The article discusses agencies staffed with what I would call, "placers."  These are not true recruiters, in my opinion.  They often make lots of money when the economy is hot, and employers don't have time to sift through resumes.  Many of these "placement firms"  however, often close up shop in downturns when employers have the time to fish through applicant resumes. 

The need for top talent, however, never goes away.  Employers often use downturns to replace mediocre staff they didn't have time to replace during the boom times, and  even though the applicant tracking system is an excellent tool, good recruiters could be successful without it, and some still are today. 

Prior to databases, we used index cards  for sourcing.  We'd write the prospects' names on these cards after getting these names from the company receptionist.  Resumes we obtained were filed in cabinets.  This system would still work today, and good recruiters could still be successful with this type of system.  In fact, some old-timers resisting the move to computerized systems probably still rely on outdated, but proven methods like these. 

I'm not recommending that recruiters go back to the index card system.  The Applicant Tracking System is much more efficient than the index card, and file cabinet method, , but an ATS is not something a good recruiter must have to be successful.  The telephone is far more important. 

My recruiting database had over 100,000 records when we were open for business.  It was called, Gopher, and while it was useful, I wouldn't call any ATS the recruiter's best friend.  The recruiter's best friend, in my opinion, is, and always will be, the telephone. 

Using the phone, recruiters can source through their clients' competing companies, identify talent not typically present on anyone's applicant tracking system, and bring these prospects into the hiring process.  Will there be a need for this service in the future?  Absolutely. 

Many employers will not call their competition to recruit talent.  They hire recruiters to do this work. 

Finally, job boards didn't replace the need for recruiters.  They simply changed the location of positions advertised.  Prior to the Internet, employers would post open positions in the newspaper.  Today, they use job boards instead, but the need for good recruiters hasn't changed.