As per the present estimates of Staffing Industry Analysts, the market for IT staffing is expected to grow by 7% to reach a size of $24.2 billion by the end of 2013. The IT staffing industry’s biggest challenge is with finding right talent for their client organizations without rushing to fill in the void by hiring someone who looks good on paper but is not yet all compatible with the work culture and ethics of the concerned IT organization. There is always a pressure on Chief Information Officers or CIOs of IT companies in terms of tracking down the right information technology or IT professionals to join their departments. The CIO’s has to ensure that they select the candidates who are a good fit in terms of their roles they have to play as employees.
The Information Technology or IT recruiters are still reluctant to hire full time or permanent IT staff even though the IT job market is growing every day with employment in IT industry being projected to grow by 22% by 2020. The demand for IT employees and their salaries are rising even though the current economic climate may throw a monkey wrench on new hires during the first half of 2014. Recently, tech executives have started to change their strategies by taking different approach to their staffing methods.
The CIO’s instead of hiring a whole lot or bunch of full time IT staff are opting for IT contractors as a staffing method instead of employing full time or permanent IT employees. These corporate executives are not too keen on spending more money to cover the rising salary and benefit expenses that would have to be spent when hiring full time IT staff. Therefore, a growing number of companies are keeping their budgets tight and workforce munificent by contracting projects to IT professionals.
According to the latest data of Bureau of Labor Statistics (BLS) reveals that over the last twelve months about 77,600 IT jobs were added in United States due to the fact that the CIO’s and hiring managers having remained cautious about the slow economic recovery. Companies are increasing their budgets for hiring skilled IT contractors. The demand for IT contractors has increased due to organizations facing aging workforce and there upon desirous of leveraging existing technology fully without increasing budgets for full time hires.
A recent survey conducted by Mondo – a tech consulting company revealed that the new staffing trend of hiring IT contractors is gaining momentum and their poll found that about 48% of businesses expect to hire more IT contractors than full time staff in the next 12 to 18 months. The survey also revealed that 32% expect to enhance their yearly IT contractor budget in the next months of 2014. Overall, it meant that just under half of American CIO’s intend to reduce the use of salaried full time IT staff in favor of bringing in an increased number of independent IT professionals.