"I think the year is going to be a good one for the IT sector. We said that last year and we were right, and we say it again this year," he said.

"Despite all the talk about offshoring, the demand for skills here continues to grow."

The Olivier Job Index shows the demand for graduates in December 2005 to be over twice what it was in December 2004.

"That is also a very good indication of where employers are heading," he said.

"So the demand is there but the supply is lacking. I think there are some real structural problems that the government will have to face."