Nearly two-thirds of technology firms in Europe plan to increase tech hires in the next year, ElectricNews.net reports via The Register.

The conclusion is based on a recent IT confidence survey conducted by Eurocom Worldwide, a European public relations network, and Six Degrees, its U.K. partner, according to ElectricNews.net.

A meager 8 percent of respondents said they plan to cut staff, and one-third said they’re having more trouble recruiting than at the same time last year, ElectricNews.net reports.

Software engineers are most in demand, according to the survey, followed by project management specialists and international sales staffers, according to ElectricNews.net.

Seventy-nine percent of respondents expect to increase revenues in the next 12 months, with only 3 percent planning to the contrary, ElectricNews.net reports.

Jennifer Janson, Six Degrees’ managing director, told ElectricNews.net, “The IT recovery is reflected in the fact that a skills shortage is now seen as the third most likely threat to growth in the sector. A slowdown in the global economy and further oil price increases are seen as the major threats.”

On the flip side, the survey said technology jobs in low-cost labor markets such as China and India are also on the rise, resulting in a loss of dominance by the United States and Europe as technology manufacturing centers, ElectricNews.net reports.

Seventy-six percent of respondents agreed with the statement that the United States and Europe are increasingly losing ground in the technology industry, according to ElectricNews.net.

In addition, 71 percent of respondents thought China would represent the largest growth in IT manufacturing positions over the coming three years, followed by India, ElectricNews.net reports.

Input from some 300 executives in 20 European nations was included in the study, according to ElectricNews.net.

For related news coverage, read CIO Poll: Tech Spending Continues to Increase.

Check out our CIO News Alerts and Tech Informer pages for more updated news coverage.