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

The IT Staffing Market is Segmented by Skill Set (Software Developer, Tester, Systems Analyst, Technical Support Professionals, Networking and Security Experts), End User Industry (Telecom, BFSI, Healthcare, Manufacturing, Retail), and Geography.

Market Snapshot

IT Staffing Market Size
Study Period: 2018 - 2026
Base Year: 2021
Fastest Growing Market: Asia Pacific
Largest Market: North America
CAGR: 3.66 %
IT Staffing Market Key Players

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Market Overview

The IT Staffing Market is expected to register a CAGR of 3.66% during the forecast period (2021 - 2026). As the world has entered into a period of greater economic uncertainty, trade tensions, and other macroeconomic conditions, multiple organizations are seeking contract-based IT workers over the full-time employees. The recent outbreak of COVID-19 has a mix implications for the IT staffing market, that has created a trend of permanent remote workers, that has caused a shift in the demand for various skill sets and has put multiple changes in the economy.

  • The growth of the market can be attributed to the increasing Outsourcing of HR activities and the emergence of technologies, like AI and IoT, which is expected to create demand for IT professionals across end-user segments.
  • According to the global staffing giant TEKsystems, 69% of tech companies are expected to have AI initiatives by 2020. The company also adds that at least 85% of organizations across end-user segments have digital transformation initiatives underway. This is expected to generate enormous opportunities for the market.
  • The growing use of analytics in recruitment is expected to proliferate the need for specialized HR services. According to a recent Linkedin report, at least 92% of professionals consider analytics to be the key to recruitment in India.
  • However, firms across end-user segments are migrating to cloud to continue delivering a solution to their clients and ensure continuity of critical operations. According to Microsoft 365, the company has seen a massive 775% increase in the use of its cloud services. This has led to a significant spike for cloud and cybersecurity professionals.

Scope of the Report

IT Staffing is a management process that includes hiring and developing of IT manpower necessary to fill the various positions in the organization. IT Staffing is getting increasingly outsourced to ensure better quality manpower for managing the organization effectively. The market studied has been segmented on the basis of skill set and end-user segment. The skill set comprises of Software Developer, Testers, Systems Analyst, Technical Support Professionals, and others which are catered in the various end users such as Telecom, BFSI, Healthcare, Manufacturing, and others.

Skill Set
Software Developer
Testers
Systems Analyst
Technical Support Professionals
Networking and Security Experts
Other Skill Sets
End User Industry
Telecom
BFSI
Healthcare
Manufacturing
Retail
Other End User Industries
Geography
North America
Europe
Asia Pacific
Rest of the World

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Key Market Trends

Telecommunication End- User Segment is Expected to Generate Considerable Demand

  • AI-driven analytics are also helping telecom provide better services by utilizing data and machine learning techniques. For instance, US-based AT&T is using an AI-driven analytics solution to support its maintenance procedures. The company is testing a drone to expand its LTE network coverage and to utilize the analysis of video data captured by drones for tech support and maintenance of its cell towers. 
  • The integration of analytics with the telecom industry is expected to proliferate the need for analytics professionals further.
  • In September 2019, India-based Reliance Jio collaborated with US-based Guavus to deploy AI-based solutions for real-time customer experience analytics. The company also plans to automate network troubleshooting like other players in the industry. This is expected further to expand the avenues of IT applications in Telecommunication.
  • According to Ericsson and GSA survey, the rapid 5G deployment leads to 13 billion subscriptions expected by the end of 2019. This is expected further to generate a need for IT professionals in this vertical.
IT Staffing Market Outlook

Asia Pacific is Expected to be the Fastest Growing Market

  • Asia-Pacific has continued to be the leading IT services market across the globe. The companies in the region are continuing to invest in new resources that have the right skill sets. The hiring at the major IT companies (Tata Consulting Services, Wipro, Infosys, and HCL Technologies) of India in 2019 hit an eight-year high, recruiting 78,500 IT professionals. The continuously increasing need for proper resources across the region is expected to create significant opportunities for the market studied.
  • Over the past two decades, the IT industry in China has witnessed impressive growth and has become a key industry in the country’s overall economy. In the current 5-year plan, the country has placed great focus to make IT as one of the seven strategic industries that will help the country move from a cheap-labour manufacturing outsourcing to world-class, innovation driven IT industry. These initiatives are expected to drive the market.
  • The Digital India initiative's goal is 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 model or integrate with it, and the cloud platform is expected to host the delivery of e-services to the citizens.
  • NASSCOM has also 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 supported the demand for growing IT and infrastructure through various incentive programs. The growth of IT services in India will drive the market's growth positively.
IT Staffing Market Forecast

Competitive Landscape

The IT Staffing Market is a fragmented market. Several players are operating in the market, serving the needs of various end-user segments. The growth of opportunities offered by the market continues to attract new players across geographies. Some of the recent developments in the market are as follows:-

  • January 2021 - NTT Corporation successfully closed its acquisition of Hashmap. Together, the companies will help clients gain insights from their cloud data with advanced analytics, artificial intelligence and machine learning. Hashmap’sdeep technical expertise across modern cloud data environments aligns with NTT DATA’s continued expansion of extending its digital portfolio capabilities globally.

Recent Developments

  • November 2020 - Nippon Telegraph and Telephone Corporation announced the integration of its different business entities in India - NTT India, NTT Communications India, and Netmagic. The new combined entity, will help the company enhance its focus and reach to meet the diversified needs of Indian customers better.
  • September 2020 - Apex Systems, a world-class technology services firm and University of Maryland Global Campus (UMGC) announced an alliance whose goal is to increase upskilling and reskilling Apex consultants and employees with a focus on military veterans getting jobs in the cybersecurity field.

Table of Contents

  1. 1. INTRODUCTION

    1. 1.1 Study Assumptions & Market Definition

    2. 1.2 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, like AI and IoT, is Expected to Create Demand from the End-User Segments

      2. 4.2.2 Increasing Outsourcing of HR activities

    3. 4.3 Market Restraints

      1. 4.3.1 Talent Shortages in Specific Technologies might Act as a Restraint for the Market Growth

    4. 4.4 Porter's Five Force Analysis

      1. 4.4.1 Threat of New Entrants

      2. 4.4.2 Bargaining Power of Buyers/Consumers

      3. 4.4.3 Bargaining Power of Suppliers

      4. 4.4.4 Threat of Substitute Products

      5. 4.4.5 Intensity of Competitive Rivalry

    5. 4.5 Assessment of Impact of Covid-19 on the Industry

  5. 5. MARKET SEGMENTATION

    1. 5.1 Skill Set

      1. 5.1.1 Software Developer

      2. 5.1.2 Testers

      3. 5.1.3 Systems Analyst

      4. 5.1.4 Technical Support Professionals

      5. 5.1.5 Networking and Security Experts

      6. 5.1.6 Other Skill Sets

    2. 5.2 End User Industry

      1. 5.2.1 Telecom

      2. 5.2.2 BFSI

      3. 5.2.3 Healthcare

      4. 5.2.4 Manufacturing

      5. 5.2.5 Retail

      6. 5.2.6 Other End User Industries

    3. 5.3 Geography

      1. 5.3.1 North America

      2. 5.3.2 Europe

      3. 5.3.3 Asia Pacific

      4. 5.3.4 Rest of the World

  6. 6. COMPETITIVE LANDSCAPE

    1. 6.1 Company Profiles*

      1. 6.1.1 TEKsystems Inc. (Allegis Group Holdings Inc.)

      2. 6.1.2 ASGN Incorporated

      3. 6.1.3 Insight Global LLC

      4. 6.1.4 Randstad NV

      5. 6.1.5 Kforce Inc.

      6. 6.1.6 Artech Information Systems LLC

      7. 6.1.7 Consulting Solutions International Inc.

      8. 6.1.8 MATRIX Resources Inc.

      9. 6.1.9 NTT DATA Corporation

      10. 6.1.10 Beacon Hill Staffing Group

  7. 7. INVESTMENT ANALYSIS

  8. 8. FUTURE OF THE MARKET

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Frequently Asked Questions

The IT Staffing Market market is studied from 2018 - 2026.

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

Asia Pacific is growing at the highest CAGR over 2021- 2026.

North America holds highest share in 2021.

TEKsystems Inc. (Allegis Group Holdings Inc.), Kforce Inc., ASGN Incorporated, Randstad NV, Insight Global, LLC are the major companies operating in IT Staffing Market.

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