It is only a matter of time before the information and communications technology (ICT) industry recovers from its current torpor, according to IBEC.
The business and employers organisation says the global downturn in the industry will eventually end but that Ireland may not be properly prepared to exploit the opportuities new investment will present.
They say it is difficult to predict when the upturn will take place but that "the medium-to-long-term for the sector globally are extremely positive".
A plan to make Ireland a world leader in the ICT industry by 2005 was launched today after chief executives from the sector came together over a three-month period to produce a strategic action plan.
A Strategic Vision for the Information and Communications Technology (ICT) Sector in Ireland 2002 - 2005was launched today targeting research and development, education and infrastructure among other areas in need of devlopment.
Mr Kevin Dillon, Chairman of ICT Ireland and managing director of Microsoft's European Operations Centre said that Ireland had become a relatively high-cost location and was losing lower-end technologies to low cost locations overseas.
He said the trend is likely to continue meaning a significant amount of restructuring would be required if Ireland was to remain an attractive location for ICT development.
"The purpose of developing the strategic vision was to position Ireland to respond with speed, decisiveness and innovation, to the constantly changing demands of the global marketplace and to its emerging opportunities and threats" said Mr. Dillon.