According to a new study by IDC, the global market intelligence and advisory firm in the information technology and telecommunications industries, “2003 showed signs of a rebound in many areas of recruiting and staffing, with growth shown in both the United States and worldwide. Early 2004 quarterly results are demonstrating that this growth will continue, a new report from IDC reveals. IDC forecasts worldwide recruiting and staffing service spending will increase to $94 billion by 2008, with a compound five-year annual growth rate (CAGR) of 8.7%. The U.S. market will continue to lead in this area and will increase to $40 billion in 2008.”
Among the key findings presented in this new IDC study are the following:
- The worldwide market for recruiting and staffing services in 2003 increased 5.6% to $62 billion. The United States led this growth with recruiting and staffing services revenue increasing 6.1% to $26 billion.
- 2003 growth across the different segments of recruiting and staffing services varied, but the variability proved to underscore the overall improvement in the economy and employment picture. Recruiting-related segments experienced strong growth but outplacement services grew at a much slower pace, indicating that the market encountered fewer large-scale layoffs.
- The single biggest obstacle for the end-to-end hiring solutions providers will continue to be the sheer number of vendors in the space and the buyer confusion that surrounds a crowded market. Suppliers are advised to take advantage of their revenue growth in recruiting-related transactional services to invest in the development and acquisition of services that prove to distinguish them from the competition in the area of transformational HR including workforce performance management.