Ireland will continue its ties with Europe after Brexit, even as Irish citizens enjoy rights and privileges to work, move freely, and reside in the UK. Britain
will exit from the European Union’s single market on Dec. 31.
India’s largest software exporter Tata Consultancy Services in November
acquired the IT assets and 1,500 employees of Pramerica Systems Ireland from insurance firm Prudential Financial Inc.
Like TCS, other Indian IT companies are expected to make further acquisitions in Europe, especially in the DACH (Germany (D), Austria (A), Switzerland (CH)) region in the coming year, analysts said.
“People from Ireland can very easily move to any other place. The fact that we are going to be having a centre in a European Union country and servicing them out of there will always be a plus point,” TCS’s COO N. Ganapathy Subramaniam said, explaining the rationale behind the Pramerica acquisition. We didn’t have a delivery centre or a huge presence in Ireland, and Ireland becomes the only English-speaking country in the European Union post-Brexit. So, in many ways, we felt that it could be a win-win situation.”
Ireland has a thriving IT industry, with over €35 billion in software exports and more than 37,000 people working in the sector, according to IDA Ireland, an autonomous agency for industrial development in the country.
Technology companies are especially likely to look at Ireland as an attractive location to increase their European footprint, said Peter Bendor-Samuel, the chief executive of IT consultancy Everest Group.
“Ireland is uniquely positioned to access both the UK and EU markets. As part of the EU (European Union), it has full access and visa mobility across the EU. It also enjoys a favourable tax environment inside the EU. As a historic part of the UK, it enjoys free visa access to the UK,” Bendor-Samuel said.
Established Indian IT services providers including TCS, HCL, Infosys and Wipro — which already have a presence in the DACH region — will look to enhance it, said Ashish Chaturvedi, principal analyst at technology consulting firm ISG.
IT transactions and spending activity has increased in the past year in the Nordic and DACH region, especially in areas such as Cloud, data and analytics, SAP and AI/ML, he said. “The DACH region, especially Germany, comprises multiple regional and niche IT companies. These companies have a natural advantage of language, culture, and data security over the large multi-national providers trying to establish their presence in the region… The only way to compete is to either buy them out or strengthen your local footprint.”