IT contractors with strong CVs may benefit from contacting employers directly as businesses grow tired of dealing with recruitment agencies, according to recruitment group Talent Puzzle.

Most business owners are using recruitment agencies due to the high volumes of unsuitable applications they are receiving during the recession, according to the firm's recent study.

While the majority (88 per cent) of those surveyed said they wished to make significant recruitment progress over the next six months, the fees charged by recruitment agencies, particularly to the smaller companies, can be very high.

Smaller companies hiring for the same vacancy as a larger company will probably pay twice as much in agency fees, according to Talent Puzzle chief executive officer Virginia Raemy.

"The smaller the business, the less power they have to negotiate fees," Ms Raemy added.

According to the Recruitment and Employment Confederation (REC), demand for staff rose for the fifth month in a row in February, with the rate of this growth now at its highest level for two-and-a-half years.