UK IT Market Takes A Sharp Down Turn
David Hyham-Jones | 13.08.2002 10:36
The UK IT market has taken a sharp down turn, just when the market needed some good news. The demise of Computer Futures for VAT fraud, and the uncertainty of many other recruitment agents has thrown the credibility of the IT job market into turmoil.
The dramatic decline of the UK IT market in recent weeks has under pinned why many young university hopefuls, and graduates are avoiding the IT technology sector for more traditional roles within finance and medicine.
The recent demise of Computer Futures due to VAT fraud and private litigation has opened the door for investigation into many other IT recruitment agencies business ethics and practises.
There are already around another 10 Welknown Recruitment agencies in the UK that are filing for bankruptcy or subject to investigation by Customs and Excise, the Inland Revenue and the DTI. The lsit of trobled Recruitment specialists is set to grow over the next 6 months, with companies such as Parity, Computer People, MSB and NESCO in severe difficulties.
The UK IT market has suffered most over the last 18 months, and with the European market beginning to show the signs of recovery it's beginning to look grim in the longer term for the UK IT industry. The doors to Europe have been thrown open with floods of UK based IT professionals leaving the UK for projects oversea's, leaving the UK IT market short of quality independant IT professionals.
In short it would seem that the recruitment agencies haven't grown with the changes that the market has witnessed over recent years, including client awareness and taxation issues, i.e. IR35.
The recent demise of Computer Futures due to VAT fraud and private litigation has opened the door for investigation into many other IT recruitment agencies business ethics and practises.
There are already around another 10 Welknown Recruitment agencies in the UK that are filing for bankruptcy or subject to investigation by Customs and Excise, the Inland Revenue and the DTI. The lsit of trobled Recruitment specialists is set to grow over the next 6 months, with companies such as Parity, Computer People, MSB and NESCO in severe difficulties.
The UK IT market has suffered most over the last 18 months, and with the European market beginning to show the signs of recovery it's beginning to look grim in the longer term for the UK IT industry. The doors to Europe have been thrown open with floods of UK based IT professionals leaving the UK for projects oversea's, leaving the UK IT market short of quality independant IT professionals.
In short it would seem that the recruitment agencies haven't grown with the changes that the market has witnessed over recent years, including client awareness and taxation issues, i.e. IR35.
David Hyham-Jones
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