The survey of more than 8,000 companies nationally showed that 46.2 percent of IT employers plan to increase permanent staffing levels, compared to 7.4 percent who intend to reduce employee numbers, resulting in a net effect of +38.8 percent.

In the telco sector, 40.4 percent of employers plan to increase permanent staffing levels, compared to 18.4 percent who intend to reduce employee numbers, resulting in a net effect of +22.0 percent.

IT employers in NSW, QLD and WA recorded the highest levels of optimism, with the IT sector returning the highest level of employer sentiment across all sectors in NS W.

Hudson IT&T director Martin Retschko said the main driver behind the growth in the IT market is the overall increase in IT spending across the board as many organizations are now regarding technology as a key enabler of business growth. He said sectors making significant IT investment include government and financial services.

"As IT spending increases vendors are taking on more work and raising staff levels in anticipation of more demand for products and services from the end user community," Retschko said. Employers are turning to available pools of talent, such as contractors, as the skills shortage continues.