Irish software firms predict good year in 2002

More than half of Irish software companies expect to increase their employment and 75% forecast higher revenues in 2002.

The Irish Software Association carried out the survey, in which 56% of respondents made confident predictions for this year.

However, 17% of the surveyed companies indicated possible redundancies.

Chairman of the Irish Software Association Billy Huggard said: "The results are highly encouraging and suggest that the technology recession may have bottomed out."

Last year, 61% of the software companies increased their employment level.

There are about 900 software companies active in Ireland, consisting of 760 indigenous companies and 140 multinationals. They employ approximately 30.000 people, represent 11.6% of Ireland's GDP and account for over 10% of total exports.

Amongst 75% of the companies, the R&D expenditure level will either increase or stay at the same level. Ireland and the UK were identified as the markets with most growth potential in 2002, followed closely by other Eurozone members.

Many members hinted that they would be seeking venture capital investment during the current year. In general, steady growth during the Q II is expected and the overall outlook remains positive.