Back to the blog

Understanding the True Cost of IT Staffing: Bill Rates, Markups, Hidden Costs & ROI

TL;DR:

IT staffing costs are rising, driven by increasing demand for highly skilled roles and the growing complexity of hiring in today’s market. At the same time, internal staffing models often carry high hidden costs, from recruiting hours and prolonged vacancies to tools, overhead, and turnover. When done strategically, IT staffing delivers measurable ROI through faster hiring, stronger quality of hire, and improved retention. Partnering with an experienced IT staffing provider can further reduce time to fill, control costs, and ease operational strain. For HR leaders and organizations building technical teams in 2026, gaining clarity on IT staffing costs and how to maximize every dollar, every day, and every candidate, is no longer optional.

Challenges To IT Staffing in 2026

Staffing costs are on the rise on a national level. According to the most recent Employment Cost Index from the Bureau of Labor Statistics, overall compensation costs increased 3.5%, and wages, salaries, and benefits also increased by the same rate at the tail end of 2025.[1]

For the IT sector, this is in part due to inflation, increased demand for top-tier talent, and the need for specialized skills and new AI-focused roles. Additional causes include high operating costs, salary increases, and escalating benefits. 

Whatever the cause, the workforce needs are the same. And IT staffing can fill the gap, keeping your teams agile and forward-moving. 

How IT Staffing Costs Work

The final cost of IT staffing will vary by skill set, location, experience, and contract type. Contract roles are billed hourly, while direct hire engagements include a one-time placement fee. For enterprise organizations, staffing is often more cost-effective than long-cycle internal recruiting for several reasons:

• Bill Rates: These rates are the overall costs of staffing services that include both the employee’s wages and the cost of covering additional expenses (see Markups). It’s all bundled into one comprehensive rate.
• Markups: These are additional expenses that apply to each employee, including payroll taxes, workers’ comp, unemployment insurance, health benefits, PTO, recruiting, screening, payroll processing, and operational costs. 
• Hidden Costs: Managing IT staffing internally, without a skilled partner, includes internal recruiting hours, tools, vendor costs, interview hours, and lost productivity due to vacancies. Ultimately, the highest cost here is the loss of momentum. 

Partnering with an IT staffing agency makes it easy for you to pay a straightforward rate without taking on those additional expenses until (when or if) you’re ready to hire permanently. 

IT Staffing Costs ROI

IT staffing is an investment, not just an expense. You’re gaining a human asset that will also generate additional output and assets on your behalf. The real ROI of IT staffing is found in:

• Faster hiring
• Increased engineering velocity
• Improved quality of hire
• Lower turnover
• Reduced project risk
• Cost avoidance

Our Simple ROI Formula

Here’s how it looks when you run the numbers:

IT Staffing ROI = (Delivery Gains + Cost Savings + Risk Reduction) – Staffing Costs

Do the math for your company. What will you lose by not choosing the fastest, safest, and most reliable path to fill skilled roles? 

How To Get Started With A Skilled IT Staffing Partner

1. Assess your needs: What/how many IT roles do you need to fill?
2. Determine your ideal timeline: How quickly do you need OUTCOMES, not resumes? 
3. Connect with IDR: Put out the call for reinforcements and accelerate your team with AI-first precision, human-centered partnerships, and ownership-driven accountability.
4. Find your perfect-fit(s): IDR prioritizes culture-matching, high-quality candidates, and a consistent follow-up process to ensure your staffing needs are met, even if we have to pivot.

Reduce Your Time To Fill and Find High-Quality Talent With IDR

IDR is the go-to partner for filling high-skill IT roles with top-tier talent that dovetails with your team as a contract, contract-to-hire, or direct hire team member. Stay agile. Keep moving. Let’s connect about your IT staffing needs today.

Sources:

[1]https://www.bls.gov/news.release/pdf/eci.pdf