BT Ireland has successfully merged itsoperations in Northern Ireland and the Republic of Ireland. From first hand experience of working in both markets, CEO Chris Clark explains the challenges facing the island for a sustainable economy and all-island collaboration.

The historic political changeover of power north and south, has huge implications for all-island business collaboration. It is a significant time for business and politics and affords the island the opportunity to forge more inclusive business arrangements. Businesses north and south are poised for partnership and are aware of the benefits of developing more coherent and collective alliances.
Although Northern Ireland and the Republic of Ireland have their own individual strengths and challenges, partnership is the only way forward if the whole island is to remain competitive in fiercely vigorous global markets.
Business in the North and in the South is different in tax regimes, currency, regulation policy, skills and customer requirements. The differences are not necessarily a bad thing What is important now is that we recognise the differences and then harness these strengths to create robust all-island business partnerships.
Businesses that operate on an all-island basis enjoy huge benefits, internally and externally. BT is a prime example of a company that has successfully merged its operations, north and south.

CEO, Chris Clark, likens the notion of all-island collaboration to the formation of the EU, which he says is a perfect example of the benefits of working together on a number of different fronts and proves the case for collaboration.
“We are two countries on an island off continental Europe and there are huge benefits for scale reasons, for labour reasons in terms of people and skills and for economic reasons, in particularly cost competitiveness,” he says.
One of the main reasons why BT integrated their business acreoss the island, two years ago, was to help facilitate increased cross border trade, for all businesses, regardless to whether they are indigenous to the North or South. BT achieves this amalgamation by ensuring that, where possible, they can offer the same service on both sides of the border.
"We have customers who are looking to move North or South and we can extend their contracts to cover their businesses either side of the border," Clark points out. "We felt that, increasingly, customers would want to have one service offering to make it easier for them to expand their business and that is out fundamental principle."

A Company's decision to export their business over the border depends greatly on market demand and the prospect of crucial business growth. For Northern Ireland the South offers a market three times the size of the North and for and for a Southern company the North is a relatively easy location into which to expand a business’s operations.

Inward Investment

Inward investment is key to Northern Ireland's development in the coming years and the recent announcement by Brian Cowen and Peter Robinson of plans to relocate up to 5,000 financial services jos from Dublin to the North is the first step in attracting investment to the North.
"The Republic of Ireland's economic development over the last ten years has been predominantly driven by inward investment which has been driven by strong corporation tax and a skilled labour force," Clark explains. "All credit to the Nothern Ireland government of late; they recognise that inward investment is critical to their economic success as well."
Howerver,all-island economic sustainability is not solely driven by inward investment. Although it is a significant driver, it is by no means the only driver and indigenous business growth is as important. Clark maintains that it is about getting the balance right between attracting investment and encouraging entrepreneurial activity.
According to Clark it is not true that Northern Ireland and the Republic of Ireland are in competition with each other for investment. Brian Cowen and Peter Robinson have underlined this by recognising that central to all-island collaboration is marketing the whole island of Ireland in order to benefit both economies.

Forging Partnerships

Clark warns that both sides of the border are faced with very different challenges in their efforts to collaborate at a higher level.
"From a republic of Ireland perspective, the biggest challenges they face is the strengthening euro, increasing labour costs and arguably skills shortages in the science and technology sectors. There is a significant chalange going forward that Ireland remains competitive in an increasingly globalised economy," he says.

Clark highlights that Northern Ireland is faced with an additional challenge in relation to corporation tax and he says it is important for the North to find innovative ways around that.
“The skills agenda is very high in the North; there is a heavy emphasis on producing the right graduates and attracting them to stay in Northern Ireland; and at the same time it is also about working with the South to fully utilise each others strengths.”
Communications infrastructure is a big issue for SMEs across the island, with broadband penetration one of the fundamentalchallenges for businesses, especially in the South. Clark agrees that infrastructure is more advanced in the North and attributes this divide to competition in the communications sector, which is driven by legislation and strong government policy. He argues that the only way the Republic can reach 100% broadband penetration is by having a strong and reliable regulatory regime.
“Three years ago Northern Ireland took a decision that they wanted 100% broadband coverage,” Clark recalls. “We are starting to see the government in the South apply stronger regulation and allow competition in the communications sector which will drive infrastructure.”