EXHIBIT 10.4
                              
                              EMPLOYMENT AGREEMENT

          This EMPLOYMENT AGREEMENT,  dated as of August 1, 1997, by and between
     SAVILLE SYSTEMS PLC (the "Company"),  a public limited company incorporated
     under the laws of the Republic of Ireland,  and its  subsidiaries,  SAVILLE
     SYSTEMS,   INC.   ("SSUS")  and  SAVILLE  SYSTEMS  CANADA,   LTD.   ("SSC")
     (collectively,  the "Companies"), and JOHN J. BOYLE, III, a resident of New
     Hampshire (the "Executive");

                                   WITNESSETH:

         WHEREAS,  each of the  Companies  wishes to employ the Executive as its
Chief  Executive  Officer,  to serve in such  capacity  for all three  companies
simultaneously; and
         WHEREAS,  the  Executive  wishes to be employed in this capacity by the
Companies, on the terms and conditions set forth below.
         NOW,  THEREFORE,  in consideration of the mutual  obligations set forth
herein, the parties hereto hereby agree as follows:

1 Engagement.  Each Company hereby employs the Executive,  effective on the date
first above written to serve as follows:  (a) the Executive shall serve as Chief
Executive  Officer of the Companies as of the date first above  written  through
April 1, 1998,  (b) the Executive  shall serve as President and Chief  Executive
Officer and Chairman of the Boards of Directors of the  Companies  from April 1,
1998 through July 31, 1999,  and (c) the Executive  shall serve as a Director of
the  Companies  through the period of time  covered by clauses (a) and (b) above
and through August 1, 2002. The period from the date first above written through
July 31, 1999 is  hereinafter  referred to as the "Term." The  Executive  hereby
accepts such  employment for such Term, on the terms and conditions  hereinafter
set forth.

2 Duties.  During that part of the Term during which the  Executive is the Chief
Executive Officer, the Executive shall be responsible for the overall management
and operations of the Companies and shall have such duties and  responsibilities
as may  be  assigned  to him by the  Board  of  Directors  of the  Company  (the
"Board").  The Executive  shall use his best efforts and shall act in good faith
in  performing  all  duties  reasonably  required  to be  performed  under  this
Agreement.  The  Executive's  principal  place of  business  shall be in or near
Boston, Massachusetts, at the office of SSUS located there.

3 Availability. While employed by the Companies during the Term pursuant to this
Agreement,  the Executive  shall devote his entire  working time,  attention and
energies  to the  Companies'  business  and  shall not be  engaged  in any other
business activity without the express approval of the Board.

4  Expenses.  Each  Company  shall  reimburse  the  Executive,  with  reasonable
promptness  upon  presentation  of  itemized  vouchers,  for  all  ordinary  and
necessary  business expenses incurred by the Executive in the performance of his
duties  hereunder to such  Company.  Air travel by the Executive for any Company
shall be by business class for  international  flights,  by first class for U.S.
domestic  flights  with a  scheduled  duration  of three  hours or  longer,  and
otherwise by coach class;  provided,  however,  that the  Companies  will,  when
possible, provide the Executive with frequent flyer (or similar program) upgrade
coupons to enable the  Executive  to upgrade to first  class on an as  available
basis.

5 Compensation.  As compensation for the services to be rendered hereunder,  the
Companies  agree as follows:  a. The  Companies  will pay to the  Executive,  in
bi-weekly  installments,  an annual  base  salary of  $350,000  for the one year
period  commencing  August 1, 1997.  Such salary shall be subject to  adjustment
thereafter as determined by the Board.  The base salary will be allocated  among
the Companies as  determined  by the Board from time to time.  The Company shall
not be obligated  to pay the  Executive a salary after the last day of the Term.
b. The Executive  shall have the right to participate in an incentive bonus plan
to be  established  by the  Companies,  pursuant to which the Executive  will be
eligible  to receive  an  aggregate  bonus  within 60 days after the end of each
calendar year during the Term equal to up to 100% of his base salary during such
year,  and within 60 days after the end of the Term with  respect to the partial
year  ending on the last day of the Term,  with the amount or the bonus to which
he is entitled determined by the Compensation  Committee of the Board based upon
performance by the Executive and the Companies.  At least one-half of such bonus
shall  be  payable  based  upon  the  Companies  meeting  financial  performance
projections  adopted by the Board with respect to the fiscal year for which such
bonus  applied.  c. The Companies  shall  provide the  Executive  either with an
automobile for use by the Executive or a reasonable allowance established by the
Board to enable the Executive to obtain the use of an  automobile  and liability
insurance  therefor.  d. The Executive  shall be entitled to  participate in the
benefits  package  of the  Companies  for  United  States  employees,  including
comprehensive  health insurance.  The Executive shall be entitled to three weeks
of paid vacation per year.

6 Restricted Ordinary Shares. The Company shall issue restricted Ordinary Shares
to the Executive in accordance with the terms  specified in a Stock  Restriction
Agreement to be entered into between the Executive  and the Company.  Such Stock
Restriction  Agreement shall provide for vesting of such shares over the minimum
period that the  Executive  has agreed to continue to serve as a Director of the
Company, which minimum period ends on August 1, 2002.

7 Ownership of Material Information. All right, title and interest of every kind
and nature whatsoever in and to discoveries,  inventions,  improvements, patents
(and  applications  therefor),   copyrights,  ideas,  processes,   developments,
know-how, laboratory notebooks,  creations, properties and all other proprietary
rights  arising  from,  or in any way  related  to, the  Executive's  employment
hereunder,  whether  developed by the  Executive  independently  or jointly with
others ("Intellectual Property"), shall become and remain the exclusive property
of the  Companies,  and the  Executive  shall  have  no  interest  therein.  The
Executive shall promptly disclose to the Companies and assign or transfer to the
Companies all rights in any Intellectual Property. If any Company elects to seek
patent or other  protection  with  respect  to any  Intellectual  Property,  the
Executive  shall,  at  such  Company's  expense,  take  all  actions  reasonably
requested  by such  Company to obtain  such  protection  for the benefit of such
Company and to fully vest in such  Company and its  successors  and assigns full
right and  title to such  Intellectual  Property.  Upon the  termination  of the
Executive's  employment  by the Companies  for any reason,  the Executive  shall
return to each Company all property of such Company,  including all copies of or
relating to any Intellectual Property, in the possession or under the control of
the Executive.

8 Confidentiality. The Executive shall not, during the term of his employment by
the  Companies  pursuant to this  Agreement  or  thereafter,  disclose to anyone
(except to the extent  reasonably  necessary  for the  Executive  to perform his
duties  hereunder  or as may be  required by law) any  confidential  information
concerning  the  business  or affairs of any  Company  (or of any  affiliate  or
subsidiary  of any  Company),  including but not limited to lists of and records
relating  to  customers,   business   plans,   business   negotiations,   market
information,  financial  and cost  information,  and  scientific  and  technical
information (whether of any Company or entrusted to any Company by a third party
under a confidentiality  agreement or  understanding)  which the Executive shall
have  acquired in the course of, or incident to, the  performance  of his duties
pursuant to the terms of this  Agreement or pursuant to any prior  dealings with
any Company or any affiliate or subsidiary of any Company.  The Executive  shall
hold in  strictest  confidence,  as a fiduciary,  any and all such  confidential
information,  and  shall  comply  with all  instructions  of the  Companies  for
preservation  of the  confidentiality  of such  information.  In the  event of a
breach or threatened  breach by the Executive of the  provisions of this Section
8, the Companies  shall be entitled to an injunction  restraining  the Executive
from  disclosing,  in whole or in part,  such  information or from rendering any
services to any person, firm,  corporation,  association or other entity to whom
such  information  has been disclosed or is threatened to be disclosed.  Nothing
herein shall be construed as  prohibiting  the Companies from pursuing any other
remedies  available  to the  Companies  for such  breach or  threatened  breach,
including the recovery of damages from the  Executive.  Nothing  herein shall be
construed as prohibiting the Executive from disclosing to anyone any information
which is, or which  becomes,  available to the public (other than by reason of a
violation of this Section 8) or which is a matter of general business  knowledge
or  experience.  a.  Termination  for Cause.  The Companies may terminate  their
employment of the Executive under this Agreement for cause in the event that the
Board determines that the Executive (i) has materially  breached his obligations
to any  Company  under  this  Agreement  or has  refused  or failed  to  perform
satisfactorily  the duties properly assigned to him in accordance with the terms
of this  Agreement,  provided that the employment of the Executive  shall not be
terminated under this clause (i) unless the Executive is given notice in writing
that the conduct in question  constitutes  grounds  for  termination  under this
Section 9 and the  Executive  is allowed at least twenty (20) days to remedy the
refusal  or  failure,  (ii) has  been  convicted  of a crime of moral  turpitude
(whether or not in  conjunction  with the  performance  by the  Executive of his
duties under this Agreement),  or (iii) has through willful  misconduct or gross
negligence engaged in an act or course of conduct that causes material injury to
any Company (or any affiliate or subsidiary of any Company) (each of the reasons
specified  in clauses  (i)  through  (iii)  hereof  being  referred to herein as
"Cause").  b. Upon a termination of employment under Section 9(a), the Companies
shall  be   relieved   of  all  further   obligations   under  this   Agreement.
Notwithstanding such termination of employment,  the Executive shall continue to
be bound by the provisions of Sections 7, 8, 12 17.

9  Termination Without Cause.
a. If the employment of the Executive is terminated by the Companies  during the
Term of this Agreement  other than (i) pursuant to Section 9(a) or Section 11 or
(ii) by virtue of the resignation of the Executive,  or if the  responsibilities
and duties of the Executive are, other than for Cause,  materially diminished or
changed in a manner that materially impairs the Executive's  ability to function
as Chief Executive Officer of the Companies,  the Executive shall be entitled to
receive,  upon such  termination,  a severance payment in an amount equal to the
aggregate of the cash  consideration  to which the  Executive  would be entitled
hereunder  if he remained  employed by the  Companies  for the lesser of (i) one
year or (ii) the period from the date of termination to end of the Term, in each
case computed on the  assumption  is that the Employee  would be entitled to the
full amount of the incentive  bonus provided for in Section 5(b). Such severance
payment  shall be payable in equal monthly  installments  over the period during
which the Employee would be entitled to receive such cash consideration if still
employed by the Companies.  b.  Termination of employment  under this Section 10
shall not terminate the Executive's obligations under Sections 7, 8 and 12.

10 Death or  Inability  to  Perform  of the  Executive.  In the  event  that the
Executive,  during the period while employed under this Agreement,  shall die or
at any time  become  unable to carry out his duties  under this  Agreement,  the
Companies  may  terminate   this  Agreement  and  be  relieved  of  all  further
obligations hereunder. Termination of employment under this Section 11 shall not
terminate the Executive's obligations under Sections 7, 8 and 12.

11 Non-Competition.
a. The Executive hereby agrees that, except as provided in Section 12(b), during
the term of his employment by the Companies pursuant to this Agreement and for a
period of one year  following the  termination  for any reason of his employment
under  this  Agreement,  he will not,  directly  or  indirectly  and in any way,
whether as principal  or as  director,  officer,  employee,  consultant,  agent,
partner or  stockholder  to another  entity  (other than by the  ownership  of a
passive  investment  interest  of not more  than 5% in a company  with  publicly
traded equity securities),  (i) own, manage,  operate,  control, be employed by,
participate  in, or be connected in any manner with the  ownership,  management,
operation  or  control  of any  business  competing  with  any  business  of the
Companies in which the Executive  participated  during the two years immediately
preceding such termination, (ii) interfere with, solicit on behalf of another or
attempt to entice away from the Companies (or any affiliate or subsidiary of any
Company)  (x) any  project,  financing  or  customer  that any  Company  (or any
affiliate  or  subsidiary  of  any  Company)  has  under   contract   (including
unfulfilled purchase orders), or any letter of supply or other supplier contract
or  arrangement  entered into by any Company (or any  affiliate or subsidiary of
any Company), and all extensions, renewals and resolicitations of such contracts
or arrangements, (y) any contract, agreement or arrangement that any Company (or
any  affiliate or subsidiary  of any Company) is actively  negotiating  with any
other party, or (z) any prospective  business  opportunity  that any Company (or
any  affiliate  or  subsidiary  of any Company)  has  identified  at the time of
termination as being actively  pursued by such Company,  or (iii) for himself or
another, hire, attempt to hire, or assist in or facilitate in any way the hiring
of any  employee  of the  Companies  (or  any  affiliate  or  subsidiary  of any
Company),  or any employee of any person, firm or other entity, the employees of
which any Company (or any affiliate or subsidiary of any Company) has agreed not
to hire or endeavor  to hire.  b. In the event that prior to the end of the Term
the  Executive's  employment is  terminated  by the Company  pursuant to Section
10(a), the Executive shall have the option, exercisable at any time by notice to
the  Company,  to be relieved  of his  obligations  under  clause (i) of Section
12(a), but not clauses (ii) and (iii) of Section 12(a).  Upon the giving of such
notice by the  Executive,  the Company  shall be relieved and  discharged of all
payment  obligations to the Executive arising under Section 10(a) and payable on
or after the date of such notice. c. Because of the Executive's knowledge of the
Companies' business, in the event of the Executive's actual or threatened breach
of the  provisions of this Section 12, the  Companies  shall be entitled to, and
the Executive  hereby consents to, an injunction  restraining the Executive from
any of the foregoing.  However, nothing herein shall be construed as prohibiting
the  Companies  from  pursuing any other  available  remedies for such breach or
threatened  breach,  including the recovery of damages from the  Executive.  The
Executive  agrees  that the  provisions  of this  Section 12 are  necessary  and
reasonable  to protect  the  Companies  in the conduct of its  business.  If any
restriction  contained  in this  Section  12 shall be  deemed to be  invalid  or
unenforceable  by reason of the extent,  duration or geographic  scope  thereof,
then the extent,  duration,  and geographic scope of such  restriction  shall be
deemed to be  reduced to the  fullest  extent,  duration  and  geographic  scope
permitted by law and enforceable.

12 Capacity.  The Executive  represents and warrants to the Companies that he is
not now under any enforceable obligation,  of a contractual nature or otherwise,
to  any  person,  firm,  corporation,   association  or  other  entity  that  is
inconsistent or in conflict with this Agreement or which would prevent, limit or
impair in any way the performance by him of his obligations hereunder.

13  Withholding.   The  Executive   acknowledges   that  salary  and  all  other
compensation  payable under this Agreement  shall be subject to withholding  for
income and other  applicable  taxes to the extent required by applicable law, as
determined by the Companies in their reasonable judgment.

14 Waivers and Amendments.  No act, delay,  omission or course of dealing on the
part of any party  hereto in  exercising  any right,  power or remedy  hereunder
shall  operate as, or be construed as, a waiver  thereof or otherwise  prejudice
such party's rights,  powers and remedies under this  Agreement.  This Agreement
may be amended only by a written  instrument  signed by the Executive and a duly
authorized officer of each Company.

15  Notice.  Any and all  notices  referred  to herein  shall be  sufficient  if
furnished in writing and  delivered by hand,  by  facsimile  transmission  or by
overnight  delivery service  maintaining  records of receipt,  to the respective
parties at the following addresses:
                  If to the Companies:

                           Saville Systems
                           One Van De Graaff Drive
                           Burlington, Massachusetts  01803
                           Facsimile:  781-270-6501

                  If to the Executive:

                           Mr. John J. Boyle, III
                           3 Hancock Street
                           Portsmouth, NH 03801

or to such  other  address  or  addresses  as any  party  may from  time to time
designate by notice given to the others as aforesaid. Notices shall be effective
when delivered.

1 Arbitration;  Jurisdiction. Except for disputes arising under or in connection
with Sections 7, 8, and 12, all disputes  arising  under or in  connection  with
this  Agreement or concerning  in any way the  Executive's  employment  shall be
submitted  exclusively  to  arbitration  in  Boston,  Massachusetts,  under  the
Commercial  Arbitration  Rules of the American  Arbitration  Association then in
effect,  and the decision of the arbitrator  shall be final and binding upon the
parties.  Judgment  upon the award  rendered  may be entered and enforced in any
court having jurisdiction.  The parties hereto consent to personal  jurisdiction
of any state or Federal court sitting in the District of Massachusetts, in order
to  enforce  any  arbitration  judgment  or the  rights of the  Companies  under
Sections 7, 8 and 12, and waive any objection  that such forum is  inconvenient.
Each party hereby consents to service of process in any such action by U.S. mail
or other  commercially  reasonable means of receipted  delivery.  This Agreement
shall  be  governed  by  and  construed  in  accordance  with  the  laws  of the
Commonwealth  of  Massachusetts,  without regard to the choice of law provisions
thereof.

2 Assignability. The rights and obligations contained herein shall be binding on
and inure to the benefit of the  successors  and assigns of the  Companies.  The
Executive may not assign any of his rights or obligations  hereunder without the
express written consent of the Companies.

3 Miscellaneous. This Agreement sets forth all, and is intended by each party to
be an integration of all, of the promises, agreements and understandings between
the parties hereto with respect to the subject matter hereof. This Agreement may
be  executed in  multiple  counterparts,  each of which shall be deemed to be an
original,  and all of which together shall  constitute one agreement  binding on
the  parties  hereto.  Each  provision  of this  Agreement  shall be  considered
severable  and if for any  reason any  provision  that is not  essential  to the
effectuation  of the basic  purpose of the Agreement is determined to be invalid
or contrary to any existing or future law, such invalidity  shall not impair the
operation of or affect those provisions of this Agreement that are valid.

4 Headings; Construction.  Headings contained in this Agreement are inserted for
reference and convenience only and in no way define,  limit,  extend or describe
the  scope  of this  Agreement  or the  meaning  or  construction  of any of the
provisions hereof. As used herein,  unless the context otherwise  requires,  the
single  shall  include  the plural  and vice  versa,  words of any gender  shall
include words of any other gender, and "or" is used in the inclusive sense.

5 Survival  of Terms.  If this  Agreement  is  terminated  for any  reason,  the
provisions  of Sections 7, 8, 12 and 17 shall  survive and the Executive and the
Companies,  as the case may be, shall  continue to be bound by the terms thereof
to the extent provided therein.

         IN WITNESS WHEREOF,  the parties hereto have executed this Agreement as
of the day and year first above written.

                                        SAVILLE SYSTEMS PLC
                                        SAVILLE SYSTEMS CANADA, LTD.
                                        SAVILLE SYSTEMS, INC.

/s/ John J. Boyle, III                  By: /s/ Bruce A. Saville
John J. Boyle, III                      Name:  Bruce A. Saville
                                        Title:      Chairman