SFA: Companies need to embrace technology

Irish companies need to invest in technology if they are to enjoy the benefits of the Celtic Tiger according to Patricia Callan, SFA Assistant Director.

Speaking at the Microsoft-sponsored 'Gearing up for Growth' seminar in Dublin, she said that Ireland can only reach predicted economic growth levels of 6.5% through embracing technological advances.

According to Ms Callan labour costs have surpassed insurance costs as the most significant problems for business.

Ms Callan said: "The only way to cut labour costs is to employ less people and the only way to maintain growth is through enhanced technological solutions and outsourcing."

Also speaking at the seminar was Dr Dan McLaughlin, Chief Economist at Bank of Ireland, who predicted that the economy has a growth potential of 6.5% in 2004 to 2005.

He also pointed out that migration and the large pool of unemployed in the newly expanded EU will be key to maintaining momentum in the Irish economy.

Although consumption levels have slowed consumer confidence levels are back at Celtic Tiger levels.

Dr McLaughlin also predicted a generous Budget in 2005.