Technology firm Quest sees a cultural fit with Ireland as it believes the people are about getting the job done, writes GORDON SMITH

US TECHNOLOGY firm Quest Software is ahead of schedule in its plans to hire 150 people for its European shared-services centre in Cork and is already looking at potential expansion beyond its initial forecasts.

Quest announced the centre in January, and said the jobs would be filled by 2013. Six months on and it already has 80 staff, more than half its initial target.

“In the scope of our multi-year plan, we’re ahead of where we thought we’d be,” says Kevin Norlin, general manager for Quest Software in Europe, the Middle East and Africa.

The company already employed 15 people at a sales operation in Dublin, but the tenfold increase at the Cork operation will cover functions such as finance, sales, software renewals and software development. Many of the backoffice functions had been spread out over the globe and the idea is to serve them from a single site.

“There are, we think, possible cost savings for the company and business efficiency. We’re pleased with the progress and we’re planning for future growth of the company,” says Norlin.

The Cork site is initially intended to serve the company’s European operations, but he adds: “We may figure out how to do additional things to drive our global business.”

The California company took the best part of five years to settle on a location, with options in Spain, Britain and eastern Europe being examined. Ireland made the shortlist at the beginning of 2010 and Cork was chosen.

Norlin believes Ireland is a good cultural fit for Quest. “We’re kind of a blue collar software company; we’re very humble, we just go about doing our job, and we don’t go tell many people about it. In Ireland people are about doing the job.”

Not one of the more headline-grabbing tech companies, Quest focuses on providing IT management tools. Formed in 1987, the company has more than 100,000 customers worldwide.

Helping organisations’ IT departments to work more efficiently is a strong proposition at a time when many firms are reducing their technology budgets or demanding more measurable outcomes from their IT projects and the systems supporting them.

“I definitely think we’re in a great spot as a business,” says Norlin. “If a CIO [chief information officer] or business owner knows they have less discretionary budget to spend on their infrastructure they have to make very specific choices so the benefit achieved is sooner rather than later. Instead of two- and three-year projects, now you need a six-month project where you’re seeing a return.

“With our investments in RD and the acquisitions we’ve made, our portfolio lines up perfectly with that environment.”

The company made six deals in the past 12 months alone, snapping up providers of identity management, data backup and virtualisation technology. Norlin points to the last category as being especially strategic given how it underpins cloud computing which is set to be the major technology trend for some years to come.

Closing steadily on the billion-dollar revenue milestone for a software company, Quest booked revenues of $767 million last year. While this was up by 10 per cent on 2009, that year had seen a noticeable dip from the $735 million recorded in 2008.

The company invests 18.5 per cent of turnover in research and development, and, over the longer term, the Cork operation is likely to include some RD activity.

Taking its cue from near neighbour EMC, Quest has already held early discussions with University College Cork, Cork Institute of Technology and other research groups about computer science courses, including some areas that dovetail with Quest’s technology.

“It’s an investment that we’re planning on making over time as we share with them our needs, and part of that is developers that have skills to build products in our portfolio…[but] we have to know this is a marketable skill set, not just for Quest but for other companies as well,” says Norlin.

He says he is not unduly concerned by technology skills shortages in the local market. “It’s no different to what I see in Munich, in Paris or in Copenhagen.

Even with the economic situation and the labour market it seems like there would be more people that would be qualified and that meet our skillset…but I’d say it’s no different in Cork than in any region around EMEA.”

Norlin says there are no additional plans for hiring beyond the 150 target but the company has already laid down a marker with recent reports suggesting Quest spent close to €20 million on the pre-purchase of a new base at City Gate Park in Mahon, Cork.

That will see the company vacate the space it currently occupies in favour of the larger 70,000 sq ft premises by August 2012.

Drawing a parallel with Google’s recent foray into the Dublin property market, Norlin says the decision to buy rather than rent demonstrates a “significant commitment” to Ireland.

“Not to be arrogant, but we’re comfortable with our business plan. We’re planning to continue to grow and acquire companies.”

Norlin won’t be drawn on the financial outlay. He says the office will be fitted out to a high standard but, in keeping with Quest’s “blue collar” ethos, it is safe to assume that does not extend to mahogany meeting tables or Italian marble flooring.

Norlin does make one concession to a software company staple: “There’s a great espresso machine – that’s very important.”