Procurement Market Intelligence Report
Permanent IT Staffing
Sourcing Guide & Market Intelligence
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Permanent IT Staffing Global Overview
Definition
Summary
Permanent IT staffing agencies help businesses find potential IT employees by listing employment vacancies, then referring and placing applicants for permanent positions. Suppliers offer candidates across a wide range of IT specialties, including application development, network engineering, and enterprise resource planning. The candidates who are referred or placed are not employees of the staffing office; instead, they become permanent employees of the hiring company. Key buyers include professional service organizations, government agencies, financial and insurance firms, and healthcare organizations.
This Report Includes:
- Application Development Staffing
- Network Engineering Staffing
- Enterprise Resource Planning Staffing
Not in this Report:
- IT Contract Services
- Temp-to-Perm Hiring
- Temporary IT Staffing
Global Permanent IT Staffing Procurement Trends
Discover the top international trends affecting procurement in the global Permanent IT Staffing market.
Neutral
United States labor shortage is beginning to show signs of slowing
- There are signs that the US labor market is beginning to return to a more normalized state, with evidence that the shortage plaguing many sectors throughout the economy could be coming to an end in the near future.
- Recent data has shown that job openings plunged by around 600,000 to 10.6 million job openings between months, the largest month-over-month drop since the beginning of the pandemic. The number came in well below expectations as well, providing additional evidence that complications may be coming to an end even faster than experts expect.
- The number of unemployed workers per job openings climbed for the first time since the pandemic began as well, providing further signs that the labor market may be returning to more normal behavior.
- While there are signs that currently indicate the labor shortage may begin resolving soon, many sectors are still currently battling labor shortages. Freight, transit and manufacturing companies are faced with persistent labor shortages, contributing to significant difficulty within their businesses.
- Financial and software development firms are also facing continual shortages as office workers continue the “Great Resignation”, where workers leave positions in favor of better benefits, higher pay and more flexible, hybrid work environments.
Positive Trends
Tight IT labor market shows signs of easing
- Survey data collected by Staffing Industry Analysts show that the gap between recruiting and sales difficulty among IT staffing firms is narrowing, a sign that the market is finally easing.
- Staffing Industry Analysts predict that the IT staffing market will return to pre-pandemic levels of demand in late 2022 or early 2023. Up until now, high demand for IT staffing has persisted longer than industry insiders had expected.
IT staffing growth slowing down for remainder of 2022
- After a robust first half of 2022, the market growth rate for IT staffing is expected to slow down for the remainder of this year, according to Staffing Industry Analysts. The lingering talent shortage will sustain moderate growth rates.
Global Permanent IT Staffing Market - Suppliers by Region
| Country/Region | Number of Suppliers |
|---|---|
| #1 China | 6,980 |
| #2 Europe | 6,460 |
| #3 United States | 4,960 |
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Geography Drilldown - US, Canada & Europe
Average Cost of Permanent IT Staffing
United States
2026 Market Pricing$10.00 to $XX.XX
% of placed candidate's first-year salaryCanada
Europe
Average Price
Prices in the Permanent IT Staffing market range from $10.00 to $XX.XX, depending on Type of Position, Complexity of Recruitment Process, Vendor Reputation and Location. For example, lower prices are associated with Support technician and Data entry clerk, whereas higher prices are associated with Computer programmer and Project manager.
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Between our Europe and Canada collections, we provide price data for 350 markets so you can instantly compare prices across borders. Or, use our custom research services for intel on prices in any region across the globe.
Permanent IT Staffing Category Price Trends
Pricing trends are indicated by the compound annual growth rate (CAGR) during a set period of time. For the Permanent IT Staffing market, prices in the US have grown 1.2% from 2022 to 2025. and +0.4% in Europe.
United States (2022-2025)
Canada (2018-2021)
Compound Annual Growth Rate
Europe (2022-2025)
Compound Annual Growth Rate
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Price trend forecasts are available to subscribers, along with price driver projections and forward-looking cost structure data.
Cost Analysis - Total Cost of Ownership for Permanent IT Staffing
Total cost of ownership is Low in the Permanent IT Staffing market. The average cost of ownership differs depending on the contract but generally includes costs negotiated before the contract begins, costs billed during the contract period and unforeseen costs. For example, unforeseen costs in the form of Delays may raise the total cost of ownership unexpectedly.
Negotiated Before
Transportation
Billed During
Additional Fees
Training
Unforeseen
Delays
Buyer Power in Procurement Negotiations
In 2026, buyer power amounts to 1.8 in the United States. Buyer power is most positively impacted by Product Specialization. It is most negatively impacted by Recent Price Volatility. Subscribers can access details on eight other factors that impact buyer power. Learn more
United States
Canada
Europe
Buyer power forecasts: your glimpse into the future
Develop strategies for the upcoming year and identify unforeseen opportunities for buying now
- Actionable "Buy Now" and "Buy Later" insights
- Near-real-time updates to current and forecast Buyer Power Scores
- Methodology and weightings for Buyer Power Score Components
Supply Chain Risk
The average level of supply chain risk is assessed as Low, which has a positive impact on buyer power. The level of supply chain risk is affected by industry volatility, barriers to entry, competition, import penetration, regulation and industry financial risk. Buyers in this market can mitigate procurement and supply chain management risks by monitoring risk levels for individual first and second tier suppliers:
1st
Tier Suppliers
- Computer Wholesalers
- Office Stationery Wholesalers
- Commercial Leasing Services Firms
2nd
Tier Suppliers
- Office Stationery Manufacturers
- Real Estate Sales & Brokerage Firms
Biggest Permanent IT Staffing Suppliers in the US by Revenue
The largest Permanent IT Staffing vendors by revenue in the US are Kforce Inc., Manpowergroup Inc. and Randstad Holding NV. Subscribers can sort and filter by market share concentration, profit level and other factors. Learn more
| Supplier | Operational Size | Headquarters | Number of Employees | Market Share (%) | Market Share Performance (3yr trend) | Total Revenue ($ million) | Profit Level (%) | Risk Level |
|---|---|---|---|---|---|---|---|---|
| Allegis Group, Inc. | Global | Hanover, MD | >10,000 | 10-15 | ||||
| Asgn Inc. | Global | GLEN ALLEN, VA | 1,001-10,000 | 5-10 | ||||
| Insight Global, Llc | International | Atlanta, GA | 1,001-10,000 | 5-10 | ||||
| Randstad Holding NV | Global | Diemen , NL | >10,001 | < 5 | ||||
| Manpowergroup Inc. | Global | MILWAUKEE | >10,000 | < 5 | ||||
| Robert Half International Inc. | National | MENLO PARK, CA | >10,000 | < 5 | ||||
| Kelly Services Inc. | International | TROY | 1,001-10,000 | < 5 | ||||
| Kforce Inc. | National | TAMPA | 1,001-10,000 | < 5 | ||||
| Cdi Corp | National | Philadelphia, PA | 1,001-10,000 | < 5 | ||||
Looking for a list of suppliers by country?
Subscribers can access vendor information on Canadian and European suppliers, too. We also offer custom research services to help with vendor sourcing anywhere in the world.
Profit Analysis
The average profit margin across vendors in the Permanent IT Staffing market is 8.6% and steady. Profit levels shift depending on suppliers' spend on wages, purchases and overhead. The highest cost component for vendors is Wages. The cost trend for this component is falling, when considering movement between 2025 and 2026. To understand cost forecasts for 2027 and uncover the implications on profit, start your subscription. Learn more
Vendor & Supply Chain Analysis
Vendor risk is low in this market, which is primarily due to the reliable source of demand for IT positions.
The market share concentration for permanent IT staffing firms is low, mainly due to low barriers to entry. Consequently, competition among vendors is high, which helps to keep price growth in check.
Since vendors in this market do not rely on any physical inputs, supply chain risk is low. Thus, vendors incur fewer costs, leading to downward pressure on market pricing.
The United States is a net importer of computers, meaning it imports more computers than it exports. While lower manufacturing costs abroad drive down prices for imported computers, relying on imports can lead to potential shortages or price increases if there are supply chain disruptions due to geopolitical tensions, trade disputes, or global crises
Supplier Information
Allegis Group, Inc.
Allegis Group, Inc. is a private company operating globally in the professional, scientific & technical services and administration, business support and waste management services sectors. The company's offerings include temporary clerical & administrative staffing, temporary it staffing, temporary warehouse... Subscribe to learn more
Asgn Inc.
Asgn Inc. is a public company operating globally in the administration, business support and waste management services sector. The company's offerings include temporary it staffing, permanent medical staffing and permanent it staffing. Founded in 1985, the company is currently headquartered in GLEN ALLEN,... Subscribe to learn more
Insight Global, Llc
Insight Global, Llc is a private company operating internationally in the administration, business support and waste management services sector. The company's offerings include temporary clerical & administrative staffing, temporary it staffing and permanent it staffing. Founded in 2001, the company is currently... Subscribe to learn more
Cdi Corp
Cdi Corp is a private company operating nationally in the administration, business support and waste management services sector. The company's offerings include permanent it staffing. Founded in 1950, the company is currently headquartered in Philadelphia, Pennsylvania, United States of America with an estimated... Subscribe to learn more
Kelly Services Inc.
Kelly Services, Inc. is a global talent solutions company. It organizes its business into five segments: the Professional & Industrial segment, which delivers administrative, accounting and finance, light industrial and contact center staffing and other workforce solutions; the Science, Engineering & Technology... Subscribe to learn more
Kforce Inc.
Kforce Inc. is a technology, finance, and accounting professional staffing services provider to the financial and business services, communications, insurance, retail, and technology industries. It organizes its business into two segments: the Technology business, which delivers talent solutions to highly... Subscribe to learn more
Manpowergroup Inc.
ManpowerGroup Inc. is a global workforce solutions and services provider focusing on recruiting and workforce-intensive initiatives. Its solutions and services include recruitment and assessment, training and development, career management, workforce consulting, and outsourcing. It offers a family of brands,... Subscribe to learn more
Randstad Holding NV
Randstad Holding NV is a public company operating globally in the information, professional, scientific & technical services and administration, business support and waste management services sectors. The company's offerings include outplacement services, job posting services, temporary clerical & administrative... Subscribe to learn more
Robert Half International Inc.
Robert Half International Inc. is a public company operating nationally in the professional, scientific and technical services and administration, business support and waste management services sectors. The company's offerings include e-discovery consulting services, data privacy consulting services, temporary... Subscribe to learn more
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Procurement Management KPIs for the Permanent IT Staffing Market
Managing vendor performance throughout the contract period is easier when tracking specific key performance indicators (KPIs). For example, buyers should monitor Customer Satisfaction (CSAT) and Employee Retention Rate. Buyers may experience better performance throughout their contracts if they establish service level agreements (SLAs) based on Employee Qualifications and other factors.
| KPI | Level of Importance (1-5) | Measurements | Key Considerations |
|---|---|---|---|
| Customer Satisfaction (CSAT) |
|
Number of positive customer responses Number of customer responses |
The customer satisfaction rate indicates vendors' ability to source and place candidates that meet performance expectations and stay in the role for a reasonable amount of time. Customer responses that occur longer after services are rendered may be more valuable since the candidate has been in the position for a longer amount of time. |
| Employee Retention Rate |
|
Number of employees at start of period Number of employees at end of period |
The employee retention rate can be used to determine a company’s likelihood of retaining quality employees and performing quality work. A high employee retention rate typically indicates that the vendor is hiring qualified talent that deliver positive results. A high employee retention rate may indicate long-lasting candidate placements, since employees are more likely to stay if they can see meaningful results from their work. |
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Questions to Ask During Procurement Negotiations
How can I gain leverage during negotiations?
Customer Support
How have you changed your permanent IT staffing services in response to customer complaints and suggestions?
If your client is not satisfied, what steps do you take to address the issue?
Experience and Expertise
How long have you provided permanent IT staffing to your most-tenured client? Who are your five largest clients?
Do you have case studies or client testimonials detailing the services performed? Can we speak to a current client about their experiences?
Competition
How do you attract new clients and retain existing clients?
As a large company, how do you compete with the emergence of smaller players into the market?
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Permanent IT Staffing RFP Guidelines
What should my RFP include?
Organizational Overview
Buyers should give an overview of their organization, including their industry, number of employees, location(s) and type of ownership.
Buyers should describe their current and desired permanent IT staffing solutions.
Statement Of Need
Buyers should provide a detailed description of the types of services required (i.e., screening applicants, background checks, reporting requirements).
Buyers should describe the types of positions they will be sourcing.
Project Budget
Buyers should disclose the overall budget for the project, if relevant.
Buyers should state their preferred pricing model and terms of payment.
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We display average pricing information, trends and market data.
Our Reports include:
- Opportunity assessment
- Market dynamics
- Recent developments
- Positive and warning trends
- Buyer power levers
- Price environment and market pricing
- Geographic wage rates
- Global market updates
- Total cost of ownership
- Cost structure benchmarks and analysis
- Supply chain and vendors
- Global supplier breakdown
- Market share concentration
- Regulation and business requirements
- Vendor management and KPIs
- Sourcing strategy guidance
