Europe IT Staffing Market - Growth, Trends,COVID-19 Impact, and Forecasts (2022-2027)

Europe IT Staffing Market is Segmented by End-user Industry (Telecom, BFSI, Healthcare, Manufacturing, Retail), and by Country.

Market Snapshot

Europe IT Staffing Market Size
Study Period: 2020-2027
Base Year: 2021
CAGR: 3.66 %

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Market Overview

Europe's IT Staffing Market is expected to register a CAGR of 3.66% during the forecast period. The IT staffing sector in Europe is an important part of the overall staffing industry. The growth of the region's IT staffing market is fuelled by the trend of a rising contingent workforce. Major IT Companies are also prioritizing outsourcing certain business activities for scalability, flexibility, and reduced risk in their business.

  • AI, Machine Learning, Blockchain, the Internet of Things, Robotics, and Data Analytics, among other digital advancements and technology, are forcing firms to embrace new and inventive approaches to project execution. These projects frequently necessitate abilities that are difficult to find in a single expert. Therefore, hiring people with the greatest number of skills at the lowest possible cost motivates IT staffing organizations to operate efficiently.
  • Payroll outsourcing is becoming increasingly popular across Europe. For example, SD Worx, a renowned European HR and payroll services company, performed a large-scale employer survey. Today, six European businesses have contracted or are considering hiring an outsourcing partner to (partially) handle their payroll. Belgium leads the way, with only 27% of Belgian businesses equipped to handle their payroll independently. This is creating an opportunity for the IT staffing market in the region.
  • Gig workers in the EU would obtain the status and rights of employees under a new plan rather than being considered self-employed. The European Commission has released a proposal that would significantly work on developing digital platforms to manage their gig workers. This will indirectly help the IT Staffing market in Europe.
  • The trend of staffing automation in the region allows recruiting and staffing companies to establish an automated, repeatable operation system in their recruitment processes. These procedures are computerized and designed to improve the hiring experiences of the candidates and clients. This automation in recruitment in the European region is a big challenge for the IT staffing Providers because HR automation will narrow down their market share in the future.
  • One of the most significant changes brought by the Covid-19 pandemic in the corporate sector has been the shift from work done in offices and physical locations to work done remotely. The geographic barriers are overcome, and the European IT staffing organizations may be able to serve new clients in new areas and attract people from recent locations and even new nations. On the other hand, because the regional boundaries fall away, new sources of competition may arise, posing a threat to a staffing firm's current book of business. With the increased complexity, European IT staffing firms may have more opportunities to function as consultants and business partners, advising customers on their talent options and strategies.

Scope of the Report

The major goal of the IT staffing process is to locate qualified applicants to fill various job roles inside the IT firm. It involves finding applicants, evaluation, selection, recruitment, and an appraisal, which are parts of the systematic implementation process of the human resources plan.

The European IT Staffing market can be classified by End-user Industry (Telecom, BFSI, Healthcare, Manufacturing, Retail), By Geography (United Kingdom, Germany, France, Spain, Italy, and the Rest of Europe).

By End-user Industry
Telecom
BFSI
Healthcare
Manufacturing
Retail
By Country
United Kingdom
Germany
France
Spain
Italy
Rest of Europe

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Key Market Trends

The emergence of technologies, such as AI, IoT, and digitalization in the BFSI sector in the region is driving the IT staffing market in Europe.

  • Despite rising inflation and interest rates, supply chain delays, and the effects of the Ukraine crisis, the European IT staffing market is growing because of rapid digitalization across the industries in the region. AI and IoT applications are trending in Europe and are creating opportunities for IT staffing companies. Global companies are investing in the region to develop the digital infrastructure by uplifting technology start-ups which will indirectly help the IT staffing market grow. For example, Google for start-ups has announced a USD 2 million grant fund to develop the European tech industry. The fund was eventually doubled to USD 4 million, and it will now provide grants to 40 tech start-ups across Europe.
  • From retail to BFSI, almost all the sectors are transforming towards online app-based operations. It is becoming more convenient for the users as well as the organizations. This application needs a regular update for which robust backend IT support is essential for all sectors. Because of this, the requirement for an IT workforce is increasing, making the IT staffing market grow in the region. For example, Western Union, the global leader in cross-border, cross-currency money movement and payments, has partnered with Marqeta to incorporate its solution into Western Union's next-generation real-time multi-currency digital wallet and digital banking platform in Europe. Western Union's whole remittance service will be available online, with payments paid to a physical or virtual Visa card through Marketa's sophisticated card issuance infrastructure. Western Union will be able to deepen its engagement with clients by connecting cards to the company's new digital payment platform, resulting in a unique banking experience.
  • B2B payments and processes have become increasingly digital over the last decade, and fintech has played an important role in this shift. Even though paper cheques are still frequently used for B2B payments in Europe, there has been a significant trend toward more innovative and, most significantly, digital solutions that facilitate B2B operations and payments in the region. These transformations indirectly drive the region's IT staffing market to grow. For example, Kapaga is an international payments platform that offers SMEs in the United Kingdom business bank accounts and multi-currency payment services. It also automates the customer onboarding process. Kapaga, a cross-border payment platform, has raised Pound 1.5 million in a seed round led by Target Global. With this capital, the company will expand its business, for which they need for IT Pupils will increase in the region, and the IT staffing market will grow ultimately.
  • In addition, Caixa Bank, the largest bank in Spain, and Microsoft have agreed to collaborate on creating artificial intelligence (AI) innovation lab and developing metaverse hybrid work environments. The two businesses will use AI to build solutions such as a hybrid work environment in the metaverse and other "immersive" virtual environments to enable interactions between Caixa Bank workers and customers through the new laboratory. Caixa Bank Tech, the bank's new IT subsidiary, will help build up the AI innovation lab, which will be based in Barcelona. This will impact the European IT staffing market positively.
  • Many fintech companies are starting up in the region for which the requirement of IT personnel with specific skillset is increasing in Europe. This indirectly creates an opportunity for the IT Staffing market to grow in the region. For example, Monty Financial, a new fintech company in the UK, has launched its suite of finance and payments solutions across Europe by applying both artificial intelligence (AI) and actual human contact. My Monty, a digital banking service, and Monty Pay, a digital payment gateway system, are the company's two primary offerings.
Europe IT Staffing Market Trends

Increasing Outsourcing of HR activities in Europe is driving the IT staffing market in the region.

  • Hiring is a difficult but crucial process in which every organization invests significant time, money, and effort. Many companies, particularly those in the I.T. industry, have recently turned to Recruitment Process Outsourcing to help them meet their hiring goals and reduce attrition. For example, SAP has outsourced I.T. staffing to Eursap, an SAP Recruitment Agency that provides permanent SAP recruitment and interim SAP contractor recruitment services. The company has a good track record in delivering the top SAP talent in Europe to its clients.
  • Employers are concerned about finding skilled and competent candidates in the region. A reputable I.T. staffing firm has the necessary network, tools, and industry and country understanding. Outsourcing H.R. activities is used to save the company's time by diverting its focus on the core competencies. I.T. staff providers in the region are acquiring technology-based organizations to increase their capabilities. For example, Adecco Group, a global I.T. staffing Company in Switzerland, said that it had purchased 59.91 percent of AKKA Technologies' shares from the Ricci Family Group and SWILUX S.A., raising its total stake to 64.72 percent. Furthermore, Akkodis, a firm, will be formed by combining Modis, the group's high-tech services company, with AKKA.
  • In addition, The Access Group, a London-based business management software company, has announced the acquisition of Vincere, a recruitment operating system designed specifically for recruitment and staffing firms. Vincere is the most recent addition to Access Recruitment's software offering. It shows the growth potential of the I.T. staffing market in Europe.
  • The growth of various staffing Provider companies and the development of recruitment software are making H.R. outsourcing an easy and efficient option for the technology giants. The I.T. staffing market in Europe is increasing exponentially because the regional demands for domestic and international jobs are also growing. The I.T. staffing companies focus on training the people and making them employable. For example, BRIDGEN TECH is a contract-to-hire staff and solution firm in western Europe, providing I.T. industry solutions backed by experienced and skilled candidates who can deliver.
  • The Great Resignation has not impacted the European Countries that hard in comparison with the USA, but all the sectors are now struggling with staff shortages in the region. People are upscaling their skills and searching for new high-paid opportunities during this period. This is an opportunity for the I.T. staffing market in the region because the people who have resigned will join the companies with better job descriptions. Many I.T. staffing companies have designed their services accordingly. For example, Head Hunting IT is a dedicated and professional team of H.R. and I.T. recruiters and consultants who help European companies find and hire I.T. and communication expertise from Central and Eastern Europe. Transparency, agility, simplicity, and diversity are essential values for the company as a dedicated and comprehensive I.T. recruiter.
Europe IT Staffing Market Report

Competitive Landscape

The IT staffing industry is highly fragmented owing to the several players operating in the market. The increasing demand for specifically trained personnel in AI, IoT, and Software development is fostering the market growth to have a competitive edge over others.

  • June 2022: softgarden e-recruiting GmbH, a developer of innovative HR software solutions based in Germany, has been sold to Grupa Pracuj, the parent company of several Eastern European job board companies, according to Investcorp Technology Partners, a technology investor.
  • June 2022: Proman, France's fourth-largest independent hiring agency, has announced the acquisition of Timing from the Dutch family-owned group ADG. Timing is the Netherlands' fourth-largest staffing firm.
  • June 2022: Deutsche Bank is relocating hundreds of IT employees in Russia to Berlin as the lender prepares to close its technology center in Russia. The bank has offered all its approximately 1,500 staff at its Russian IT centers in Moscow and St. Petersburg relocation to Berlin.

Recent Development

  • Dec 2021: According to an announcement made Thursday by Randstad NV, one of the world's top staffing organizations of Randstad Group, Belgium has acquired Hudson Benelux, a provider of recruiting and consulting services. Hudson Benelux will remain an independent firm with its brand. Its staff will remain in their current locations in Belgium, the Netherlands, and Luxembourg.
  • June 22: Globus.ai, a data science and AI firm based in Norway, has raised USD 4.8 million in funding. The organization, based in Oslo, Norway, specializes in AI in healthcare and social work staffing, focusing on occupations that benefit people's lives. Its cloud-based platform assists staffing firms and recruiters throughout the applicant placement process.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Deliverables

    2. 1.2 Study Assumptions

    3. 1.3 Scope of the Study

  2. 2. RESEARCH METHODOLOGY

  3. 3. EXECUTIVE SUMMARY

  4. 4. MARKET DYNAMICS

    1. 4.1 Market Overview

    2. 4.2 Market Drivers

      1. 4.2.1 Emergence of Technologies, such as AI and IoT

      2. 4.2.2 Increasing Outsourcing of HR activities

    3. 4.3 Market Restraints

      1. 4.3.1 Talent Shortages in Specific Technologies

    4. 4.4 Value Chain / Supply Chain Analysis

    5. 4.5 Porters 5 Force Analysis

      1. 4.5.1 Threat of New Entrants

      2. 4.5.2 Bargaining Power of Buyers/Consumers

      3. 4.5.3 Bargaining Power of Suppliers

      4. 4.5.4 Threat of Substitute Products

      5. 4.5.5 Intensity of Competitive Rivalry

    6. 4.6 COVID-19 Impact on the Market

  5. 5. MARKET SEGMENTATION

    1. 5.1 By End-user Industry

      1. 5.1.1 Telecom

      2. 5.1.2 BFSI

      3. 5.1.3 Healthcare

      4. 5.1.4 Manufacturing

      5. 5.1.5 Retail

    2. 5.2 By Country

      1. 5.2.1 United Kingdom

      2. 5.2.2 Germany

      3. 5.2.3 France

      4. 5.2.4 Spain

      5. 5.2.5 Italy

      6. 5.2.6 Rest of Europe

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles

      1. 6.1.1 AQUENT

      2. 6.1.2 Randstad N.V

      3. 6.1.3 Vero HR.

      4. 6.1.4 Haselhoff Groep

      5. 6.1.5 VHR Consulting

      6. 6.1.6 Michael Page

      7. 6.1.7 Pertemps

      8. 6.1.8 MAS Recruiting

      9. 6.1.9 Tiger Recruitment Ltd

      10. 6.1.10 Chronosconsulting

    2. *List Not Exhaustive
  7. 7. Investment Analysis

  8. 8. Future of the Market

**Subject to Availability

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Frequently Asked Questions

The Europe IT Staffing Market market is studied from 2020 - 2027.

The Europe IT Staffing Market is growing at a CAGR of 3.66% over the next 5 years.

Aquent, Randstad holding nv, Vero hr, Tiger Recruitment Ltd, Haselhoff Groep are the major companies operating in Europe IT Staffing Market.

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