ICT Ireland & the Irish Software Association Submission to the 2014 Action Plan for Jobs October 2013 ICT Ireland and the Irish Software Association Submission to the 2014 Action Plan for Jobs October 2013 ICT Ireland and the Irish Software Association are the Ibec groups that represent the high-tech and digital sector. The sector in Ireland directly employs over 105,000 people, with 75% employed in multinational companies and the remainder in the indigenous digital technology sector. In the last three years over 17,500 jobs have been announced by technology companies. The sector is responsible for 40% of our national exports and is home to all of the top ten global technology companies. Ireland is emerging as a global technology hub. The 2013 Action Plan for Jobs places a strong emphasis on policies to aid the technology sector’s growth. This focus received strong support both at home and abroad, particularly with potential investors. The next Action Plan must build on this foundation. Our submission contains the key points we would like to see implemented and supported through the 2014 Plan. Ambitious goals remain. To make Ireland the best country in the world for tech talent by 2015 is by far the strongest statement of the 2013 Action Plan, from which many other initiatives stem. Having made this statement, it must be met. Other areas of importance include promoting growth, particularly in niche sectors, developing a technology ‘ecosystem’ and ensuring business-conducive policies are in place. At the request of Minister Bruton, following our meeting on August 1, 2013, we have kept our comments brief and to the point, highlighting specific activities that will lead to further growth and more jobs. We would be happy to discuss the detail behind these points with the Department. Key areas of focus for the technology sector Skills demand Enhancing the second level education system Introduce industry specific courses at second level or earlier (i.e. computer science, programming, digital technology). Maintain the current Bonus Points for Maths systems. All maths teachers must hold a maths qualification. Invest substantially in IT in schools, for all subjects. It is the responsibility of the Government to create and implement a successful IT strategy. The reform of the Junior Cycle represents a strong opportunity to introduce technology both as a learning tool and as a subject. Third level and beyond Maintain conversion courses through Springboard, Job Bridge and Momentum that relate specifically to the needs of the technology sector. It is important that conversion courses receiving Government funds are closely tailored to industry needs and developed with companies or groups of companies. Continued support for Fast-track into Information Technology (FIT) is strongly encouraged. Introduce an Associate Professional Programme as an alternative route to a career in the technology sector. Page 1 of 3 Continue Government support for the Export Orientation Programme which successfully addresses specific graduate recruitment needs for major multinational and indigenous technology companies. Support industry-led programmes that satisfy the skills demand. Increased funding for industry-led training programmes through Skillnets in Budget 2014 is welcomed. It is important that funding provisions through Skillnets allow for the development of new courses that satisfy industry’s future needs. Promote technology as a career of choice to second level students through the Smart Futures campaign run by Discover Science and Engineering. Facilitate engagement with academia on technology course content and activities to ensure graduates are equipped with all relevant skills for the sector. This can be achieved through the Foresight Group. Specific agenda items should include implementation strategies to: o Introduce foreign languages as part of third-level technology programmes; o Include substantial work experience as part of third-level technology and related courses; o Incorporate ‘critical communication’ skills (writing, presentations, team-work, etc.) into current courses and subjects. Continue to attract talent Maintain the successful changes introduced in early 2013 to the visa and work permit process. To take greater advantage of these changes, alterations to the approval process for spouses and partners of work permit and visa holders are needed. It is important that where a visa/work permit is issued, the approval process for partners is expedited. The option of self-administration of visas and work permits should be considered for large companies where a number of applications are frequently made. A short-term urgent permit for company VIPs, possibly administered by the IDA, should be introduced. Market Ireland as a location of choice for tech workers. Ireland should be both a location of choice for company investment and to develop a career. Two strong programmes currently running are ITs Happening Here and Make IT Happen. Funding and resources to sustain these programmes is needed. Make the current competitive tax offerings more attractive for workers and entrepreneurs. This includes improvements to the Special Assignment Relief Programme, Employee Share Option Schemes and Capital Gains Tax (in addition to Budget 2014 improvements). General cost of living is high in Ireland. In particular, the cost of healthcare is becoming a pinch-point for executives from abroad. Mechanisms to alleviate this cost should be examined. Promoting growth The following actions can be achieved through Government and industry collaboration using the ICT Ireland and ISA report, Ireland: Global Technology Hub, as a blueprint. This industry authored report contains recommendations to increase growth in the technology sector in Ireland. Sectors where Ireland can lead Focus on the development of key sub-sectors, where Ireland has a distinct opportunity to be a global leader. These sub-sectors are: Page 2 of 3 1. Digital Services in Every Business Implement a national programme to facilitate businesses to trade online successfully, in line with the Digital Strategy. 2. Smart Infrastructure and Smart Cities Use Ireland’s areas of competitive strength in the technology sector to implement infrastructural/technological upgrades to our energy, water, transport and traffic management systems. 3. Analytics and Big Data (already recognised in the current Action Plan) Expand the current measures to include the pursuit of the services component of Big Data and data analytics, as well as maintaining Ireland as a central data management and warehousing location in Europe. 4. Apps, Content and Mobility Develop the necessary skill clusters and courses to complement the existing international business models in the creative sector. 5. Cloud Ensure Ireland has the necessary systems integration and software development skills required to take full advantage of this new IT consumption model. 6. High-tech Manufacturing Ireland must continue to support investment in the area of high tech manufacturing, coupled with high skilled R&D and the promotion of convergence across all sectors. Collaboration between companies There is a thriving indigenous digital technology sector in Ireland. A unique opportunity exists to harness the complementary capabilities of both the multinational and indigenous technology companies in a collaborative manner. Enterprise Ireland has a strong track record of supporting start-up, early stage and scaling indigenous technology companies. Coupling these supports with the work of other agencies, such as IDA Ireland, would accelerate the overall technology sector’s growth. This relationship could be developed through some specific activities, such as: Multinational and indigenous companies undertaking collaborative research; Licensing unused IP to indigenous companies on preferential terms; Championing indigenous digital technology companies to the top level or tier in channel/partner programmes; Joint participation on in-company executive education programmes; Bundling/licencing of multinational and indigenous company products and services in a single offering. State procurement and ‘born digital’ Encourage the State CIO to increase the involvement of indigenous technology firms in technology solutions for Government services and activities. Introduce a cross-Government policy where any new service for citizens and/or internal Government users is ‘born digital’, i.e. the service (where appropriate) is digitally based. o---Ends---o Page 3 of 3