Ibec has hit out at the Government after a report by a State agency found that one-in-five personal computers in post-primary schools were not working.
The report by National Centre for Technology in Education also found that 19 per cent of working PCs are over six years old and the majority have outdated software for which there is no technical support.
Ibec's technology sector division ICT Ireland expressed alarm at the findings and called for Minister for Education Mary Hanafin to prioritise investment in Information and Communications Technology.
It said the seven-to-one pupil-to-computer ratio in post-primary schools, revealed by the report meant Ireland remains below the OECD average.
The survey of 3,519 primary, special and post-primary schools also showed that over 10,000 computers in primary schools need upgraded or repaired while over 5,500 are beyond repair (29 per cent). The pupil-to-computer ratio in primary schools was one-to-nine.
ICT Ireland executive Hannah Grene said: "The figures are a disgrace. As a wealthy country that prides itself on being at the forefront of the knowledge economy, we should be offering our children the best possible education and the skills they need to succeed.
"Irish students are being placed at a significant disadvantage due to the failure to exploit technology."
The three school sectors surveyed showed improvements in pupil-to-computer ratios compared to the last survey in 2003. The ratio was better in disadvantaged than in non-disadvantaged schools at primary and post-primary levels.
Labour party spokeswoman on education Jan O'Sullivan said the department should consider issuing all secondary students with laptops "rather than have them wrestling with third-rate information technology equipment".
Meanwhile, Ms Hanafin today warned parents about moving pupils to new schools mid-term.
"I am very sympathetic to families who have to move. But I would say to you please, wherever you are going to move, particularly to those developing areas, to give advance notice to the schools so we can make provision for you," Ms Hanafin said.
She was speaking on RTE radio in response to a report about pupils who had moved to Newbridge, Co Kildare, being unable to find school places.