A recruitment group has claimed that the jobs boom IT contractors have seen in the financial services sector is set to subside temporarily.

Banks have spent "an awful lot of money" on recruitment recently as they look to bounce back from the recession, but this will slow down in the coming months, according to Badenoch & Clark.

Last month, a report from another recruiter, Giant Group, stated that IT contractors were in demand in the financial sector as many companies looked to overhaul their IT systems.

But Badenoch & Clark associate director David Fleming believes that this was just the sector realigning after it suffered job losses throughout the recession.

"I think a lot of the larger financial institutions have taken the position that they need to take stock of where they are, and I don't think they'll be recruiting as heavily in Q4 as they have been," he said.