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Performance gap widens between IT staffing firms

May 02 2013

The performance gap between “high-profit” information technology staffing companies and typical firms in the industry has reached historic levels, according to the 2013 TechServe Alliance Operating Practices Report released by the TechServe Alliance. High-profit information technology staffing companies delivered an all-time high profit before taxes of 11.3 percent of revenue, while the median firm in the survey reported a profit margin of 3.9 percent.

The survey found high-profit firms significantly improved their bottom-line results over the prior year, but profitability ticked down slightly for the typical firm despite improving gross margins.

This gap is reflected in Staffing Industry Analysts' most recent Pulse Survey update as well. Median growth for IT has consistently been much lower than average growth, indicating either that large companies are outperforming or that some companies are strongly outperforming the median.

“The most recently released OPR and companion Sales & Recruiter Metrics Report reveal that management decisions make all the difference in driving profitability and growth,” said TechServe Alliance CEO Mark Roberts. “Through data-driven management, the implementation of industry best practices, and modeling the behavior of high-performing firms, companies have the ability to improve their top and bottom-lines.”

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

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