A review of seven U.S.-based publicly traded information technology staffing companies’ chalked up a median growth of 5.5 percent in the second quarter ended June 30, with only two of the seven companies that were tracked showing a decline in revenue as compared to the same period in 2012.
Second-quarter revenue in On Assignment Inc.’s Oxford division rose 15.2 percent year over year during the quarter and revenue at Apex, which was acquired by On Assignment in May 2012, rose 19.8 percent on a pro forma basis, according to the company’s 10-Q filing. On Assignment acquired Apex on May 16, 2012.
“In [the IT] sector of the market, we are the second-largest provider of staffing services and we continue to grow faster than the overall market reflecting the benefit of our scale and operating models,” said President and CEO Peter Dameris. “We also believe we are benefiting from a shift in spending toward IT staffing and away from other IT services delivery models, such as consulting and offshoring, as CIOs continue to focus sharply on project flexibility and accountability and cost control.”
In other results, Mastech Holding was up 15.0 percent year over year; Robert Half’s IT division posted 10.2 percent year over year revenue growth; and Kforce reported IT staffing revenue growth of 5.5 percent during the quarter.
Kforce also cited continued strong demand for IT skills. “Overall our key performance indicators for technology remain at high levels for job orders, external submittals, and send outs, with fill ratios at an all-time high,” said Joe Liberatore, president at Kforce. “Candidate supply remains tight, particularly for skill sets in high demand for jobs such as dot net, business analysts and project managers. Inter-quarter trends for Tech Flex revenues showed moderate increases in both April and May, followed by a large increase in June.”
CDI cited low sales with its largest client as the reason for the 6.5 percent decline in its IT revenue.
Meanwhile, publicly held IT services companies posted median year-over-year growth of 5.3 percent in their worldwide IT services revenue for the quarter ended June 30. Companies with offshore model dominated growth in the list of public IT services companies we track. Cognizant Technology Solutions Corp. topped the charts with 20.4 percent year-over-year growth for the quarter followed by Tata Consultancy with 16.0 percent year-over-year growth.