Is Ireland a Good It Outsourcing Destination?

by Twana Daniel

Is Ireland a Good It Outsourcing Destination?

Many countries in Europe qualify as good for IT outsourcing. Poland is great for the talent pool and skilled developers, and Germany is one of the largest tech hubs and also the economic center of the EU - which also comes with more credibility. And there is also Ireland - which above all is renowned for being a tax haven. But there is more to it. If you ever thought about moving your tech business to Ireland, there are several things you should know. Let’s start with the pros.

Why Ireland?

First and foremost, Ireland hosts more than 14.4K+ startups, out of which 8 have become unicorns. If you decide to start your own IT business there or relocate - know that you are not the only one. Being surrounded by a full-scale startup ecosystem could also help you find partners, and clients there and ensure your business has a solid starting point.

In addition to that Ireland has the great talent of software developers and skilled people and also an easy hiring system. This helped  Ireland rank fifth in the 2022 Digital Economy and Society Index. Despite having the talent pool as one of the main advantages, in March 2024, Ireland was facing also a tech talent shortage. The shortage was caused mainly by both indigenous companies and multinational corporations that established their European headquarters in the country in the same timeframe, causing a mass demand for qualified workforce. At the same time, restrictive immigration policies have prevented the injection of new qualified and underqualified workforce that could have brought potential benefits to the Irish tech industry. 

Is Outsourcing to Ireland Expensive?

The US is known as one of the countries in the world where IT services are most expensive. While Ireland can never claim to be the cheapest, the quality can outcompete any countries that are considered the cheapest. The minimum wage in Ireland is €12.70 per hour; in the US it is $7.25 an hour. While you can’t always find cheap software developers in the US, chances are, in Ireland, you can. If someone is not happy with your offer in the US, don’t be surprised if someone from Ireland is ready to do a tremendous job for the same. 

Look at the stats: Ireland has the second most number of software developers for every 1 million residents, which is 11,182 according to the State of European Tech in 2020.

number of software developers by country per 1 million inhabitants

Why Outsource?

It’s most likely that your core expertise is not information technology. You want to focus on your core vision, the thing that you do the best. When you outsource, you can focus more on your essential in-house product or expertise. 

At the same time, a sales company doesn’t know how to write code, but they are good at selling more through cold calls, knocking on doors, or just attending more events. 

Similarly, any company that falls in the non-IT category wouldn’t know how to navigate the competitive technology landscape. This is where the specialization of your Irish vendor pays off 10x if done correctly. You can find any IT specialization in Ireland.

Outsourcing reduces costs. Cost efficiency is among the important forces driving business decisions to get the best deal and generate more ROI. If you are from the US, you will be able to access great talent at a lower price in Ireland. The same goes for many other countries thinking about finding tech service companies in Ireland.

Art of Scaling

As a business, you understand that you can’t reach a lot of zeros in millions if you’re starting as a small company without someone there to scale your business. 

Businesses understand that scaling is not easy. It comes at the cost of finance, expertise, new ideas, innovation, and time. You also need to know the right people which are not readily available. Hiring the right people takes time, and most recruiters don’t have a plan, time or risk tolerance to replace them at a whim. 

Your outsourcing partner has a big pool of talent that you can use to scale. According to the AWS directory, there are 100+ certified companies in Ireland, and GCP has a total of 6700 partners in Europe.

Ireland' Competivenes scorecard 2023

Time Zone

The time zone is important. Flexible time zones offer advantages; most companies prefer resources like developers, designers, and solution architects available in their time zone. You can also find resources on the night shift across the border but it comes with its own costs. Irish companies flexibly work with North America, South America, the Middle East, and Asia. 

Risk Minimisation

Minimizing risk is critical. You can do that by carefully assessing the company before hiring. Make sure to create a contract that you can use to protect against financial losses, intellectual property, or privacy. This reduces your liability and offers you ways to always stay aligned with your vision and deadlines. It's important to notice that Ireland is among the countries with the least corruption in the world.

Specialization

Specialization is not easy. It takes companies several years to gain specialization in their specific niche, product, technology, product, expertise, or domain knowledge. This accumulated experience is difficult for new entrants to replicate. 

This is where Irish companies with relevant experience, knowledge, and passion who walk the talk can help you.

Quality Assurance and Quality Control

QA is another missing part of this huge puzzle. Culture, adaptation, environment, usability -  everything matters. Because people here know what is the best quality, you can be assured that your QA and QC process is among the safest hands in the world.

QA can be done for software, UIUX, server logs, an ad banner, or just about anything - it’s about details. Steve Jobs mastered his craft by ensuring a top quality that is impossible to imitate by his competitors. Are you in the same boat?
Quality control can be done by asking for benchmarking reports and thorough QA. You can also assign one QA internally who will work closely with this IT company to make sure all that they provide is high quality. Irish quality is well known, a living proof is the existence of many giants established in Ireland, including Microsoft, Apple, Google, Facebook, Amazon, Linked In, Intel, HP, IBM,  and X (Twitter)

Importance of Culture

Cultural integration also plays a big role. Some cultures are more innovative; some are more disciplined. You just need to find what you value the most. Diversity can bring a pool of companies that will give any of your competitors a run for their money.

Ireland is well known for diversity and inclusion all over the world.

Quick Analysis

Top 5 Projects Commonly Outsourced

This is a non-exhaustive list, and there can be more departments and requirements to outsource, but some common projects are:

Software Development will never get old.

You can access skilled developers to build all sorts of applications and transfer existing code for maintenance, all without the need to maintain an in-house team. 

Mobile App Development because everyone is on mobile. 

These Projects are the most in demand. You can find great Irish talent for almost any iOS, and Android expertise using Swift, Kotlin, Java and Objective-C or more due to a diverse talent pool here.

Web design and development - Old school is real, and it’s here to stay.

Its development and maintenance are also outsourced to create and manage websites, ensuring they remain up-to-date and functional.

IT Support and Help Desk - More than just restarting your computer

Many businesses outsource their IT support to provide 24/7 assistance to users, handle technical issues, and ensure the seamless operation of IT systems. Many also support multilingualism.

Cloud Computing - Beyond Data Centers

AWS, Microsoft Azure, Google Cloud Platform - Any Cloud management and migration requirements can be outsourced to ensure secure, efficient, and cost-effective use of cloud technologies. You can find certified talent before onboarding starts.

Cybersecurity - online safety matters.

Cybersecurity is getting popular due to its critical need. Outsourcing cybersecurity services helps organizations protect their data and systems from cyber threats by leveraging specialized expertise and technologies. Cybersecurity is an area that can’t be left to unproven talent and companies, as it can become a big liability if something goes wrong.

Companies often outsource network management to maintain, monitor, and optimize their network infrastructure, ensuring reliable connectivity and performance.

Net Administration - Beyond Virtualization
Network administration, security, and provisioning are also done by outsourcing partners. You can find expertise in Linux, Microsoft, VMWare, and more.

Twana Daniel

CEO of Dev Centre House Ireland

As a CEO of Dev Centre House Ireland, Twana has worked with dozens of companies throughout the world and deployed 100+ exceptional technology solutions with plenty of AI, blockchain, mobile, web, and SaaS products. Feel free to touch base with Twana.