Managed Staffing is more than a buzzword. Many mega companies have centralized contract staffing by hiring one vendor to administer their contract personnel. In turn, Managed Staffing vendors are fed a steady supply of contract candidates from a network of agencies; the only gotcha is that the agencies must conform to rigorous hiring practices and maintain a wide variety of insurances.

How is it that a small contract software development firm can compete in this space? Well-defined recruiting practices are part of the picture. But there is far more to it, otherwise L-3 would not have created a 10-person development team with 8 Stout Systems personnel. And Siemens Medical Solutions would not have hired 8 of its 12 contract personnel from Stout Systems either.