Recruiter Harvey Nash said an increasing number of employers looking to take on temporary staff was helping off-set a fall in permanent recruitment.
The firm said that despite challenging market conditions and macro-economic uncertainty, it expected to report further increases in first half revenue - up 15% to about £293m - and gross profit -up 6% to around £41m.
During the period, robust demand for temporary and contract recruitment mitigated expected lower levels of permanent recruitment, the company said.
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This lifted the overall average number of freelance and offshore contractors working on client projects compared by 19% to the same period last year.
"This continued change in mix is the result of clients hiring flexible labour as opposed to permanent recruits and accordingly has shifted the group's gross margin in favour of flexible and contract recruitment services," the trading statement said.
Operating profit before non-recurring items is expected to improve for the fourth successive year to no less than £4.4m in the first half, compared to £4.1m the year before.
The group's anticipates its USA business reporting the strongest performance with profits forecast to increase by more than 30%.
In mainland Europe, Harvey Nash said it continued to generate good revenues and profits slightly ahead of the prior year despite uncertainties in the Eurozone.
"The UK & Ireland businesses demonstrated the value of its significant market share gains with an increase in revenues and profits over the prior period despite a generally weak market for recruitment," the firm said.
The company will announce interim results for the six months ended 31 July 2012 on 28 September 2012.
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