A new report on the future of managed services in recruitment brings good news to agency recruiters: technology won't replace recruitment agencies in UK business. But to remain a necessity in the world of business, agencies must adapt their methods of working to employers' needs.

'Debunking the Myths', the REC-KPMG report conducted by Cordoba Consulting, examined questions surrounding the impact of managed services and related technology on recruitment agencies. A key finding, which will put many recruiters' minds at ease, is that the appetite for managed services exists mainly among employers who must recruit in volume.

"Managed services are only suitable for the recruitment of large numbers of staff, who will be managed by the suppliers," Roger Tweedy, REC research director, told Recruiter.

Further, the report goes on to say, fears that software suppliers might succeed in wresting away from agencies the business of managing recruitment through their technology solutions are mostly unfounded. Although major employers such as the BBC, Unilever and the Royal Mail have reduced their use of agency services by up to 80% through technology solutions, too few corporate employers have a sufficiently well-defined brand or web presence to attract as many candidates as they need, meaning that recruitment agencies' services are still needed.

'The organisation must be well-known within a defined job market and be seen as a desirable employer if it is to have the luxury of choice within a pool of suitable talent,' the report said. 'Most organisations do not and will not fall into this category.'