Staffing and outsourcing players, trends 2024 to 2026, and how to crack the cases
Who the players are by region, what changed from 2024 to 2026 (the hiring slowdown, AI in contact centres, shift apps, rules for gig work), typical prompts, traps and drills.
Industry brief, with a one-minute summary: Staffing and outsourcingFirm processes and online tests change from year to year and differ by office. Use this to prepare, and confirm the exact current steps on the firm's own careers page.
Key takeaways
- Staffing and outsourcing cases usually ask why profit fell when hiring slowed, how to respond to AI, whether to enter a new country or service, or how to price a contract.
- Common traps: Reaching for a generic framework instead of the real driver: in staffing that is the spread over the worker's cost and the hours billed; in outsourcing, billable hours against fixed site costs and who keeps the saving from automation.
- Permanent hiring hit hard: ManpowerGroup's gross profit fell 2.9 percent in 2025 while revenue rose 0.6 percent.
- Shift apps inside the agencies: Randstad said its digital marketplaces earn about EUR 4 billion of yearly revenue, with 1.4 million shifts booked by workers themselves in the fourth quarter of 2025.
Key idea
Staffing and outsourcing cases usually ask why profit fell when hiring slowed, how to respond to AI, whether to enter a new country or service, or how to price a contract. The answer comes back to the spread between what the client pays and what the worker costs, how many paid hours are billed, and how much of the work clients will still buy from people.
| Region | Staffing and recruitment | Outsourcing and contact centres | Work platforms |
|---|---|---|---|
| Global | Randstad, Adecco Group, ManpowerGroup, Recruit Holdings (Indeed, Glassdoor and staffing) | Teleperformance (TP), Concentrix, Genpact, Accenture, Capgemini (with WNS) | Upwork, Fiverr, LinkedIn |
| Europe | Randstad (Netherlands), Adecco (Switzerland), Hays, PageGroup, Gi Group | Teleperformance, Webhelp (now part of Concentrix), Transcom, Majorel (now part of Teleperformance) | Malt, Randstad's shift apps, Coople |
| Middle East | Saudi Manpower Solutions (SMASCO), Maharah, TASC Outsourcing (UAE), global agencies' Gulf offices | Global BPO firms' Gulf centres, Elm and other state-linked service firms | Local job and shift apps |
| India | TeamLease, Quess Corp, Info Edge (Naukri) | Genpact, WNS (Capgemini), Firstsource, Teleperformance India, IT services firms' BPO arms | Apna, Upwork and Fiverr freelancers serving foreign clients |
| Southeast Asia | PERSOL (called PERSOLKELLY until July 2025), JobStreet (SEEK), Randstad and Adecco offices | Philippine centres of Concentrix, TaskUs, Teleperformance, Accenture and Alorica | Grab and Gojek drivers (covered in internet platforms), local freelance apps |
| United States | Robert Half, Kelly, AMN Healthcare (nurses), TrueBlue | Concentrix, TaskUs, Alorica | Upwork, Fiverr, Instawork, Wonolo |
So-what
Staffing is spread across many firms in each country, while outsourcing is concentrated in a few large groups with centres in the Philippines, India and other lower-cost countries.
| Company | Revenue | Growth | Margin |
|---|---|---|---|
| Randstad | EUR 23.1 billion | Down 4 percent reported; down 2 percent organic in Q4 2025 | Underlying EBITA margin 3.1 percent |
| ManpowerGroup | USD 18.0 billion | Up 0.6 percent reported, down 2.1 percent in constant currency | Gross margin about 16.7 percent |
| Teleperformance (TP) | EUR 10.2 billion | Up 1.3 percent like-for-like, down 0.7 percent reported | EBITA margin 14.6 percent |
So-what
Staffing agencies keep about 3 cents of each euro of revenue; a contact centre group keeps about 15, because it sells a managed service, not just the worker's hours.
Trends 2024 to 2026 (checked 1 October 2026)
- A long hiring slowdown: in the Bureau of Labor Statistics data as revised by September 2026, US temporary help employment was below its level a year earlier for 43 months in a row, from November 2022 to May 2026, the longest such run since the series began in 1990, and rose on a year earlier from June 2026. It was about 2.52 million in August 2026, about 20 percent below its March 2022 peak of about 3.16 million. Randstad's revenue fell 2 percent organically in the fourth quarter of 2025, to a full year total of EUR 23.1 billion.
- Permanent hiring hit hard: ManpowerGroup's gross profit fell 2.9 percent in 2025 while revenue rose 0.6 percent. It said lower permanent recruitment and a shift towards large clients on thinner staffing margins each took about a quarter of a point off its gross margin.
- Shift apps inside the agencies: Randstad said its digital marketplaces earn about EUR 4 billion of yearly revenue, with 1.4 million shifts booked by workers themselves in the fourth quarter of 2025.
- AI comes to the contact centre: in February 2024 Klarna said its AI assistant handled 2.3 million conversations, two thirds of its customer service chats, in its first month, the equivalent work of 700 full-time agents (a company claim, not independently checked). Teleperformance grew only 1.3 percent like-for-like in 2025 and expects 0 to 2 percent in 2026 under a new plan built around AI. Capgemini bought WNS for USD 3.3 billion in October 2025 to build AI-run operations.
- The Philippines keeps growing: the IT and business process industry body IBPAP expected about USD 40 billion of export revenue in 2025 (from USD 38 billion in 2024) and targets USD 42 billion and nearly 1.97 million jobs in 2026.
- New rules for gig work: the EU Platform Work Directive, which presumes platform workers are employees when there are facts showing the platform directs and controls their work (the platform can try to prove otherwise), must be in national law by 2 December 2026. India's four labour codes took effect on 21 November 2025; the social security code requires aggregators (app and platform companies) to pay 1 to 2 percent of their annual turnover, capped at 5 percent of what they pay gig and platform workers, into a social security fund.
- Gulf demand: Saudi Manpower Solutions' revenue rose 10.7 percent to SAR 2.1 billion in 2025, helped by demand for workers from companies and households.
| Prompt | Structure hint | First driver to check |
|---|---|---|
| A staffing agency's profit halved while revenue fell 5 percent. Why? | Gross profit by service (temp, perm), spread, hours, branch costs | Permanent placement fees and the spread on temp hours |
| How should a Philippine contact centre firm respond to AI? | Volumes by type of contact, pricing model, new services, cost base | Share of contacts AI can handle, and who keeps the saving under the contract |
| Should a European agency enter Saudi Arabia? | Market entry: demand, local hiring quotas, licences, partners, pricing | Rules on hiring nationals and the margin after local costs |
| Should a staffing firm build its own shift app? | Build or buy: worker and client adoption, take rate, cannibalisation of branches | Shifts booked through the app and cost per shift filled |
| A client wants to cut its outsourcing bill by 20 percent. | Price, volume, mix of onshore and offshore, automation | Moving work offshore or to automation against service levels |
So-what
Start from the spread and the billable hours, then ask how AI, rules or the hiring cycle are changing them.
Using this in a case
- Ask: which business (temp, permanent, outsourcing, platform); how the client pays (per hour, per placement, per transaction, per outcome); the spread or margin by service; and where the hiring cycle is.
- Calculate: the spread and gross margin per hour or per week, the operating profit after branch costs, billable hours as a share of paid hours, and what a change in rate, volume or employer costs does.
- Say: tie the number to the decision. For example, "A 3 percent rate cut removes about 90 percent of the profit on each worker, so I would trade price only for volume or a longer contract."
Reaching for a generic framework instead of the real driver: in staffing that is the spread over the worker's cost and the hours billed; in outsourcing, billable hours against fixed site costs and who keeps the saving from automation. Reading revenue growth as success when it is mostly pass-through pay. Forgetting employer taxes and minimum wage rises. Treating AI only as a cost saving when hourly pricing turns it into lost revenue. Ignoring rules on employment status for gig workers, which can change the cost of a platform overnight.
The staffing and outsourcing brief puts this industry on one page. Consulting and IT services, and internet platforms, have their own briefs.
Staffing and outsourcing briefContact centres follow the utilization pattern: paid capacity that earns only when it is billed. Work platforms follow the marketplace pattern.
The utilization patternUS temporary help employment was about 2.52 million in August 2026, about 20 percent below its peak in March 2022. About how many temp jobs were there at the peak, in millions? (Round to two decimals.)
An outsourcing firm is paid per agent hour. Its client adds AI that handles a third of simple calls. Which pricing change protects the firm best?
Sources for this lesson (19)
- Randstad, "FY 2025: perform and transform" full year results, 11 February 2026
- Randstad, Q4 and full year 2025 press release (PDF: revenue EUR 23,077 million; underlying EBITA EUR 720 million, a 3.1 percent margin), 11 February 2026
- The Adecco Group, Q4 and full year 2025 results, 25 February 2026
- ManpowerGroup, annual report on Form 10-K for 2025 (gross profit margin down 60 basis points: 25 from permanent recruitment, 25 from staffing mix, 10 from outplacement)
- ManpowerGroup, "ManpowerGroup Reports 4th Quarter 2025 Results" (full year revenue USD 17,957 million, up 0.6 percent, down 2.1 percent in constant currency; gross profit down 2.9 percent)
- MarketScreener, report of Teleperformance (TP) 2025 annual results, 27 February 2026
- Bertelsmann, "Bertelsmann transfers Majorel stake to Teleperformance after successful takeover bid" (Majorel is now part of Teleperformance), 8 November 2023
- Concentrix, "Concentrix and Webhelp Complete Combination" (Form 8-K exhibit), 25 September 2023
- WNS, press release on the completion of its acquisition by Capgemini (Form 8-K exhibit), 17 October 2025
- Alvinology, "PERSOLKELLY evolves into PERSOL, strengthening regional alignment and scale" (company announcement), 31 July 2025
- Upwork, annual report on Form 10-K for 2025 (gross services volume of USD 4.0 billion)
- US Bureau of Labor Statistics, The Employment Situation, Table B-1 (temporary help services, seasonally adjusted)
- US Bureau of Labor Statistics, series CES6056132001, temporary help services employment, seasonally adjusted (peak 3,161,400 in March 2022; 2,519,500 in August 2026; below a year earlier every month from November 2022 to May 2026 in the data as revised)
- Philstar, "IT-BPM sector on track to hit $40 billion revenue goal" (IBPAP figures), 1 January 2026
- Press Information Bureau, Government of India, "Labour Reforms: Formalising and Safeguarding India's Gig and Platform Workforce" (aggregators contribute 1 to 2 percent of annual turnover, capped at 5 percent of payments made or payable to gig and platform workers), 9 December 2025
- Press Information Bureau, Government of India, "Government Makes the Four Labour Codes effective to Simplify and Streamline Labour Laws" (effective from 21 November 2025), 21 November 2025
- EUR-Lex, Directive (EU) 2024/2831 on improving working conditions in platform work (Article 5 legal presumption of employment; Article 29 transposition by 2 December 2026)
- Klarna, "Klarna AI assistant handles two-thirds of customer service chats in its first month" (company claims), 27 February 2024
- Enterprise AM, Saudi Manpower Solutions 2025 earnings (revenue SAR 2.1 billion, up 10.7 percent), 25 March 2026
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