This, according to new figures released by the European Information Technology Observatory.

Market growth in Europe has slowed to 3.2 per cent but in the UK is expected to hit 4.2 per cent year-on-year. Software and IT services saw the most growth, with a 6.1 and a 5.1 per cent increase respectively.

Charles Ward, COO at IT trade association Intellect, says, ‘The UK continues to be a fertile market for innovative solutions and business models,’ but warns that the growth figures ‘mask increasing turbulence in the IT market’.