Businesses are still moving ahead with plans for expansion despite looming economic woes as inflation rises and the threat of recession hangs over companies.
But companies are as likely to expand virtually into new markets as they are to establish a physical presence.
The survey, by digital infrastructure company Equinix, found businesses globally are planning major investments in digital technology to support their planned expansions, following lessons learned in the pandemic.
Almost a third of businesses here said they would expand into new countries in the coming 12 months, as the investment in digital infrastructure opened up new possibilities. Some 34 per cent said they would expand virtually into new markets.
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And more than 62 per cent of business in Ireland are planning to continue with global and regional expansion, compared to 59 per cent in Europe, the Middle East and Africa.
The Equinix 2022 Global Tech Trends Survey, which included 2,900 IT decision-makers globally including 100 in Ireland, found 22 per cent plan plan to expand into new regions or cities.
Of those planning expansion, 34 per cent said they were almost as likely to deploy a virtual presence in their new location through the cloud as they were to hire dedicated staff for a physical presence.
More than 40 per cent of irish businesses have increased their IT budgets as a result of the pandemic, and of those who implemented technology changes, 71 per cent believe it is here to stay.
“Our research shows that despite uncertain economic times, Irish enterprises are pursuing ambitious growth plans. Years ago, that required setting up a physical base in a business’ target market. Today, the power of digital infrastructure is enabling organisations to establish a virtual presence that allows them to bring their services and data closer to the end user almost anywhere in the world. Evidently, Irish businesses are embracing this new era of globalisation, which allows them to reduce their capital expenditure while scaling their operations up and down as needed,” said John Shorten, senior director of operations for Equinix growth and emerging markets.
“It now looks inevitable that soon, we will see virtual expansion becoming the de facto method of scaling up operations. As our homegrown enterprises continue to expand, this level of interconnectedness is opening up an exciting era for Irish businesses and one that they seem increasingly prepared for.”
Enhancing customer experience was deemed a priority for 85 per cent of Irish IIT leaders, while almost 60 per cent are planning to move more business functions to the cloud. Some 48 per cent said they intend to move security functions to the cloud. Almost half of companies said they preferred private cloud models, while 31 per cent opted for hybrid public and private cloud services.
