About 49% of tech companies are planning to hire extra staff over the next year.
The UK tech industry is expected outstrip other private industries in the UK, with 49% planning to hire additional staff during next 12 months, according to a report by KPMG and Markit.
The research revealed that the job hiring rate is close to its strongest for three years and faster than the UK average.
Tudor Aw, head of Technology at KPMG, said the recent falls in share prices of technology stocks have led some to question the health of the tech sector but all the data in this report point to a UK tech sector that is in rude health.
"Our data also shows the positive impact the sector has on the UK’s economic performance as a whole and the important role UK tech companies up and down the country play in the burgeoning recovery," Aw said.
"It is time the sector received the recognition and support it deserves.
"We should ensure that the sector as a whole gets the profile and support that it needs such as focused government policies that help develop and encourage education in STEM subjects, and ease access to tech talent on a global basis."
According to the UK Tech PMI index, business activity in the country’s tech sector was 60.0 in March, which is far better than the 50.0 no-change threshold and almost close to the ten-year high of 60.9 reported at the end of 2013.
Business activity in the tech sector also outpaced the UK Composite PMI which was 58.1 during the first quarter of 2014, suggesting better sectoral growth compared to the UK economy as a whole.
The rise in business activity in the tech sector could from an improvement in domestic economic outlook and increased investment spending and demand, the survey found.
The sector also benefitted from higher selling prices, weakening cost inflation and growth in business volumes.
Markit’s senior economist Tim Moore said:"The latest survey results will be reassuring to policymakers given the importance of the sector to the sustainability of the economic recovery.
"The health of the tech sector and its ability to deliver productivity gains across the wider economy are key factors that will determine how quickly the UK economy can recover without hitting growth constraints."
"Tech companies stand to benefit from two key domestic economic tailwinds this year, which are rising business investment as confidence in the recovery takes hold and improving household spending power as wages finally start to climb more quickly than consumer prices.
"Moreover, a buoyant mood among tech companies about future job hiring intentions bodes well for growth in the year ahead and is a further signal that the UK economy is set to continue its upward ascent over the course of 2014."