names like Gala, EA and Riot Games all created new jobs here. Notably, EA recruited 200 staff in Galway, while Gala added 100 new jobs to its Irish workforce.
Job cuts
Alongside all of these new jobs, there were some job losses too, both within domestic firms and multinationals. Throughout the year Eircom continued with its cost-cutting measures: a voluntary redundancy programme saw 1,200 staff leave the telco, and there are plans for further job cuts during the coming months. Elsewhere, mobile operator Vodafone sought 120 voluntary redundancies. Also during the year, Longford-based cable manufacturer B3 Cable Solutions closed down with the loss of 104 jobs, while 1800Hotels.ie was forced into bankruptcy proceedings in the US, throwing the future of its 12 staff in Dublin into uncertainty.
Foreign firms too cut jobs during the year, including Royal Bank of Scotland, which cut just under 200 technical jobs in Dublin, and the Irish arm of wireless technology firm Option Wireless, which reduced the company's workforce from 295 to 40. Fears also emerged that 500 Intel jobs could be at risk as the chip giant evaluates one of its Leixlip plants, Fab 10; however, there has been no official announcement on these reports to date.
Despite these jobs cuts, on balance it's been a largely positive year in terms of job creation in the tech sector. As we face into a tough 2011, we can only hope that this trend continues.
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