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What else can you do for us?

It's the question echoing through today's rapidly changing tech world, a direct challenge from clients to their IT staffing partners. The days of being a generalist staffing industry provider are waning.

According to seasoned industry executive Joel Leege, Red Oak Technologies President and COO, clients now demand "transparency in what you can provide and what you can do really well." This isn't just a minor trend; it's the blurring of a line that once clearly separated staff augmentation from true, deliverable-based work.

Joel Leege President & COO
Red Oak Technologies

"There was a time, 28 years ago when I started, where there was a great divide between true services—SOW, milestone, deliverable-based work—and what people would call staff augmentation," Leege explains. "That divide has come together very nicely. Now, smaller firms can deliver services, MSPs, and outsourced work that customers in the past would have only trusted to the larger firms. They're all asking: what else can you do for us?"

The conversation around AI in IT staffing has been a mixed bag of apprehension and opportunity. The initial fear was that AI would diminish the need for certain skill sets. However, the reality is proving to be far more complex. As Leege points out, quoting an IT leader, "If we're really leveraging AI and we're able to do more projects... most companies [will say], 'I want to do more projects.'"

This sentiment is a crucial recalibration of the AI narrative. Instead of simply doing the same work with fewer people, AI is empowering organizations to increase their project velocity and output. Consequently, while the demand for some traditional coding roles may evolve, the need for project managers, business analysts, and systems architects is set to increase. And it is this technological evolution that is fundamentally reshaping what clients value in a staffing partner.

Customers are looking for staffing firms to “tell them their technology roadmap, where they're going, where they think they have gaps. In the past that would seem so proprietary. Why would I gather all these people outside of my company and tell them where I think my potential weaknesses or gaps are? But I think in today's day and age that's exactly where you need to go," says Leege. Staffing firms that can demonstrate expertise in high-demand areas like AI, machine learning, and IoT skill sets will be the ones to thrive.

In this dynamic environment, the ability to be agile and responsive is a significant competitive advantage. For staffing firms, this means the ability to move quickly, make decisions on the fly, and be easy to do business with. This nimbleness stands in contrast to the often-bureaucratic processes of larger organizations. However, the core of the business, regardless of size, remains the same: relationships built on trust. As Leege emphasizes, "the relationships with the customer are still probably the most important because you're building on that foundation of trust." This relationship-centric approach is becoming increasingly vital as the market becomes more consultative.

Despite the "great gross margin squeeze" being a reality for many in the industry, the key to navigating it is to demonstrate value, explains Leege. By offering a hybrid model that combines a small bench of experts with just-in-time contingent labor, firms can provide the same level of talent as larger systems integrators but at a more competitive price point. Clients are increasingly savvy about these cost differentials and are looking for partners who can deliver quality without the premium price tag.

So, what does the future hold for the IT staffing industry? The consensus is a continued shift from staff augmentation to a more services-oriented model. The lines between a large staffing firm and a company for example, like Accenture, will continue to blur as both move towards providing comprehensive IT solutions. This evolution is not a doomsday scenario for the industry but rather an opportunity for growth and reinvention. As Leege aptly puts it, "I still see the talent winning and I still see the relationships winning."

Ultimately, the future of IT staffing will be defined by a symbiotic relationship between technology and human connection. AI and automation will undoubtedly make the industry more efficient, but they will not replace the need for trusted advisors who can understand a client's challenges and provide strategic solutions. The firms that will succeed are those that embrace this dual reality, leveraging technology to enhance their capabilities while doubling down on the human-centric approach that has always been the bedrock of the industry.

In a world of algorithms, the human touch has become the ultimate currency. For an industry built on connection, that is its most valuable—and untouchable— weapon.

Want to know more about Joel Leege?

Watch his recent podcast Future-Proofing Work
Hear him speak at Techserve Alliance Execute Summit 2025
Follow him on LinkedIN