IT staffing growth is still on hold, as seen in the November US Pulse report.

Median October IT staffing revenue was down 1% year-over-year, compared to a flat (0% year over year) change in the previous report, according to Pulse report data. This sideways trend in IT staffing revenue has persisted since December 2023.

The survey also revealed mixed signals: Over the past three months, a net 12% of IT staffing firms reported a decline in bill rates, while a net 2% observed an increase in new orders. Unsurprisingly, these trends are holding back growth. In fact, a net 24% of IT staffing firms reported declining revenue growth.

Despite these challenges, optimism for the future persists. A net 12% of firms expect bill rates to rise over the next six months, and a net 44% anticipate an uptick in new orders.

Sales difficulty for IT staffing positions was 3.70 (on a scale of one to five); recruiting difficulty was 2.93.

In the November report’s survey, we also asked firms to share tactics they are currently using to either increase revenue or increase profitability. Thirteen IT staffing companies shared an open-ended response to this question. Three of the 13 emphasized the importance of strengthening relationships/increasing engagement with candidates. Three notable responses from IT staffing firms are shared below:

• “Trying our best to reengage with old customers to avoid client concentration issues, but market is definitely feeling headwinds.”
• “Looking to hire experienced salespeople and to leverage our partner back-office expertise.”
• “Focus on non-MSP business including SOW and direct hire/perm.”

IT staffing has been treading water for nearly a whole year. In our next US Pulse Survey, launching in January 2024 (click here to participate when it opens), we’ll see whether the segment can buck the trend.