**The big picture:** The IT staffing and consulting M&A market is prioritizing specialized, project-based consultancies over generic staff augmentation as the industry slowly recovers from a multi-year decline. **Why it matters:** Staffing leaders and talent acquisition executives must adapt their strategies to focus on niche skills and platform-tied services to remain competitive and attractive to potential buyers. **Between the lines:** - IT staffing experienced declines of 14%, 12%, and 3% from 2023-2025, with only 1% growth forecast for 2026. - Average M&A multiples for HR and staffing services (9.4x EBITDA) are skewed by higher-multiple HR businesses, with pure staffing running lower. - Acquisitions like ASGN's purchase of TopBloc for $340 million highlight the premium placed on project-based consultancies tied to platforms like Workday. **Staffing & HR impact:** Staffing firms face pressure to develop specialized offerings and direct client relationships, as MSP/VMS programs and policy questions around H-1B visas can compress gross margins and impact valuations. Recruiters with niche expertise and strong client ties will be highly valued. **The bottom line:** The future of IT staffing M&A lies in high-value, specialized consulting, pushing generic staff augmentation to the lower end of the market.