The number of recruitment agencies calling in administrators has reduced, new research shows.

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In news that may be of interest to those looking to outsource back office solutions such as recruitment agency timesheet management, key talent is still proving difficult to find.

That is according to the Chartered Institute of Personnel and Development, the 2010 Resourcing and Talent Planning survey for which shows that this is the case despite a rise in potential candidates.

According to the study, two-thirds (68 per cent) of organisations have experienced recruitment difficulties mainly as a result of a lack of necessary specialist skills.

The news comes amid revelations from the Confederation of British Industry that 44 per cent of London businesses say they cannot find enough skilled staff, up from 38 per cent a year ago.

However, this remains far below the levels of concern seen before the recession when 74 per cent of firms reported skills shortages in March 2007.

Nonetheless, London businesses are more upbeat about the coming half-year as 53 per cent are optimistic about their future business prospects.