IT recruitment wave set to continue

IT recruitment companies are experiencing rapid growth, and one analyst says it could continue for a few years to come.

S3 and Harvey Nash have seen business boom in recent years.

The last upturn lasted seven years, from 1993 to 2000. Between 2000 and 2003 the City saw severe cost-cutting, but the Financial Times says subsequent years have seen the pendulum swing the other way thanks to the proliferation of new regulations and increased demand for outsourced HR services.

For how much longer will the good times roll?

"We don't know. Going on the last cycle we have another four years at least, but it is impossible to say as throughout the cycle there are periods of positive sentiment, and periods of negative sentiment, " says Ian Jermin, director of equity research at the Bridgewell Group. "We're in a period of negative sentiment at the moment, but it doesn't mean we're heading towards the end of the cycle. So based on the last cycle it would like we have a few more years to go."