Ireland Inc adds another US feather to its cap

The official opening of FileNET's new premises in Dublin this week was presented as a two-fold success story: not only was the US document management company keen to show off its new European headquarters, but both it and the Tanaiste, Ms Harney, were celebrating another example of the successful marketing of Ireland Inc. to international bidders.

FileNET, which first set up in Ireland with four employees in 1992, now employs about 60, and is planning to expand to "at least 100" by the end of 1998, according to recently appointed chief executive officer, Mr Lee Roberts.

The Irish operation, in the East Point industrial park, consists of four sections: financial operations, customer support, CDROM manufacture and software localisation. According to Mr Roberts, the customer support and localisation areas are expected to grow most.

Like many other multinational IT firms, FileNET is centralising its European operations in Ireland. The reason for centralisation is straightforward the company previously ran its European operations on a country-by-country basis, and is now going pan-European and avoiding replication.

Improved telecommunications infrastructure now allows automatic re-routing of freephone numbers around the world, meaning customer support, for example, can be centralised. FileNET now has three worldwide support centres, in the US, Ireland, and Asia, meaning 24-hour help is available. This is known as "chasing the sun".

But why chase the sun in Ireland? Mr Roberts says Ireland was chosen for the European headquarters due to a combination of a "progressive environment for business to grow and flourish", and a "good workforce". He says the environment here is "the best in Europe" for attracting businesses, and attributes its competitiveness to laws, a flexible workforce, and a talented labour pool.

"The work ethic here is excellent," he says. He admits that Irish pay levels are lower than in the US and other parts of Europe, but says he expects this to balance out over time. When asked if the 10 per cent corporation tax, criticised by some of our European neighbours as too low, was not the major factor in choosing Ireland, he says it ranks "behind the skilled workforce, but it is a factor". He says were this to be removed, it would be unlikely firms would move away, having made investments here.

But if the pool of available talent is the major attraction here, isn't Mr Roberts concerned about the IT skills shortage? He says it isn't affecting plans now, but adds: "Down the road you have to wonder." Having talked to the Government, he says, he believes resources will be here when needed.

Ms Harney, in her speech at the opening, praised the young workforce and picked up on the theme of selling Ireland as a location for investment. She said Ireland, with 1 per cent of Europe's population was attracting 14 to 15 per cent of new greenfield projects from the US. She warned that Ireland had to maintain competitiveness, but also said of the current economic boom: "We must enjoy it while it lasts, it certainly won't last forever."

FileNET is aiming for $300 million (£212 million) revenues this year and 35 per cent growth in an industry which it says is worth $600 million. Currently 70 per cent of its business is in the US, but the company is aiming to reduce this figure to 50 per cent in two to five years, though increased global operations. The company announced this week that Irish Progressive was using its products in its customer handling department.

Eoin Licken can be reached at eoin@stilet.to