Address by Minister for Trade and Commerce, Michael Ahern T.D. at the Software & Services Dinner London

on Thursday 12 ^th May 2005

I am very pleased to have this opportunity to meet with you at this networking dinner for some of Ireland’s leading software companies and their British guests. I hope you enjoy the evening so kindly hosted by our Ambassador, Mr. Dáithi Ó Ceallaigh. This event, which has been organised by Enterprise Ireland, has been taking place for a number of years and has proved to be very worthwhile, both as an enjoyable social occasion and, in business terms, as an excellent networking opportunity.

We are greatly honoured that our guests this evening represent a cross section of some of the leading corporate names in British industry. You are the key drivers in implementing technology-led growth in your industries, both here and worldwide, across many sectors including financial services, telecoms, media, eLearning and the Public Sector.

The UK IT market is one of the biggest in Europe, with an annual spend of over £74 billion. Because of its size and proximity, this market represents a huge opportunity that the Irish software industry has pursued with considerable success.

Although highly competitive, the UK IT market offers innovative Irish companies, such as those who are with us tonight, an opportunity to supply products and solutions which deliver a clear business benefit in terms of value for money – be that an increase in productivity or some other tangible improvement in business performance.

Ireland and the UK have always been substantial business partners and our two-way trade is currently valued at an estimated £20 billion a year, which is evenly balanced between imports and exports. Irish-owned companies sell a wide range of products and services, from high technology to consumer brands in the UK and have been increasing their sales significantly in recent years.

The Irish software industry, both overseas owned and Irish, has been performing very well internationally, with exports currently running at over £1 billion annually. The development of Ireland’s software industry is one of the most striking examples of Ireland's emergence as an international high tech centre. According to OECD figures, Ireland is one of the world’s top three leading producers and exporters of software.

Ireland has become a leading software centre because it has many of the characteristics of the industry – an innovative, knowledge-led culture, inherent capability, an entrepreneurial drive and an experience that has been shaped by the demand for adaptability and customisation.

It reflects well on the strengths of Irish software companies, in particular, that in the face of prudent IT budget holders who are demanding a fast return on investment and clear business benefits, that export sales of Irish software and services grew by 8% last year. Irish software exports to the UK are now worth over £240 million a year.

Enterprise Ireland works with over 250 Irish software companies who are winning business in the British market and also works closely with many British companies who are interested in sourcing Irish technology and who are open to the opportunities of partnering with Irish companies. That is the spirit that brings us together this evening.

Enterprise Ireland, as you know, works with Irish companies and business interests around the world to develop partnership opportunities for both. In the IT and high technologies sectors, in particular, Ireland has much to offer.

These are sectors where innovative companies with leading edge products and services can thrive. It is also where strategic partnership between small, medium and large companies, is recognised as the most effective way to ensure competitive advantage.

To be successful in this highly competitive market, Irish companies are well prepared to win business, and clearly understand the market and the requirements of some of the most professional procurement teams in the world.

Now and in the future, technology innovation is the pacesetter of economic and company development. Innovation and knowledge are the most important commercial resources and internationally competitive, knowledge-driven enterprises are increasingly the engine of a nation’s growth. Ireland, like Britain, is committed to a knowledge-based economy built on innovation and technology, and there are many new opportunities opening up to us for building even stronger business relationships.

You, our guests, are key influencers and decision makers who can shape future business relationships and opportunities between your own organisations and many of Ireland’s most outstanding and experienced software and services companies. Occasions, such as this, provide the stimulus for developing new networking opportunities amongst our guests – both Irish and British – and it is also a timely reminder that Ireland is a leading source of high quality software, and that Irish software companies will continue to deliver the products and business solutions that will be required by successful companies such as yours.

So, let me conclude by wishing you all a very enjoyable and productive evening. I hope that, during the course of the evening, you will build on the business relationships you have already made, leading to new business opportunities for both Irish and UK partners.

ENDS

TC153