IT directors are optimistic about their plans for the next financial year and expect to increase staffing levels and salaries, a new study has revealed.

Research carried out by professional services provider the Rethink Group found 49 per cent of IT directors expect to boost staff levels in the next 12 months, while just 13 per cent are planning to let staff go.

Some 81 per cent said they are concerned about retaining key personnel over the coming year, which indicates competition remains strong within the industry as a whole.

In a statement the group claimed spending on IT during a slowdown can deliver efficiency gains and boost competitive advantage.

“The outlook overall is reassuringly positive, with staffing levels and workloads overwhelmingly expected to increase over the next 12 months,” it added.

Earlier this week, technology researcher In-Stat claimed demand for multi-service business gateway devices is increasing among small and medium businesses.