Feeds

IT recruitment agency will make founders millionaires

Overall industry set to cool down though

  • alert
  • submit to reddit

The essential guide to IT transformation

Two UK tycoons will share £100 million when they float their IT recruitment company in the next few weeks, according to a story in The Times today. Andy Baker and Les Clark started Glotel ten years ago after leaving Hestair, the recruitment arm of conglomerate BET. The London-based company has 245 staff in the UK, US and Australia. Baker and Clark, each with 50 per cent of Glotel, will give up to five per cent of the business to staff on flotation. The company is expected to come to market through a placing by broker HSBC Securities. HSBC this week forecast $101 million sales and £4.4 million profit for Glotel for the year ended 31 March. It has been valued at between £100 million and £150 million. But analyst Richard Holway warned that growth in this area was slowing: "IT agencies magnify trends. IT staff agencies always do very well when demand outstrips supply -- they usually do very badly when demand moderates. "Demand is moderating and growth rates will fall post Y2K. More IT staff will still be required, but the premiums paid to contractors will reduce and a higher proportion will return to permanent employment." Holway stressed that he was not predicting the death of the market next year. IT staff with skills in short supply would continue to net good fees as contractors, and agencies operating at this level would continue to grow, he said. But this level would be lower that the 40 per cent or more organic growth rates seen recently. ®

Boost IT visibility and business value

More from The Register

next story
6 Obvious Reasons Why Facebook Will Ban This Article (Thank God)
Clampdown on clickbait ... and El Reg is OK with this
Banking apps: Handy, can grab all your money... and RIDDLED with coding flaws
Yep, that one place you'd hoped you wouldn't find 'em
No, thank you. I will not code for the Caliphate
Some assignments, even the Bongster decline must
Barnes & Noble: Swallow a Samsung Nook tablet, please ... pretty please
Novelslab finally on sale with ($199 - $20) price tag
Video of US journalist 'beheading' pulled from social media
Yanked footage featured British-accented attacker and US journo James Foley
Primetime precrime? Minority Report TV series 'being developed'
I have to know. I have to find out what happened to my life
Broadband slow and expensive? Blame Telstra says CloudFlare
Won't peer, will gouge for Internet transit
Netflix swallows yet another bitter pill, inks peering deal with TWC
Net neutrality crusader once again pays up for priority access
prev story

Whitepapers

Best practices for enterprise data
Discussing how technology providers have innovated in order to solve new challenges, creating a new framework for enterprise data.
Implementing global e-invoicing with guaranteed legal certainty
Explaining the role local tax compliance plays in successful supply chain management and e-business and how leading global brands are addressing this.
Advanced data protection for your virtualized environments
Find a natural fit for optimizing protection for the often resource-constrained data protection process found in virtual environments.
How modern custom applications can spur business growth
Learn how to create, deploy and manage custom applications without consuming or expanding the need for scarce, expensive IT resources.
High Performance for All
While HPC is not new, it has traditionally been seen as a specialist area – is it now geared up to meet more mainstream requirements?