The latest RPO Roundtable discussion reflected a staffing market that remains challenging—but increasingly uneven. While overall industry growth is relatively flat, some firms are finding meaningful opportunities by changing how they deliver talent, incorporating AI into their services, and using offshore and nearshore capabilities more strategically. 

The conversation pointed to a broader shift underway: clients increasingly want fewer people, greater expertise and more measurable outcomes. For staffing and solutions firms, that is changing everything from recruiting and candidate development to delivery models and client partnerships. 

A Flat Market Is Producing Very Different Results 

Recent industry data shared with the group showed median staffing revenue declining 1.5% in 2025, but that headline masks significant variation. The middle 50% of firms ranged from an 8.8% decline to an 8.8% increase. Looking ahead, traditional staffing firms may see only modest growth, while firms with stronger solutions capabilities could experience substantially better performance. 

Roundtable participants are seeing that divergence firsthand. Clients have not necessarily stopped spending, but they are taking longer to make decisions and becoming much more selective about the talent they hire. Decisions that once took a couple of weeks may now stretch to six weeks. 

At the same time, demand is shifting away from larger teams with mixed levels of experience toward smaller groups of highly skilled senior talent capable of producing more with AI. 

AI Skills Are Quickly Becoming Table Stakes 

One of the strongest themes from the discussion was how rapidly AI competency is becoming a baseline client expectation. 

Participants reported that AI-augmented skills are now relevant to the large majority of staffing inquiries they receive. In some cases, clients are testing candidates’ ability to use AI tools live during technical interviews rather than simply asking about AI experience on a résumé. 

That creates a new responsibility for staffing firms. Finding someone with the right technical background may no longer be enough. Firms increasingly need to understand how candidates actually use AI, help prepare them for changing interview processes, and potentially provide training or certification before presenting them to clients. 

The expectation may also extend beyond technical talent. The discussion highlighted the growing importance of AI fluency across business and administrative functions as organizations look for employees who can use AI to improve productivity. 

From Large Teams to AI-Augmented Pods 

AI is also challenging one of the traditional assumptions of offshore delivery: that more people equal more capacity. 

Participants discussed models built around small teams of senior engineers using AI across coding, testing and infrastructure. In one example, teams of two to four experienced engineers were described as producing output that previously could have required teams of eight to ten. 

That has significant implications for firms whose economics have traditionally been tied to headcount. 

Clients may increasingly ask a different question—not “How many people can you provide?” but “What outcome can you deliver?” 

For staffing firms, that creates both a threat and an opportunity. Firms that remain dependent on adding headcount could face pressure, while those capable of packaging expertise, AI tools and delivery into an outcome-oriented solution may create entirely new revenue opportunities. 

Offshore Is Becoming a Strategic Capability 

The conversation also challenged the idea of offshore delivery as primarily a lower-cost alternative to U.S.-based talent. 

Growth-oriented firms are increasingly treating offshore and nearshore capabilities as a strategic lever—something that can increase delivery flexibility, expand available expertise and help close business that might otherwise be difficult to serve. 

Participants described partnership models that go beyond purchasing talent from an offshore vendor. These can include white-label delivery, joint go-to-market strategies and channel partnerships where both organizations share accountability for the client outcome. 

Nearshore models were particularly prevalent among participants, providing access to broader talent pools while maintaining greater geographic and time-zone proximity to U.S. clients. 

However, trust remains critical. Clients may still have concerns about accountability, governance, intellectual property and local presence. Successful offshore partnerships therefore require more than access to talent—they require clear accountability structures, strong governance and alignment around quality and security. 

A New Opportunity: Becoming Part of the AI Ecosystem 

Perhaps the most forward-looking part of the conversation was the opportunity for staffing and solutions firms to build relationships with AI software providers. 

As AI-native SaaS companies expand, many are developing formal implementation and partner ecosystems to help enterprise clients deploy their technology. Firms with technical depth, delivery capabilities and strong client relationships may be well positioned to become implementation or integration partners. 

This represents a significant expansion of the traditional staffing value proposition. 

Instead of simply supplying people who know a particular technology, a firm could help a client select, implement, integrate and operationalize the technology itself—and provide the talent needed to support it. 

Participants also discussed using AI tools internally to accelerate sales. AI-powered note-taking, no-code development and rapid prototyping can significantly shorten the time between an initial client conversation and a working demo or proof of concept. 

The Bigger Takeaway: Follow the Client Problem, Not the Staffing Model 

Across the discussion, one theme connected nearly every topic: the definition of a staffing firm is becoming less rigid. 

Clients still need talent. But increasingly, they also need help determining how AI changes the work, which tools to adopt, how to implement them, and what combination of U.S., nearshore and offshore resources will deliver the best result. 

That creates an opportunity for firms willing to move beyond simply supplying headcount. 

The strongest position may be to remain flexible—combining talent, technology, partnerships and delivery models around the client’s actual business problem. As one theme from the discussion made clear, firms increasingly need to think of themselves as integrators and solutions providers, not simply headcount suppliers. 

What Staffing Leaders Should Be Asking 

• How are client expectations for AI skills changing the profiles we recruit and present? 

• Are we preparing candidates to demonstrate practical AI competency—not simply list it on a résumé? 

• Could offshore or nearshore capabilities expand what we can sell rather than simply reduce delivery costs? 

• Where could smaller, AI-augmented teams replace traditional headcount-based delivery? 

• Which AI technology vendors could become strategic partners rather than simply tools we purchase? 

• Are we positioned to solve a client’s broader business problem—or only fill the roles they give us? 

The market may be difficult, but the roundtable discussion suggested that opportunity has not disappeared. It is moving toward firms that can combine talent, technology and flexible delivery into a more strategic solution.

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