Firm switches focus to capitalise on rapid growth in services sector

The rapid growth in the information technology (IT) services sector has prompted one Irish computer reseller to shift its focus…

The rapid growth in the information technology (IT) services sector has prompted one Irish computer reseller to shift its focus towards services support as well as sales. In the last 18 months, CK Business Electronics, the Galway-based independent IT reseller, has increased staff in its Dublin office from three to 18. It plans to employ 24 there by the end of the year, primarily in the area of support services for medium to large businesses.

The company, which has a strong base in the west of Ireland, invested heavily in its Dublin business after it became apparent the capital was emerging as a key growth area. "When we realised we were doing about £1.5 million out of our Dublin salesman's kitchen, we knew the Dublin services business was becoming an important area," says Mr Bob McDonald, marketing manager with CK.

Speaking at the official opening of CK's offices in Blackrock, Co Dublin, CK managing director, Mr Gerry Gray, said he believed the company was now well positioned to capture a sizeable share of the Dublin market. It has head hunted key support people, including specialists in networking and Windows NT, to offer services to customers including, Elan, Boston Scientific, NCB Stockbrokers and the five regional health boards.

The recent escalation in IT services and products has given rise to demand for specialist support skills. According to industry analysts, Dataquest, services accounted for around 37.5 per cent of the IT market last year the largest single segment of the market.

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A further influence in rethinking the business model was the customer trend towards direct purchasing from the manufacturer, as in the case of Dell Computer.

Opening the new offices, the Taoiseach, Mr Ahern commended the emphasis CK puts on training.

Madeleine Lyons

Madeleine Lyons

Madeleine Lyons is Food & Drink Editor of The Irish Times