Ireland, the third largest island on the European continent and 20th largest island on earth is emerging as an attractive investment destination for Business Process Management (BPM) vendors. According to the statements released by Irish government, the beautiful island is turning out to be a popular near shore destination for European and US companies to handover their business processes to manage and this is attracting major players in the sourcing industry to select Ireland for setting up new service delivery centers.
Many big names in the global sourcing industry have already forayed into the BPM industry of Ireland to tap the huge growth potential posed by the island. Accenture UPS, Premier Global Services, TCS are some of the few BPM vendors that have set up their operations in Ireland.
Why Ireland is emerging as the global BPM destination?
While some experts are of the opinion that Ireland is not an ideal BPM destination when compared to other destinations, there are some potential advantages the island offers to both BPM vendors as well as the buyers. They are as follows:
- Human talent:According to 2011 IMD World Competitiveness Yearbook and 2011 IBM Global Locations Trends Report, Ireland is positioned at the top for availability of skilled labor, finance skills, labor productivity and for Human Development Index (economic, social and educational). A flexible demographics and vast pool of qualified professionals with excellent technical, multilingual and customer care services capabilities make Ireland an ideal destination for foreign investors. Google offers services in 60 languages from their business unit in Ireland.Moreover, 50.4% of the population in Ireland is under the age of 35. According to latest report published by the authorities, Ireland’s share of population under 25-34 years of age with high educational qualification is more when compared to US and UK. In addition, the high flexibility and adaptability of the Irish people makes them suitable for customer care service jobs.
- Business climate:The Irish government offers tax incentives and other subsidies for the foreign investors. The BPM vendors who will set up their operations in Ireland can benefit from 12.5% corporate tax which is less when compared to other BPM destinations. Other tax advantages offered by government for BPM vendors operating in Ireland are 25% R&D tax credit, tax incentives for relocating employees, tax cut for IP developed in country and tax exemption for startup companies over profit for the first three years.
- State of art technology:The government of Ireland is keen in investing in technology and research technologies. The island offer excellent infrastructure for investors willing to operate from Ireland. As of now, Irish government has invested €8 billion to develop technology and research capabilities.
Big Names in the BPM industry of Ireland
- Accenture: The world leading provider of BPM services have set up their shared service center in Ireland.
- UPS (United Parcel Service): The leading packaging and logistics service provider deliver customer care services from their delivery units in Ireland.
- Premiere Global Services: The leading provider of telecommunication technologies have set up their European headquarters in Ireland.
- TCS: The leading provider of BPM services deliver IT services from their delivery center in Ireland.