Raised levels of IT spending will push the technology sector towards recovery as the year progresses, according to Mr Cathal Friel, the newly elected chairman of the Irish Software Association (ISA).

Mr Friel, a director of Merrion Corporate Finance, said most major IT investments had been made three to four years ago and were due for upgrade or replacement, adding that this would boost technology firms later this year and particularly next year.

Mr Friel was more optimistic about the global economic outlook than many "negative soothsayers". The recession that followed the last Gulf War was consumer-led, he said. "This time the consumer is in good shape." The low interest rates that prevail around the world will also help to spur growth, he added.