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Skills shortage could force thousands of software jobs overseas

A report published today found up to half of software jobs in Ireland are filled by inward migration.

THOUSANDS OF IRISH software jobs could be forced overseas unless measures are taken to combat a skills and investment shortage, according to a report published today.

The report conducted by Lero – the Irish software Engineering Research Centre, and the Kemmy Business School at the University of Limerick. It suggests that indigenous firms, which make up almost 80% of the total number of software firms in Ireland, have created employment faster than foreign/multinationals over the last three years and these firms grew their software-related employment by 39%.

However Professor Brian Fitzgerald, chief scientist at Lero, said “given the shortage of suitably skilled workers domestically, there is a danger that thousands of jobs could be created overseas rather than in Ireland”.

He said that a major barrier to growth is the availability of skilled technical staff. For indigenous firms, accessing personnel with appropriate sales and marketing expertise is also a major challenge. He also said that it was significant that after lack of availability of able technical employees, multinationals cited competition from low cost countries as the second most limiting factor for future growth.

Some 40% and 55% of jobs are filled by inward migration and Professor Helena Lenihan of the Kemmy Business School said 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,” she said.

The report, which was also conducted in conjunction with the University of Cambridge, found that access to venture capital funding especially to second round, the vital growth stage, remains challenging for many indigenous software companies.

Read: Dozens of jobs saved at Pfizer plant in Cork>

Read: IBM and PayPal criticised for using JobBridge to fill science and tech positions>

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17 Comments
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    Mute Alan
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    Jul 14th 2014, 9:14 AM

    I’m an Irish programmer, living abroad, and would like to work remotely for an Irish company. (It’s always a good excuse for visiting home every now and then.) Even with the skills shortage, it seems that no employer is interested.

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    Mute David Evans
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    Jul 14th 2014, 10:12 AM

    I’m also in a similar position (living/working in the UK), I like to check in every now and then with job opportunities in Ireland and it’s always 3-5 years industry experience. It seems to be case (to me at least) that you have to move abroad to get your experience before you can come back and apply for these jobs.

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    Mute R39CRW8f
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    Jul 14th 2014, 10:49 AM

    I think everyone can agree (having myself being in a similar position) that there is NO SKILLS SHORTAGE.

    It is a shortage of desired experience.

    Every company requires 3-5 years it seems. None are interested in investing in staff to train/mentor them.

    My advice would be similar to other posters for those with no experience: learn how to build a phone app, or try to improve a piece of software from the likes of Sourceforge.net Then put that at the top of your CV.

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    Mute Paul Minogue
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    Jul 14th 2014, 10:59 AM

    Exactly – nobody cares if you got 86% in second year in Software Systems – they just want to know what you can do.

    I don’t blame companies for wanting experience though – why take on a 22 year old when you can take on a 32 year old? Not like in 30 years time you’ll regret that the older guy is retiring sooner than the younger guy, in the software industry :-P

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    Mute Alan
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    Jul 14th 2014, 12:11 PM

    In my own case I have six years of industry experience with Java, but no one is taking the bait.

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    Mute Dave Davis
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    Jul 14th 2014, 1:01 PM

    Spot on. If you don’t have a github.com account with some interesting projects or contributions, don’t bother.

    Software engineering is one of the few jobs that you can MAKE your own experience. As someone who hires developers, I’d sooner hire someone with an interesting github portfolio than someone with more qualifications than you can shake a stick at.

    It’s pretty easy to spot people interested in building cool things.

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    Mute Jack Ripper
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    Jul 14th 2014, 3:12 PM

    You’re a dying breed Dave. Outside of google very few companies are looking for software developers who are in any way creative. However, they are increasingly looking for staff who are multidisciplinary. Agile is pushing things that way… especially devops.

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    Mute Thors Big Hammer
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    Jul 14th 2014, 8:57 AM

    Software companies want experienced engineers so there is the catch how can you have a constant flow of graduates when they can’t get jobs becuase companies want experienced people.

    The other flip side the money is crap starting off.

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    Mute Paul Minogue
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    Jul 14th 2014, 9:17 AM

    Money isn’t crap starting off – it’s in line with most other jobs of similar expertise. Companies wanting experienced people is a nuisance though, but I’m not sure how to resolve that.

    Software is one of those fields though where you can gain expertise without experience. If your CV has a link to your website, your GitHub profile or some mobile app you’ve worked on they shouldn’t care how long you’ve been working at it.

    If you’re passionate about software and have the skills to match, you have the ability to convey this to an employer :-)

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    Mute Jack Ripper
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    Jul 14th 2014, 3:15 PM

    Sofware developers are the highest paid graduates of any field. They are even paid more than intern doctors and graduate engineers. Of course those fields catch up fairly quickly.

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    Mute David Evans
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    Jul 14th 2014, 9:48 AM

    Is there a list of these vacancies/job specifications?

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    Mute Jane Alford
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    Jul 14th 2014, 11:51 AM

    There is no skills shortage. There is however a bias towards 25-35 year olds, with 5 years experience in a very specific and narrow skill set.

    The employers (HR departments) have absolutely no comprehension that a programmer is a programmer, that’s the “skill”, the programming language is usually pretty irrelevant.

    If you are over 45 years old, then the employers pretty much ignore you and your wealth of experience.

    Irish companies have become very Americanised in the practice of promoting (very) young people to managerial positions, who are then biased towards hiring people their own age.

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    Mute Jerry Lehane
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    Jul 14th 2014, 9:52 AM

    So what skills are we short of? If it’s technical that’s something to work towards for our universities and students, if it’s language of course it’s going to be easier for people of other nationalities.

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    Mute Martin Sinnott
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    Jul 14th 2014, 8:27 AM

    So half are picked by Irish residents !

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    Mute Michael Connors
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    Jul 14th 2014, 6:39 PM

    Very poor CV screening, interviewing and technical tests result in a lot of false negatives. I was recently made redundant, and have just been through the process. I picked up a job pretty quickly, but I am genuinely surprised by the lack of opportunities for some of the more junior guys, given that I would be happy to work with all of them again and they have access to great references from everyone at the company.

    I constantly see companies that are doing web-development asking about program complexity and solving scalability problems that they more than likely don’t have. If they do have these problems, they are self inflicted by people reinventing the wheel rather than using something off the shelf. Another thing I noticed is the asking of questions assuming knowledge of specific tools. Web summit insisted on degrees from Universities only, with a clear bias towards Trinity college.

    I personally would prefer to hire someone with less experience of these kind of things, and the simple ability to do simple things correctly and take direction. I don’t think I would have a problem hiring in the current environment.

    Given that we are in the middle of a tech bubble, we should not spend too much time trying to correct these problems at the expense of the exchequer and let the companies who have the problem deal with these self inflicted problems themselves.

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    Mute Jennie Byrne
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    Jul 14th 2014, 6:01 PM

    I’m an Irish IT graduate with over 10 yrs experience. I’ve taken time out to raise my child. I’ve been trying to get back to work for the last couple of years & companies are unwilling to even respond to my CV. I understand the concepts, am easily retrained & willing to work. It’s not a shortage of skills, I think it’s that companies want an exact set of skills & aren’t willing to re-train people. I know I’m not the only one in this position.

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    Mute Dave Davis
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    Jul 14th 2014, 7:52 PM

    You’re right. as an employer, it’s not efficient to hire someone that will take weeks or months to retrain. The onus is on you to skill up. Not your employer. Ad I’ve stated before, in IT, it’s very VERY easy to upskill and create your own experience in the form of personal projects.

    I’m still shocked at those who don’t understand this. Nobody owes you a job and being out of work for 10 years means you’re practically starting from scratch anyway. But that doesn’t matter, it’s very easy to start and build something yourself to modernise your skill set.

    I’d sooner hire a 17 year old who just finished their leaving with a decent github profile then someone with 3 masters and no effort put into keeping themselves relevant.

    Too few jobseekers actualky put themselves in the shoes of a potential employer.

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