HP Ireland, the Irish sales subsidiary of technology giant Hewlett-Packard, will create 70 new jobs early in 2008.  John Collinsreports.

The jobs will be in the area of "service delivery", according to Martin Murphy, managing director of HP Ireland.

In common with other technology firms, an increasing percentage of HP's revenues are derived from services rather than the sale of products. HP has built up a strong managed services practice locally in recent years.

In 2003, it won a €500 million seven-year contract with Bank of Ireland to manage all its technology functions, the largest outsourcing contract ever awarded in the State.

Mr Murphy said the new staff would be deployed to work on similar service-based contracts.

HP Ireland had revenues of more than €600 million in its 2007 financial year to the end of last October, an increase of 15 per cent on the previous year.

Mr Murphy said HP would still be targeting double-digit growth in 2008, although he said technology spending is likely to slow down significantly.

Analysts including IDC have recorded growth of 7 to 8 per cent in the Irish technology market in the last few years, but are predicting this will slow to 5 per cent next year.

"Services will drive the overall IT market next year," said Mr Murphy. "By hiring new staff HP is trying to anticipate the market."

He also predicted that there would be consolidation in the space which would reduce the number of service providers.

HP currently employs about 4,000 people in Ireland, where it has five main divisions.

In addition to the Irish sales operation, it has a print head manufacturing facility, the headquarters of its Europe, Middle East and Asia financial services division, both of which are in Leixlip, Co Kildare, a European customer support operation in Clonskeagh, Dublin, which is currently being transferred to Leixlip, and a software development centre in Galway.