# Presentation: 913578

## Mitchel AuerbachCommercial CounselorU.S. Embassy Dublin

**Ireland**
**An Isle of ICT Opportunities**
**Trade Winds Forum**
**May 15, 2007**

## The Republic of Ireland

- Population – 4.2 million
- Labor force – 2.12 million
- Slightly larger than West Virginia
- Strategic location between North America and Europe
- Parliamentary democracy
- Member of Euro zone

## Ireland emerged as an economic powerhouse in the 1990’s.   What fueled the Celtic Tiger?

- EU membership
- EU subsidies
- US economic boom
- Competitive wages

*Ireland is a small, modern trade-dependent economy.  Its GDP grew an average of 6% each year from 1995 to 2006 because of:*

- Low corporate taxes – **12.5%**, less than half of other EU countries
- Good budget policies
- Surge in FDI

## The Irish Economy Today

- GDP growth rate of 4.7% (2006)
- Net exporting nation
- Low unemployment of 4.3%, one of the lowest in EU
- 4% inflation rate (2006)

## U.S.-Irish Business Relationship

- Two-way trade and investment activity valued in excess of $120 billion.
- Trade accounts for $37 billion of this relationship with Ireland enjoying a trade surplus of some $20 billion.
- Investment activity totals almost $84 billion with investment by U.S. firms (620 approx) valued at about $62 billion.
- $8.5 billion US exports to Ireland

## Why do business in Ireland?

- U.S. firms find it relatively uncomplicated to do business in Ireland.
- Market opportunities exist for U.S. companies with innovative leading-edge products, technologies and services.
- Many U.S. companies see Ireland as a natural location for distribution throughout the EU.

## Recent U.S. Investments in Ireland

*Source: American Chamber of Commerce, Ireland*

## $9.75 billion ICT Market

- 	_Sector_	_Market Size_	_Growth_
- Computer Hardware*	$1.63 billion		9%
- Computer Software*	$0.56 billion		5%
- Computer Services*	$1.11 billion		3%
- Telecom Services*	$5.64 billion		4%
- Telecom Equipment	$0.81 billion		6%
- * Source: iReach (http://www.ireach.ie)

## Key Market TrendsHardware, Software & Services

**Hardware**
**PC Household penetration - 59%**
**400,000 PCs sold annually –business+home**
**Strong growth in mobility applications (laptops, PDAs)**
**Software**
**ERP and financial enterprise system software - $66 million**
**Network storage software - $70 million**
**Security software market  - $114 million**
**Services**
**Demand for managed services, systems integration and network maintenance**
**HP, Accenture, Fujitsu, IBM, EDS, BearingPoint, Cap Gemini**

## Telecoms - Issues & Trends

**Fixed Line segment stagnant – 1.7 million lines**
**Eircom (incumbent 77% share)**
**Other operators (BT, Magnet, etc) 23% growing albeit slowly**** **
**4.5 million cellphone subscribers (106% market penetration)**
**Vodafone & O2 dominant operators**
**3G rolling out and MVNO models emerging**** **
**VoIP rolling out**
**Broadband penetration finally growing **
**1,000,000  internet subscriptions (44% broadband, 56% dial-up)**
**437,000 broadband subscribers (73% based on DSL)**** **
**LLU impasse to be resolved by Sept 2007**

## e-Commerce

*E-Commerce Act 2000* – establishes legal validity of electronic signatures and records (a boon for companies whose business practices involve the use of electronic contracts; also provides for establishment of a scheme of voluntary accreditation of certification service providers)
- Almost $3.5 billion worth of products purchased online in 2006
- Travel & tourism, online grocery shopping, DVDs & CDs, books
- Consumers go online 3 times per week and 40% purchase online
- Forecast to reach $4.4 billion as broadband penetration increases

## Success Stories

- PA-based supplier of computer software to life sciences sector seeking UK & Irish representatives
- Visited London and Dublin on trade mission to meet prospective partners.
- Intended to select a rep in each market
- U.S. Commercial Services arranged one-on-one meetings with four prospective Irish representatives
_**Irish Representative selected**_ to provide distribution and support services _**for**_ the company’s range of software solutions throughout _**Ireland and the UK**_.

## More Success Stories

- Princeton NJ-based provider of VOIP-based wholesale international transport broadband sought Irish customers
- Needed introductions to relevant Irish operators and service providers
- U.S. Commercial Service Dublin arranged for the company executive to meet seven Irish telecommunications operators
- Signed an interconnection contract with an emerging Irish telecommunications operator

## European Dimension – Ireland’s Role

**Irish and foreign-owned firms have sophisticated supply-chain management systems to produce and move product in-and-out of Ireland.**
**Ireland is a proven “Gateway to Europe” for U.S. companies interested in the European marketplace**
**They use an array of local importers, contract manufacturers, joint-venture partners, agents and distributors.**
**Irish firms are interested in strategic trade opportunities with U.S. firms, especially in the ICT sector.**

## How to contact us

- U.S. Commercial Service
- U.S. Embassy Dublin
- 42 Elgin Road, Dublin 4, Ireland
- Tel:  +353-1-667-4752
- Fax:  +353-1-667-4754
- Email:  Mitchel.Auerbach@mail.doc.gov
- www.buyUSA.gov/ireland

## Thank you for your attention. Slàn libh.