IT Staffing Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

IT Staffing Market - Growth, Trends, COVID-19 Impact, and Forecasts (2022 - 2027)

The IT Staffing Market is expected to register a CAGR of 3.66% during the forecast period (2021 - 2026). As the world has entered into a period of greater economic uncertainty, trade tensions, and other macroeconomic conditions, multiple organizations are seeking contract-based IT workers over the full-time employees. The recent outbreak of COVID-19 has a mix implications for the IT staffing market, that has created a trend of permanent remote workers, that has caused a shift in the demand for various skill sets and has put multiple changes in the economy.

Key Highlights

• The growth of the market can be attributed to the increasing Outsourcing of HR activities and the emergence of technologies, like AI and IoT, which is expected to create demand for IT professionals across end-user segments.
• According to the global staffing giant TEKsystems, 69% of tech companies are expected to have AI initiatives by 2020. The company also adds that at least 85% of organizations across end-user segments have digital transformation initiatives underway. This is expected to generate enormous opportunities for the market.
• The growing use of analytics in recruitment is expected to proliferate the need for specialized HR services. According to a recent Linkedin report, at least 92% of professionals consider analytics to be the key to recruitment in India.
• However, firms across end-user segments are migrating to cloud to continue delivering a solution to their clients and ensure continuity of critical operations. According to Microsoft 365, the company has seen a massive 775% increase in the use of its cloud services. This has led to a significant spike for cloud and cybersecurity professionals.

Key Market TrendsTelecommunication End- User Segment is Expected to Generate Considerable Demand

• AI-driven analytics are also helping telecom provide better services by utilizing data and machine learning techniques. For instance, US-based AT&T is using an AI-driven analytics solution to support its maintenance procedures. The company is testing a drone to expand its LTE network coverage and to utilize the analysis of video data captured by drones for tech support and maintenance of its cell towers.
• The integration of analytics with the telecom industry is expected to proliferate the need for analytics professionals further.
• In September 2019, India-based Reliance Jio collaborated with US-based Guavus to deploy AI-based solutions for real-time customer experience analytics. The company also plans to automate network troubleshooting like other players in the industry. This is expected further to expand the avenues of IT applications in Telecommunication.
• According to Ericsson and GSA survey, the rapid 5G deployment leads to 13 billion subscriptions expected by the end of 2019. This is expected further to generate a need for IT professionals in this vertical.

Asia Pacific is Expected to be the Fastest Growing Market

• Asia-Pacific has continued to be the leading IT services market across the globe. The companies in the region are continuing to invest in new resources that have the right skill sets. The hiring at the major IT companies (Tata Consulting Services, Wipro, Infosys, and HCL Technologies) of India in 2019 hit an eight-year high, recruiting 78,500 IT professionals. The continuously increasing need for proper resources across the region is expected to create significant opportunities for the market studied.
• Over the past two decades, the IT industry in China has witnessed impressive growth and has become a key industry in the country’s overall economy. In the current 5-year plan, the country has placed great focus to make IT as one of the seven strategic industries that will help the country move from a cheap-labour manufacturing outsourcing to world-class, innovation driven IT industry. These initiatives are expected to drive the market.
• The Digital India initiative's goal is to provide government services to citizens, electronically, by improving the IT infrastructure and increasing internet connectivity. Moreover, the initiative aims to move legacy and on-premise systems to a cloud-based model or integrate with it, and the cloud platform is expected to host the delivery of e-services to the citizens.
• NASSCOM has also stated that Business Process Management (BPM) and IT services in India contribute to over 14% and 10% of the global demand, respectively; this is expected to continue with the consistent growth in the global cloud adoption rate. The government supported the demand for growing IT and infrastructure through various incentive programs. The growth of IT services in India will drive the market's growth positively.

Competitive Landscape

The IT Staffing Market is a fragmented market. Several players are operating in the market, serving the needs of various end-user segments. The growth of opportunities offered by the market continues to attract new players across geographies. Some of the recent developments in the market are as follows:-

• January 2021 - NTT Corporation successfully closed its acquisition of Hashmap. Together, the companies will help clients gain insights from their cloud data with advanced analytics, artificial intelligence and machine learning. Hashmap’sdeep technical expertise across modern cloud data environments aligns with NTT DATA’s continued expansion of extending its digital portfolio capabilities globally.

Additional Benefits:

• The market estimate (ME) sheet in Excel format
• 3 months of analyst support

Companies Mentioned
 
TEKsystems Inc. (Allegis Group Holdings Inc.)
ASGN Incorporated
Insight Global LLC
Randstad NV
Kforce Inc.
Artech Information Systems LLC
Consulting Solutions International Inc.
MATRIX Resources Inc.
NTT DATA Corporation
Beacon Hill Staffing Group

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