IT Staffing Report: May 14, 2015

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Wide performance gap among IT staffing firms, TechServe finds

Financial performance varied widely among IT and engineering firms in 2014, according to the 2015 TechServe Alliance operating practices report. “High-performing” firms grew revenue by 11.2% year over year in 2014, just slightly off the 2013 pace of 12.4%.  However, the “typical” firm grew revenue only 2.9% after growing 9.6% in 2013, the report found.

On the profitability front, the difference is also as stark. “High-profit” firms delivered profit before taxes of 10% of revenue. However, the median firm in the survey reported a pre-tax profit of only 3%, a sharp decline from any of the previous five years, according to the report.

The most recently released operating practices report and companion sales and recruiter metrics report expanded this year to include data on new issues such as the response of staffing firms to the Affordable Care Act, the impact of statement-of-work on margins and more, according to TechServe Alliance CEO Mark Roberts.

“These reports highlight why it is more critical than ever to employ data-driven management and execute in a highly disciplined manner — the difference between high-performing firms and typical firms has never been more stark,” Roberts said.

The TechServe Alliance is a collaboration of IT staffing firms, solutions firms, clients, consultants and suppliers.