City finance houses are being wooed by new recruitment company 10% Fee Ltd, which is promising to undercut the market with full transparency of charges for placing permanent and contract IT professionals.
IT recruitment specialist Raymond Wilkins, who is chairman of the company, says many UK agencies are charging fees of over 20%, with complicated discounts bringing charges down to either 15% or 17.5%.
In the current depressed market some firms are prepared to offer a low cost service to selected clients, admits Wilkins, but will not discount publicly.
He adds that his company charges a 10% gross margin on all contractors and a 10% fee per permanent placement based on only the basic salary.
"10% Fee Ltd charges a 10% placement fee so that everyone knows what they are paying," says Wilkins.