Two Irish companies, Piercom and Millennium Solutions, could be candidates for a stock market listing in the future, according to NCB Stockbrokers. These companies have internationally recognised expertise in computer conversion solutions and are well placed to grow rapidly as a result of the Year 2000 problem and the European Monetary Union (EMU) conversion.
The Year 2000 computer problem presents a $600 billion (£431 million) opportunity worldwide for companies that can provide solutions, according to a report from NCB. In addition, NCB analyst Mr Enrique Curran believes that EMU is creating a conversion market worth about $400 billion.
Peak expenditure on making systems Year 2000 compliant will be between 1999 and 2001 and while the market will contract after 2001, he forecasts that Y2K work will generate revenue of up to $100 billion in the two to three years to 2003/4. Expenditure on EMU conversion will occur between 1998 and 2002.
But while the Y2K and EMU conversion markets will provide lucrative business opportunities, Mr Curran points out that they have finite lifespans. Solutions providers will only achieve long-term success if they can leverage off the Y2K and EMU business to reposition themselves in new markets such as re-engineering software, computer-aided software engineering tools, consultancy and training, he says.
Companies which will share the Year 2000 jackpot include systems integrators, such as Cap Gemini and Price Waterhouse, international manufacturers with service divisions offering Y2K solutions such as IBM and Digital, conversion factories carrying out basic conversion and testing, Y2K software vendors selling tools for the conversion and testing stages and hardware vendors.
