The survey of over 150 technology businesses in Wellington revealed 59 per cent expected to increase their revenue in the 2009-10 financial year, while only 15 per cent thought revenue would drop.

More than 40 per cent of companies expected to hire staff in the next year and a fifth were currently recruiting.

More than three-quarters of the firms had not undertaken any downsizing.

Potentia Wellington manager Simon McOscar said the survey indicated the IT industry was holding up well despite the recession.

But Grant Burley, director of recruitment firm Absolute IT, says Potentia's findings are at odds with prevailing sentiment in the sector.

The majority of IT businesses are expecting revenues to drop, he says.

"Most are discussing anywhere between a 15 per cent to around a 30 per cent drop in revenue."

Most IT businesses have trimmed staff such as contractors and part-timers, and asked employees to consider reducing their hours and overtime, he says.

"Everybody is in cost-cutting mode."

The majority of firms are hiring staff or planning to in the next year, and government agencies armed with their new budgets are stimulating demand, he says.

"They might be cutting budgets but there are still projects that need to be delivered."

Beyond Recruitment director Ben Pearson says more than 25 per cent of firms will have cut staff or chosen not to replace them. Wellington technology firms are more upbeat than they have been in recent months, but it is "slightly over-optimistic" for 59 per cent to expect revenues to increase in the next year, he says.

Mr McOscar says the survey results are "bullish" but not necessarily surprising.

"Businesses have positioned themselves extremely well. They are more strategic and streamlined now. They've gone through the tough times late last year and early this year and are now starting to see a pick-up."