Utah tech firms choosing Ireland for expansion

Utah tech firms choosing Ireland for expansion

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SALT LAKE CITY — As Utah’s Silicon Slopes continues to grow in scope and reputation, the state’s tech sector is also expanding beyond U.S. borders to gain a foothold in the fertile European market.

While London may be considered one of the most prominent cities in the European Union, economically speaking, another metro in a neighboring nation is becoming the tech hub of the European Union.

Over the past 15 years, the Republic of Ireland has established itself as the “gateway” to expansion into Europe, with Dublin as the epicenter. Numerous top American technology companies have their EU headquarters in Ireland, including Apple, Amazon and Microsoft. Additionally, several Utah tech giants have also set up shop on “the Emerald Isle.”

Among the 10 Utah-based firms with European headquarters in Ireland are Qualtrics, Ancestry.com, Merit Medical and most recently InsideSales.com.

With just over 4.7 million people, the relatively small democratic republic has become a “heavyweight” in the global business ecosystem.

“For a lot of companies at the very early stage (of their expansion), they’re making international revenues and that’s really an important part of their growth globally,” said Paraic Hayes, senior vice president of U.S. West Coast recruitment for IDA Ireland.

Originally established in 1949 as the Industrial Development Authority, the quasi-federal agency is responsible for recruiting and developing foreign direct investment for Ireland.

Companies choosing Ireland, he said, are attracted by the country’s efforts to minimize the inherent dangers firms face when making such large international investments.

“For a lot of companies going into the (European) market, Ireland offers a very low risk location,” Hayes said. “Post Brexit, the access to the European market is going to be very important and Ireland will be the only English-speaking location in the EU with a very strong tech cluster.”

Ireland also has pro-immigration policies that bolster an already strong, educated workforce that offer companies a large pool of qualified potential employees, said Deirdre Moran, who manages recruitment of emerging technologies and high growth companies at IDA Ireland.

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“We have a very multi-cultural workforce; about 12 percent of the Irish population do not speak English at home … compared to about one in eight across Europe,” she explained. “Getting work permits for skilled people is something we want to make as easy as possible. We support that and help expedite visas for companies moving executives (for relocation).”

Qualtrics, one of Utah’s most successful home-grown tech companies, opened its first international office in Ireland in 2013. The multibillion dollar firm now employs over 200 people at its European base in Dublin — focused primarily in sales and customer support in 16 languages across European markets.

Ancestry.com and InsideSales.com each employ more than 100 people at its Irish operations; and on the medical technology side, South Jordan-based Merit Medical and Midvale-based Utah Medical Products both have long-standing investments in Ireland, Hayes said.

“Ireland is the perfect location for our international headquarters and was chosen for a number of reasons, not least because of the great availability of talented people, but also because it is a country that has a long history of emigration and plays a significant role in the family history of people across the globe,” said Olver van Calster, vice president and general manager for Ancestry.com’s international operations.

“We believe the proven commitment of the Irish management team and workforce will help to ensure that these latest developments will be implemented successfully and result in the facility increasing its already significant role in our global business,” said Fred Lampropoulos, Merit Medical chairman and CEO.

Ready access to qualified tech talent, efficiency and ability to easily scale multilingual, international teams are among the reasons for selecting Ireland as their European base, said Qualtrics co-founder and chief operating officer Jared Smith. The country has a similar regulatory environment as the U.S. with lower corporate tax rates, but that isn’t necessarily a significant factor on location decisions, he said.

“The expansion that tech companies do to Europe is unavoidable,” he explained. “If you want to expand in Europe, we have no choice but to have some (operations) in that local time zone.”

Because of the complexity of how business operates on a day-to-day basis, tech firms have to commit to a more local presence, he said.

“There is no way to expand globally as a tech company without having some footprint in those local markets,” Smith said.

The Irish government provides over $1 billion in research and development incentives per year to IDA clients, with about 45 percent of firms carrying out some form of research and development, Moran said.

Companies have access to research and development centers, technology, and funding that is not available in the U.S, she said. Ireland is one of the leading research, development and innovation locations in the world and the Irish government’s aim is to increase the amount of research and innovation U.S. companies are doing in Ireland as part of their strategy, she said.

“The government is motivated and they are there to help you,” Smith said. “They want you there. They want you creating jobs. It’s how their economy works and they’ve been very smart to figure out to bring thousands and thousands of jobs there.”

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