This Morning (29/04/02) leading UK recruitment agencies are refusing to comment on suggestions made recently in Computer Contractor and IndyMedia that their business ethics are nothing more than shameful and scandalous. Agencies were also asked to comment on the recent publication released on Friday 26th April urging agents to increase profit margins at the clients and individual contractors expense.

One of the top recruitment agents response was, ‘’It is up to us how we run our business. It is a tough market for everyone right now, and if we can stitch clients and contractors up to improve margins then why shouldn’t we’’. The phone then went silent. All the other top agencies have refused to comment.

However, some of the smaller agents are showing a better resolve and attitude to the current downturn and gloom within the Telecommunication and IT sectors. One agent who shall remain anonymous stated, ‘‘We are always reviewing the general market place with both client and contractors in mind. I personally think the margins between 35% and 50% that some of our larger competitors are allegedly making is discrediting the overall market place within IT.’’

There is hope that agency involvement within this sector will continue, however I suspect that there will be a bit of a heads-up over the next few months in terms of what agencies will survive. The client base, and the way they wish to continue using professional contractors of course will drive this. The jury’s out!