I expect to see some level of growth at the higher end of the value chain in 2004 with IT spend going only to solutions that can solve real and identified customer needs.
Recent economic data from the US is certainly providing a source of optimism. GDP of 8.2 per cent was achieved in quarter three 2003 and this, together with an increase in consumer confidence, should facilitate an upturn in Ireland.
At StorageTek Ireland we are gearing up for good growth in the year ahead particularly in our services and solutions businesses as these will provide the value-add that customers are demanding. With a growth in data at a level of 50-70 per cent, a continuing decline in company costs together with increasing availability of information which is adding complexity to businesses, I expect there will be an increase in demand for highly-skilled people for roles in the high end of the value chain.
The introduction of tax credits for R&D is welcome as a means for attracting higher-value inward investment. In addition, the decision to keep the PRSI structure relatively unchanged is also welcome.
Ireland continues to take action in the right areas to maintain its competitiveness. Institutions such as the American Chamber of Commerce, the IDA, Enterprise Ireland, Science Foundation Ireland and the economy's tax regime all play a role in helping to keep Ireland attractive for foreign direct investment (FDI).
