Decentralisation to drive VoIP in public sector


8 Nov 2004

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The push towards the decentralisation of government departments and semi-state bodies is driving healthy demand for voice-over IP (VoIP) systems and applications, the head of Damovo Ireland told siliconrepublic.com.

According to Damovo Ireland managing director, John McCabe: “The public sector is particularly open to VoIP. All public sector bodies right now are looking closely at their communications strategies. The strongest trend seems to be towards upgrading existing communications infrastructures to handle VoIP applications for a more contact center- type approach to dealing with citizens. The definite trend is to upgrade rather than build an entirely new system.”

He added that the trend towards new communications systems such as VoIP in the public sector is driving growth in the local telecommunications market, particularly the decision by Government to put large segments of its communications requirements out to tender. Up until now, the Government allocated more than 90pc of its communications requirements to Eircom. Next summer, however, much of this business will be put out to re-tender for other licensed operators to pitch for a share of the business.

According to McCabe, this movement is already beginning to bear fruit. “In the past month we have seen more tenders for communications services for the public sector than in the previous nine months. Decentralisation is a big opportunity for everyone in the communications sector.”

McCabe said that some 60pc of Damovo’s business in Ireland is with the public sector and the company has completed major communications system implementations in semi-state bodies such as ESB, Bord Gáis and CIÉ. For example, the company recently implemented the ‘talking timetable’ phone service for Iarnroid Éireann.

Damovo employs some 75 people in Dublin and last year reported a turnover of €15m, up 8pc on the previous year. McCabe concluded by forecasting a 10pc increase in turnover next year on the back of strong trends such as public sector adoption of VoIP and growing demand by businesses for communications-in-a-box solutions.

By John Kennedy