CHAPTER 17: THE DYNAMICS OF REGIONS (2) IT services in the GDA
The GDA has a variety of internet service providers who provide employment not just in software development but in finance, sales, supply chain management and human resources. The international high-tech services sector is developing rapidly and Ireland provides such services globally over the internet. The GDA is now the location of choice for the European headquarters of companies such as Google, Facebook, LinkedIn and eBay. Within the GDADublin is becoming the information technology capital of Europe.
The huge value of business by IT companies can be seen from the fact that software companies in Ireland increased their exports by six per cent during 2008-2010. IT services companies based in the GDA chose to locate in this area for the following reasons.
Fig. 21 There is a young educated workforce in the GDA.
Reasons for location of IT services companies in Ireland/GDA: • Ayoung educated workforce: In 2010 Ireland was first of ten European countries in a ranking of the percentage of the population with a third level qualification. Overall 44% of the population has a third level qualification.
• Dublin has affordable office space. Rents are now lower than ever in vacant office blocks built during the economic boom.
• Government support for industry and research & development (R&D): An attractive tax system, e.g. corporation tax is just 12.5% paid on profits compared to 41% in Japan, also helped to entice companies to locate here. Ireland also offers a 25% tax credit on R&D developments.
• Industry-focused college courses: Such courses are available in world-class universities and institutes of technology throughout Ireland. They ensure a continued supply of qualified graduates and the availability of ongoing management training.
• The massive ‘server farms’ of web service providers require expensive air conditioning which is cheaper to provide in the mild Irish climate.