Per SIA’s Staffing and Workforce Solutions M&A Database, there were three acquisitions of IT staffing firms globally in the first quarter of 2023. In the second quarter, that jumped up to seven, and was seven again in the third quarter. There were 10 deals in the fourth quarter.
There have only been six other quarters of double-digit IT staffing transactions since 2014, according to our tracker. This number of transactions will fluctuate for different reasons and should not be read too much into. However, in general, more M&A activity in IT staffing can certainly mean companies are taking advantage of the uncertain climate and looking to strengthen their longer-term operations while they can.
Additionally, consolidation is often seen when the market is down.
In the first quarter of 2024, we’ve indeed seen a combination of two of the larger players in the industry: on Feb. 16, Inspyr Solutions (30th on SIA’s Largest IT Staffing Firms list) acquired Advantis Global (62nd on the list).
And the appetite for IT staffing remains strong to start the new year; in February alone, four IT staffing transactions appeared in our Daily News. Depending on how March goes, the first quarter of this year might approach double-digit IT staffing transactions again.
While M&A is but one aspect of IT staffing, we all certainly want to know how the first quarter of this year is trending revenue-wise. Earnings calls will give more color on that front. And our March Pulse Report will show how February revenue is looking.
Keep an eye out for the Pulse invite or visit our surveys page.
