IT Boost Takes Sting From Jobless Rise

There was mixed news today on jobs with a major boost announced in software development - while it also emerged that Northern Ireland's unemployment rate had grown - and is now above the UK average - with a further 600 people being added to the dole queue

On the plus side, the NI Enterprise Minister Arlene Foster announced 109 new jobs in a £7m investment by leading US-based technology firm, KANA Software Inc, in Belfast, while at the same time acknowledging that the latest Labour Force Survey results showed the total number of people out of work had now reached 59,100.

She said that NI recorded the largest annual increase in its unemployment rate among the UK regions, at 8% - but remains well below the Republic's 13.9% rate.

Arlene Foster said: "Clearly the Northern Ireland labour market continues to face significant pressures and the figures highlight the necessity of rebuilding the economy in the aftermath of the recession by developing employment opportunities."

However, she also said that Invest Northern Ireland had offered £981,000 to help a new development for a consulting services and technical support unit in Belfast.

KANA Software - that acquired local firm Lagan Technologies in November 2010 - specialises in technology used in service management and helps some of the world's best-known brands to consistently deliver excellent customer service.

It has a client base that consists of high calibre, world-leading companies including Adidas, Nokia and eBay with Lagan continuing to trade within the KANA organisation and maintain its internationally recognised focus on Government to Citizen Technology.

The combined businesses will trade from the existing Lagan Technologies facility, which has been headquartered in Belfast since 1994.

Over the next three years, KANA will more than double the workforce of the newly combined businesses, strengthening Belfast's position as one of the UK's leading technology hubs.

"Once again Northern Ireland is the location of choice for an international company seeking a cost competitive environment and a skilled workforce. Following the acquisition of Lagan Technologies by KANA last year, Invest NI worked closely with KANA to promote this region as an investment location," said the DUP Executive Minister.

"Having evaluated other options including India, China, the Philippines and Eastern Europe, KANA Software recognised the value of our skills base, strong cultural links with the US and the support offered by Invest Northern Ireland," she explained.

"The ICT sector has been identified as a key sector for driving economic growth through the creation of high quality jobs. This investment by KANA, one of several substantial inward investments recently secured by Invest NI, will further strengthen the sector here and enhance Northern Ireland's reputation as a premier location for high quality ICT projects."

Commenting, Mark Duffell, Chief Executive Officer of KANA Software, said: "We are delighted to be making this significant investment in Belfast, which becomes KANA’s leading international development hub, serving the needs of our global client base. Although KANA counts half of the Fortune 100 companies among its clients, the company is keen to increase its European footprint.

"The new unit in Belfast will also help us to target the European market and will become the focal point for the development, deployment and support of current and new technology, creating global opportunities for our business and our employees," he said.

Earlier this week Minister Foster also announced that another software group is to establish a centre of excellence in Belfast, creating 37 jobs at Software Quality Systems (SQS) Group - the largest provider of independent software testing services in the European Union.

See: Top Software Firm Plugs Into Belfast

(BMcC/GK)