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What is the USA market-size (TAM) for the Technology Recruiting industry?
OVERVIEW
Hello! Thanks for your question about the USA market-size (TAM) for the Technology Recruiting industry. The short version is that there is growth when it comes to hiring in the IT (information technology) sector due to the advancements in technology. However, there seems to be a slight lack of qualified workers to fill these positions. Below you will find a deep dive of my findings.
METHODOLOGY
I searched information on technology recruiting for 2015 and 2016. There was growth during both years of about 6%, bringing its scale to an all time high of $28.9 billion. I then found that the top 43 IT staffing firms generated a total of $18 billion in revenue in 2016. I discovered that the demand for IT jobs in only going to increase as technology advances, but there is a lack of people qualified for these jobs.
USA MARKET SIZE (TAM) FOR TECNHNOLOGY RECRUITING INDUSTRY FOR 2015 AND 2016
Staffing Industry Analysts' estimates for the size and growth rate of the IT (information technology) temporary staffing market in the US, extending back to 1997, have come to be relied on by the industry for strategic planning and bench marking purposes.
As 2015 drew to a close, it was a solid year for the IT staffing market. Staffing Industry Analysts estimated growth in the US market at 6% in 2015, with a similar rate of growth in 2016. This would bring its scale to an all time high of $28.9 billion.
According to the Global Staffing Industry in 2015, focusing only on temporary staffing, IT makes up $51.9 billion of the $360.9 billion global market, with $29 billion being attributed to the US.
LARGEST IT STAFFING FIRMS
An estimated 43 firms generated at least $100 million in US IT temporary staffing revenue in 2016, together generating $18 billion in such revenue.
1- TEKsystems (Allegis Group)- $3.468 billion (12% of market share)
2- On Assignment- $1.617 billion (6% of market share)
3- Insight Global- $1.525 billion (5% of market share)
4-Randstad Technologies- $1.116 billion (4% of market share)
5-Kforce- $942 million (3% of market share)
TECHNOLOGY RECRUITING INDUSTRY TRENDS
There will be significant competition in 2017 for positions such as instrumentation and controls technicians, automation engineers, and industrial control systems designers. Some of the largest manufacturers in the world are investing in technology that will lead to growth in demand for engineers and technologists who are talented in both developing new applications and integrating the technologies into production environments.
Throughout 2017, quality engineering will remain in demand, with a strong percentage of hiring in the industrial engineering standard occupational classification (SOC) category being attributed to the demand for quality engineers.
Jobs in science, technology, engineering, and math (STEM) are increasing 3x vs. the rest of the US economy, with a projected shortfall of 230,000 STEM workers by 2018. IT staffing sector is expected to grow due to the rapid pace of technological change and the supply/demand imbalance for IT professionals. Looking at a five-year estimation, the IT sector is expected to grow 100%.
As demand increases for talented employees, engineering firms and corporations are reaffirming their need to partner with trusted engineering recruiting, staffing, and outsourcing services firms.
CONCLUSION
To wrap it up, there is growth happening in the IT recruitment sector due to the advancements made in technology, yet there is a lack of qualified workers to fill these positions. Thanks for using Wonder! Please let us know if we can help with anything else!