IT Staffing Market Size

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 IoT, 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. Moreover, multiple firms across end-user segments are also migrating toward the cloud to continue delivering a solution to their clients and ensure 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.
• Financial service institutions are four times more susceptible to cyber attacks than other industries, which is expected to drive the demand for security professionals.
• The growing digitization across various sectors and increasing demand for skilled employees in the IT and Telecommunication sector augmented the growth of IT staffing across the globe. For instance, the IT services sector in India created more than 500,000 new jobs in FY22, doubling the earlier projected net growth of its active workforce for the fiscal, according to data by specialist staffing company Xpheno.
• 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.
• The recent outbreak of COVID-19 has a mix of implications for the IT staffing market, which has created a trend of permanent remote workers, which has caused a shift in the demand for various skill sets and has put multiple changes in the economy. Further, the growth in IT staffing can be attributed to the major role played by the IT services sector globally in helping various end-user industries and businesses across the country in their digital transformation and implementation of new and emerging technologies such as cloud, IoT, blockchain, and AI, post-pandemic.