Employers have warned the Government that a major crisis is looming unless radical measures are taken to address the fall-off in student applications for computer and technology courses.
They say the dramatic fall-off in student interest in these areas could see a skills shortage of over 3,000 IT professionals for each of the next five years.
The warning by ICT Ireland, the IBEC body representing the hi-tech sector, will intensify the pressure on the Government to tackle the problem. The Minister for Education, Mr Dempsey, is due to bring a report to Cabinet on the issue later this month.
The most recent CAO rounds saw a fall in points for many computer and engineering courses, as students opt for what are perceived to be "safer" career options.
Mr Tim McCarthy, chairman of ICT Ireland's education working group, said the IT sector would suffer significant skill shortages unless there was a great deal more investment in the education system. Mr McCarthy is also a director of Dell Ireland.
Despite the current downturn, he predicted the IT sector would shortly experience a surge in demand. "It is vitally important that Ireland is in a position to meet this improved environment. However, there are concerns that we will have insufficient skilled workers."
The recent report by the Government-based Expert Group on Future Skills Needs estimated that in the IT sector there would be an annual shortfall of about 2,500 professionals and 800 technicians between 2002 and 2005.
Almost 100,000 people are employed in the sector in Ireland and exports accounted for €31 billion in 2001.
Of the 10 major software companies in the world, seven have substantial operations in Ireland.
Mr McCarthy said many were drawn by the Republic's reputation as a location with a young well-educated workforce with high IT skills but this advantage could now be eroded.
ICT Ireland believes the drop in points can be traced to two factors: the high-profile job losses in the sector and the continuing decline in the number of students taking science subjects at second-level.
It wants the Government to invest an additional €165 million to address the projected skills shortage. This was a key recommendation of the recent expert skills group. ICT says it should now be implemented without delay.
According to Mr McCarthy, "The recent decline of almost 25 per cent in the number of students applying for technology courses in third-level colleges highlights just how critical the matter has become."