Its been going on since late 90's. I used to work as a security guard in 2002 and 2003. Guardsmark, a security guard contracting co, then used to provide good health insurance to its employees; so, they had to charge more for their services. Then, other contracting companies were like: we can provide the same service with less money. I worked for the latter companies as well: no health insurance. In the end, the companies who get services from these contracting companies, see how much they save by selecting the lowest bidder.
This is happening in IT contracting too. Not every one who works in IT is a rock star programmer. So, companies contract out to contracting companies (like offshore Infosys, TCS, etc; onsite ones like Robert Half, etc). You see, how wages of non-rockstar IT workers have diminished since 2000. Who is making the killing? Of course, the contracting companies like Infosys, Robert Half. The recruiters don't make much; the workers get less.
This is happening in IT contracting too. Not every one who works in IT is a rock star programmer. So, companies contract out to contracting companies (like offshore Infosys, TCS, etc; onsite ones like Robert Half, etc). You see, how wages of non-rockstar IT workers have diminished since 2000. Who is making the killing? Of course, the contracting companies like Infosys, Robert Half. The recruiters don't make much; the workers get less.