U.S. IT Staffing Market - Industry Outlook & Forecast 2024-2029

List of Tables

The U.S. IT staffing market size is expected to grow at a CAGR of 5.49% from 2023 to 2029.

MARKET TRENDS & DRIVERS

Rising Adoption of Artificial Intelligence

The IT sector is poised to undergo significant changes with the advancement of Artificial Intelligence and other emerging technologies. For professionals in the IT staffing industry, staying informed about these developments is crucial. Projections indicate a rising demand for IT professionals, driven partly by adopting AI-powered systems and machine learning. AI-driven tools and platforms transform how businesses attract, assess, and onboard IT talent, making the process more efficient and insightful. These sophisticated systems can process large datasets, pinpoint top candidates, and forecast their suitability for specific roles. Furthermore, companies adopting AI-driven IT staffing solutions stand to benefit from time savings and reduced bias in hiring decisions, leading to more diverse and skilled IT teams. Recruiters can optimize their resources as AI handles many aspects of recruitment, such as identifying candidates who closely align with an organization's needs.

Skill-centric Staffing Solutions

The evolving landscape of technology necessitates IT professionals with specific skill sets and expertise. The focus of IT staffing will increasingly pivot towards skill-centered solutions. Rather than simply matching candidates with job titles, leading IT staffing firms prioritize connecting clients with professionals with the exact skills required for a project or role. One positive aspect of skill-based hiring is that it encourages aspiring candidates to commit to continuous learning and remain updated on emerging technologies and trends, thus attracting better career opportunities. The demand for IT professionals with specialized skills is steadily increasing. Companies seek professionals with expertise in specific technologies like cloud computing, big data, and artificial intelligence. Furthermore, there's a growing demand for professionals with industry-specific healthcare, finance, and retail expertise.

INDUSTRY RESTRAINTS

Shortage of Skilled Labor

The IT industry in the U.S. has remained under pressure due to an acute shortage of skilled workforce. IT staffing firms have been facing the problem of a lack of skilled professionals for quite some time now and are looking for options to tackle this challenge strongly and quickly. The U.S. IT staffing market faces intense competition due to the specialized skill sets required for numerous roles. Currently, there's a scarcity of candidates with the specific qualifications sought by clients, presenting a challenge for staffing agencies. Also, the issue is currently enacted as the major headwind restricting the growth of the IT industry across the United States. IT staffing firms can consider taking a more proactive approach to tackle this situation, which can be done through maintaining and updating the database of candidates frequently.

SEGMENTATION INSIGHTS

INSIGHTS BY SKILL SET

The software engineers/developers/DevOps/architect skill set segment holds the most significant share of the U.S. IT staffing market in 2023. Software engineers and developers have remained at the core of any organization operating in the IT industry over the years. The demand for software developers in the U.S. is expected to grow by almost 23% by 2028. This, in turn, is expected to increase the number of software engineers in the United States. Professionals with these skill sets often receive several emails from recruiters, which is greatly different from other professionals in the industry. Moreover, DevOps is another crucial skill set for IT staffing firms to target, owing to the ability of such professionals to enable businesses to drive real value. With DevOps growing significantly over the past few years, organizations that are quick to embrace this opportunity are performing considerably well. The market for DevOps is expected to attain new heights owing to the effective changes it develops in its processes, security, cultural shift, and compliance aspects of the DevOps platform.

Segmentation by Skill Set

Software Engineers/ Developers/ DevOps / Architect
Project Management
QA/Testing
Security
Networking
Cloud Computing
Help Desk/ Technical Support
Mobile App Developers
Others

INSIGHTS BY END-USER

The U.S. IT staffing market by end-user is segmented into tech/telecom, banking/financial services/insurance, healthcare, manufacturing, retail, and others. The tech/telecom end-user segment will hold the largest segmental market share in 2023. The tech/telecom industry is consistently evolving with time and is expected to grow significantly during the forecast period. The continuously evolving technologies and better connectivity infrastructure are boosting the telecom and IT industry, leading to growth in the number of employees working there. Hence, there is a huge hiring requirement in such industries, leading to the rising demand for IT staffing. The year 2023 and beyond is set to witness the domination of 5G wireless technologies across the telecommunications industry. Telecom companies consistently shift their focus to devising business models to capitalize on 5G and other related opportunities. Thus, growth opportunities for telecom operators prevail in expanding the current portfolio through investments in IoT, 5G, and other cross-industry associations, such as mPayments and mHealth.

The technology industry is connected to several other industries, from manufacturing to aerospace, which will face several negative consequences if they do not offer proper services. Therefore, the telecom & IT industry puts immense focus on its existing workforce and on hiring the right talent. Moreover, the population's awareness of technology usage is high. Hence, the country's acceptance of technology-oriented products and services remains high, contributing to the market's growth during the forecast period.

Segmentation by End-user

Tech/Telecom
Banking/Financial Services/Insurance
Healthcare
Manufacturing
Retail
Others

REGIONAL ANALYSIS

The U.S. is one of the most technologically advanced countries in the world. The country witnessed consistent growth in demand for software and other IT-related jobs over the last few years. Another contributor to the growth of the U.S. IT staffing market is the increase in personnel salaries. The evolution of technology and the ever-growing demand for updated, secured, and quick IT solutions push the demand for IT professionals across functions and departments. Southern U.S. dominated the U.S. IT staffing market, which can be attributed to the presence of certain leading states in tech employment. Texas, Florida, Georgia, and Virginia are key states accounting for a high share of the South U.S. IT staffing market. Also, the IT market in Texas is increasingly lucrative for young start-ups and established tech companies. One of the most significant factors in this rapid growth is the favorable tax conditions in the state. Furthermore, the Western U.S. is also one of the growing markets in the United States. It comprises developed and fast-growing states such as California, Utah, Washington, Colorado, and others, primary hubs for several end-user industries. The increasing awareness about various technologies such as IoT, AI, and ML will further boost the growth of the region's IT staffing market during the forecast period.

Segmentation by Region

United States
- South
- West
- Midwest
- Northeast

COMPETITIVE LANDSCAPE

IT staffing is among the most highly fragmented markets across diverse staffing verticals. The U.S. IT staffing market has comparatively low entry barriers that push vendors to consider innovation and differentiation regarding their client offerings. Owing to its immense staffing opportunities, IT staffing remains one of the key business segments for vendors within the staffing industry. The key players in the U.S. IT staffing market are ASGN Incorporated, Experis (ManpowerGroup), Insight Global, Kforce, Randstad, and TEKsystems (Allegis Group).

Vendors usually gain an edge over their competitors through differentiated offerings, from updating and enhancing an efficient Applicant Tracking System (ATS) to adopting a region-specific market expansion strategy. With specialization being one of the key focus areas for vendors in the U.S. IT staffing market, significant players concentrating on STEM skill sets continue to enjoy growth and profit. Moreover, a few mid-tier firms too are emphasizing specializations across industries. Key vendors such as TEKsystems, ASGN, and Insight Global have consistently performed over the last few years. These vendors are expected to grow due to their diverse business strategies catering to the U.S. IT staffing market. In the future, the outlook for IT staffing vendors remains positive as more and more IT firms plan to enhance their skilled workforce. The spending across diverse skill sets, especially cloud, analytics, ML, automation, and IoT, is expected to increase the demand for skilled IT professionals nationwide.

Key Company Profiles

ASGN Incorporated
Experis (ManpowerGroup)
Insight Global
Kforce
Randstad
TEKsystems (Allegis Group)

Other Prominent Vendors

52 Limited
Acro Service Corporation
Adecco Group
ALKU
Artech
Beacon Hill Staffing
BGSF
Collabera
Compucom
Compunnel
Consulting Solutions International
Dexian
Epitec
HAN Staffing
Innova Solutions
Kelly
Mastech Digital
Mindlance
Motion Recruitment
NineHertz
NTT DATA
Optomi
Peyton Resource Group
Robert Half
Rose International
System One
TATEEDA
The Judge Group
Toptal
Vaco
vTech Solution
Yoh
UNIQUE System Skills LLC

KEY QUESTIONS ANSWERED:

1. How big is the U.S. IT staffing market?

2. Which region dominates the U.S. IT staffing market share?

3. Who are the key players in the U.S. IT staffing market?

4. What is the growth rate of the U.S. IT staffing market?

5. What are the significant trends in the U.S. IT staffing market?

Product Code: ARZ240519

1. SCOPE & COVERAGE

1.1. MARKET DEFINITION
- 1.1.1. INCLUSIONS
- 1.1.2. EXCLUSIONS
- 1.1.3. MARKET ESTIMATION CAVEATS
1.2. SEGMENTS COVERED & DEFINITION
- 1.1.1 MARKET SEGMENTATION BY SKILL SET
- 1.1.2 MARKET SEGMENTATION BY END-USER
- 1.1.3 REGIONS COVERED
1.3. MARKET DERIVATION
- 1.3.1. HISTORIC, BASE, & FORECAST YEARS

2. PREMIUM INSIGHTS

2.1. OPPORTUNITY POCKETS
- 2.1.1. MARKET MATURITY INDICATOR
- 2.1.2. REGIONAL INSIGHTS
2.2. MARKET OVERVIEW
2.3. MARKET DYNAMICS
- 2.3.1. MARKET TRENDS
- 2.3.2. MARKET ENABLERS
- 2.3.3. MARKET RESTRAINTS
2.4. SEGMENT ANALYSIS
- 2.4.1. INSIGHTS BY SKILL SET
- 2.4.2. INSIGHTS BY END-USER
2.5. REGIONAL ANALYSIS
2.6. COMPETITIVE LANDSCAPE

3. MARKET AT A GLANCE

4. INTRODUCTION

4.1. OVERVIEW
4.2. IT RECRUITMENT TRENDS SHAPING HIRING AND EMPLOYEE ENGAGEMENT
4.3. US TECH INDUSTRY: KEY INSIGHTS
4.4. US TECH WORKFORCE: KEY INSIGHTS
4.5. US STAFFING INDUSTRY HIGHLIGHTS
4.6. COMPETITIVE SCENARIO
4.7. INVESTMENTS IN IT
4.8. RECENT US EMPLOYMENT REGULATIONS
4.9. ADOPTION OF DIGITAL TOOLS DRIVE TRANSFORMATION

5. MARKET OPPORTUNITIES & TRENDS

5.1. RISING ADOPTION OF AI
5.2. RISE IN THE GIG ECONOMY & FLEXIBLE WORK ARRANGEMENTS
5.3. INCREASING SIGNIFICANCE OF CYBERSECURITY
5.4. DIVERSITY AND INCLUSION IN STAFFING
5.5. STAFFING RESTRUCTURE THROUGH HOLISTIC BRANDING

6. MARKET GROWTH ENABLERS

6.1. SKILL-CENTRIC STAFFING SOLUTIONS
6.2. SHIFT TOWARD REMOTE WORK
6.3. RISE IN USAGE OF AUTOMATION TO GAIN A COMPETITIVE EDGE
6.4. MILLENNIALS RESHAPING THE IT WORKFORCE
6.5. REFERRAL RELEVANCE FOR STAFFING

7. MARKET RESTRAINTS

7.1. STRINGENT GOVERNMENT REGULATIONS
7.2. SHORTAGE OF SKILLED LABOR
7.3. SUBDUED IMMIGRATION OUTLOOK

8. MARKET LANDSCAPE

8.1. MARKET OVERVIEW
8.2. MARKET SIZE & FORECAST
8.3. SUPPLY CHAIN ANALYSIS
- 8.3.1. SEARCH SPECIFICATION
- 8.3.2. SCREENING
- 8.3.3. EVALUATION
- 8.3.4. INTERVIEW SCHEDULING
- 8.3.5. EVENTUAL OFFER
- 8.3.6. APPROPRIATE CLOSURE
8.4. FIVE FORCES ANALYSIS
- 8.4.1. THREAT OF NEW ENTRANTS
- 8.4.2. BARGAINING POWER OF SUPPLIERS
- 8.4.3. BARGAINING POWER OF BUYERS
- 8.4.4. THREAT OF SUBSTITUTES
- 8.4.5. COMPETITIVE RIVALRY

9. SKILL SET

9.1. MARKET SNAPSHOT & GROWTH ENGINE
9.2. MARKET OVERVIEW
9.3. SOFTWARE ENGINEERS/ DEVELOPERS/ DEVOPS/ ARCHITECTS
- 9.3.1. MARKET SIZE & FORECAST
- 9.3.2. MARKET BY GEOGRAPHY
9.4. PROJECT MANAGEMENT
- 9.4.1. MARKET SIZE & FORECAST
- 9.4.2. MARKET BY GEOGRAPHY
9.5. QA/TESTING
- 9.5.1. MARKET SIZE & FORECAST
- 9.5.2. MARKET BY GEOGRAPHY
9.6. SECURITY
- 9.6.1. MARKET SIZE & FORECAST
- 9.6.2. MARKET BY GEOGRAPHY
9.7. NETWORKING
- 9.7.1. MARKET SIZE & FORECAST
- 9.7.2. MARKET BY GEOGRAPHY
9.8. CLOUD COMPUTING
- 9.8.1. MARKET SIZE & FORECAST
- 9.8.2. MARKET BY GEOGRAPHY
9.9. HELP DESK/TECHNICAL SUPPORT
- 9.9.1. MARKET SIZE & FORECAST
- 9.9.2. MARKET BY GEOGRAPHY
9.10. MOBILE APP DEVELOPERS
- 9.10.1. MARKET SIZE & FORECAST
- 9.10.2. MARKET BY GEOGRAPHY
9.11. OTHERS
- 9.11.1. MARKET SIZE & FORECAST
- 9.11.2. MARKET BY GEOGRAPHY

10. END-USER

10.1. MARKET SNAPSHOT & GROWTH ENGINE
10.2. MARKET OVERVIEW
10.3. TECH/TELECOM
- 10.3.1. MARKET SIZE & FORECAST
- 10.3.2. MARKET BY GEOGRAPHY
10.4. BANKING/FINANCIAL SERVICES/INSURANCE
- 10.4.1. MARKET SIZE & FORECAST
- 10.4.2. MARKET BY GEOGRAPHY
10.5. HEALTHCARE
- 10.5.1. MARKET SIZE & FORECAST
- 10.5.2. MARKET BY GEOGRAPHY
10.6. MANUFACTURING
- 10.6.1. MARKET SIZE & FORECAST
- 10.6.2. MARKET BY GEOGRAPHY
10.7. RETAIL
- 10.7.1. MARKET SIZE & FORECAST
- 10.7.2. MARKET BY GEOGRAPHY
10.8. OTHERS
- 10.8.1. MARKET SIZE & FORECAST
- 10.8.2. MARKET BY GEOGRAPHY

11. REGION

11.1. MARKET SNAPSHOT & GROWTH ENGINE

12. SOUTH

12.1. MARKET SIZE & FORECAST
12.2. SKILL SET
- 12.2.1. MARKET SIZE & FORECAST
12.3. END-USER
- 12.3.1. MARKET SIZE & FORECAST

13. WEST

13.1. MARKET SIZE & FORECAST
13.2. SKILL SET
- 13.2.1. MARKET SIZE & FORECAST
13.3. END-USER
- 13.3.1. MARKET SIZE & FORECAST

14. MIDWEST

14.1. MARKET SIZE & FORECAST
14.2. SKILL SET
- 14.2.1. MARKET SIZE & FORECAST
14.3. END-USER
- 14.3.1. MARKET SIZE & FORECAST

15. NORTHEAST

15.1. MARKET SIZE & FORECAST
15.2. SKILL SET
- 15.2.1. MARKET SIZE & FORECAST
15.3. END-USER
- 15.3.1. MARKET SIZE & FORECAST

16. COMPETITIVE LANDSCAPE

16.1. COMPETITION OVERVIEW
16.2. MARKET SHARE ANALYSIS

17. KEY COMPANY PROFILES

17.1. ASGN INCORPORATED
- 17.1.1. BUSINESS OVERVIEW
- 17.1.2. SERVICE OFFERINGS
- 17.1.3. KEY STRATEGIES
- 17.1.4. KEY STRENGTHS
- 17.1.5. KEY OPPORTUNITIES
17.2. EXPERIS (MANPOWERGROUP)
- 17.2.1. BUSINESS OVERVIEW
- 17.2.2. SERVICE OFFERINGS
- 17.2.3. KEY STRATEGIES
- 17.2.4. KEY STRENGTHS
- 17.2.5. KEY OPPORTUNITIES
17.3. INSIGHT GLOBAL
- 17.3.1. BUSINESS OVERVIEW
- 17.3.2. SERVICE OFFERINGS
- 17.3.3. KEY STRATEGIES
- 17.3.4. KEY STRENGTHS
- 17.3.5. KEY OPPORTUNITIES
17.4. KFORCE
- 17.4.1. BUSINESS OVERVIEW
- 17.4.2. SERVICE OFFERINGS
- 17.4.3. KEY STRATEGIES
- 17.4.4. KEY STRENGTHS
- 17.4.5. KEY OPPORTUNITIES
17.5. RANDSTAD
- 17.5.1. BUSINESS OVERVIEW
- 17.5.2. SERVICE OFFERINGS
- 17.5.3. KEY STRATEGIES
- 17.5.4. KEY STRENGTHS
- 17.5.5. KEY OPPORTUNITIES
17.6. TEKSYSTEMS (ALLEGIS GROUP)
- 17.6.1. BUSINESS OVERVIEW
- 17.6.2. SERVICE OFFERINGS
- 17.6.3. KEY STRATEGIES
- 17.6.4. KEY STRENGTHS
- 17.6.5. KEY OPPORTUNITIES

18. OTHER PROMINENT VENDORS

18.1. 52 LIMITED
- 18.1.1. BUSINESS OVERVIEW
- 18.1.2. SERVICE OFFERINGS
18.2. ACRO SERVICE CORPORATION
- 18.2.1. BUSINESS OVERVIEW
- 18.2.2. SERVICE OFFERINGS
18.3. ADECCO GROUP
- 18.3.1. BUSINESS OVERVIEW
- 18.3.2. SERVICE OFFERINGS
18.4. ALKU
- 18.4.1. BUSINESS OVERVIEW
- 18.4.2. SERVICE OFFERINGS
18.5. ARTEC
- 18.5.1. BUSINESS OVERVIEW
- 18.5.2. SERVICE OFFERINGS
18.6. BEACON HILL STAFFING
- 18.6.1. BUSINESS OVERVIEW
- 18.6.2. SERVICE OFFERINGS
18.7. BGSF
- 18.7.1. BUSINESS OVERVIEW
- 18.7.2. SERVICE OFFERINGS
18.8. COLLABERA
- 18.8.1. BUSINESS OVERVIEW
- 18.8.2. SERVICE OFFERINGS
18.9. COMPUCOM
- 18.9.1. BUSINESS OVERVIEW
- 18.9.2. SERVICE OFFERINGS
18.10. COMPUNNEL
- 18.10.1. BUSINESS OVERVIEW
- 18.10.2. SERVICE OFFERINGS
18.11. CONSULTING SOLUTIONS INTERNATIONAL
- 18.11.1. BUSINESS OVERVIEW
- 18.11.2. SERVICE OFFERINGS
18.12. DEXIAN
- 18.12.1. BUSINESS OVERVIEW
- 18.12.2. SERVICE OFFERINGS
18.13. EPITEC
- 18.13.1. BUSINESS OVERVIEW
- 18.13.2. SERVICE OFFERINGS
18.14. HAN STAFFING
- 18.14.1. BUSINESS OVERVIEW
- 18.14.2. SERVICE OFFERINGS
18.15. INNOVA SOLUTIONS
- 18.15.1. BUSINESS OVERVIEW
- 18.15.2. SERVICE OFFERINGS
18.16. KELLY
- 18.16.1. BUSINESS OVERVIEW
- 18.16.2. SERVICE OFFERINGS
18.17. MASTECH DIGITAL
- 18.17.1. BUSINESS OVERVIEW
- 18.17.2. SERVICE OFFERINGS
18.18. MINDLANCE
- 18.18.1. BUSINESS OVERVIEW
- 18.18.2. SERVICE OFFERINGS
18.19. MOTION RECRUITMENT
- 18.19.1. BUSINESS OVERVIEW
- 18.19.2. SERVICE OFFERINGS
18.20. NINEHERTZ
- 18.20.1. BUSINESS OVERVIEW
- 18.20.2. SERVICE OFFERINGS
18.21. NTT DATA
- 18.21.1. BUSINESS OVERVIEW
- 18.21.2. SERVICE OFFERINGS
18.22. OPTOMI
- 18.22.1. BUSINESS OVERVIEW
- 18.22.2. SERVICE OFFERINGS
18.23. PEYTON RESOURCE GROUP
- 18.23.1. BUSINESS OVERVIEW
- 18.23.2. SERVICE OFFERINGS
18.24. ROBERT HALF
- 18.24.1. BUSINESS OVERVIEW
- 18.24.2. SERVICE OFFERINGS
18.25. ROSE INTERNATIONAL
- 18.25.1. BUSINESS OVERVIEW
- 18.25.2. SERVICE OFFERINGS
18.26. SYSTEM ONE
- 18.26.1. BUSINESS OVERVIEW
- 18.26.2. SERVICE OFFERINGS
18.27. TATEEDA
- 18.27.1. BUSINESS OVERVIEW
- 18.27.2. SERVICE OFFERINGS
18.28. THE JUDGE GROUP
- 18.28.1. BUSINESS OVERVIEW
- 18.28.2. SERVICE OFFERINGS
18.29. TOPTAL
- 18.29.1. BUSINESS OVERVIEW
- 18.29.2. SERVICE OFFERINGS
18.30. UNIQUE SYSTEM SKILLS
- 18.30.1. BUSINESS OVERVIEW
- 18.30.2. SERVICE OFFERINGS
18.31. VACO
- 18.31.1. BUSINESS OVERVIEW
- 18.31.2. SERVICE OFFERINGS
18.32. VTECH SOLUTION
- 18.32.1. BUSINESS OVERVIEW
- 18.32.2. SERVICE OFFERINGS
18.33. YOH
- 18.33.1. BUSINESS OVERVIEW
- 18.33.2. SERVICE OFFERINGS

19. REPORT SUMMARY

19.1. KEY TAKEAWAYS
19.2. STRATEGIC RECOMMENDATIONS

20. QUANTITATIVE SUMMARY

20.1. MARKET BY GEOGRAPHY
20.2. SOUTH
- 20.2.1. SKILL SET
- 20.2.2. END-USER
20.3. WEST
- 20.3.1. SKILL SET
- 20.3.2. END-USER
20.4. MIDWEST
- 20.4.1. SKILL SET
- 20.4.2. END-USER
20.5. NORTHEAST
- 20.5.1. SKILL SET
- 20.5.2. END-USER
20.6. SKILL SET
- 20.6.1. SOFTWARE ENGINEERS/ DEVELOPERS/ DEVOPS/ ARCHITECT
- 20.6.2. PROJECT MANAGEMENT
- 20.6.3. QA/ TESTING
- 20.6.4. SECURITY
- 20.6.5. NETWORKING
- 20.6.6. CLOUD COMPUTING
- 20.6.7. HELP DESK/ TECHNICAL SUPPORT
- 20.6.8. MOBILE APP DEVELOPERS
- 20.6.9. OTHERS
20.7. END USERS
- 20.7.1. TECH/ TELECOM
- 20.7.2. BFSI
- 20.7.3. HEALTHCARE
- 20.7.4. MANUFACTURING
- 20.7.5. RETAIL
- 20.7.6. OTHERS

21. APPENDIX

21.1. RESEARCH METHODOLOGY
21.2. RESEARCH PROCESS
21.3. REPORT ASSUMPTIONS & CAVEATS
- 21.3.1. KEY CAVEATS
- 21.3.2. CURRENCY CONVERSION
21.4. ABBREVIATIONS