Recruitment at financial technology vendors has been a relative hive of activity this year, and revenues are holding up in the face of shrinking technology budgets at investment banks. However, doubts remain over how long this can continue.

Some of the bigger players have posted impressive growth during the third quarter. Oracle Financial Services Software reported a 23% year-on-year revenue rise, Temenos was up 42% on the same period in 2007, while Misys is predicting a 6-9% increase in its capital markets division and 3-5% growth in its banking arm going forward to 2010.

Recruiters tell us that Sungard, Murex, Wall Street Systems, Risk Metrics and Algorithmics are all looking to take people on.

Mike Thompson, principal at technology recruitment firm Druid IB, says: “Half of our financial technology vendor clients are expanding at a faster rate than this time last year, while the other half are still growing at the same rate as 2007.”

Simon Masters, head of recruitment at electronic trading system supplier Trayport, says the firm is still looking to bolster its team with developers, test analysts and support staff.

“We’re obviously cautious in the current climate and not adopting a slap-dash, devil-may-care approach to hiring, but we still have a growth strategy and recruiting the right people remains key to that,” he says.

This caution manifests itself in a more stringent vetting process, says Masters, who admits to having higher expectations from new recruits than in the past.

“While there are fewer people leaving their current role to pursue new opportunities, some firms have fallen by the wayside, and good people have found themselves on the market through no fault of their own. It’s an ideal opportunity to get high-calibre people,” he adds.

However, Fidessa, the UK trading systems vendor, said on the release of its third-quarter results that consolidation in the i-banking sector and “further pressure on expenditure” among its clients is forcing it to reduce growth prospects.

Simon Walker, director at recruiters Project Partners, admits there has been a slowdown in business from vendors in the last month.

But he adds: “I’d say this is just the time of year where budgets are worked out and firms consider their hiring plans. We’re receiving a lot of positive signals from our clients over hiring plans for early 2009.”