Three quarters of Irish technology companies intend to increase staff numbers over the next year, according to a new survey of the sector.

However the research, carried out on behalf of the Irish Software Association, also found that technology businesses continue to experience some difficulties in filling open positions and securing start-up investment.

According to the ISA’s Digital Technology Index, the IT sector is currently comprised of over 1,000 companies employing more than 100,000 people.

The survey found the sector continues to grow, with 80% of respondents saying they are more confident now than they were three months ago.

Almost all of the firms expect revenues to rise over the coming quarter, with three quarters saying they intend to increase the numbers they employ.

There are challenges in the sector, however, with too few companies managing to grow to a significant scale.

Meanwhile, those that are growing continue to experience some difficulties in finding enough suitable talent to fill positions.

Securing finance also remains a difficulty - particularly for start-ups - with many firms having to look overseas for investment.

The ISA says the Government could help by enhancing tax-based investment schemes and continuing to work with industry to encourage students' uptake of science and technology related subjects.