Shortages of technical skills are affecting up to 85 per cent of software companies in Ireland, in particular larger companies employing more than 50 people.

Shortages of technical skills are affecting up to 85 per cent of software companies in Ireland, in particular larger companies employing more than 50 people.

But the annual business survey conducted by the Irish Software Association found that despite recruitment problems, many software companies plan to increase employment in Ireland by 25 per cent over the next year.

ISA chairwoman, Ms Mary Cryan, said: "The findings reflect our view that the industry has the capability to double employment and create 20,000 new high skilled jobs in Ireland by the year 2002 - but only if the industry itself and Government put the appropriate measures in place to ensure adequate supply of people."

Recruitment was also cited as one of the main barriers to company growth, although its importance varied among companies of different size. Overall 28 per cent of those surveyed rated recruitment as the primary restraint on growth, but for companies employing in excess of 50 people, this rose to 46 per cent.