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Dublin: 13 °C Friday 1 August, 2014

Majority of indigenous tech companies expect revenue to grow

Over 81 per cent of companies said they were more confident about their business than they were three months ago.

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A SURVEY OF indigenous technology companies shows a significant rise in confidence levels, with 81.5 per cent stating that they were more confident about their business than they were three months ago.

The majority said they expected revenues to grow, with 94 per cent saying they expected an increase in the next three months.

The survey, carried out by the Irish Software Association (ISA), found that research and development expenditure is expected to rise for 67 per cent of participants, up from 58 per cent in August 2013.

Profits

Company profitability is expected to rise for 70 per cent compared to 66 per cent in August 2013.

On a less positive note, almost 17 per cent of respondents indicated that their input costs have increased between August 2013 and the first quarter of 2014.

ISA says there are 1056 technology companies located in Ireland, ranging from startups and SMEs, to large international and multinational companies.

Over 103,000 people are directly employed in both Irish owned and foreign direct investment (FDI) technology companies in Ireland.

“With the number of Irish owned technology companies continuing to grow, we have now estimated 806 indigenous companies, with total annual revenues over of €1.8 billion,” stated ISA.

ISA Chair and Managing Director of Trilogy Technologies Edel Creely said the sector is “powering ahead” stating that companies are attracted by the competitive business environment and availability for skilled labour. However, she said that key challenges remain.

“Access to finance remains a challenge, the Central Bank numbers show that the level of credit outstanding for the technology sector has been largely unchanged over the last two years, despite growth in the sector,” said Creely, adding that government must enhance tax-based investment schemes and the venture capital environment, as well as introduce state-backed capital funds.

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