Irish software firms are more confident than they have been for several years, although there has been a fall-off in private investment, a new survey shows.
The Software Outlook Survey 2004 shows 72 per cent of Irish software firms expect to increase revenues in 2004, compared to just 40 per cent in 2003.
Seven out of 10 of the indigenous firms surveyed by the consultancy International Ventures indicated that they would hire additional staff later this year.
The survey, which was commissioned by the Irish Software Association, concludes that confidence appears to be returning to the indigenous software sector.
"We don't expect to see the return to the mania that accompanies the turn of the millennium, but signs are positive, revenues are up, and after a withering two or three years, the market is definitely on the upturn," it says.
Despite the optimism, however, the survey highlights that the amount of firms willing to look for venture capital funding has almost halved from 2003.
Just 30 per cent of firms are seeking funding in 2004, compared to 57 per cent in 2002. This is unhealthy for all involved and the venture capitalists must take a lead in redressing this ailment, concludes the survey report.
The survey said no respondent had applied for funding from Science Foundation Ireland. This highlights the poor awareness among indigenous firms of this big source of research funding, said the report. Up to 80 firms took part in the industry survey.
