Ms Esther O'Connor doesn't look like the typical high-tech Celtic cub. At 68, most people have swapped their P60s for a pension book and a spot of gardening. But that isn't Ms O'Connor's style.

"Nobody wants to stay at home," she says. "I retired at 65 and returned to work a few years ago. Because I teach computers, I'm in demand and teach at the institute [Vocational Education College (VEC)] in Limerick."

And if Ms O'Connor has her way, she won't be the last retiree in Limerick re-entering the workforce with computer skills. For the past four months, she has taught the "Dell Belles" - a class of female retirees.

"The group of women are from the organisation Active Retirement and want to learn computer skills such as e-mail and Microsoft Office," says Ms O'Connor. "Many just want to learn e-mail to communicate with their families but some may go back to work or join the voluntary sector."

The course is run by the local VEC and the computer equipment is supplied by Dell. At a time when most firms are struggling to recruit staff, the Dell Belles could be Limerick's latest answer to the skills shortages.

Enabling retirees to fill an immediate skills gap isn't such a new or fanciful idea, according to Mr Seamus Mulconry, a technology specialist with Andersen Consulting.

"During the Y2K [year 2000] issue last year, many older staff with computer experience came back into the workforce to fill the immediate need," he says. "We need to be very creative about how we address the skills shortage."

A recent study prepared by Andersen Consulting highlighted that skills shortages in the high-tech sector were more severe in the Republic than in the US.

"Some 52 per cent of Irish companies said they had experienced skills shortages as impediments to their e-commerce plans. The figure was only 50 per cent in the US," says Mr Mulconry.

The Irish education sector will produce about 6,000 graduates with high-end technology skills this years, says Mr Mulconry. But there is also a need for some lower-end skills in small and medium-sized enterprises, he says.

"More retirees are likely to have a background in the technology sector now and the idea that someone retires at 55 may be a thing of the past," he says.

But older workers often face barriers created by misinformation and "negative stereotyping" by their employers, according to Mr Robert Anderson, research manager at the European Foundation for the Improvement of Learning and Living Conditions for Older People.

"Employers often exaggerate the demands of new technology as well as the skills required to use it," he says. "All the research suggests that older people are just as capable of picking up technology skills as younger workers.

"Older workers may prefer learning on the job but, given the opportunity, they are able to use most technology."

A pan-European study prepared by the European Foundation shows only 48 per cent of workers between the ages of 55 and 64 remain in the workforce. The Republic is not one of the leading countries, says Mr Anderson.

"Traditionally, women did not enter the workforce in the Republic and, even though there has been tremendous change in the past 15 years, this is mainly among younger age groups," he says.

Faced with potential shortfalls in pensions due to an ageing population, EU member states, including Ireland, are investigating how they can improve opportunities for older people to stay in the workforce for longer, says Mr Anderson.

These initiatives should focus on giving older people the option to take on training courses but should not force older people to take up employment, according to Mr John Heuston, a spokesman for the National Council on Ageing and Older People.

"There should also be a focus on the technical taxation issues, which are often not friendly to older people who want to reenter the workforce."

While the emergence of "grey power" has been slow to catch on in the Republic compared with other European countries, it has played a significant role in the technology sector, according to Mr Mulconry.

"People always think about technology skills but start-ups and young technology firms also need business skills," he says. "The experience that comes with 20-30 years in business is very valuable. A bit of grey hair and a belly will often bring with it a tight rein on costs."

Many of the Republic's best-known technology firms have taken on experienced management after being founded by youth with innovative ideas.

The wireless telecoms operator Formus Broadband was originally founded by the twenty-something Ardagh brothers before they sold out and brought in experience in the guise of US businesswoman Ms Terri McNulty.

A youthful Mr Denis O'Brien recruited experience in the form of Mr Leslie Buckley and Mr Padraig O hUiginn to help establish Esat.

The cycle is now reinventing itself, as young technology firms such as Norkom recruit experience in the form of Baltimore Technology's Mr Fran Rooney.