The Death Of The Traditional IT Staffing Model

Jul 21, 2023

I was at VIVE 2023 and ran into my good friend Eric Utzinger who started Revuud a couple of years ago, a platform for matching health systems to healthcare IT talent. His company is the future of health IT staffing.

The primary value a staffing firm adds is finding good people, but it is at a significant premium. Companies like Revuud, combined with AI and analytics, are much more efficient and cost-effective than traditional staffing models.

If you are a traditional staffing firm and don’t have a plan to move to a management consulting or recurring revenue solutions model, the future will be tough.

We have had the good fortune to advise many companies over the last 10 years in the transformation from staffing to solutions and recurring revenue models.

Being part of this type of transition was my job at maxIT Healthcare from 2010 to 2012. The team I had the honor of building and leading went from $0 to $60M in management consulting revenue over 3 years, and maxIT was number one or two in KLAS in every management consulting service area we offered. The company went from $50M to $250M during this period. Meaningful Use was a big driver, but the industry was growing at 25%, and we grew at 100%, so we were growing market share by moving up the strategy food chain. This transformation strategy added $150M-$200M to the $500M exit!

MaxIT won Best in KLAS for Overall Services in 2012 (based on 2011), the top service company award. It was a proud day for our company having our CEO Mike Sweeney on the stage with Judy Faulkner from Epic (won Best in KlAS for software) winning the top KLAS awards.

There is still time, and with a proven playbook, you too, can prepare for the future.

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