IT Staffing Outlook: What Our Polls & Research Reveal 📊 Yesterday, TechServe Alliance hosted a webinar as part of our State of the Industry series. I was joined by veteran industry analyst and friend Jim Janesky sharing our insights on the state of the market for IT & Engineering Staffing as well as the future outlook for the industry. As reflected in our live polls, the prevailing sentiments in describing the market were stagnant, slow & flat with some striking a more optimistic note of recovering. Most attributed the market weakness to prevailing uncertainty and the hangover from the post-covid hiring boom. These anecdotal insights square with our research which shows stabilization of consultants on billing with job orders still under pressure. Drawing upon our recently released Operating Practice Report and other research, the key to driving higher profitability when demand recedes is control of operating costs. On this front, scale matters---a lot. · The Operational Costs of Firms with Less Than 50 Employees is 79% Higher Than Firms with More than 50 Employees · In Proportion to Revenue, Small & Midsize Firms Have More Than 2.5X the Number of Back Office Employees Compared to Large Firms · For Firms Under $20M in Revenue, Proportionally Higher Operating Expenses Including Back Office Costs Results in Two-Thirds Lower Profitability For small and midsized firms, one way to mimic scale and lower costs is to leverage back office outsourcing through resources such as TechServe 360. Looking forward, survey participants anticipate IT & Engineering Staffing will be flat or up modestly during the remainder of 2024. This is in line with our projections of 1-3% growth in IT staffing and 3-5% growth for engineering staffing. In sum, while not a buoyant market, once the fog of uncertainty lifts, we anticipate demand for IT & Engineering Staffing will accelerate as clients address backlogged projects critical to maintaining their competitive position. #ITStaffing #EngineeringStaffing #IndustryTrends #WebinarRecap
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