Crisis looms in Irish IT sector, says IBEC

ICT Ireland has warned of a crisis in the Irish IT industry

ICT Ireland has warned of a crisis in the Irish IT industry. ICT, the IBEC body representing the hi-tech sector, was responding to CAO figures showing a major drop in the points required for many degree/diploma course in computing and technology related subjects.

ICT Ireland predicts that unless there is significant additional investment in the Irish education system the sector here will suffer significant skill shortages over the next five years.

CAO figures released this morning show that the total number of people applying for computer-related courses in universities and institutes of technology fell by 25 per cent on 2001.

Almost 100,000 people are employed in the IT sector in Ireland and exports accounted for €31 billion in 2001, ICT said in a statement earlier today.

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Of the ten major software companies in the world, seven have substantial operations in Ireland.

This competitive advantage is now being eroded and the decline must be redressed if we are to retain our attractiveness as a location of choice for foreign-based companies.

"The situation in Ireland is being mirrored elsewhere and that there is a growing shortage of skilled ICT professionals throughout Europe," Mr Brendan Butler Director ICT Ireland said.

A recent report by the European Commission predicted that there would be over 1.7 million IT vacancies in Europe by 2003.

The decline in points requirements is, according to ICT Ireland, a result of two significant factors.

Firstly the high profile attaching to recent announcements of job losses in the sector had resulted in a decline in students opting for courses that would lead to a career in the IT sector.

Secondly, there is an ongoing decline in the number of students at primary and secondary levels pursuing science related subjects.

In 2001 only 12 per cent of Leaving Certificate students were enrolled in Chemistry and 16% in Physics compared to 1990 when 16 per cent who took Chemistry and 20 per centwho took Physics.

"It is vitally important," Mr Butler said, "that Ireland is in a position to meet this improved environment however there are concerns that we will have insufficient skilled workers.

ICT Ireland said it would be seeking an urgent meeting with the Minister for Education to discuss what steps must be taken to redress the decline in interest in science related subjects .