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According to research from Lehigh University and the University of Oklahoma, companies that utilize recruitment services tend to do better economically. Reliance on both temporary and/or part-time labor was associated with superior financial performance. In the study, economists compared firms that incorporated contingent labor into their staffing strategies against those that did not. The results found that increased use of contract labor boosted earnings (before interest, taxes, depreciation, and amortization), gross margins, and stock returns.
There are many advantages that IT staffing companies offer that support this finding. Providing extra support during busy times, contractors allow businesses to function at full capacity. Conversely, relying on contract labor also offers easier manpower adjustments during downtimes. When a particular skill set or expertise is needed, obtaining these functionalities through contract labor is a feasible alternative for businesses that wouldn't need these sorts of services on a full-time basis. This can save companies valuable resources and time in that they can focus spending their training budget on upgrading skills that are vital to the company's overall goals rather than training for one of their projects.