IT Staffing: Meaning, Benefits, and Relevancy

The inception of the Information Age in the late 20th century initiated an epochal change from a traditional industrial-based economy. It marked the introduction of the information technology (IT) and started a revolution worldwide on social and commercial levels. Starting from the transistor’s invention in 1947 and fiber optic communications in the 1970s, the concept of information technology has now come a long way in the modern world.

Information technology has changed the way we live, work, and play. It has influenced human life and made it better, easier, faster, more convenient, and more efficient. Things went on to the next level with the invention of the internet in the early 1980s. Since then, the world has not been the same again. Information technology took the world by storm and has become a lifeline for businesses across industries.

Unfortunately, concurrent global events in this decade concerning high inflation rates, the possibility of a recession, and talent shortages have adversely affected the economic positioning of organizations and brought IT under uncalled scrutiny. The economic burden has forced many organizations to cut their IT budgets and freeze the recruitment of IT employees. While many companies have embraced technologies like automation and artificial intelligence, many startups as well as bigshots have laid-off IT employees in their efforts to enable cost-savings. For instance, a report by CrunchBase claims that no less than 52,000 workers lost their jobs in the US technology sector (as of late October 2022).

It is unfortunate to understand that the Information Technology sector – which was once a haven of opportunities – has now become a hub of layoffs amidst economic uncertainties. Nevertheless, every cloud has a silver lining, and this one has too – which is known as IT staffing.

What is IT staffing?

Information technology staffing or IT staffing is a staffing approach that focuses on finding top talent or professionals who possess appropriate skill sets and can complete software-related tasks according to the client’s requirements. Simply put, it is a systematic implementation of an HR plan that involves finding, evaluating, selecting, and recruiting suitable IT talent for filling various roles in an information technology department.

But why should you consider IT staffing over recruiting IT employees? Let us understand.

The IT world is changing daily as new specialized technologies hit the market every then and now. Working with a new technology requires new skills and makes old skills obsolete. For instance, in earlier times, data managers put in manual efforts for managing business-crucial data. However, the advent of technologies like automation minimized the need for manual efforts and automated the whole data processing system – from collecting to storing and processing data sets. This technological shift made the skills of old data managers obsolete and increased the need for talent who understands the know-how of automation.

Since allocating efforts for finding new talent may cost a fortune for the company, considering the staffing option makes more sense. However, IT hiring is a skill on its own – given the complex nature of the IT industry. Working with a hiring recruiter is not enough as one needs a technical staffing expert who understands the nuances of the IT industry and the technical skills required for the job.

Benefits of IT staffing

Global staffing firms find perfect candidates for permanent, temporary, and contract roles. For instance, a report by American Staffing Association suggests the staffing industry provided job and career opportunities for 16 million employees every year before the pandemic and about 13.6 million during the pandemic. The report also suggests that staffing clients turn to Global Staffing Agencies to carry out workforce transformation, achieve workforce flexibility, and get seamless access to top talent. Some of the other benefits of IT staffing include:

1. Cost-efficiency
   The hiring process is subject to a lengthy list of tasks like finding candidates, screening, selecting, and onboarding. It is a costly affair, both in terms of money and time. On the other hand, opting for IT staffing services helps you save a lot of money. It reduces a lot of overhead costs as it requires the employer to pay only for tasks performed or the services availed.
2. Better control
   Outsourcing work from a third-party vendor provides takes impedes the control you have over the project. Whereas working with a global staffing agency ensures more control over the project. Since temporary staff works closely with the employer’s in-house team, it allows for better project monitoring.
3. Scalability and flexibility
   IT staffing services help you scale up or down your team efficiently as per the project requirements. It allows you to hire top talent with specialized skill sets while keeping all additional recruitment and hiring costs at bay. This ease of acquiring skilled talent also offers the company the flexibility to take up more projects and enhance its customer base.
4. Skill-based hiring
   Staff augmentation helps you hire staff that specialize in specific skills for a certain time period. Hiring contract employees provides an employer with a cost-effective alternative to full-time hiring and counters attrition issues. Full-time employees are constantly on the move to grab better opportunities. This is not the case with staffing as (temp) employees are bound by a contract.
5. Freeing up resources
   Working with global staffing companies frees an employer from the pain of hiring and recruiting processes. It allows them to allocate essential resources like time and money to other business-crucial tasks. For instance, they can spend more time focusing on taking up additional IT projects rather than thinking about hiring.
6. Productivity
   A global staffing company works with a network of talent that is screened, qualified, and suitable for starting work promptly. Though they need some time to understand company-specific processes, they take significantly less time to adjust compared to new employees who need training from scratch. Their experience eventually benefits the company in terms of productivity and efficiency.
7. Reduced Risk
   Hiring full-time employees comes with significant risks. For instance, you can end up with bad hiring, someone who does not have the right training or skills required for a specific IT project. This can lead to money and time wastage. However, when you work with an IT staffing company, you can remain assured of getting the right employees with the right qualifications and skillsets.
8. Increased Diversity
   Working with a global staffing agency helps a company reach its DE&I (Diversity, Equity, and Inclusion) goals. IT staffing companies have access to a diverse talent pool that shares the experience of working on previous contracts – giving them an upper edge and a broader experience level than their full-time counterparts.
9. Large talent pool
   Global staffing companies invest years in building talent pools through referrals, networking, and other engaging ways. Thus, they have access to a much wider talent pool than a company’s HR team. For instance, an IT staffing company can provide solutions to your recruiting needs in a matter of days – sometimes within 48 to 72 hours.

The above-mentioned are some of the most prominent benefits that make working with a global staffing company a significantly better counterpart to hiring a full-time employee. Moreover, IT staffing has become a very viable option today – given the current economic headwinds and social and cultural shifts worldwide.

Why is IT staffing relevant?

As mentioned above, various concurrent events have leveraged Information technology companies to change their policies and take measures to adjust to the changing working environments. While some are putting their digital transformation initiatives on hold, many are cutting ties with resources to stretch their bloated IT budgets. However, IT staffing is a holy grail that can help you progress in these unprecedented times. In fact, it becomes highly relevant due to the cost and developmental benefits associated with it.

1. Talent Shortage
   The global information technology industry is allegedly experiencing one of the largest talent shortages in history. In fact, various reports suggest that the talent shortage in the US has reached unprecedented levels due to an aging population and covid-19 aftermath. For instance, the country had more than 10.5 million job openings in November 2021, compared to 3.8 million a decade ago. Furthermore, a LinkedIn report further suggests that talent shortage is one of the biggest problems of 63% of recruiters. Fortunately, global staffing companies can help you stay put during these low times as they have a network of large talent pools. They connect you with the industry’s top talent that can help you finish your projects and achieve objectives with utmost effectiveness and efficiency.
2. Budget Optimization
   A study by the Society for Human Resource Management suggests the average cost of hiring an employee could exceed $4000 with about 1.5 months to fill a vacant position. Moreover, the stakes get even higher when replacing a resource, as it can cost up to 50-60% of their annual salary. All these expenses are enough to put a hole in your IT budget. Fortunately, IT staffing services can save your day! Hiring employees on a contract basis helps in saving a lot of money. Since you only pay (only) for the services and for a specific period, you can save a lot of money that would otherwise have been spent on the complex recruitment procedure.
3. The rise of IT services
   Today, digital transformation is the need of the hour, and information technology serves as the lifeline of businesses. IT services have become one of the highest-grossing businesses and the ultimate need of organizations in almost all industry verticals. Organizations are now highly dependent on IT services for creating, managing, and delivering information and assisting other business-crucial operations. This dependency significantly increased after the outbreak of the covid-19 pandemic when remote working got implemented globally, and businesses were forced to adjust to the new normal. Organizations accelerated the adoption of technology to minimize disruptions in operations and cope with the rapidly changing market conditions. In fact, many firms survived the pandemic with technology integration in resource management and talent acquisition.

A report by Grand View Research suggests that the global IT professional services market stood at $777.28 billion last year and is projected to grow at a CAGR of 11.2% during the forecast period 2022-2030. In another study, Gartner anticipated that the Global IT services market will experience year-on-year growth of 7.9% and will reach a market valuation of a staggering $1.3 trillion by the end of 2022.

This significant boom in the IT services market has eventually increased the demand for skilled IT talents. The advent of new and innovative technologies surges the demand for employees with the latest skills, and staffing goes a long way toward fulfilling it.

How can Pyramid Consulting, Inc. help?

Pyramid Consulting, Inc. is a leader in the staffing industry and specializes in IT global staffing, technical staffing, and workforce transformation. We are a global staffing company that connects top talent with industry-leading companies and offers a full range of services to clients, from innovative startups to Fortune 500 and 1000 companies across multiple industry verticals. We assist companies across many geographies with their talent requirement and deliver best-in-class services utilizing the latest technology and subject-matter expertise.

With over 26 years of experience, Pyramid Consulting is one of the most reliable sources of the best talent – recognized by the significant return on investment they deliver. We are an intentionally inclusive organization that offers services in contract hires, contract to hire, direct hire, managed teams, and employer of record domains and helps other organizations to achieve their DE&I goals. Learn more about benefits for clients.

We serve as a bridge between clients & consultants and create unlimited opportunities for skilled talent, providing them access to Global Fortune companies. Apart from ensuring industry-grade benefits, we offer training and upskilling for our consultants through our in-house initiative Genspark to keep their skillsets current. Learn more about benefits for talent.