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What is IT Contract Staffing? Types, Benefits, When to Use

Krunal Shah

Oct 10, 2022

7 min readLast Updated Apr 12, 2024

IT contract staffing has become highly popular among businesses from diverse sectors - B2B SaaS to eCommerce. According to these statistics, In 2023, the global staffing industry's revenue increased by approximately 34% compared to 2020. Despite a downturn in 2020, where revenue dropped by about 25% due to the COVID-19 outbreak, the industry has shown resilience and is projected to surpass pre-pandemic levels by 2023.

There are several reasons why IT contract staffing has become highly sought-after among the employers from around the globe such as cost-effectiveness, specialized skills onboarding, and catering to the short-term business requirements, to name a few.

IT Contract Staffing

No matter in which sector you are operating in, IT contract staffing can be the most suitable option to scale your business, or hire the required talents without investing heavily. If you are wondering how and why, then read on. In this blog, we will guide you through what is IT contract staffing, top benefits of IT contract staffing, and more. So, let’s get started!

What Is IT Contract Staffing

IT contract staffing is defined as the staffing or recruitment process in IT where the employees are recruited on the basis of short-term contracts instead of getting hired on the long-term basis. While IT contract staffing is convenient for businesses as it is cost-effective, hassle-free, and lets them onboard the required talents easily, such jobs are also preferred by many of the employees as they offer more flexibility and better payment.

Also, in many cases there are options to extend the contract to a permanent job which is beneficial for both the employers and the employees. As stated in a recent market report, the global IT staffing market is forecast to grow at 3.66% through 2027 with a significant contribution of the IT contract staffing segment which depicts its growing adoption.

4 Types of IT Contract Staffing

There are mainly four types of IT contract staffing as discussed below.

1. Fixed-Term IT Contract Staffing

In fixed-term IT contract staffing all the terms, conditions, and prerequisites are defined and mentioned in the agreement for a specific project and when all those are fulfilled then the contract gets terminated.

It offers fixed payment to the contract employees as per the agreement. While the requirements in this type of contract staffing remain fixed, the timeline can be extended under the special circumstances if required.

2. Part Time IT Contract Staffing

In part time IT contract staffing, the employees work on the basis of fixed hours while availing some or all of the perks and opportunities of a full-time employment as decided by the employer. However the payment is on the basis of the working hours and the timeline can be similar to the permanent positions or longer than the temporary contract work.

3. Zero Hour IT Contract Staffing

In zero hour IT contract staffing, the employees don’t need to work for a specific time duration or longer period of time. Here, the employees are required to work as per the particular requirements that may arise any time or on an ad-hoc basis. The payment and working hours depend on that specific set of requirements.

IT Contract Staffing

4. Agency IT Contract Staffing

As the name suggests, in agency IT contract staffing, the companies hire employees through IT contract staffing agencies. If you are doing IT contract staffing for the first time or want some assurance to onboard the right talents, then opting for a well-known IT contract staffing agency can be a good option for you.

See More: How To Hire Developers For Startup: All You Need to Know

5  Benefits of IT Contract Staffing

IT contract staffing is garnering more popularity than ever for several reasons. Here are the top benefits of IT contract staffing that are making it high on demand around the globe.

Benefits of Contract Staffing
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1.Cost-Effective Staffing Solution

One of the top benefits of IT contract staffing is that it offers a cost-effective solution for the businesses to hire the required talents. IT contract staffing opens the path to hire the required skills without investing heavily or doing any long-term commitments. Starting from small businesses or startups to big businesses - IT contract staffing is convenient if one wants to avail a cost-effective staffing solution without making a hole in your pocket.

2. Easy Onboarding of Specialized Skills

IT contract staffing lets you onboard the required skills without needing to have any full-time commitment. As you are hiring them on contract basis and not on a permanent basis, you don’t need to go through the time-consuming and complex onboarding process and just can onboard them through minimal formalities.

3. Access to Wide Talent Pool

IT contract staffing is a good option if you are willing to onboard the best of the talents from around the globe. It lets you access a global pool of talents to hire from and as there is no permanent commitment, you can even onboard overseas employees as per your requirements.

In the regions like North America, Europe, Latin America, and others, the trend of doing contract staffing is even more prominent which lets you hire the skilled talents from such regions easily.

4. Aligning With Short-Term Business Requirements

IT contract staffing is the most suitable option to fulfill short-term business requirements within your budget. Be it hiring talents for short-term projects, or onboarding talents to reach your current business goals - IT contract staffing lets you avail all efficiently and easily without making a hole in your pocket.

5. Bypassing Lengthy ACA Processes

Another significant benefit of IT contract staffing that aids in its high popularity is it doesn’t require the employers to go through a lengthy ACA (Affordable Care Act) process. For instance, in the USA, companies with 50 employees must offer health insurance to their employees.

For many start-ups or small companies, this can be difficult to adhere to. IT contract staffing helps them bypass this process and hassles by staffing from contract staffing agencies.

See More: Outstaffing vs. Outsourcing vs. Managed Services: Hire the Right Team for Your Software Development Needs

When to Use Contract Staffing?

Now that you have a better knowledge on what IT contract staffing is and what its benefits are, you must be wondering exactly when you should opt for contract staffing. And here we are going to guide you through that.

IT Contract Staffing
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1. Limited Budget

No matter whether you are running a start-up or medium business, contract staffing can be your go-to option if you have a limited budget. As you are not hiring permanent employees, you don’t need to spend on a long-term basis but only need to pay for a specific contract duration. This helps you serve the purpose while staying within your budget.

2. Temporary Requirements

If you have some temporary requirements such as working on a temporary project or account, one-time product development, and others, then going for IT contract staffing is a better option than hiring full-time employees. This lets you get your work done without spending anything extra or taking any additional overheads.

3. Differential Requirements

In case you have diverse requirements for your business and you need to maintain the respective timelines and budget, then IT contract staffing can accommodate your requirements. For instance, if you have one SaaS product development project, one product migration project and another different project, then it is recommended to onboard through IT contract staffing for respective projects as the process is much easier, simpler, and faster than permanent hiring.

4. Scaling Your Business Up

If you are planning to scale your business up and require some additional human resources and yet not sure for how long you will need them, then IT contract staffing is the answer. It will help you fulfill your growing business requirements without going for the complex and costly permanent employees hiring. Also, you can hire them as your permanent employees in future.

IT Contract Staffing

Efficient IT Contract Staffing Solutions by Third Rock Techkno

IT contract staffing has become the go-to option that accommodates the human resources and proper skills hiring requirements while taking into account other crucial factors such as your budget, timelines, specific skills requirements, and others.
If you are planning for IT contract staffing for your business, then Third Rock Techkno can be the best option for you. Starting from web developers with domain-specific skills to mobile developers or voice developers - we, at Third Rock Techno, have extensive IT contract staffing solutions to pick up from. Take a look at our range of options and contact us to get started.


Q1: When should I use IT contract staffing?

IT contract staffing is ideal for projects that have a defined timeline, require specialized skills, or need additional resources to meet deadlines. It can also be used to fill temporary gaps in staffing or during periods of high workload.

Q2: What industries commonly use IT contract staffing?

Industries such as technology, finance, healthcare, and manufacturing commonly use IT contract staffing to meet their project-based or temporary staffing needs.

Q3: How do I find IT contract staffing opportunities?

You can find IT contract staffing opportunities through online job boards, staffing agencies, networking events, and professional social media platforms like LinkedIn.

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