The number of technology companies in Scotland reporting increased sales has grown from 68% to 75% in the last year, according to the latest annual industry survey conducted by ScotlandIS.
Those with improving profits also increased from 47% to 51% of companies surveyed.
And 83% of respondents to the ScotlandIS survey expect to expand sales over the next year, while 81% plan to create jobs.
But the number of firms expressing optimism for the year ahead was down from 80% last year to 72%. They gave their main challenges as staff recruitment and retention (52%), the political situation (41%), and sales and winning new business (30%).
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Digital industries add £6 billion a year to the economy and £3.3 billion in annual export earnings. In the survey, 53% of businesses said they are already selling internationally and a further 19% plan to.
Demand for graduates remains steady, with 70% of respondents likely to recruit university qualified staff this year.
Polly Purvis, outgoing chief executive of ScotlandIS , said: “The digital technologies industry is a major contributor to the Scottish economy, so it's great to see the vast majority of Scottish tech businesses are expecting a successful year, anticipating growth in sales and new job creation.
"Last year was a very strong year, and despite ongoing uncertainty, this year’s survey highlights the strength and resilience of the industry within Scotland.
"The technology landscape is constantly evolving and provides huge opportunities in areas as diverse as data, cyber, AI, robotics, fintech, healthtech and agritech. As increasing use of technology products and solutions permeates all parts of the economy, underpinning increased productivity and enabling innovation, there has never been a better time to be in tech.”
The Scottish Technology Industry Survey 2019 was carried out online between 7 January and 16 February 2019 and received responses from 160 businesses.
