COMPAQ'S decision to locate in Dublin was based on a variety of factors, not least the fact that Ireland now boasts 42 teleservice projects in Ireland.
Compaq's vice-president customer services, Europe, Mr John Dolan said yesterday Ireland's general teleservices infrastructure, including expertise in the area, availability of equipment, good telecommunications and even good recruitment consultants had played an important role. The availability of language graduates was another key factor.
Mr Dolan said Ireland was aware of the needs of such a teleservices operation. Other attractions, including generous employment grants (which run at £10,000-£15,000 per employee) were helpful, but not deciding factors, he said.
For the IDA, luring Compaq is a sweet victory. It has been chasing Compaq, regarded as one of the blue chips in the computer world, for many years.
Ten years ago the IDA lost out on a manufacturing facility to Scotland, one of its main rivals for overseas projects. Negotiations for the project, which will provide customer support for European and African clients, took almost nine months.
Ironically, this time the IDA was competing against Compaq's sister operations, based all over Europe. "We had to make a decision to start from scratch, or add on to an existing operation," said Mr Pearse Flynn, director of customer services, "it was an important decision."
It is this kind of competition which the IDA must increasingly overcome. However, winning a project for Ireland means the IDA is in with a fighting chance when the company wants to expand its overseas operations.
Although senior Compaq executives said yesterday there were no plans to add other projects, such as a manufacturing plant, it will strengthen the IDA's hand should one arise.
Compaq is also confident that the market for its projects will continue to grow this year. Mr Dolan said it would probably increase by 15 to 16 per cent. This will help the customer support operation.
He admitted that the German and French economic situations were giving some cause for concern. He said North America was still very strong, in terms of demand for computer products.
He also said there was a perception in some quarters abroad that the Irish economy was in danger of overheating. But, he said, Compaq had found no evidence of this.
Compaq's operation is the latest in a long line of teleservices projects, which now employ more than 4,000 people. The IDA believes it will easily surpass its 5,000 jobs target by the year 2000.
leading companies who have set up here in the past couple of years include IBM, American Airlines, AOL Berttlesmann and United Parcel Services.
