Government should utilise internet more, firms say

ONLINE SERVICES such as Facebook and LinkedIn are becoming increasingly important to businesses here, but the Government needs to do more to utilise the internet, a new survey has revealed.

The Dublin Chamber of Commerce study found that 48 per cent of companies considered professional networking website LinkedIn the most important social media tool, with the number of users here expected to rise to 300,000 by the end of this year.

The survey was carried out in May and took in 75 companies, about half of which were involved in internet marketing.

Facebook attracted those “power users” who use a number of different tools for their business – about 14 per cent of all users – but an overwhelming majority of companies surveyed said the presence of internet firms in Dublin had benefited their businesses.

Twitter is seen as the least relevant tool for business users in this survey.

Dublin Chamber chief executive Gina Quin said: “The Government should aim to attract more businesses like Facebook, Google, Ebay and soon LinkedIn to Ireland, in its bid to build a smart economy.

“This survey highlights how the proliferation of next-generation internet companies in an area like the Dublin city region is leading to growth of indigenous companies as well as new spin-offs.”

A separate survey published yesterday by workspace solutions provider Regus says 41 per cent of companies in Ireland will spend a proportion of their marketing budget on social networking activities by the end of the year.

Almost half of respondents said they kept in touch with contacts through social networking, just below the 58 per cent global average.

Only 21 per cent of respondents were sceptical that social networking could become an effective tool to retain customers, or gain new ones, compared to 34 per cent globally.

The Dublin Chamber survey also reveals that most businesses feel the Government is not using internet services sufficiently.

Online services could increase efficiency, with the digitisation of health records, video conferencing to reduce travel expenses and online payment for court fines.

Business lobby groups have criticised the cost of public services levied on companies but the internet provides a way to reduce these costs, the chamber said.

“There is clear potential for online services to help reduce public sector costs,” Ms Quin added. “For example, there is duplication of services in a number of areas across all local authorities which could be streamlined by delivering the same service online in the same fashion as Revenue Online.

“By reducing costs through better utilisation of IT, the Government will ensure that Dublin continues to successfully compete internationally as a city region and reduce the burden on businesses in the Dublin city region in the form of uncompetitive local government taxes and charges,” she said.