Demand for staffing in the IT industry is set to grow over the next few years, but the supply of IT workers will be unable to keep pace, according to an article from Staffing Industry Analysts (SIA).
There are various factors driving this demand for IT staffing, with fierce competition for talent and increased investments in new technologies playing the largest role
Here at Conexis, we believe that a growing number of organizations looking for IT staff will up their contingent workforce spend to ensure they are able to acquire the top talent within their industry.
In this blog, we take a quick look at the findings from the Staffing Industry Analysis article, and explore how the contingent workforce can help organizations fulfill IT staffing requirements.
The growing demand for IT staff
The start of the pandemic in 2020 left many organizations transitioning to remote work or hybrid work models. The result was an increased reliance on technology, with IT spending growth accelerating in 2021.
The increase in IT spend has resulted in a significant growing demand for IT staffing.
While total nonfarm employment in the US grew 8 percent from 2000 to 2020, IT employment grew at a staggering 56 percent over the same period. This demand for IT employment is set to continue, with LinkedIn data predicting that 149 million digital jobs will be demanded worldwide from 2020 to 2025.
One of the leading contributors to the growth in IT staffing is the greater adoption of new technologies across a wide range of industry verticals - with cybersecurity investment leading the charge.
While demand for IT staffing grows, supply is unlikely to keep pace
While the demand for IT staffing is continuing at a rapid rate, the supply of IT workers is expected to be unable to keep pace. In fact, the SIA cites a study from Korn Ferry which projects that the talent shortage in the technology sector will translate into $162 billion in unrealized output in the US by 2030.
Meanwhile, there’s also a historically low unemployment rate for US computer and mathematical occupations. After reaching 4.2 percent in the third quarter of 2020, the sector’s unemployment rate dropped to 1.7 percent a year later, matching a pre-pandemic low for the sector.
How can organizations acquire top IT talent in a competitive staffing environment
The increased demand for IT staffing and shortage in IT talent means organizations will need to find innovative ways to acquire, and retain, talented workers if they are to beat their competitors to IT workers.
To acquire top talent many businesses will turn to the contingent workforce - made up of temporary and contract workers - to fulfill their IT workforce requirements.
The contingent workforce, and IT staffing firms, can help businesses fill gaps in their IT workforce both cost-effectively and quickly. Using the contingent workforce to acquire IT talent can help businesses reduce spend, improve talent acquisition, meet their IT requirements and enhance business agility.
Are you utilizing the contingent workforce and want to improve how you manage your contingent workforce program for improved ROI? Get a free demo of Conexis VMS today. We developed an innovative, easy-to-use vendor management system for organizations with smaller volume contingent workforces.