TECHNOLOGY:STRIP OUT the indigenous firms from the Top 1,000 listing and you are left with a top 10 that reads like a 'who's who' of the global technology industry.
Top is Microsoft which runs parts of its business in 126 countries out of Dublin, having toppled Dell as the largest technology company in Ireland by revenue. Both firms have turnover in excess of €10 billion but the next five technology companies also have a significant turnover and employment base here including - Intel, Google, Oracle, IBM and Apple. Hewlett-Packard can also be added to that list given that it has three entities registered here which have a combined turnover of €2.02 billion, placing it between Apple and Eircom in a ranking of technology and telecommunications firms.
Ten years ago anyone predicting such a significant contribution to GDP from the technology sector would have been accused of being wildly optimistic. At that time firms such as Gateway, AST and Digital were pulling out of Ireland completely, while Apple and IBM ceased manufacturing and moved into other areas. Now much of the activity is around logistics, supply-chain and back-office functions - only Dell and Intel still engage in traditional hardware manufacturing.
The Republic has attracted some of the top names from the new breed of internet companies and they will fuel the next phase of growth. Google is the star pupil, but other significant players include Yahoo's Overture advertising subsidiary and auction website eBay and its PayPal payments division.
The tech multinationals undoubtedly make a significant contribution to the economy. But the support they provide for activities in other countries, typically in Europe, the Middle East and Africa, and the attractiveness of Ireland's corporate tax and regulatory regime, mean the revenues booked in the Republic exaggerate the scale of their local activities.
For a better barometer of technology innovation here you look to the indigenous players. Troubled electronic payments group Payzone squeaks into the top 125 companies but given its recent forecast of a €30 million loss this year, that status may be under threat.
The current round of mergers and acquisitions in technology, both locally and internationally, is also changing the landscape. Horizon Technologies, which supplies technology services in the UK and Ireland, graces the top 200 but it was recently acquired by American distributor Avnet. E-learning, long a strength here, also places Riverdeep/Education Media and Publishing Group (EPMG) in the top 200 while Skillsoft, nee Smartforce, comes in at 272. Following this year's two multi-billion acquisitions the former will rank significantly higher next year but the bulk of the new revenue comes from traditional book publishing rather than technology activities.
When ranked by revenues the Irish technology sector continues to divide sharply between the multinational and indigenous companies. There remains little sign of a CRH/Ryanair or Smurfit Kappa emerging from the ranks of our own tech firms.
