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IT Recruitment Market Assessment 2008
Key Note Publications Ltd, Aug 2008, Pages: 123
During the past decade, the IT recruitment market has experienced peaks, troughs and eventual consolidation, from high demand in 1999, to turbulence between 2001 and 2003, to recovery in 2004 and controlled, steady, year-on-year increases in 2005, 2006 and 2007.
In 2004, the computer industry entered a new phase of growth, characterised by steady annual budget increases. Consequently, the period 2004 to 2006 was one of recovery for the IT recruitment industry. Since early 2004, there has been a significant improvement in the market for permanent, temporary and contract recruitment, spurred by new projects among companies to enhance their systems, both in terms of applications and infrastructure. As a result, there was an increase in demand for project managers from 2006 to 2008.
However, the IT skills shortage remained a problem for the UK market during this period of growth. Furthermore, demographic change has meant that agencies have had to build strategies for the recruitment of older workers and women, as well as to operate across international markets. This has opened up new service areas, such as international recruitment and employment consultancy, which job hunters are starting to consider to be standard offerings from recruitment agencies.
The diverse legislative environment continues to be tough for recruitment agencies. They need to be aware of issues related to employment and finance regulations in the UK, as well as international initiatives, including the EU's Agency Workers Directive.
We forecast that, despite concerns over the economic environment, between 2008 and 2012, the industry will continue to grow. Various factors contribute to this conclusion, including the financial sector requiring stability in their systems, the growing need for management of risk and compliance, and skills shortages that still need to be addressed.
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