IT & Engineering Staffing Firms Post Robust Growth and Deliver Historic Profitability
Report Highlights Long-Standing and Newly Emerging Trends
Alexandria, VA, June 15, 2022 – The just released 2022 TechServe Alliance Operating Practices Report (OPR), highlights a number of long-standing and newly emerging industry trends:
After revenue dipped the prior year, IT staffing firms posted robust double-digit revenue growth and historic levels of profitability.
- Direct Hire Revenue surged, contributing to strong gross margins and pre-tax profitability
- In addition to revenue growth, firms are becoming more efficient with SG&A expenses trending lower.
- Firms are reducing their real estate spend; remote and hybrid work for both internal teams and billable consultants is here to stay
“It is clear from our most recent benchmarking report that the industry is thriving as it continues to adjust to many of the changes and trends wrought or accelerated by the pandemic,” observed Mark Roberts, CEO of TechServe Alliance. “Given this rapidly changing environment, it is more critical than ever to adopt a data-driven management approach to fully leverage opportunities to drive growth and profitability,” added Roberts.
This comprehensive benchmarking report covers a wide range of metrics including newly captured data points on operating in a work-from-anywhere-sell-to-anywhere world:
- Gross Margin & Bottom-line Profitability Based on Size
- Gross Margins and Close Rates associated with Direct Client Relationship, VMS/MSP with Hiring Manager Contact, and VMS/MSP Without Hiring Manager Contact
- Direct Hire Revenue and its Impact on Gross Margins and Pre-tax Profitability
- SG&A Expenses—what areas of expense control can help drive higher profitability
- Performance Expectations Including Virtual Activities & Compensation for Sales & Recruiters at Three Levels of Experience
- Benefits Offered for Internal Staff, Hourly and Salaried Consultants
- Industry Trends such as client policies on the use of H-1Bs, multi-tier arrangements, and consultant tenure restrictions
- And much more!
Learn more about the 2022 Operating Practices Report here. A Sales & Recruiter Metrics Report will be released in the future.
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About TechServe Alliance
TechServe Alliance is the national trade association of the IT & Engineering staffing and solutions industry. IT & Engineering staffing and solutions firms and affiliated professionals count on TechServe Alliance to keep their leadership informed, engaged, and connected. TechServe Alliance serves as the voice of the industry before the policymakers and the national and trade press. By providing access to the knowledge and best practices of an entire industry and tapping the “collective scale” of companies, TechServe Alliance supports its members in the efficient delivery of best-in-class IT & Engineering staffing and solutions for clients and exceptional professional opportunities for every consultant.