Overseas expansion has been identified as a top priority for Irish companies, with almost half of all respondents to a new Deloitte survey predicting that more than 50 per cent of their sales will be generated in foreign markets by 2014.

The United Kingdom was found to be the most popular target market for expansion, followed by Germany, France and the United States. Countries such as China, the Netherlands, Poland and Spain were also viewed favourably.

The opportunity to grow sales was identified as a driver of overseas expansion by 91 per cent of respondents. The high level of competition in the domestic marketplace was cited by 29 per cent of firms as a reason for looking overseas, while the absence of a similar product or service in foreign markets was also found to be a common factor.

“It’s very encouraging that so many indigenous Irish companies are looking at how they can grow their businesses abroad,” commented Pádraig Cronin, head of tax and legal services at Deloitte. “While this is no doubt a reaction to the weakened demand in the local marketplace, it also shows that many Irish companies have the foresight and agility to adapt to the changing global marketplace in order to not only survive but also grow their business.”

The survey found that lack of access to financing is the main deterrent to foreign expansion, with 44 per cent of respondents citing this as an obstacle. Companies also reported difficulties in encouraging employees to relocate overseas, even temporarily.

"Our tax system could be amended to incentivise people to work abroad for Irish companies, by giving them a tax rebate in respect of days worked abroad," Mr Cronin said.