'Robust' demand for IT contractors

Promising signs of a recovery in the UK's IT staffing agency market have been reported by Harvey Nash, the recruitment and services IT group.

Updating the market yesterday, chief executive Albert Ellis reported "robust" demand for IT contractors in the UK, and the US, during the six months to July 31, 2010.

This is "encouraging news", said TechMarketView analyst Anthony Miller, given that contractor recruitment tends to be a lead indicator for overall IT staff demand.

He cautioned that "it may yet still be too early to declare" buoyancy in the IT staffing agency market, though Harvey Nash did say full-time IT hires are already on the up.

Mr Ellis reflected: "The group continues to trade well in the current environment but we remain appropriately cautious given the economic climate in which we operate.

"[Harvey Nash] continues to benefit from significant market share gains particularly in the UK and Europe and, with geographic exposure in the stronger US and Nordic economies."

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