---
title: Staffing firms see performance gaps expand
description: Increased employment of IT contract workers drives IT staffing firm revenue.
---

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May 23, 2013

# Staffing firms see performance gaps expand

Written by: [Innovative Employee Solutions](https://blog.innovativeemployeesolutions.com/ies-blog-nb-24/author/innovativeemployeesolutions)

The staffing industry continues to see competition between agencies, according to a new report. Employing [temporary employees](http://innovativeemployeesolutions.com/wp/temporary-workers/) are on the rise throughout the country, but firms in the information technology industry are growing faster than their counterparts due to the increasing need for IT contractors. 

The 2013 TechServe Alliance Operating Practices Report found the demand for contingent workers in the IT field is [creating a performance gap](http://www.staffingindustry.com/site/Research-Publications/Publications/IT-Staffing-Report/May-16-2013/Performance-gap-widens?cookies=disabled) between IT staffing firms and other agencies. IT staffing companies reported spikes in profit before taxes of 11.3 percent of revenue, compared to the median profit margin of 3.9 percent. 

According to the report, high-profit firms saw significant improvements in their bottom-line results, or the final financial statement.

Mark Roberts, CEO at TechServe, said enhancements in revenue and resources is driving higher-profits in the IT staffing sector.

"Through data-driven management, the implementation of industry best practices, and modeling the behavior of high-performing firms, companies have the ability to improve their top and bottom-lines," Roberts said. 

There continues to be a need for short-term staff and as other industries increase their demand for contingent workers, the gap between agencies may close.

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