Running head: INFORMATION AND COMMUNICATION TECH - IRELAND 1

Information and Communications Technology Sector in Ireland

Hansel A. Dsouza

Marymount University INFORMATION AND COMMUNICATION TECH - IRELAND 2

Information and Communications Technology Sector in Ireland

In 2008 during the global financial crisis, the ’s economy took a major hit. After a subsequent bailout with the help of the European Union and the International

Monetary Fund, Ireland has made a steady comeback into global markets. BBC news country profiles say that, “it [Ireland] was transformed from a largely agricultural society into a modern, high-technology economy.” (BBC, 2016)

Ireland has a population of 4.7 million (CSO, 2016) and according to the Organization for

Economic Co-operation and Development defines access to computers from home as, “the number of households that reported having at least one personal computer in working order in their home.” (OECD, 2017) Figure 1 depicts access to computers from home in the US and

Ireland as a percentage of all households. In 2015, 83.5% of all households had access to computers. This number is significant and shows how technologically literate the population of

Ireland is. Another important figure that the OECD lists is the number of users connected to the

Internet. There is no credible data as to what type of connection each household had, but it is broadly put that it was “either a dial-up, ADSL or cable broadband connection.” In 2015, the

OECD stated that 84.9% of all households had Internet access. (OECD, 2017) This data shows that people in Ireland are inter-connected in terms of Internet and tech-savvy as well.

In Ireland, the Information and Communications Technology sector has far-reaching implications and “encompasses many different activities and companies.” (McHugh, 2010)

According to McHugh, the ICT sector is rapidly growing and is “among the top three Irish growth industries.” This is evident from the presence of large multi-national companies such as

Google, IBM, Dell and that have headquartered there and provide high-level jobs to the population. In fact, McHugh goes on to state that there “approximately 5,400” ICT INFORMATION AND COMMUNICATION TECH - IRELAND 3 enterprises in Ireland. “223 of which are foreign owned.” (McHugh, 2010) This shows that

Ireland’s ICT sector is booming and is a significant contributor to the economy of the country.

Furthermore, the ICT sector profile claims to directly “employ(s) over 105,000 people. The website also states that the technology companies in Ireland have announced “over 17,500 jobs” in the last three years and “is responsible for 40% of our national exports.” (ICT Ireland, n.d.)

A prominent technological area in the US is the infamous , similarly the

Republic of Ireland’s technological hub is located in and appropriately termed “Silicon

Docks.” Some of the top technology companies in the Silicon Docks area include, ,

Twitter, Tripadvisor, Facebook and Accenture. A lot of these companies have decided to open headquarters in Dublin, Ireland due to its low corporate tax rate. Currently sitting at just 12.5%,

Ireland proves to be a hotspot for these companies. Barry O’Dowd, IDA’s senior Vice President of Emerging Business attributes this success to two big factors – The corporate tax rate as previously mentioned as well as government funding and “a whole lot of talented young people.”

(Lapowsky, 2012). Not only do companies thrive from a booming economic market, but the availability of young talent and their prolific skills greatly help these companies. The Republic of Ireland is also home to a dozens of large academic institutions such as the Dublin Institute of

Technology or University College, Dublin. The Industrial Development Authority says that, “the

[ICT] industry employs over 37,000 people” (IDA Ireland, n.d.) Figure 2 further shows some of the characteristics of Ireland’s ICT sector. Since the ICT sector is flourishing in Ireland, Foreign

Direct Investment Awards (FDI) highlight the importance of research in Ireland’s ICT based companies to be a driving force for company growth. Their website names a couple research centers that focus their work on the ICT field, these include The Centre for Research on Adaptive

Nanostructures and Nanodevices (CRANN), the Insight Centre for Data Analytics (INSIGHT), INFORMATION AND COMMUNICATION TECH - IRELAND 4 the Irish Software Engineering Research Centre (LERO) and Tyndall National Institute. (FDI

Awards, 2016)

In early 2016 the Oireachtas, National Parliament, published the Criminal Justice

(Offences Relating to Information Systems) Bill 2016 that strengthened cybercrime legislations in the Republic of Ireland. It built upon existing framework of the European Directive

2013/40/EU of the European Parliament. It introduced 5 offenses that people could be charged for, they are:

1. Accessing information system without lawful authority

2. Interference with information system without lawful authority

3. Interference with data without lawful authority

4. Intercepting transmission of data without lawful authority

5. Use of computer programme, password, code or data for the purpose of the above

acts.

For the above offenses, the penalties are harsh. For all offences except 2, the penalty is a fine or upto 5 years in prison. For offence #2, the penalty is a much more serious 10 years in prison.

This gives us a neat segway into the National Cyber Security Strategy which was published by the Department of Communications, Energy and National Resources. It is a high-level policy introduced by the government the risks and challenges faced when building a modern digital economy. The policy details how the department will work in three areas, namely, the government, personal and business enterprise systems and critical infrastructure. Some of the key measures outlined in the policy are:

- Government campaigns to engage the general public in a safer environment. INFORMATION AND COMMUNICATION TECH - IRELAND 5

- Establishment of the National Cyber Security Centre – which builds on the existing

Computer Security Incident Response Team (CSIRT-IE).

- Adherence to the European Union Treaties and the European Convention on Human

Rights in order to protect personal data of citizens.

- Protecting the nation’s Critical Infrastructure such as water, telecommunications

network, electricity and health.

- To ensure that the An Garda Síochána has an extensive framework to combat

cybercrime.

- Build education models for small businesses to help them protect themselves online.

- Cooperation with state agencies and International peers that share similar interests in

the field of cyber security. (Department of Communications, Energy and Natural

Resources, 2015)

The An Garda Síochána or National Police Force is the primary law enforcement agency that deals with cybercrime. The department charged with handling cases of cybercrime is the

Garda National Economic Crime Bureau. While they primarily investigate cases of fraud and counterfeiting, the bureau has taken up the task of battling cybercrime in recent years. The

Computer Crime Investigation Unit (CCIU) is one of the key operational units within the Garda that deals with cybercrime. In an interview with Michael Gubbins, head of the Garda Cyber

Crime unit, he cites “ransomware” as big issue. He goes on to say that “companies are not reporting cyber-attacks.” (Calnan, 2016) This proves to be a major issue for the CCIU as companies need to cooperate more so they can tackle issues effectively by releasing regulatory statements and advisories. INFORMATION AND COMMUNICATION TECH - IRELAND 6

On the flip side, University College Dublin is making remarkable strides in the field of cybercrime and actively helping out the Garda in their efforts. A 2013 case study by the UCD

Centre for Cybersecurity and Cybercrime Investigation (CCI) speaks volumes on how extensively the program, established in 2006, has helped law enforcement agencies effectively combat cybercrime. The development of software called FREETOOL has helped law enforcement greatly by providing training and software to police officers. According to the case study, “the FREETOOL project has enhanced the ability of police forces to work together to investigate cybercrime by removing financial barriers to accessing necessary technology.” (UCD

Centre for Cybersecurity and Cybercrime Investigation (CCI)) The project went on to receive two million euros in funding from the European commission. In 2016, the An Garda Síochána published the Modernisation and Renewal Programme 2016 – 2021. (An Garda Síochána, 2016)

The guide says that they will set up specialist units to collaborate with international partners and provide cyber and forensic tools to law enforcement agencies. It also acknowledges the downfall of the CCIU in recent times due to “a lack of investment in technology and resources.” To combat this, they plan to regionalize the CCIU and develop a better structure. Figure 3 shows the proposed structure. The introduction of new organizations and extensive additional training looks to greatly strengthen Ireland’s cybercrime problem.

Looking for cybercrime reports, there seem to be little to none online. A common problem with this according to Detective Michael Gubbins, head of the Garda Cyber Crime

Bureau is “people don’t reporting cyber-attacks.” (Kelly, 2016) In an another article, he says

“Irish companies are falling victim to a number of different forms of cybercrime, the most typical of which are invoice redirection fraud, distributed denial of service (DDoS) attacks and

CEO fraud.” (Taylor, 2016) Brian Honan says, “In Ireland, we have ‘none’ [cyber crime] because INFORMATION AND COMMUNICATION TECH - IRELAND 7 we don’t even report it in our crime stats.” (Kelly, 2016) This leads to a lot of challenges for law enforcement agencies as they look to protect the nation’s cyber security infrastructure. In late

2016, Meath County Council reported that it was the target of an attempted cybercrime involving identity theft. According to the article, “It is understood the € 4.3 million was stolen in the cyber- attack from Meath County Council’s bank accounts almost two months ago on the October bank holiday weekend.” (Elaine Keogh, 2016) However, the National Economic Crime Bureau was able to freeze the transaction just in time and return the funds to the council.

Analysis

The Republic of Ireland has a flourishing economy thanks in part to its Information and

Communications Technology industry. Over the past years, the ICT sector of Ireland has grown tremendously and is a major contributor to the economy of Ireland. Large multi-national corporations have their headquarters located in Ireland and business seems to be booming. Jobs are increasing every year and the wealth of expertise comes from the young talent found in the city. Cybercrime does not seem to be a rampant issue yet, largely due to misreporting of the issue. Law enforcement agencies have a strong relationship with foreign agencies across the globe and are constantly seeking to better their systems especially with Garda’s Modernization plan 2016 – 2021. The strong ties of the Gardai with academic institutions works out well for the country as adequate training is being provided due to in-depth research being conducted at these academic institutions. The government seems to be on the right track with the introduction of the criminal offenses bill in 2016. However, potential weaknesses include the lack of adequate personnel and public engagement. While, it is true that a large number of the population is “connected” through the Internet, it does not seem that government agencies have INFORMATION AND COMMUNICATION TECH - IRELAND 8 been proactive enough in combatting cyber threats which are few in number by putting out enough information for the public to understand the severity of the issue and take precautions.

Small to Medium Enterprises (SMEs) are a potential threat as they are learning to stand on their own two feet. However, one can be hopeful in the fact that the Republic of Ireland, while thriving with technological activity, is not in the news often and does not seem to be a potential threat to other nations. An analogy is holding on to a +4 card while playing a game of UNO and throwing it down at the very last second to get your younger sibling to lose the game. Similarly, if a more powerful country decided to play a little game of UNO and drop a +4 on Ireland, they would be in some serious trouble.

INFORMATION AND COMMUNICATION TECH - IRELAND 9

References

An Garda Síochána. (2016). Modernisation and Renewal Programme 2016 - 2021. Retrieved

from garda.ie:

http://www.garda.ie/Documents/User/Modernisation%20and%20Renwal%20Programme

%202016%20-2021.pdf

BBC. (2016, August 30). Ireland country profile - BBC News. Retrieved from BBC News:

http://www.bbc.com/news/world-europe-17473476

Calnan, N. A. (2016, November 15). Garda Cyber Crime unit head Michael Gubbins: 2016 is

the year of ransomware. Retrieved from Independent.ie:

http://www.independent.ie/infosec2016/garda-cyber-crime-unit-head-michael-gubbins-

2016-is-the-year-of-ransomware-35217460.html

Criminal Justice (Offences Relating to Information Systems) Act 2016. Oireachtas

CSO. (2016, July 14). Census of Population - Prelimnary Results - Central Statistics Office.

Retrieved from Central Statistics Office:

http://www.cso.ie/en/releasesandpublications/ep/p-cpr/censusofpopulation2016-

preliminaryresults/

Department of Communications, Energy and Natural Resources. (2015). National Cyber Security

Strategy. Retrieved from Department of Communications, Climate Action and

Environment:

http://www.dccae.gov.ie/communications/SiteCollectionDocuments/Internet-

Policy/NationalCyberSecurityStrategy20152017.pdf INFORMATION AND COMMUNICATION TECH - IRELAND 10

Elaine Keogh, M. O. (2016, December 17). Meath County Council confirms attempted cyber

attack. Retrieved from The Irish Times: http://www.irishtimes.com/news/ireland/irish-

news/meath-county-council-confirms-attempted-cyber-attack-1.2910180

FDI Awards. (2016, June 21). What the ICT Sector means to Ireland. Retrieved from Foreign

Direct Investment Awards: http://fdiawards.ie/blog-detail.php?post=What-ICT-sector-

means-Ireland#.WKd5nm8rLIV

ICT Ireland. (n.d.). ICT Ireland - Papers and Sector Data/Sector Profile. Retrieved from ICT

Ireland:

http://www.ictireland.ie/Sectors/ICT/ICT.nsf/vPages/Papers_and_Sector_Data~sector-

profile?OpenDocument

IDA Ireland. (n.d.). Information and Communication Technology. Retrieved from IDA Ireland:

http://www.idaireland.com/business-in-ireland/industry-sectors/ict/

Kelly, L. (2016, November 15). Ten best quotes (from the experts) at Dublin Info Sec 2016.

Retrieved from Independent.ie: http://www.independent.ie/infosec2016/ten-best-quotes-

from-the-experts-at-dublin-info-sec-2016-35217221.html

Lapowsky, I. (2012, December 18). Why Dublin's Tech Scene Is Booming . Retrieved from

Inc.com: http://www.inc.com/issie-lapowsky/start-up-boom-in-dublin.html

McHugh, M. (2010, June 26). Information, Communication and Technology Sector in Ireland.

Retrieved from Enterprise Europe Network: https://www.een-

ireland.ie/eei/assets/documents/uploaded/general/ICT%20Fact%20sheet.pdf

OECD. (2017). Information and Communication Technology - OECD Data.

doi:10.1787/69c2b997-en INFORMATION AND COMMUNICATION TECH - IRELAND 11

Taylor, C. (2016, April 11). Cybercrime surge prompts Garda warning to Irish companies.

Retrieved from The Irish Times:

http://www.irishtimes.com/business/technology/cybercrime-surge-prompts-garda-

warning-to-irish-companies-1.2605553

UCD Centre for Cybersecurity and Cybercrime Investigation (CCI). (n.d.). Case_Study_CCI.pdf.

Retrieved from UCD.ie: http://www.ucd.ie/cci/projects/CASE_STUDY_CCI.pdf

Figures

Figure 1. Access to computers from home. This figure shows the percentage of households with access to computers from home in Ireland. INFORMATION AND COMMUNICATION TECH - IRELAND 12

Figure 2. IDA Statistics. This figure shows some of the top statistics of the Information and Communications Technology sector of Ireland as presented by the IDA.

Figure 3. Proposed CCIU Operating Model. This figure shows the An Garda Síochána proposed plan to re-develop the structure of Computer Crime Investigation Unit. INFORMATION AND COMMUNICATION TECH - IRELAND 13

Quick Reference

 Emerging Technological hub with multiple different technology companies such

as Google, Facebook, Dell, IBM, etc.

 Government intends on providing basic broadband access to all citizens.

 Young talent that makes up a strong workforce

 Law enforcement agency, An Garda Síochána, is becoming stronger daily and has

multiple different contingency plans in place.

 CCIU is receiving help from different foreign agencies and is undergoing

restructuring.

 Strong ties with academic institutions that provide R&D and adequate training.

 Public is not fully engaged and hence is not knowledgeable on cyber threats.

 SMEs are a threat to the cyber infrastructure due to lack of sufficient training.

SMEs pop up because of low corporate tax rates and high demand for jobs.