The IT recruitment market is going to get worse next year, according to a new survey.

The Ovum Holway report, which is released every year and draws on data from recruitment firms across the country, revealed 2002 was the worst year on record for the market.

And this year was unlikely to be much better, the report claimed, as it forecast no improvement for several years.

Any growth in the market would come from outsourcing, particularly in business process projects, which relied on transferring incumbent staff and didn’t create opportunities for IT recruitment agencies, it claimed.

Offshore IT services would also reduce demand for agencies’ services and would put indirect pressure on fees.

The report claimed the IT recruitment industry had also become separated from the main IT industry because of the trend towards outsourcing – so growth in the industry as a whole wouldn’t necessarily mean more business for recruiters.

But the Ovum Holway report is well known for its pessimism.