Returning to a software success

Mr Padraig Canavan must be the dream citizen of any minister for enterprise. The 36-year-old spent his 20s abroad developing his knowledge and experience of the computer industry. Three years ago he returned to Derry to set up a software company. It now employs 38 people and has just won the 1997 Johnson Brothers Centenary Award for Enterprise.

Singularity is primarily a services company, developing software for the financial sector and other larger software houses. Mr Canavan originally started the company to develop a specific software product, but problems finding people with the right skills and training necessitated a change in course.

Since its inception, the company has concentrated on Microsoft technology, and Mr Canavan has had to train most of his staff himself because of the difficulty in finding people trained and experienced in that technology. Familiarity with UNIX systems is much more common in the North, but a skills shortage, he says, is a worldwide problem in the computer industry.

"There are so many influences in the marketplace at the moment demanding skills that cannot be satisfied. If anything, the problem is worse in England and America," he says.

This shortage of suitably qualified people could also affect Singularity's future development. Because the company specialises in developing software for the financial sector, Mr Canavan intends to target Dublin's Financial Services Centre within the next six months. Setting up an office in the capital could be problematic, however, because of "fierce competition for people who know the technology and are well trained".

Microsoft's growing domination of the software industry, and Singularity's concentration on Mircrosoft technology have been central to the success of the Derry company. Microsoft is now focusing on corporate computing systems, and Mr Canavan believes it will soon dominate this sector also.

"We understand Microsoft technology - that is what we have been concentrating on for the last two years, so we are poised to be able to capitalise on that experience as people move across into the Microsoft Windows environment."

Singularity is also benefiting from the problems posed by the year 2000 in the computer industry, as companies face the choice of either adapting or replacing their existing systems. Mr Cavanan says they are in the market to develop new systems for businesses which choose the second option.

The third crucial factor in Singularity's success has been the growth of the Internet, an area Microsoft now dominates. Knowledge of Microsoft's Internet technology means the company is in an ideal position to supply financial institutions which wish to add Internet capacity to their software.

The only major challenge now, he says, is in "convincing people that they should do business with a Northern Irish company they haven't heard of". The tendency of financial institutions to be conservative in relation to working with new companies, and the reluctance of major software houses to outsource their development are among the problems facing him. This is where the Johnson award will come in useful as well as an existing client list, which includes American Express and Citibank.

All but one of Singularity's clients are based in the City of London or on Wall Street. His time abroad, he says, gave him a client base and a focus on international commerce. "My time in London and New York gave me a good sound introduction in international banking, and made me see that all sorts of things were possible, from wherever you were."

Singularity became a limited company in October of last year, with Mr Canavan retaining a 92.5 per cent share. The focus over the next three years will be on ensuring continued growth, building on the company's knowledge and consolidating its commercial base.

While the company has been concentrating on providing services for its clients and finding new customers, work on developing new products has also continued. In time, this is an area Mr Canavan hopes to be able to put more resources into, but he says he would then envisage setting up separate companies to go into product development.

For Singularity, with its services focus, eventual stock market flotation would be the best option in order to capitalise on his investment, Mr Canavan says.