Keeping Up with the Demand for IT Staffing

Keeping Up with the Demand for IT Staffing

Currently 13% of the American market for temporary staffing is comprised of technology.  As many large corporate companies are moving towards outsourcing their non-daily IT initiatives it is safe to assume the demand for placements by IT staffing agencies will increase.

The first question you might ask yourself is why large corporate entities are keeping a lean IT staff?

The answer is simple, to manage expenses.  Companies are maintaining internal IT staff to meet their daily needs; but are no longer keeping a full-time team of IT professionals for special projects and upgrades.  It is more cost effective for these companies to contract these highly skilled IT professionals on an as-needed basis. By engaging a staffing agency a corporate company decreases their operational and financial expenses associated with: recruitment, management of temporary workers, and payroll.

Challenges Facing IT Staffing Agencies

The demand for contractual services can be a challenge for many smaller IT staffing companies for two reasons.  First, finding skilled IT professionals is becoming harder, as a result of high demand.  The second challenge is the heavy reliance on customer payments from accounts receivables to support weekly payroll, operating costs, and recruiting expenses.

Awaiting payments can quickly cause operational issues depending on when a company can bill for their services. Especially if the carry terms are (N30 – N90 days) for outstanding invoices.  The last thing an IT staffing agency wants to worry about is cash flow; instead of focusing on recruiting and fulfilling outstanding contracts/positions.


As more large corporate companies move to outsourcing, the demand will only increase on these IT staffing agencies.  Overcoming the challenges they currently face will be imperative.  While we can’t solve the market need for these highly trained professionals. We can provide a reliable working capital solution to relieve your working capital stress, and allow you to focus on what matters.

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