According to an industry data group, the European IT services market is set to grow by 4.8 per cent over the next five years, it has been reported.

It emerged that certain factors such as fears of recession and a slowing housing market were to restrict growth in Ireland, Spain and the UK more than other nations in Europe.

However, IDC stated that economic problems had gone "largely unnoticed" up until now and as such may have little effect on the IT industry in the upcoming months, predicting a five per cent rise in demand for IT support and services in 2008.

Research manager of European software and services at IDC Laura Converso said: "As the European economy cools, the outsourcing segment continues to be the growth engine of the IT services market."

IDC is a subsidiary of the International Data Group, founded in 1964 and taking in revenues of $2.84 billion (£1.61 billion) in 2006 alone.

According to a recent survey by Connect, the two biggest IT headaches for businesses were 'everyday hassles with IT' (37 per cent) and 'security concerns' (32 per cent) In a recent survey of SMEs for Connect, the two most important benefits of outsourcing were 'guaranteed response times' and 'allowing in-house IT staff to concentrate on more strategic issues'