A new report on the computer software industry in Ireland predicts there will be a major increase in employment levels in the sector over the coming months.
The ISA's 'Software Industry Outlook 2002' report says the vast majority of its members believe that the recession which badly hit the sector last year is over. The report says that 56% of Irish software companies expect to increase employment and 75% are forecasting higher revenues this year.
'The results are highly encouraging and suggest that the technology recession may have bottomed out,' says Billy Huggard, Chairman of the Irish Software Association.
Despite reported job losses last year, twice as many software companies (61%) increased employment last year than reduced headcount (29%).
The report also indicates that research and development expenditure is holding up well with 75% increasing or maintaining investment in this area in 2002 with just 16% planning to reduce investment.
63% of ISA members report optimistic indicators in the market since the New Year, including signs of budgets being released and projects which were stalled last year being back on track.
Other positive signs noted in the report include additional sales staff being recruited, developments in GPRS technologies and major customers starting to meet earnings expectations.
'Steady growth is expected by the second quarter and the indicators are that reality and normality is returning to the market,' Mr Huggard said.
There are over 900 companies, including 760 indigenous companies and 140 multinational companies, involved in the software sector in Ireland. About 30,000 are employed in the sector and the industry represents 11.6% of GDP and over 10% of total exports.
