The business environment is much brighter now than it was this time last year but it is not certain that a full recovery is in place, says Mr John Clare, managing director, Fujitsu Services.

The number of tenders offered has increased dramatically since the start of the year and there are signs that firms are starting to invest in technology again, says Mr Clare. "We have been through a rollercoaster in the last few years with big investment in the millennium bug, the introduction of the euro and the dotcom boom.

"This essentially came to a halt in 2002 which was the toughest year I can remember in the 20 years which I have worked in the technology sector."

To a certain extent, Fujitsu Services - which provides managed services and outsourcing capabilities to organisations - was insulated because its biggest customer is the Government.

The firm is designing the computers to manage the penalty points system for the gardaí and last month won a contract in Northern Ireland to provide technology to manage the criminal justice system.

Mr Clare says Government spending on technology has slowed in the Republic but there has been a recovery in the private sector, particularly in the retail, finance and telecoms sectors.

He believes the financial sector is also recovering. "I think firms put off technology investments last year but are now having to invest. I think we are seeing the start of a recovery but I don't believe it is fully under way... but it is certainly much brighter now than it was this time last year."