The State of the IT Staffing Market
According to the 2018 Staffing Growth Assessment, the IT staffing industry generated roughly 59 Billion dollars back in 2016. The industry is projected to grow by 4% 2018, which would mean more money for everybody, right?
Not exactly. According to SIA the market is becoming increasingly complex and competitive. While it remains true that much of the market is driven by buyer demand for flexibility, scalibilty and reduced risks, the talent required just isn’t available. Skill shortages make it much more difficult for clients to find candidates they need. In addition, digital disruption and transformation has increased the need for more flexible, short term contracts.
There are both pros and cons to this situation: “While the shortage of high-level IT talent has the benefit of enhancing the value of staffing services, it also creates recruiting challenges. As unemployment rates for IT occupations continued to tighten in 2017, we believe the labor shortage pendulum has swung to a point where the challenges outweigh the benefits.” This dynamic is likely to produce a market where there are few winners and an excess of losers.
It is imperative the IT staffing companies differentiate themselves through innovation and quality services to avoid competitive price points of their competitors. Smaller IT staffing firms will likely need to become more specialized in particular skill sets. Visit SIA for a more in depth analysis.