Thousands of Irish software jobs could be forced overseas

Thousands of Irish software jobs could be lost abroad unless a skills and investment shortage is addressed, according to a new report published this week.

The study found that the biggest challenge facing Irish software companies is a lack of skilled technical staff and also those with sales and marketing expertise.

The 'Irish Software Landscape' study says that Irish companies, which total almost 80 percent of software firms in the country, have created employment faster than foreign businesses over the last three years.

Irish firms surveyed grew their software-related employment by 39 percent, while multinationals were 16 percent behind.

Professor Brian Fitzgerald, chief scientist at Lero said: “The companies surveyed have increased the numbers involved in software development by over 30 perecent in the past three years.

"However, given the shortage of suitably skilled workers domestically, there is a danger that thousands of jobs could be created overseas rather than in Ireland.

“The Irish software industry has the potential to be one of the core engines of Irish economic growth, high income employment and exports but we need to address a number of critical issues including a skills shortage,” he added.

Professor Helena Lenihan of Kemmy Business School, University of Limerick added that the shortage of suitably qualified Irish candidates has encouraged companies to hire employees from abroad.

“Currently somewhere between 40 and 55 percent of jobs are filled in this manner. These immigrants make a major contribution to Ireland but more attractive tax jurisdictions may attract them home. It would be a real missed opportunity if the success of the Irish software industry had more employment significance for Eastern Europe than for Ireland.”

The study was carried by Lero - the Irish Software Engineering Research Centre; the Kemmy Business School at UL, and the Centre for Science, Technology & Innovation Policy at the University of Cambridge.

The survey also highlighted a number of future key technology areas for Irish companies including cloud computing, data analytics and cyber-security.

The report suggests that if Ireland is to succeed as an internationally renowned global software centre, policy makers may need to understand better that margin and sales growth are more important priorities to owners and investors than the creation of jobs.

Read the report here: HERE