Weekly Digest
Weekly Digest Issue No. 464
07-05-2009
by Deirdre McArdle
Tech jobs just for 'geeks': report | Do Obama's tax reforms spell trouble?
Give and take from Microsoft
There was some positive and negative news from Microsoft this week with the announcement that it is to cut 60 jobs across its Irish operations and create 40 new "high-value" roles. The news follows on from the 5,000 global job cuts Microsoft announced in January. At that time Microsoft said less than 20 jobs would be affected in Ireland. These 60 extra redundancies, which Microsoft hopes will happen through a voluntary programme, will affect employees in the European Operations Centre, the European Development Centre and the Sales, Marketing and Services Group. A 30-day consultation process will now follow. On the good news front, Microsoft said in an e-mail statement: "We will continue to evaluate our business to ensure that our investments are aligned to current and future revenue opportunities. As part of this ongoing process a decision has been made to locate 40 new high-value roles in Microsoft's Irish-based operations". The new roles will support the EMEA operations and distribution business managed by the firm's European Operations Centre based at its Sandyford campus in Dublin. In all, Microsoft employs 1,200 people in Ireland.
Tech jobs just for 'geeks': report
A new line of thinking needs to be employed if we are to increase the number of second-level students who choose a career in computing and technology. A major study, conducted by Ipsos MORI for the Higher Education Authority (HEA) and Discover Science and Engineering (DSE), was tasked with finding out how high-tech jobs are viewed by second-level students and suggesting ways in which the sector can be portrayed in a positive way. The bottom line, according to the report, is that this is a complex issue. A key factor in the challenge seems to be how to change the way students view the people who work in this area and the jobs themselves. The report revealed that a widely held view among students is that jobs in the area of computing are for "geeks" and "nerds". In order to change this perception the report advises a wide communications strategy that focuses on technology "heroes", highlighting the cutting-edge work they do, and places emphasis on exhibitions and competitions like Science Week and Young Scientist. According to the report, it's also vital that career advice is provided to students at a younger age and that guidance counsellors and teachers focus on helping students understand how their subject choices at second level can affect their career path. Higher level maths and some science subjects are largely considered difficult subjects that require extra work, and as a result many students are dropping down to ordinary level maths, or dropping science subjects altogether. The report found that maths was seen as a "staid" subject with a curriculum that had remained static for a long time, and made suggestions to shorten the curriculum and review how maths is taught. ICT Ireland welcomed the report and warned that high-tech skills will be necessary to Ireland if it is to continue to attract foreign investment. "If we do not have the skills available in our schools and colleges, companies will not be able to justify their investment decisions in the future," said Kathryn D'Arcy, director of ICT Ireland.
Do Obama's tax reforms spell trouble?
There was some worrying news out of the US this week when President Barack Obama outlined reforms to US tax rules aimed at companies which avoid tax by setting up operations overseas in countries like Ireland. Under the proposals, these multinationals would still be able to defer paying US tax on profits earned overseas but would no longer be able to claim tax deductions in the US for expenses related to their foreign operations. The move, which could have a knock-on effect on the 500 or so US multinationals based in Ireland -- including tech giants such as Microsoft, Intel, Hewlett-Packard and Dell -- is an attempt to stop jobs being moved from the US to low-tax economies. For now, there has been a cautious response to the proposals, with IDA Ireland chief Barry O'Leary saying he was not "overly concerned that the proposals would deter US firms from investing here". True, the proposals are less severe than a complete repeal of the deferral of US taxes on overseas earnings, which would have effectively cancelled out Ireland's attractive 12.5 percent corporate tax rate. For now, IDA Ireland has deployed a senior executive to the Irish Embassy in Washington to monitor and engage with the issue. The rules will need to be approved by Congress and will not come into effect until 2011.
Apple to gobble up Twitter?
Another week, another rumour of a tech giant wanting to sink its teeth into the hugely popular Twitter. This week, speculation that Apple is nearing a deal to acquire the micro-blogging service is doing the rounds, with Tech Crunch and Valley Wag, two popular tech blogs, both reporting that the iPhone maker is in late-stage talks to buy Twitter for USD700 million. Towards the end of last year Facebook failed in an attempt to close a deal with Twitter after offering USD500 million in Facebook shares, while gossip circulated just last month that Google was in discussions with the micro-blogging firm. So, is this latest rumour just another speculative report, or is there some merit in it? Well, both blogs cite a "reliable source" who claims the deal is to be unveiled at Apple's Worldwide Developers Conference next month. However, the message that's been coming out of the Twitter camp over the past few months is that it wants to go it alone for another while. Industry commentators are also scratching their heads as to why Apple would want to buy Twitter anyway; general consensus is that they just don't fit and that there is no obvious benefit to Apple in owning Twitter. Time will tell whether this round of speculation will evolve into something more concrete.
Mobile market shaken by downturn
The ongoing economic downturn wreaked havoc on the mobile phone market during the first quarter of 2009, with shipments dropping 13 percent year-on-year, the fastest ever decline in shipment growth since the modern mobile phone market began in 1983, according to Strategy Analytics. Some 245 million mobile phones were shipped globally during the quarter, down from 282 million in 2008, while all of the top five vendors saw negative growth rates. Nokia saw shipments drop by 19 percent year-on-year; Sony Ericsson, in fifth place, saw a 40 percent dive; and Motorola's shipments plummeted 46 percent. Meanwhile, LG and Samsung, though both also seeing their shipments decrease, outperformed their rivals with growth rates of minus 7 percent and minus 1 percent, respectively. Samsung now controls 19 percent of the market, an all-time high for the mobile maker. Outside of the top five, Apple had a remarkable quarter, shipping a better-than-expected 3.8 million iPhones worldwide, representing growth of 123 percent on the year-ago quarter. It now holds 2 percent of the market and lies in seventh place on the vendor table. Looking ahead to the second quarter, Strategy Analytics expects shipments of 266 million, representing a year-on-year decline of 10 percent.
Caped Koala Studios has built a virtual world for kids, combining education and social networking 