IT Recruitment

This Key Note Market Assessment examines the UK IT recruitment market. The market has experienced both peaks and troughs during the 2000s - between 2001 and 2003, it went through a period of turbulence; in 2004, it recovered; and between 2005 and 2007, steady, ongoing growth was recorded. The recession then took its toll on the industry and, in 2008 and 2009, it was subjected to extremely difficult trading conditions. The IT recruitment market had a value of £4.07bn in 2009 - a 14.1% decline compared with 2008.

The extent of the recession's impact on demand for IT workers is evident in the declining number of job advertisements for the industry. Between 2007 and 2009, job advertisements for permanent and contract IT workers, including those required by the financial sector - the largest market for IT staff - fell sharply, and advertisements for software developers and analysts - two of the main skill areas for IT recruitment - were also significantly lower.

To reduce costs, many companies have become engaged in offshoring - a process that involves the relocation by a company of a business process from one country to another. The UK IT sector is concerned that, should this trend become even more widespread, it could lead to the UK no longer having the skills or the infrastructure in place to support technology businesses or large-scale technology departments.

IT recruitment companies continue to be affected by a wide array of legislation. Current legislative concerns include the Agency Workers Directive (AWD), which is due to be introduced into the UK by December 2011, and Intra-Company Transfers (ICTs) which allow companies to transfer non-EU workers to fill jobs in the UK without having to recruit from the UK labour market first.

Historically, the correlation between UK economic growth and recruitment industry turnover is strong, with rising gross domestic product (GDP) being followed (with a lag of around one quarter) by substantial gains in recruitment. Key Note forecasts that, in line with the expected improvement in the UK economy, the IT market will return to growth in 2010. Thereafter, higher levels of annual growth are currently anticipated, although much will depend on the economic climate and the extent to which this stimulates demand for IT recruitment. Key Note forecasts that the market will grow by 5% to £4.27bn in 2010, and will increase by an overall 43.7% between 2010 and 2014 to reach a value of £6.14bn by the end of the forecast period.

• Foreword
• Executive Summary
• Introduction
• The Market
• Definition
• Strategic Overview
• Market Segmentation
• Market Overview
• Key Trends
• IT Skills Advertising Trends
• Turnover of Recruitment Industry Falls
• Fall in The Number of Employers Using Recruitment Agencies
• Recruiters Agencies Cut Staff Numbers
• Microsoft Predicts Surge in IT Employment in The UK
• Market Dynamics
• Employment in The Ict Sector
• IT Job Vacancies
• Market Size
• Legislation Affecting IT Recruitment
• Intra-Company Transfers
• The Employment Agencies Act and The Conduct of Employment Agencies and Employment Businesses Regulations
• Equality and Human Resources Commission
• Agency Workers Directive
• Other Legislation
• Channels to Market
• Competitive Structure
• Leading IT Consultancies by Job Advertisements
• The Consumer
• Business Customers
• Individual Customers
• Market Forecasts
• Contract and Temporary Staff
• Background
• Market Size
• Market Trends
• Regional Advertising Trends
• Permanent Staff
• Background
• Market Size
• Market Trends
• Regional Advertising Trends
• An International Perspective
• Market Developments
• The US
• IT Sector Forecast to Help Drive Global Economic Recovery
• European Ict Market to Resume Growth in
• Competitor Environment
• Pest Analysis
• Political Factors
• UK IT Graduates Could Lose out under Immigration Proposals
• Agency Workers Directive
• The Equality Bill
• Economic Factors
• Microsoft's Ballmer Predicts IT Jobs Surge
• Employment and Wage Trends for Ict Workers
• Public Sector Cuts Will Impact on Recruiters
• Rising IT Offshoring Undermines UK Services
• Social Factors
• European Companies Commit to Bring More Women into The Tech Industry
• Certain IT Skills Remain in Short Supply
• E-Skills UK Issues-Year Strategic Plan
• IT Professionals Reap Career Benefits of Linkedin
• UK IT Landscape Faces Potential 'Brain Drain'
• Technology Factors
• Recruiters Risk Falling behind as Client Companies Harness Technology
• Impact of Social Networking Websites on The Recruitment Market
• Digital Britain
• Consumer Dynamics
• Employers
• [(C)2009 Recruitment, Retention and Turnover Survey
• [(C)E-Skills UK Ict Inquiry Identifies Key Concerns of UK Businesses
• Employees
• Number of Ict Staff Looking for A New Job
• Length of Time Looking for Work
• Rates of Pay
• IT Job Employment by Industry
• Company Profiles
• Adecco UK Ltd
• Corporate Strategy
• Profitability
• Future Company Developments
• Alexander Mann Group Ltd
• Corporate Strategy
• Profitability
• Future Company Developments
• Elan Computing Ltd
• Corporate Strategy
• Profitability
• Future Company Developments
• Harvey Nash Group Plc
• Corporate Strategy
• Profitability
• Future Company Developments
• Hays Plc
• Corporate Strategy
• Profitability
• Future Company Developments
• Lorien Resourcing Ltd
• Corporate Strategy
• Profitability
• Future Company Developments
• Modis International Ltd
• Corporate Strategy
• Profitability
• Future Company Developments
• Randstad Employment Bureau Ltd
• Corporate Strategy
• Profitability
• Future Company Developments
• Spring Technology Staffing Services Ltd
• Corporate Strategy
• Profitability
• Future Company Developments
• Steria Recruitment Ltd
• Corporate Strategy
• Profitability
• Future Company Developments
• Sthree Plc
• Corporate Strategy
• Profitability
• Future Company Developments
• Other Companies
• The Future
• Economic Factors
• The Economy
• Confidence Returns to IT Jobs Market
• Improvement in Recruitment Levels Reported
• Labour Market Is Still Very Fragile
• Concerns about Twin-Track Economy
• Future Demand for IT Workers
• Forecasts to
• Further Sources
• Associations
• Publications
• General Sources
• Government Sources
• Other Sources
• Key Note Sources
• Key Note Ltd
• Key Note Research