IT Staffing Market Size
| Study Period | 2019 - 2029 |
| Market Size (2024) | USD 118.95 Billion |
| Market Size (2029) | USD 142.37 Billion |
| CAGR (2024 - 2029) | 3.66 % |
| Fastest Growing Market | Asia-Pacific |
| Largest Market | North America |
| Market Concentration | Low |
Major Players
*Disclaimer: Major Players sorted in no particular order |
IT Staffing Market Analysis
The IT Staffing Market size is estimated at USD 118.95 billion in 2024, and is expected to reach USD 142.37 billion by 2029, growing at a CAGR of 3.66% during the forecast period (2024-2029).
- The market's growth can be attributed to the increasing outsourcing of HR activities and the emergence of advanced technologies such as AI and advanced analytics, which are expected to create robust demand for IT professionals across multiple end-user segments.
- The growing usage of analytics solutions in recruitment is also expected to increase the need for specialized HR services. According to a recent LinkedIn report, around 92% of professionals consider analytics to be the key to recruitment in emerging economies such as India.
- HR analytics aids in improving the productivity of HR services by making predictions about crucial factors, such as performance, retention, and recruiting. These elements are all driving the market's expansion. By using HR analytics, HR departments can make data-backed decisions about managing attrition and spot areas where automation can be introduced. It can leverage the solution capabilities to capture insights on employee feedback forms.
- HR analytics can also implement AI recruiters to automate interview scheduling, provide real-time feedback to employees, and improve the handling of big data HR analytics. This will help HR executives save not only time but also money.
- Moreover, multiple firms across end-user segments are also migrating toward the cloud to continue delivering solutions to their clients and ensuring the continuity of their critical operations. According to Microsoft 365, the company witnessed a massive 775% increase in the usage of its cloud services. This is expected to create a significant spike for cloud and cybersecurity professionals.
- The growing digitization across various sectors and the increasing demand for skilled employees in the IT and telecommunication industry have augmented the growth of IT staffing worldwide. For instance, according to a Nasscom report, the Indian tech industry is set to add 60,000 jobs in the fiscal year 2023-24, bringing the total workforce to 5.43 million employees.
- Based on opportunities afforded by recent changes to the US tax code, companies are expected to expand further and accelerate their staffing efforts. Private businesses are expected to receive an average 5% increase in their bottom line. Their leaders also anticipate continuous economic growth for the next 12 months. As a result, many firms are investing their dollars in human capital. These moves coincide with the IT staffing trends.
- Staying ahead in the current dynamic business landscape hinges on a workforce equipped with the latest skills. According to the World Economic Forum, by 2029, 44% of workers will see their skills become obsolete. Corporate cultures must prioritize upskilling and reskilling efforts. By doing so, they unlock employee potential, boost job satisfaction, drive engagement, and ultimately enhance productivity and retention rates.
IT Staffing Market Trends
The Software Developer Segment Expected to Generate Considerable Demand
- Software developers design computer applications or programs. In contrast to a software engineer, a developer is usually more creative-minded and focuses on the development aspect, using ready-made tools to build software and applications in the entire software development life cycle.
- While the COVID-19 pandemic severely impacted global economies of all scales, information technology (IT) companies worldwide managed to survive much of the economic downturn. This was primarily due to the adoption of distributed IT development, remote maintenance, and remote IT operations. Major IT companies such as Google, IBM, Accenture, Microsoft, DXC, SAP, TCS, Wipro, and Infosys asked their staff to work at home during the pandemic. Additionally, to meet the constraints of working from home, the demand for IT services and software developers increased across industries, including retail, entertainment, education, and healthcare.
- Companies can utilize AI in IT staffing development and management to assess the talent inventory and leverage the historical skill data of their existing employees to match individuals with appropriate open positions advertised by managers. AI may also help analyze skills adjacency, prior experiences, and intended career paths. Workers receive better visibility into a diverse pool of projects and experiences available within their company that would otherwise be inaccessible due to the value-add of personalized recommendations that serve appropriate opportunities. Saudi Arabia is expected to invest USD 20 billion in artificial intelligence by 2030. This may create opportunities for the market players to incorporate AI in workforce management solutions.
- Additionally, the IT industry is sound globally, and with the upcoming technical updates and development, the requirement for software developers is increasing alarmingly. Students pursuing IT or software engineering courses are expected to have a booming career trajectory by 2030. Moreover, according to the Tech World Times report, with a global community of more than 26.4 million software developers, software development has become a mainstream career option in developing nations like India.
- Moreover, the IT staffing industry is expected to observe a paradigm shift in demand and revenue for software developers, owing to increasing digital transformation across industries and the emergence of start-up culture. New product developments across various end-user industries are estimated to have the highest impact and demand because of constant innovations and the requirement of software development skillsets to develop applications.
- However, IT staffing for software developers faces a few challenges. For instance, according to a report shared by cloud infrastructure provider DigitalOcean, 42% of software developers who have not switched jobs during the pandemic are considering or may consider quitting this year. Furthermore, according to the report, these software developers were driven by two motivating factors to switch jobs, i.e., better compensation and fully remote or flexible work environments.
Asia-Pacific Expected to be the Fastest Growing Market
- Asia-Pacific is the leading IT service market across the world. The companies in the region are continuing to invest in new resources that have the right skill sets. Over the past two decades, the IT industry in China has witnessed impressive growth and evolved as a key industry in the country's overall economy. In the current 5-year plan, the country has significantly focused on making IT one of the seven strategic industries that will help it move from a cheap-labor manufacturing hub to a world-class, innovation-driven IT industry. These initiatives are expected to drive the market.
- The Digital India initiative aims to provide government services to citizens electronically by improving the IT infrastructure and increasing internet connectivity. Moreover, the initiative aims to move legacy and on-premise systems to a cloud-based or integrated model. The cloud platform is expected to host the delivery of e-services to the citizens.
- For instance, a survey by Manage Engine, a division of Zoho Corporation, a technology firm, polled 3,300 IT and other business professionals worldwide. In India, 300 private-sector decision-makers were polled on IT and other essential business tasks. It classified them into two groups, i.e., IT decision makers (ITDMs) and business decision makers (BDMs). The survey stated that 91% of decision-makers in India agreed that collaboration between IT and business departments had strengthened in recent years. According to 53% of Indian ITDMs, their companies successfully dispersed their IT structure. This compares to the global average of 64%. Such a rise in the adoption of IT would increase the demand for IT staffing solutions, which may proportionately drive the need for IT staffing solutions across the region.
- NASSCOM stated that business process management (BPM) and IT services in India contribute to over 14% and 10% of the global demand, respectively. This is expected to continue with the consistent growth in the global cloud adoption rate. The government is supporting the growing demand for IT and infrastructure through various incentive programs. The growth of IT services in India is expected to positively drive the market's growth.
- The increased adoption of public cloud computing has led to more enterprises re-allocating their business systems to cloud platforms. Issues concerning data security, tenant isolation, access control, etc., have gradually become focal points of these enterprises, thereby driving staffing needs.
IT Staffing Industry Overview
The IT staffing market is fragmented in nature. Several players are operating in the market, serving the needs of various end-user segments. Some of the major players in the market are TEKsystems Inc. (Allegis Group Holdings Inc.), ASGN Incorporated, Insight Global LLC, Randstad NV, and Kforce Inc. These companies are making strategic partnerships, acquisitions, mergers, innovations, and investments to retain their market positions.
- May 2024: Singapore's impress.ai, a leading provider of enterprise recruitment software, unveiled impress.ignite, tailored for mid-market firms. This new offering pledges a revolutionary shift in recruitment, empowering expanding businesses to kickstart their hiring processes within a mere hour.
- March 2024: iCIMS introduced an advanced generative AI recruiting copilot, empowering talent acquisition (TA) teams worldwide to make smarter hiring decisions and enhance overall efficiency. This innovative solution equips millions of users with unparalleled capabilities, setting a new standard in the industry.
- January 2023: BrightPlan, a US-based company, launched a new workforce financial wellness gauge, providing data-driven insights for organizations to uncover key workforce strengths and gaps in Middle East and Africa. BrightPlan's data-driven Total Financial Wellness solution, powered by patented AI technology, transforms raw data into valuable insights and provides advice for employers and employees.
IT Staffing Market Leaders
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TEKsystems Inc. (Allegis Group Holdings Inc.)
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ASGN Incorporated
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Insight Global LLC
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Randstad NV
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Kforce Inc.
*Disclaimer: Major Players sorted in no particular order
IT Staffing Market News
- July 2024 - The Hiring Group ("THG"), a Greenville, South Carolina-based technical staffing firm, marked a decade in business and unveiled new professional staffing services. These services, spanning finance, legal, administrative, and human resources, broaden THG's offerings beyond its technical roots. Known for linking clients, ranging from local enterprises to Fortune 500 giants, with IT and engineering contractors, THG has now diversified its reach.
- September 2023 - Bullhorn, a prominent player in the staffing and recruitment software arena, unveiled its latest feature, Universal Search and Match (USAM), as part of its Bullhorn for Salesforce suite.
IT Staffing Market Report - Table of Contents
1. INTRODUCTION
1.1 Study Assumptions and Market Definition
1.2 Scope of the Study
2. RESEARCH METHODOLOGY
3. EXECUTIVE SUMMARY
4. MARKET INSIGHTS
4.1 Market Overview
4.2 Industry Attractiveness - Porter's Five Forces Analysis
4.2.1 Bargaining Power of Suppliers
4.2.2 Bargaining Power of Consumers
4.2.3 Threat of New Entrants
4.2.4 Threat of Substitute Products
4.2.5 Intensity of Competitive Rivalry
4.3 Assessment of the Impact of COVID-19 on the Market
5. MARKET DYNAMICS
5.1 Market Drivers
5.1.1 The Emergence of Technologies (AI and IoT)
5.1.2 Increasing Outsourcing of HR Activities
5.2 Market Restraints
5.2.1 Talent Shortages in Specific Technologies
6. MARKET SEGMENTATION
6.1 By Skill Set
6.1.1 Software Developer
6.1.2 Testers
6.1.3 Systems Analyst
6.1.4 Technical Support Professionals
6.1.5 Networking and Security Experts
6.1.6 Other Skill Sets
6.2 By End-user Industry
6.2.1 Telecom
6.2.2 BFSI
6.2.3 Healthcare
6.2.4 Manufacturing
6.2.5 Retail
6.2.6 Other End-user Industries
6.3 Geography
6.3.1 North America
6.3.2 Europe
6.3.3 Asia-Pacific
6.3.4 Rest of the World
7. COMPETITIVE LANDSCAPE
7.1 Company Profiles
7.1.1 TEKsystems Inc. (Allegis Group Holdings Inc.)
7.1.2 ASGN Incorporated
7.1.3 Insight Global LLC
7.1.4 Randstad NV
7.1.5 Kforce Inc.
7.1.6 Artech Information Systems LLC
7.1.7 Consulting Solutions International Inc.
7.1.8 MATRIX Resources Inc.
7.1.9 NTT DATA Corporation
7.1.10 Beacon Hill Staffing Group
- *List Not Exhaustive
8. INVESTMENT ANALYSIS
9. FUTURE OF THE MARKET
IT Staffing Industry Segmentation
IT staffing is a management process that includes hiring and developing IT manpower necessary to fill the various positions in the organization. IT staffing is getting increasingly outsourced to ensure better manpower for managing the organization effectively.
The IT staffing market is segmented by skill set (software developer, tester, systems analyst, technical support professionals, networking and security experts, and other skill sets), end-user industry (telecom, BFSI, healthcare, manufacturing, retail, and other end-user industries), and geography (North America, Europe, Asia-Pacific, and Rest of the World).
The market sizes and forecasts are provided in terms of value (USD) for all the above segments.
| By Skill Set | |
| Software Developer | |
| Testers | |
| Systems Analyst | |
| Technical Support Professionals | |
| Networking and Security Experts | |
| Other Skill Sets |
| By End-user Industry | |
| Telecom | |
| BFSI | |
| Healthcare | |
| Manufacturing | |
| Retail | |
| Other End-user Industries |
| Geography | |
| North America | |
| Europe | |
| Asia-Pacific | |
| Rest of the World |
IT Staffing Market Research FAQs
How big is the IT Staffing Market?
The IT Staffing Market size is expected to reach USD 118.95 billion in 2024 and grow at a CAGR of 3.66% to reach USD 142.37 billion by 2029.
What is the current IT Staffing Market size?
In 2024, the IT Staffing Market size is expected to reach USD 118.95 billion.
Who are the key players in IT Staffing Market?
TEKsystems Inc. (Allegis Group Holdings Inc.), ASGN Incorporated, Insight Global LLC, Randstad NV and Kforce Inc. are the major companies operating in the IT Staffing Market.
Which is the fastest growing region in IT Staffing Market?
Asia-Pacific is estimated to grow at the highest CAGR over the forecast period (2024-2029).
Which region has the biggest share in IT Staffing Market?
In 2024, the North America accounts for the largest market share in IT Staffing Market.
What years does this IT Staffing Market cover, and what was the market size in 2023?
In 2023, the IT Staffing Market size was estimated at USD 114.60 billion. The report covers the IT Staffing Market historical market size for years: 2019, 2020, 2021, 2022 and 2023. The report also forecasts the IT Staffing Market size for years: 2024, 2025, 2026, 2027, 2028 and 2029.
IT Staffing Industry Report
The IT Staffing Market Report provides a comprehensive industry overview, highlighting key industry trends and market size. The analysis includes a detailed market forecast and industry outlook, offering insights into industry growth and market trends. The report covers various skill sets such as software developers, testers, systems analysts, technical support professionals, and networking and security experts. It also segments the market by end-user industries, including telecom, BFSI, healthcare, manufacturing, and retail, across different geographies.
The market analysis delves into the industry research, providing valuable industry statistics and market data. The report also includes a market review, showcasing market leaders and their impact on the industry. The industry information is backed by extensive industry reports and research companies, ensuring a thorough understanding of market segmentation and market value.
Additionally, the report example and report pdf offer a glimpse into the detailed industry analysis and market predictions. The market growth and market outlook sections provide a clear picture of the industry's future, while the industry sales and industry size sections highlight the current market dynamics. The report is an essential resource for understanding the market overview and market segmentation, offering critical insights into the IT staffing industry's market forecast and market growth.
