IT recruitment firms go on the jumble sale trestle tables

IT recruitment trade association ATSCo is forecasting a rush of mergers and acquisitions among IT recruitment companies as the economic downturn takes its toll on the sector.

The downturn could see venture capitalists flocking to snap up bargain priced recruitment firms, and major corporates buying into ready made recruitment divisions, ATSCo said at its first open meeting in London yesterday.

But delegates at the meeting warned buyers will be selective in their choice of merger and acquisition, and said there is currently a shortage of lucrative companies for sale.

Speaking at the meeting, Ann Swain, CEO of ATSCo, said buyer interest will be positive for the industry and reflected confidence in the long-term viability of the sector.