Staffing trends 2020 change the way business acquire tech talents

IT Staffing market overview

1.1 Global IT market overview

On July 13, 2020, an analytical company Gartner released an updated forecast of the global IT market. Although, in January, experts had expected IT spending to raise by 3.4 percent by the end of 2020 (up to $3.9 trillion), summer revision indicated a negative index -7.3% (up to $3.5 trillion) compared to 2019. Analysts linked the industry’s decline to COVID-19, which is causing a global economic recession.

1.2 U.S. IT staffing market overview

SIA, the global advisor on staffing and workforce solutions, predicts a large-scale economic downturn that will lead to a decline in IT temporary staffing in 2020. The SIA predicts this decline to be the largest in the industry in the U.S. since 2009.

  • Integrating different apps, data sources; platform, devices [US 62%, global 55%]
  • Emerging tech — [62% vs 55% global]
  • Software or app development — [58% vs 54% global]
  • Digital business transformation/ modernizing legacy hardware or software — [57% vs 54% global]
  • Cybersecurity [56% vs 55%global]

IT Staffing market trends

2.1 Temporary staffing or gig economy are getting popular

According to American Staffing Associations, U.S. HR companies hired 16 million temporary and contract employees during 2019. Before the pandemic, gig economy (a free market system in which temporary positions are commonplace and organizations hire employees on a contractual basis) had been developing rapidly. In fact, a great part of the U.S. labor force consisted of temporary employees.

2.2 Fully remote dedicated software development teams or staff augmentation services

SMB owners and startups focus on a project’s effectiveness and task fulfillment. Compared to large enterprises, these companies cannot afford to frequently change the required resources or open new departments to meet short-term project requirements or temporary flow challenges.

  • Accounting — 37%
  • IT matters (software, web, mobile development) — 37%
  • Internet marketing — 34%

2.3. Ongoing tech-talent shortage lead to hiring offshore tech recruitment

Analytical companies, CompTIA, American Staffing Associations, Korn Ferry Institute, and others have been investigating and raising concerns about technical staffing shortages for several years now. According to their forecasts, a shortage of technical specialists will slow development and stop the mass adoption of advanced technologies such as VR, AR, AI, ML, and others.

2.4. Recruitment process acceleration by reducing on-boarding time

Although the demand for tech talents is growing rapidly, the process of finding and approving a candidate for a position is terribly slow. In 2017, Workable published a study on the time taken to hire an IT candidate. The on-boarding process for IT positions in North America was 51 days. Fierce competition and long enrollment processes risk the loss of companies’ ideal candidates. Hiring managers note that companies should review recruitment processes and accelerate them after COVID-19 has run its course.



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