Outsourcing boosts profits at recruitment firm

Jun 19 2009 By Andrew Mernin

Recruitment firm Harvey Nash today said it was riding out a bleak jobs market as clients look to cut costs through offshoring and outsourcing business.

The company, which lowered expectations for the current year in February, managed to grow revenues by 3% year-on-year in the three months to April 30.

While demand for permanent staff has continued to weaken, the fall has been partly offset by increased call for offshoring and outsourcing, the firm said.

The company offers outsourced software services based in Asia to blue-chip clients across all sectors.

Harvey Nash has UK offices in Birmingham, Leeds, Edinburgh and London and specialises in IT recruitment.

The firm warned visibility remained ``very limited" but said it was continuing to grow market share in the downturn.

The company’s balance sheet is also in a strong position after paying off debts in January 2008 and it has ``substantial headroom" in current working capital arrangements with its lenders.

Harvey Nash added it was ``well placed to benefit from the upturn when it comes". As well as the UK, the firm also has offices in 10 other European countries and the US.

The company grew revenues by 32% to £420 million and boosted pre-tax profits 25% to £9.5 million in the year to January 31.