ASGN Incorporated (‘ASGN’) provides information technology (IT) services and solutions to the commercial and government sectors.
From a revenue and margin perspective, ASGN has grown through a combination of organic growth and strategic acquisitions. Over the last five years, the company completed nine ‘tuck-in’ acquisitions. Each of these acquisitions aligns with the company’s strategy to expand its IT consulting services and solutions capabilities, offer higher-value technical solutions, and...
ASGN Incorporated (‘ASGN’) provides information technology (IT) services and solutions to the commercial and government sectors.
From a revenue and margin perspective, ASGN has grown through a combination of organic growth and strategic acquisitions. Over the last five years, the company completed nine ‘tuck-in’ acquisitions. Each of these acquisitions aligns with the company’s strategy to expand its IT consulting services and solutions capabilities, offer higher-value technical solutions, and become a provider of these high-end services to the commercial and federal government markets.
From a client perspective, ASGN has grown by effectively understanding its clients’ IT needs and supporting their long-term, strategic IT roadmaps. The company does so by providing its clients with qualified IT and creative marketing professionals who maintain a unique combination of skills, experience, and expertise to meet those needs. Its clients set rigorous requirements for talent, technological proficiency, and solutions capabilities, which have only increased as the company has evolved its business to offer higher-end, higher-value IT consulting solutions. To meet these talent requirements, the company leverages its deep talent pool that is carefully maintained in its extensive databases that have been expertly built over decades to quickly identify and pre-screen candidates, whether for a shorter-term assignment or longer-term consulting contract. This enables ASGN to differentiate itself in the marketplace by building tailored, just-in-time teams for its clients.
The company is responsible for recruiting, verifying credentials upon request, hiring, administering pay and benefits, compliance, and training, as applicable. As it supports clients across a diverse set of industry verticals, no client, other than the U.S. federal government, represented more than 10 percent of consolidated revenues in 2024. Revenues from contracts directly with several U.S. federal government agencies in which the company’s Federal Government Segment is a prime contractor combined were 24 percent of consolidated revenues in 2024.
From a business advancement perspective, ASGN invests in six core areas, including leadership, recruitment of in-demand skillsets, training and skill development, technology partnerships, internal efficiency, and data management capabilities including artificial intelligence (AI) and cybersecurity tools, and client AI roadmaps.
Segments
The company operates through two segments, Commercial and Federal Government.
Commercial Segment
The company’s Commercial Segment (70 percent of 2024 consolidated revenues) provides a broad spectrum of IT services and solutions to Fortune 1000 and large mid-market clients. Growth in this segment is being driven by digital transformation and innovation requirements, including, but not limited to, that of AI, workforce mobilization, and modern enterprise needs across five industry verticals: (i) Financial Services, (ii) Consumer and Industrial, (iii) Technology, Media, and Telecom ("TMT"), (iv) Healthcare, and (v) Business and Government Services.
The company’s robust commercial talent pool, which includes onshore, nearshore, and offshore professionals, can be deployed in short duration, solution-specific engagements, or on long-term consultative roles. The company’s roots in IT staffing offer a strong account base and foothold in its clients’ businesses, while its consulting offerings enable it to provide higher-end, high-value solutions. The company’s subject matter experts deliver solutions that are customer-focused and value-driven across a continuum of cloud, data and analytics, cyber/information security, artificial intelligence/machine learning (‘AI/ML’), including generative AI (‘GenAI’), and digital transformation to support its clients’ modern enterprise and digital needs. The company’s clients are looking to meet their business challenges at greater speed and with more accuracy and precision. The company is therefore harnessing technologies, such as Microsoft’s Copilot, Azure OpenAI, ServiceNow, and Salesforce, to increase the efficiency of its own teams, while at the same time developing AI roadmaps for its clients that leverage new generative technologies.
Corporate support activities for this segment are primarily based in Richmond, Virginia. The company also has a network of several branch offices across the United States, and a few branch offices across Canada and Europe. In addition, it has a few near-shore delivery centers in Mexico, and maintains a small delivery center in India.
Consulting — The company’s business focus and growth strategy lies in providing its clients with higher-value IT consulting services. A byproduct of its decades-long, trusted client relationships over the years, its customers have engaged it in longer-term consulting contracts. Consulting contracts leverage the same talent pool as its assignment work but offer higher margin opportunities and increased revenue visibility. The average duration of commercial consulting projects is one year.
Assignment — The company’s business heritage is in providing its clients with experienced IT and creative digital marketing billable professionals for temporary assignments and project engagements. Its billable professionals possess knowledge and experience in specialized technical and creative digital marketing services that make them qualified to fill a given assignment or project.
Federal Government Segment
The company’s Federal Government Segment (30 percent of 2024 consolidated revenues), its sixth industry vertical, delivers advanced solutions in cloud and enterprise IT, cybersecurity, AI/ML, application, and digital transformation to some agencies in both the public and private sectors. These solutions capabilities are geared towards IT modernization of the federal government, as well as promote efficiency for its federal customer base. The company’s team of skilled experts tackles complex challenges for customers in the U.S. defense and intelligence agencies, along with key federal civilian agencies, namely the Department of Homeland Security. The company maintains relationships with cloud, cybersecurity, and AI/ML providers and holds specialized certifications in these technologies. It has over 1,000 combined certifications, accreditations, and awards in AI/ML alone, and continues to invest in its traditional and generative AI skillsets through its Data and AI Center of Excellence, its hub for training and innovation that empowers federal agencies to harness the full potential of AI technology.
The segment provides services under time-and-materials, cost-reimbursable, and firm-fixed-price contracts. Contracts range from approximately three to five years in length, providing longer-term revenue visibility and countercyclical support throughout market cycles.
Corporate support activities for this segment are based in Fairfax, Virginia, and there are various branch offices located across the United States.
Industry and Market Dynamics
ASGN is a provider of IT services and solutions to the commercial and government sectors. The company helps corporate enterprises and government organizations develop, implement, and operate critical IT and business solutions through its integrated offering of IT consulting and professional staffing. Its total addressable market has significantly expanded as clients have actively pulled it into higher-value consulting work for the commercial and government end markets.
The company’s business model continues to evolve in line with client needs and expectations to focus on higher-end, high-value IT consulting services and solutions capabilities that provide enhanced margin opportunities in key areas of technological advancement, such as digital transformation, data analytics, AI/ML, process automation, and information security. By employing a unique go-to-market strategy that leverages a single talent pool for both shorter-term assignments and long-term consulting contracts, its clients benefit from cost structure advantages, flexibility to address fluctuating demand in business, and access to greater expertise. The company intends to continue to grow its diverse client base by focusing on large, stable enterprises that are quick adopters of new technologies. The company will invest in its organic growth while simultaneously look to execute acquisitions of IT consulting companies that provide the company with new solution capabilities, industry expertise, or government contract awards.
Strategy
ASGN's strategy is to be a provider of IT services and professional solutions to the commercial and federal government sectors. The company is focused on high-value, scalable IT work for large commercial enterprise accounts and federal government customers. It has built a sizable consulting platform, with 58 percent of its 2024 consolidated revenues in a combination of commercial and federal government IT consulting work. The company has grown its IT consulting revenues both organically and through acquisitions, and its intention is to continue this top-line growth while also enhancing its margins. To achieve this intention, its acquisition strategy specifically focuses on IT consulting companies that add new services, contracts, and technical capabilities that support its commercial and federal government customer needs and are in high demand by its customer base.
The company’s strategic innovation efforts and technology investments focus on putting the best productivity tools in the hands of its recruiters, its candidates, and its clients, so that it is seamless for clients and billable professionals to work with ASGN. The company positions its teams to stay at the forefront of emerging trends in digitization and candidate sourcing, including GenAI technologies that assist teams in creating robust models around candidate search and match, to best position its businesses and continuously improve how it serves clients and candidates.
History
The company was founded in 1985. It was incorporated in 1992. The company was formerly known as On Assignment, Inc. and changed its name to ASGN Incorporated in April 2018.