THE US computer company Digital will create 200 new jobs in Ireland over the next three years.
Digital has already agreed the expansion plans with IDA Ireland and is expected to make a formal announcement in the near future.
Neither Digital nor IDA Ireland would comment on the expansion. However, it is understood the majority of the new jobs will be at the company's multi vendor computer services (MCS) division in Dublin. Digital also has its European software headquarters in Galway.
Digital closed its hardware manufacturing plant in Ballybrit, Co Galway in 1993 with the loss of 780 jobs. Over the past 18 months, the company has begun to expanded its remaining Irish operations. About 1,000 people are now employed between Dublin and Galway.
The new expansion is under pinned by a huge growth in the market for multi vendor computer services contracts where an outside company such as Digital manages and services a clients' entire computer network rather than merely its own hardware brands.
The vice president and general manager of Digital MCS, Mr John Rando, said last week that employment in the division was likely to grow by about 20 per cent over the next five years. Digital's service division currently employs 22,000 people worldwide and contributes about 30 per cent of the parent's global revenues.
The European multi vendor services market is currently worth $5.8 billion (£3.68 billion), but its value is expected to more than double to $12 billion within the next five years, according to a recent report from the US consultants INPUT. The INPUT report shows multi vendor contracts now account for 20 per cent of all European information technology services.
Digital is the market leader is Europe with a 9.1 per cent share. ICL, which also has a large Irish operation, is the second largest European computer services operation with an 8.1 per cent share.
The amount of money spent on information technology (IT) services now exceeds the amount companies spend on computer IT products. Services accounted for 53 per cent of overall IT spending last year but this will grow to 60 per cent by the year 2000, according to the international consultants Dataquest.
Digital's sales in Ireland decreased from £59.3 million to £56.7 million in the year to the July 1st last. The company described the drop in turnover as "a one off glitch" which was partly due to lower margins as the company had switched from direct sales to using agents. Digital's European software centre in Galway had exports of £270 million last year these are expected to grow to about £300 million this year.
