The technology sector in Ireland is incredibly exciting, with a continuous influx of new firms establishing their European headquarters here. However, throughout 2023, many global tech companies such as Meta, Google, Salesforce, and Accenture, made redundancies across their global network of offices, including here in Ireland. This has allowed SMEs, Foreign Direct Investment (FDI) firms and public sector clients to benefit from access to top tech talent. This talent would have been pulled into the technology sector in previous years. We anticipate this trend continuing into the start of 2024.
The Outlook for Ireland's Technology Sector in 2024
Ireland's technology sector continues to attract a steady flow of new firms, a trend expected to persist into 2024 and beyond. However, following a record year in 2022, the talent market slowed down considerably in 2023, resulting in approximately 5,000 job losses across Ireland. Many of the global technology companies were readjusted after record pandemic hiring in 2022 and implemented redundancies worldwide. While the actual number of job losses, as a percentage of their total workforce, was small, this hiring retraction marked the end of the 'tech gold rush' and sent shockwaves across the sector. This unforeseen change of strategy by the tech giants, created unpredictability in the talent market, leading many organisations to put hiring plans on hold or scrap them altogether.
The Cpl Technology Recruitment Solutions team witnessed a significant change in our client base in 2023. High-volume tech sector clients from the previous year scaled back their hiring, leading our consultants to shift their focus towards SMEs, FDI firms, and public sector clients. The positive trend for employers in 2023 was the availability and affordability of skilled tech talent, a departure from previous years.
We expect this year to begin slowly with continued opportunities within the public sector, FDI firms, and SMEs. Many large global firms across various sectors are projected to initiate recruitment slowly, with a more substantial increase after Q1. Throughout the year, we anticipate heightened interest from tech giants, given that 38% of companies have committed to deploying emerging digital tools and technologies. However, the challenging and uncertain macro environment, influenced by the slowdown in China, Russia's invasion of Ukraine, and the situation in Gaza, underscores how global events impact local dynamics. Many firms are adopting a wait-and-see outlook until the impact of these global events becomes clearer.
For an in-depth look at specific sectors within the technology sphere, including Infrastructure, PMO, Cybersecurity, Data, QA, Software Dev, CRM and ERP and the expected state of permanent and contract hiring in 2024, download the Cpl | Technology Salary Guide for Ireland 2024.
Permanent Technology Recruitment Trends
As mentioned above, there were 5,000 job losses in the technology sector in 2023. The year witnessed widespread redundancies and layoffs from some of the most established organisations and top tech employers in Ireland, including X (previously Twitter), Meta, Google, and other notable names. These cutbacks instilled caution within the market and played a significant role in the overall cooling of the market after the peak in 2022. This pullback followed a period of overhiring and overspending throughout the COVID-19 crisis, leading to a natural resetting within the tech industry.
In 2023, there was an extraordinary diversification of roles from predominantly tech-driven companies to all other sectors of the economy. SMEs and the public sector were able to capitalise on the cutbacks and attract top talent to their project teams. As non-tech businesses recognise the power of new technologies, such as AI, they have increased investments in their permanent technology teams. For instance, as software becomes more sophisticated and dominant in the workplace, the demand for flawless functionality within products intensifies, creating more roles in testing and cyber security.
In 2024, we anticipate a continued uptick in hiring across all sectors as new companies enter the Irish market, and existing companies strive to become more agile through enrollment in new product development, automation, and digital transformation projects.
Coupled with the numerous corporations using Ireland as their base for innovation or expanding their current workforce, this will sustain the candidate-driven market. Individuals will prioritise a remote or hybrid working environment as a critical component in their career decisions.
Contract Technology Recruitment Trends
In 2023, there was an unprecedented amount of staff reductions, with many larger tech organisations pausing pre-planned projects and others implementing offshore contracting models. These cost-reduction strategies not only reduced opportunities for contractors in Ireland but also increased the availability of talent, leading to a rise in competition for available positions.
Surprisingly, Irish day rates were unaffected, as highly skilled individuals remained in high demand. Moreover, as the year progressed and the market stabilised, hiring managers turned to contractors as an alternative to onboarding new staff during permanent hiring freezes. While hiring within large tech companies slowed, 2023 witnessed strong growth in the public sector, government bodies, financial services, and professional services, as they embarked on business and technology transformation programmes to enhance efficiency in systems and processes.
Significant shifts are anticipated in 2024. For instance, the regulatory landscape will significantly influence the need for cybersecurity experts and prompt strategic investments in talent adept at navigating compliance complexities. The adoption of cloud technology by the utility and pharmaceutical sectors will result in a substantial demand for contractors with experience in building data pipelines, with most roles requiring some form of experience or knowledge of cloud-based platforms.
Overall, the Irish technology contractor economy remains one of the strongest in Europe, continuing to be a top destination for IT professionals.
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