The Evolution of Multinational Computer Services Affiliates in Ireland

This seminar will examine the development of the overseas information and communications technology (ICT) sector in Ireland by considering the various factors influencing the evolution of Irish-based computer services affiliates. In doing so, it attempts to situate the process of affiliate evolution with the Global Production Network (GPN) framework. Large inflows of ICT-related investment contributed to Ireland’s rapid growth during the 1990s. However, much of this investment involved predominantly cost-driven activities like PC manufacturing and low value-added services like call centres and shared services. As firms have begun relocating these activities to lower cost locations like Eastern Europe and India, Irish-based affiliates must become more involved in knowledge-driven activities in order to maintain their Irish presence. Computer services represent one niche of the multinational ICT sector that already centres on high value-added, knowledge-intensive activities. The study draws heavily upon three key case studies, HP’s European Software Centre, EDS’s Solution Center and IBM’s Global Services division. It finds that factors occurring at four different levels of influence-the industry context, the corporate level, affiliate characteristics and the host economy-affect the development of individual affiliates

Related Priority Research Area: Internationally Traded Services

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Powerpoint Presentation Konstanze Hoechtberger