Lower costs and shorter commutes causing tech leaders to look outside Dublin
77% of Irish tech leaders said they believed more technology firms will look to the regions, with the standard of employee talent available seen as similar to Dublin, but with far fewer costs involved. Picture: iStock
More than three-quarters of tech leaders in Ireland expect firms to base themselves more and more in the regions, with lower costs, easier commutes, and living expenses seen as primary motivations.
Software, cloud, and digital transformation firm Sidero gauged the views of almost 120 leaders in Ireland's burgeoning tech industry, which has until now been primarily focused around Dublin, with behemoths such as Google and Facebook having their headquarters there.
In a post-pandemic world, 77% of Irish tech leaders said they believed more technology firms will look to the regions, with the standard of employee talent available seen as similar to Dublin, but with far fewer costs involved.
Almost half of businesses cited lower set-up and running costs as a key reason for locating outside Dublin, while 27% felt there was less competition for skills and talent in a regional setting, Sidero said.
About three-quarters of respondents said the allure of an easier commute (77%), better work-life balance (75%), and lower cost of living (73%) would be key in making the move out of the capital.
A fifth of tech leaders believe that remote working will be a permanent fixture for tech firms, which would also be a boon for regions traditionally seen as hamstrung because of their lack of proximity to where the tech giants are based.
The concept of the four-day working week, which has gathered steam in recent months with the likes of union Fórsa calling for its implementation, is also seen as realistic for more than two in five tech bosses.
Some 42% of Irish businesses are likely to introduce a four-day working week, at least on a trial basis, in the next three years, with 62% believing they could do so without negatively impacting their organisational success.
Chief executive of Sidero Carmel Owens said new universities will also help transform the perception of regional Ireland in the tech landscape.
“We hope that the announcement of a new technological university for the midlands, bordering almost half of the 26 counties, with the merging of Athlone and Limerick ITs will further bolster the appeal of a regional base," she said.
In relation to Brexit, almost half (48%) say it will provide them with a competitive edge over UK firms, although 35% believe it will make the cost of purchasing IT services and products more expensive.
“Our survey has shown Brexit has brought new opportunities for some Irish businesses. It has already significantly changed the Irish business landscape," Ms Owens said.
“We are reassured that regional investment will be seen as a viable option for more Irish businesses going forward, which is a win-win as it gives regional locations a chance to flourish, while relieving some of the pressure on services and infrastructure in larger cities."
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