United States IT Staffing Market Outlook & Forecast 2023-2028: Leading Firms Focusing on Innovative Strategies to Attract Millennials
DUBLIN, Aug. 23, 2023 /PRNewswire/ -- The "U.S. IT Staffing Market - Industry Outlook & Forecast 2023-2028" report has been added to ResearchAndMarkets.com's offering.
The U.S. IT staffing market is expected to reach a value of $58.31 billion by 2028 from $41.52 billion in 2022, growing at a CAGR of 5.82% from 2022 to 2028
IT staffing is among the most highly fragmented markets across diverse staffing verticals. The industry has comparatively low entry barriers that push vendors to consider innovation and differentiation regarding their client offerings. The key players in the U.S. IT staffing market include TEKsystems, ASGN Incorporated, Insight Global, Randstad, Kforce, and Experis (ManpowerGroup).
The U.S. is one of the most technologically advanced countries in the world and hosts companies with a market value of more than USD 1.5 trillion. The country witnessed consistent growth in demand in the number of software and other IT-related jobs over the last few years. The increasing personnel salary is another contributor to the growth of the U.S. IT staffing market.
The evolution of technology, the ever-growing demand for updated, secured, and quick IT solutions, and the shortage of skilled workforce push the demand for IT professionals across functions and departments. Further, the Southern U.S. dominated the U.S. IT staffing market, accounting for the highest share of over 38% in 2022.
MARKET TRENDS & DRIVERS
Millennials Transforming the IT Workforce
Millennials (born during 1980-1995) are one of the fastest-growing generations in the workforce. Millennials currently account for more than 1/3rd of the US workforce and are, thereby, the largest workforce generation in the US. Over the years, the IT staffing firms in the U.S. have found it insightful to adapt themselves as the friendly option for millennial job hunters.
The IT sector has remained one of the most lucrative sectors for the tech-savvy millennials to work for, considering they not only get well paid but also get their choice of a job without much to strive for. Such factors push for a crucial strategy to be adopted by IT staffing firms, including reaching out to these millennials.
Digital Adoption Driving Transformation
The U.S. IT staffing market is witnessing a wave of transformations owing to digital and innovative technological adoptions across the IT sector in the country.
The modern-day era of digital innovations and technologies such as AI, Machine Learning, Blockchain, the Internet of Things, Robotics, and Data Analytics, among others, are pushing companies to adopt new and innovative approaches to project execution.
These projects often require skills that are hard to find in just one professional; thereby, the need to hire people with maximum skills at a low-cost drives IT staffing firms to operate smartly.
INDUSTRY RESTRAINTS
Shortage of Skilled Labor
The IT industry in the U.S. has remained under the pressure of an acute shortage of skilled workforce in place. IT staffing firms have been facing the problem of a lack of skilled professionals for quite some time now and are looking for options to tackle this challenge strongly and quickly.
SEGMENTATION INSIGHTS
INSIGHTS BY SKILL SET
The software engineers/developers/DevOps skill set segment is expected to be the largest U.S. IT staffing market. Software engineers and developers have remained core to any organization operating in the IT industry.
The demand for software developers in the U.S. is expected to grow by almost 23% by 2028. Such factors are expected to increase the number of software engineers in the United States. Professionals with these skill sets often receive several emails from recruiters thrice compared to other professionals in the industry.
INSIGHTS BY END-USER
The tech/telecom end-user segment dominated the U.S. IT staffing market in 2022 and is expected to continue the trend during the forecast period. The tech/telecom industry is consistently evolving with time and is expected to grow significantly in the coming years.
The continuously evolving technologies and better connectivity infrastructure are boosting the telecom and IT industry, leading to growth in the number of employees working there. Hence, there is a huge hiring requirement in such industries, leading to the rising demand for IT staffing.
MARKET DYNAMICS
Market Opportunities & Trends
- Increasing Need for Workforce Retention
- Leveraging Automation for Differentiation
- Millennials Transforming It Workforce
- Staffing Restructure Through Holistic Branding
Market Growth Enablers
- Digital Adoption Drives Transformation
- Growth in Gig & Freelance Economies
- Referral Relevance for Staffing
- Diversity & Data-Driven Recruitment
Market Restraints
- Subdued Immigration Outlook
- Strict Government Regulations Across the Country
- Shortage of Skilled Labor
VENDOR LANDSCAPE
Key Company Profiles
- TEKsystems
- ASGN Incorporated
- Insight Global
- Randstad
- Kforce
- Experis (ManpowerGroup)
Other Prominent Vendors
- Acro Service Corporation
- ALKU
- Innova Solutions
- Artech
- Beacon Hill Staffing
- BGSF
- Collabera
- Compunnel
- Consulting Solutions International
- Dexian
- DIVERSANT
- Modis
- Mastech Digital
- MATRRIX
- Mindlance
- NTT DATA
- Optomi
- Robert Half International
- Rose International
- System One
- VACO
- vTech Solution
SCOPE OF THE REPORT
Segmentation by End-user
- Tech/Telecom
- Banking/Financial Services/Insurance
- Healthcare
- Manufacturing
- Retail
- Others
Segmentation by Skill Set
- Software Engineers/ Developers/ DevOps
- Project Management
- Business/Systems Analyst
- Help Desk/ Technical Support
- Software Architects
- QA/Testing
- Networking
- Security
- Data Analytics
- Cloud Computing
- Mobile App Developers
- Others
Segmentation by Region
- United States
- South
- West
- Northeast
- Midwest
For more information about this report visit https://www.researchandmarkets.com/r/4nrbjj
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