IT Staffing Report: Sept. 25, 2014

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IT staffing market to grow 7% in 2015, but won’t top peak

Last week, Staffing Industry Analysts released its latest forecast report for the U.S. staffing industry. In this report, we projected 2015 to be another solid year for the IT temporary staffing market, with 7 percent revenue growth to a market size of $27.8 billion (24 percent of the overall temporary staffing market). Nevertheless, we estimate that in 2015 the IT temporary staffing market will remain below its peak in 2000, when adjusted for inflation.

We have also released our 2014 List of Largest IT Staffing Firms in the US. As with last year, TEKsystems (part of Allegis Group) was the largest IT staffing provider with a dominant 12 percent share of the market, followed by On Assignment and Randstad Technologies, each with 5 percent. Through organic growth, Insight Global is now the fourth largest IT staffing company in the US, up from sixth-largest in last year’s report.

The IT segment also had a presence on several other lists in our product suite. Many companies on our 2014 List of Largest Staffing & Talent Engagement Firms in the US named IT as their largest segment, including Allegis Group, which ranked first on the list. Additionally, in our 2014 List of Fastest-Growing Staffing & Talent Engagement Firms, two firms in the top five noted IT as their largest segment (ALKU at No. 3 and Beacon Hill Staffing at No. 5). Finally, in our 2014 List of Companies Looking to Acquire Staffing Firms, 75 of the 215 companies on the list noted IT as their first preference among all occupational segments for a target acquisition, more than twice as much as any other segment. Given the solid growth we project for IT staffing, we can see why so many companies want to invest in this market.