The IT staffing world is entering a period of profound change—one marked by economic uncertainty, rapidly evolving buyer expectations, and an AI revolution that is rewriting how work gets done. For many firms, the traditional staffing model that fueled decades of growth is beginning to show its limits. Rates are compressed, roles are filled through new channels, and procurement continues to narrow access to business stakeholders. At the same time, AI is creating demand for project-based, outcomes-driven services. 

Increasingly, industry leaders suggest that staffing organizations must evolve into consulting partners if they want sustainable growth and higher valuations in the years ahead. As Mark Orttung, CEO, Projectworks put it, “When there is the most uncertainty, there is the most opportunity.”  

That opportunity lies in shifting from filling roles to delivering outcomes. 

Why the Industry Is Ripe for Reinvention 

Several structural forces are accelerating this movement. 

First, IT employment is effectively flat, with tech roles shrinking slightly in the past year. Firms cannot grow seat-based revenue without seat growth, and many leaders feel the ceiling. Meanwhile, As Jenna Donohue, US GTM Lead, Projectworks, observed, nearly 60% of large enterprises now buy talent exclusively through MSPs, a purchasing model that limits margins and relationships while all but eliminating access to strategic conversations. 

Then there’s AI—arguably the biggest disruptor to staffing in decades.   “AI is automating a lot of the sourcing and screening, which impacts the way we recruit. But it’s also generating new demand for project-based and outcomes-driven work,” Donohue said. 

This dual effect—compressing traditional staffing while creating project demand—makes consulting a natural next step. It’s also a shift buyers increasingly expect. According to Orttung, firms that move from generic staff augmentation to outcome-driven consulting often see their valuations rise dramatically: “A mature consultancy usually sells at three times revenue, while generic staffing firms often trade at a quarter to half of revenue.” 

In a tightening market, those numbers speak for themselves. 

Understanding the Difference: Staffing vs. Consulting 

One of the biggest hurdles for firms is defining the difference between staffing and consulting in practical terms. Orttung offered a simple, measurable framework: 

– When clients ask for individuals who report to their managers, it’s staffing. 

– When clients ask a firm to own a piece of work—with its own team, management structure, and outcomes—it’s consulting. 

He explained, “If we’re providing a team where all our people work for one of our people, and we’re given responsibility over a chunk of work, we’re no longer staffing. We’re delivering an outcome.” 

This shift—from individual contributors to multidisciplinary teams accountable for defined deliverables—is the foundation of the consulting model. 

The Three Leaps: How Firms Actually Make the Transition 

Orttung’s experience transforming Nexient into a $130M+ consultancy provides a practical roadmap. He breaks the journey into three major “leaps,” each representing a step up in maturity and operational discipline. 

Leap 1: From Generic Staffing to Specialized Staffing 

Most firms begin with broad capabilities—anything a client needs, they source. But the firms that successfully transition begin by narrowing their focus and building depth in a specific technical or business domain. 

Specialization is the precursor to credibility. 

Donohue emphasized that this is where market listening matters: “The first step is understanding what the market really needs. That usually starts with customer interviews to figure out the pain points your expertise can solve.” 

AI has opened dozens of high-value specialization lanes, from automating go-to-market workflows to modernizing supply chains to building internal AI agent ecosystems. Firms with deep expertise in just one of these areas can carve out a defensible niche quickly. 

Leap 2: From Specialized Staffing to Consultancy Startup 

This is the most difficult—and most transformative—part of the journey. Staffing firms must learn to sell and deliver projects, not people. That requires new talent, new positioning, and often a new mindset. 

Orttung explained that early consulting engagements are rarely high-margin: “You often overstaff those first projects with very senior people. The goal isn’t maximum margin—it’s a referenceable case study that proves you can deliver.” 

These initial projects validate the firm’s capability and serve as proof points for future prospects. 

But perception is another barrier. Existing clients often have difficulty seeing their trusted staffing supplier as a consulting partner. Because of this, Orttung noted that many firms secure their first consulting wins from new relationships rather than existing ones. 

“It’s almost impossible to shift a current client’s perception of you,” he said. “New clients will believe your new story far sooner than existing ones.” 

Leap 3: From Consultancy Startup to Scalable Mid-Market Consulting Firm 

Once a firm successfully delivers a few consulting engagements, growth becomes more achievable through repeatability. Teams can be structured, standardized, and scaled. Case studies help validate credibility with prospects. Delivery frameworks enable consistent outcomes. 

Orttung’s recommendation at this stage is simple: measure what matters. 

Two metrics became pivotal in Nexient’s growth: project margin and revenue expansion within existing accounts. Incentives were tied directly to both. As he explained, “We aligned compensation so our client teams earned significantly more when they delivered high project margin and strong client growth.” 

This ensured that teams focused not just on winning work, but on delivering it profitably and sustainably. 

Why AI Makes This Transition Even More Urgent 

AI is not just a force reshaping sourcing—it’s opening the door to entirely new categories of consulting work. Every business function is spawning dozens of emerging tools, each requiring evaluation, implementation, and change management. From sales to finance to back-office automation, the demand for guidance far exceeds the available expertise in most enterprises. 

As Donohue put it, “Most people are overwhelmed by the rate of change. If you can become an expert in even one of these areas, you’re immediately valuable.” 

Consulting firms—new and old—are being built around this reality. 

The Path Forward 

The staffing industry is evolving. Firms that embrace specialization, outcome ownership, and AI-enabled delivery will be the ones that thrive. Those that remain purely seat-based will find themselves increasingly boxed out of strategic conversations and long-term value creation. 

The shift takes time and discipline, but the upside is clear: stronger margins, better client stickiness, and valuations that reward firms for the impact they create—not just the hours they bill. 

To check out the full webinar on this topic, click here.