Waterford-based IT services company HCS is investing €1.1m in its new dedicated telecom business, HCS Telecom.
It said the new division expects to achieve revenues of €1.3 million this year, and will employ eight people by the end of the year.
HSC said it is launching this new arm of the business amid increased demand from customers to migrate from legacy phone systems to cloud-based unified communications (UC).
It said the demand is being driven by the surge in remote and hybrid working practices, and the phasing out of traditional copper wires in favour of fibre.
"Legacy phone systems are static, which means that organisations don't have the ability to work flexibly in an increasingly decentralised workplace," said Mick Foley, Head of Telecom Solutions, HCS.
"With this new division, we aim to address this challenge and enable more organisations to work from anywhere, safe in the knowledge that they are supported by a range of reliable and secure solutions.
"We have deep expertise in IT and telecoms, and we are leveraging our experience and skillsets to cement our offering for customers," he added.
The €1.1m investment in the business includes the upgrade of technology and equipment in HCS' Irish-based data centre, with enhanced servers, backups, and security.
The company said this will allow for increased capacity which will, in turn, facilitate the expected growth of the company's customer base.
In the last two years, HCS has added 1200 users and 100 new customers to its telecom client base.
It said its technology enables around 170,000 client calls to be carried out each month.