The need for language skills in the high-tech sector
February 2011
ICT Ireland and the ISA are business sectors within IBEC│the Irish Business and Employers Confederation
Table of Contents
Introduction ................................................................................................................................................. 3
Results from the Survey ............................................................................................................................. 5
Impact of language skills for foreign firms ............................................................................................. 9
Impact of language skills for indigenous firms ..................................................................................... 10
Recommendations .................................................................................................................................... 11
References ..............................................................................................Error! Bookmark not defined.
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Introduction
It is clear that the Irish economy and Irish
businesses have adjusted rapidly to the
increasingly tough economic times of recent
years. We are currently facing new and
ICT Ireland and the
difficult challenges which, coupled with the
Irish Software
economy, will require our education system
Association
need to establish Ireland as a smart
to adjust to these changed times.
Ireland’s national recovery will be rooted in
the exporting sectors of the economy, which
will provide the necessary growth and
employment in the next phase of our
The need for
economic development. With the increasing
language skills in
rise of emerging markets as the main
the high-tech sector
globalisation of the world economy, and the
sources of growth, the importance of
foreign
language
overestimated.
An
skills
Irish
cannot
be
workforce
possessed of significant foreign language
capabilities would serve to make Ireland a
considerably more attractive destination for
investment, as well as providing the skills
required by our indigenous companies to
expand into overseas markets.
On foot of concerns surrounding the level
of foreign language proficiency in ICT
Ireland & ISA member companies, and
recent Eurostat research which shows that
Irish primary schools have the lowest level
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of foreign language tuition in Europe, the
has one of the highest concentrations of
ICT Ireland & ISA Education & Skills
employment in ICT and 9 of the top 10
working group undertook a survey to assess
global ICT companies have a significant
the magnitude of the situation.
presence in Ireland. The sector is therefore
critical to the Irish economy.
This report considers both current level of
foreign language skills in Ireland and the
current and future requirements of these
skills for two vital sectors of the Irish
economy - the exporting indigenous firms,
and
foreign-owned
firms
engaged
in
international service activities. In the face of
the
global
economic
downturn,
the
resilience of our exports in both supporting
our indigenous base and developing our
services trade, will be the most likely driver
of our emergence from recession and return
to economic growth. It is the country's
interest to lay greater emphasis on ensuring
our young people’s proficiency in foreign
languages.
The ICT industry in Ireland employs over
74,000 people across an array of diverse
industries, including leading technology
multinationals,
indigenous
start-ups,
telecommunications companies and digital
innovators. ICT Ireland and the ISA are the
business sectors in IBEC that represent the
views of these companies.
The
ICT
sector
approximately
25%
is
of
responsible
for
Ireland’s
total
turnover, representing one third of Ireland’s
exports by value. Within the OECD, Ireland
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Key results from the Survey
Our survey takes a snapshot of foreign
meet the requirements of a rapidly changing
language requirements in the high-tech
linguistic environment.
industry and identifies some of the key
challenges, priorities and growth areas of
The survey results and issues detailed in this
employers with regard to language skills.
paper should serve as a guide to policy
The member companies of ICT Ireland and
makers in addressing the language skills
the ISA who participated in this survey
faced by high-tech companies in Ireland.
represent over 15,000 employees.
The expected demand shifts, as outlined in
this
paper,
should
be
taken
into
consideration when examining how the
education system can be transformed to
Use of foreign language skills in the high-tech sector
Does your company use foreign language
skills in conducting business?
Respondents were asked to identify whether
their company utilises foreign languages in
conducting
business.
Some
66%
of
respondents reported significant use of
foreign languages in their business. This
figure
suggests
employers
are
strong
participants in the global economy where
language skills are of great importance.
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Recruitment of staff with native language skills
Have you ever-recruited staff with native
language skills?
Clearly, the recruitment of native language
speakers
is
management
a
widely
used
language
technique,
with
79%
of
companies who require language skills
employing native speakers.
68% of companies who require language
skills noted that they have recruited staff
with specific language skills in the last twelve
months. Of these companies, over 42% had
experienced difficulty in acquiring skilled
language personnel.
Languages used by Irish SMEs & MNCs in business
Please indicate the languages that are used in
your business
For companies requiring foreign language
skills, French and German were the most
widely used languages.
79% of firms using foreign languages
require employees with German and French.
Spanish, Italian, Portuguese and Russian are
also highly sought after. Of note however,
is the use of non-European languages such
as Arabic, Chinese Japanese and Hindi.
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Company departments where foreign language skills are utilised
For companies using foreign language skills,
Which divisions of your company use foreign
the customer service department is the
languages?
greatest
user
of
languages.
63%
of
companies use foreign language skills in
their customer service department. Sales,
marketing,
financial
and
managerial
departments were the next highest users of
language skills. Clearly, daily communication
through foreign languages is an important
element in all aspects of business for the
high-tech sector.
Of those departments that reported a need
For
businesses
an
to use foreign languages to converse with
international stage, the employees who can
global counterparts on a daily basis,
competently communicate in the locales
employers questioned the low level of
where
fluency in foreign languages amongst Irish
their
that
compete
company
does
on
business,
experience a greater rapport with customers.
graduates.
Future foreign language skills needs
62% of respondents indicated that they
languages such as Russian, Chinese and
would require additional language expertise
Arabic will be needed.
in the next three years. Commonly taught
languages such as French, German and
With more employers moving further afield
Spanish will be heavily sought after, but also
into Far Eastern, Central Asian and Latin
American markets, the scope of required
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language abilities is widening. It is of
Equally as concerning is the low uptake of
noticeable concern that of the languages
languages in Ireland to meet this demand.
required over the coming years by industry,
Eurostat, the statistical office of the
Mandarin Chinese - the most commonly
European Union, recently published a
spoken language in the world (1.05 billion
survey entitled Linguistic Diversity in Europe.
speakers) - is not currently on the Irish
The report highlights a lack of foreign
curriculum.
language proficiency amongst Irish school
pupils. Only 3% of Irish primary school
What additional language expertise will your
company require in the next three years?
pupils learnt French in 2008, while 1%
learnt Spanish.
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Impact of Language Skills for
Foreign Firms
foreign language skills in order to guarantee
the supply of future Foreign Direct
Investment.
Upon examining the contribution of foreign
languages it is evident that in terms of
The growing importance of Mandarin,
employment and future revenue generating
Spanish, Arabic and Russian and the
opportunities, language provision is of great
linguistic
importance.
languages on world markets should be
impact
of
these
dominating
heeded, as English speaking countries only
Trends show that organizations looking to
account for about 30% of World GDP. To
gain a competitive edge are progressively
disregard the rise of these influential
seeking the following specific talents:
languages could mean quite substantial
 The ability to understand cultural
contexts;
losses of potential markets.
With an ever increasing need to gain access
 A global perspective;
 Fluency in foreign languages.
to emerging markets (such as Brazil, Russia,
India and China), language skills are an
With organisations conducting an increasing
important way in which market presence can
amount of work virtually and remotely, and
be extended. There is a clear
with mergers and acquisitions taking place
acknowledgment by multi-national
on a global scale, multinationals are very
businesses of the need to retain personnel
cognisant of the importance of foreign
with language capabilities in order to meet
language capability in doing business.
global needs and economic realities.
While English remains the lingua franca of
Recognition of the strategic role foreign
international business, many companies are
languages play is more important than ever,
increasingly placing major consideration on
given their ability to permeate virtually every
foreign-language
decisions
aspect of business activities. Recent analysis
regarding hiring, promotion and retention.
from The National Skills Bulletin (July 2010)
Internationally Traded Services, Business
noted
and Knowledge Process Outsourcing, and
telesales/customer care workers with IT
EMEA Sales and Marketing are just some of
skills – particularly persons proficient in
the areas where it is essential that key
Nordic Languages and German. With many
stakeholders ensure internal supplies of
of the top multinationals basing their
fluency
in
a
shortage
of
multilingual
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European operations in Ireland, significant
cultural skills. Furthermore, eight companies
analysis of why positions are traditionally
lost over $1 million of business due to
filled by non-nationals using their mother
language and cultural miscommunication.
tongues, rather than Irish people with
According to the Enterprise Strategy Group,
foreign language skills, is essential.
firms lacking linguistic fluency will find
themselves at a considerable disadvantage in
Impact of language skills for
indigenous firms
Despite the recession, Ireland continues to
moving closer to their customers. A new
Higher Education Authority report on the
role of Arts, Humanities and Social Science
in public policy noted that in the coming
have a strong, resilient indigenous software
years foreign language proficiency will
base on which to build future growth.
become a pre-requisite requirement for
Export growth in this sector grew by 6% in
employers.
2009.The Irish software industry is a strong
example of an export-oriented knowledge-
A strong ability in linguistic fluency is
led industry.
essential for an SME to increase its
penetration into overseas marketplaces.
In order to continue to help indigenous
With this sector’s heavy reliance on its sales
firms grow their exports, it is necessary to
and marketing functions, it is vital that any
strategically align our graduates’ foreign
future language policy take account of these
language skills talent in line with new market
industry shortcomings. With an ever-
opportunities and companies' international
increasing export market dominating the
business plans.
Irish economy, we need to consider how to
address this problem of inadequate linguistic
From a business point of view, proficiency
in
foreign
languages,
especially
skills in the SME sector in the short term
when
combined with knowledge of, and skills in,
another professional area is highly desirable
in
the
marketplace.
Indeed,
language
proficiency is a noticeable key requirement
for determining export success. A global
report
entitled
‘Languages
at
Work’
highlighted that 20% of respondents had
lost business due to insufficient language or
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Recommendations
Currently foreign language education in
Ireland is overwhelmingly directed towards
We have identified two clear issues with
already mature European markets such as
Ireland’s foreign language education policy,
France & Germany. With little or no
as it stands. Firstly the level of fluency
provision for fast growing large emerging
attained by Irish students entering the work
markets it is recommended that emphasis be
force is not of the required standard.
placed on these languages to help increase
Secondly the range of languages taught is
the pool of highly educated multilingual
not sufficient to enable Irish companies to
talent in Ireland.
fully exploit what are, and will continue to
be, some of the fastest developing markets
According to the OECD, China could
in the world.
overtake the United States and Germany to
become the world's largest exporter in the
Despite a series of welcome initiatives in the
next five years. By 2030 the top six world
education cycle, Ireland persists in lagging
economies could be China, followed by the
behind the European average of 60%, with
United States, India, Japan, Brazil and
only 8% of Irish secondary pupils learning
Russia. An analysis of the BRIC economies
two or more languages. While pockets of
calls attention to their growing trading
positive projects have been incorporated
influence, with estimates pointing out that in
around the country such as the Modern
less than 40 years, the BRIC’s economies
Languages in Primary Schools Initiative
could grow to be larger than the G6 in US
(MLPSI), the Post Primary Languages
dollar terms.
Initiative, Ireland, and other such formal
educational
memoranda
of
understanding,
As our survey shows, even with the current
Ireland is the only European country where
dearth
study
companies
of a
foreign
language
is not
of
language
intend
on
skills,
Irish-based
expanding
into
compulsory at any stage of the educational
markets such as Russia, the Middle East,
system. It is important that an integrated
China, and so on. This trend is only likely to
approach be adopted to affect change at all
increase as time goes by, and it is vital that
levels of study, so that the level of teaching
we act now to ensure that the skills needed
at any given stage, is challenging but
to take advantage of such expansion will be
manageable for students entering that stage.
available as soon as possible.
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Outlined below are some key initiatives,
which would aid in effecting change.
We urge the Department to consider the
 It is clear that a national modern language
degree
to
which
may
Ireland’s
be
export
education strategy is required. Without one,
performance
the uptake of foreign languages at second-
remedying its weakness in foreign language
level will continue to fall. ICT Ireland and
skills. Language skills greatly facilitate the
the ISA recognise that it will take time to
resourcing and exploitation of networks in
develop such a policy but believes that the
foreign markets. Without any degree of
process can be speeded up by a serious and
language
significant level of engagement between
growth and ability to forge international
industry and the Department through the
business relationships, both now and in the
formation of an Advisory Group to oversee
future, will be seriously stunted.
capabilities,
improved
indigenous
by
firms’
its implementation.
 A number of more practical language
We hope that this paper serves as a good
learning modules are required throughout
starting point in the debate on the role of
second and third level curricula and need to
foreign languages, and the need for a
be supported at a national level. ICT Ireland
modern language education policy. The first
& the ISA supports the use of ICT as an
step in putting such a policy in place is to
enabler to help foster the sharing of best
call on interested national bodies to facilitate
practice in, and innovative approaches to,
the dialogue that will be required to move
foreign language learning.
Ireland forward. A coherent language policy
 Attainment of the European Council’s
would lead to efficiency gains in business,
objective, set out in 2002 at the EU summit
and so ICT Ireland and the ISA will
in Barcelona, for children to learn at least
support, and play an active part in, any
two foreign languages from an early age
endeavours
must be reached in order to truly make
Education and Skills to form a policy that
Ireland a multilingual country.
addresses what we teach and how we teach
 It is crucial that any Irish foreign languages
policy
incorporates
prevalent
by
the
Department
of
it.
world
languages, rather than maintaining a focus
Government policy must support the
on already mature European languages
private
traditionally taught in schools such as
impediments
French & German.
employment creation, and by pursuing an
sector
by
to
removing
potential
competitiveness
and
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appropriate foreign language education
policy to encourage export growth and
ensure future skills needs. Without such an
initiative, we run the risk of being left
behind.
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ICT Ireland and the ISA are business sectors within IBEC │the Irish Business and
Employers Confederation
Confederation House 84/86 Lower Baggot Street Dublin 2
TELEPHONE + 353 1 6051527 FAX + 353 1 6381527
E-MAIL info@ictireland.ie www.ictireland.ie
isa@ibec.ie www.software.ie
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