Are Millennials Transforming The US IT Staffing Industry?


Arizton’s recent market research report on the US IT staffing industry provides a comprehensive trend forecasts industry and competitive analysis. The research study segments the market by skillset (software engineers/developers/DevOps, project managers, business/system analysts, helpdesk/technical support professionals, software architects, QA/testers, networking and security professionals, data analytics scientists, and cloud computing and mobile application developers and supporters), end-users (tech/telecom, BFSI, healthcare, manufacturing,) and others (educational, government/public administration, retail, pharma/biotech/medical devices, energy and construction, transportation and warehousing, and accommodation and food services).

The US IT staffing industry is expected to reach revenues of around $39 billion by 2024, growing at a CAGR of 3% during 2018–2024.

TEKsystems (Allegis Group), ASGN Incorporated, Insight Global, Randstad, and Kforce are identified as the major vendors in the US IT staffing industry. The US is one of the key leading countries contributing to the global IT market, with more than 30% market share. 

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The leading three drivers and trends driving the US IT staffing industry are discussed below:

Digital Embracement Driving Staffing Transformation

Modern-day digital innovations and technologies such as Artificial Intelligence (AI), Machine Learning, Blockchain, Internet of Things (IoT), Robotics, and Data Analytics are driving companies to adopt new and innovative approaches for project executions. The wave of digital disruption across the IT industry allows flexibility for professionals to work in the sector of their choice; this allows them to work in one organization then move on to the next one to enhance their skill development opportunities. Short-term associations allow professionals to apply innovative ideas and strategies while executing projects and offer them the freedom to accelerate according to their own pace and convenience. This model is beneficial to IT companies as they can maintain a flexible application structure at the work and monetary fronts (taxes, headcount representation, and staff management). A high number of IT firms adopt the temporary staffing model to execute and implement digitalized, innovative short-term projects. Hence, enterprises often turn to IT staffing agencies that adept at hiring professionals based on requirements.

Rising Automation & Data-driven Recruitment in US IT Staffing Industry

The modern-day recruitment demands IT staffing agencies to develop a sense of differentiation to stand out and sustain in the highly competitive market. Automation tends to provide IT staffing agencies that differentiating opportunity. The launch of chatbots such as Olivia, which streamlines the entire candidate application process, has gained a significant attraction among market players. Although automation in staffing is at an initial phase of adoption, the onboarding stage is experiencing a higher usage (more than 25%) of automation due to the easy-to-conduct standardized tasks involved in the process. The US IT staffing industry is expected to witness a growing inclination toward diverse automated tools due to the delivery of expert assistance and streamlining of the recruitment process.

The data-driven recruitment continues to remain one of the key growth trends in the IT staffing market. The complete information about candidates and their potential employability in any organization are stored, processed, and extracted as needed. IT staffing firms continuously focus on expanding and enhancing the quality of the database and the applicant tracking system available with them to cater to the client demands immediately.

Millennial Transforming IT Workforce

Millennial are the fast-penetrating generations in the modern-day workforce. They currently account for more than one-third of the US workforce, thereby occupying the slot for the largest workforce generation in the US. The IT staffing firms in the US have found it insightful to project themselves as friendly millennial job hunters. The IT sector has remained one of the most lucrative sectors for tech-savvy millennial to work for, considering that they not only get well paid but also get their choice of job. The key preferences for millennial while looking for job prospects include compensation/remuneration, time-off/holidays, job security, work environment, and flexibility. Considering the fast-growing population of the millennial and their increasing presence in the modern-day US workforce, the IT staffing industry should rethink their target market/audience while looking for potential candidates.

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The complete overview of the latest market research report on the US IT staffing industry by Arizton is now available.

The report offers a detailed study of major trends, drivers, challenges, and provides market sizing and forecast for major geographical regions and key countries.

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