How Will Obamacare Affect IT Staffing?
As someone who has been in the IT consulting and staffing industry in the U.S. and
Europe for over 24 years, I've been asked by many people about my thoughts on how
Obamacare will affect the IT staffing industry as well as small businesses.
The cost of providing healthcare is a huge barrier for small businesses and with the
Affordable Health Care Act likely to remain the law, you will see an increasing
reluctance for small business owners to hire full-time employees, especially with IT
placement. They will be more likely to hire part-workers and restrict their hours to (30
hours or less) in order not to be subject to the health care mandate. This is a trend that
will not bode well for business owners or their employees. Small business owners already
face many challenges in running a business. The new health care act will add another
layer of complexity for many of these businesses. Additionally, due to the length of the
new law, experts are still discovering nuances that create uncertainty for business owners
in the future. Depending on the business, the company's ability to hire may be greatly
affected with the Affordable Health Care Act.
In addition, I think that there will continue to be a shortage of skilled IT talent because I
don't believe that we will have meaningful immigration reform that will result in visas
being stapled to the college diplomas of math, engineering and science students who have
come to the U.S. for their degrees. They are unfortunately going back to their countries in
record numbers and we are failing to graduate U.S. citizens in sufficient numbers to
address the demand. IT recruiters will have a difficult time finding IT talent.
Consequently, firms will have a hard time to hire full-time or contract staff for IT and
My fear is that with a Democratic Senate, a Republican House and a Democratic
president we will continue to see the same gridlock and failure to compromise that we
have witnessed for the last four years. Failure to deal with budgetary issues will come at a
price. If we don't, won't or are unable to, the markets will, and I fear they are running out
of patience. If you're wondering what that means, take a look at what is going on in
Europe as a preview.
Jim Thompson, CEO, The InSource Group
Jim Thompson is the CEO of the InSource Group and has more than 24 years of
experience as a Consultant, Sales Executive and General Manager with various
technology companies in the U.S. and Europe. The InSource Group is Dallas IT staffing
company that engages with companies to provide a complete spectrum of flexible
solutions for their IT needs, including contract, contract-to-hire and direct hire options.
For information on IT Jobs in Dallas, please visit: