ASGN Incorporated (ASGN): Business Model Canvas [10-2024 Updated]
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ASGN Incorporated (ASGN) Bundle
Discover how ASGN Incorporated (ASGN) strategically positions itself in the competitive IT consulting landscape through its comprehensive business model canvas. This framework highlights key elements such as partnerships with Fortune 1000 companies, innovative value propositions, and a focus on government contracts. Dive deeper to understand how ASGN leverages its unique resources and activities to deliver tailored solutions across various sectors, ensuring sustained growth and client satisfaction.
ASGN Incorporated (ASGN) - Business Model: Key Partnerships
Collaborations with technology providers
ASGN Incorporated collaborates with various technology providers to enhance its service offerings. This includes partnerships with leading cloud service providers and software companies, which are essential for delivering advanced IT solutions.
In 2024, ASGN reported total IT consulting revenues of $597.2 million, showcasing a focus on integrating innovative technologies into their consulting practices.
Partnerships with Fortune 1000 companies
ASGN primarily serves Fortune 1000 companies, providing consulting, creative digital marketing, and permanent placement services. In the first nine months of 2024, ASGN generated $2.2 billion in revenues from its Commercial Segment, which comprises significant contributions from these large enterprises.
The breakdown of revenues by segment during the same period was as follows:
| Segment | Revenue (in millions) | Percentage of Total Revenues |
|---|---|---|
| Commercial Assignment | $1,332.5 | 42.8% |
| Commercial Consulting | $843.5 | 27.1% |
| Federal Government | $938.7 | 30.1% |
| Total | $3,114.7 | 100% |
Engagements with government agencies
ASGN has established extensive engagements with various government agencies, notably the Department of Defense and federal civilian agencies. In the third quarter of 2024, revenues from the Federal Government Segment reached $312.2 million, accounting for 30.3% of total revenues.
The revenue breakdown for the Federal Government Segment is as follows:
| Type of Contract | Revenue (in millions) |
|---|---|
| Firm-fixed-price | $92.6 |
| Time and Materials | $128.0 |
| Cost Reimbursable | $91.6 |
| Total | $312.2 |
Strategic alliances for service expansion
ASGN has formed strategic alliances to expand its service offerings and market reach. These alliances are crucial for entering new markets and enhancing service capabilities. In the first nine months of 2024, ASGN reported a total of $1,114.3 million in new contract awards in the Federal Government Segment.
The contract backlog as of September 30, 2024, was:
| Type of Backlog | Amount (in millions) |
|---|---|
| Funded Contract Backlog | $612.2 |
| Negotiated Unfunded Contract Backlog | $2,516.3 |
| Total Contract Backlog | $3,128.5 |
ASGN Incorporated (ASGN) - Business Model: Key Activities
IT consulting and professional services
ASGN Incorporated's IT consulting and professional services generated revenues of $1.8 billion for the first nine months of 2024, representing 57.2% of total revenues. This segment saw a year-over-year increase of 0.3%. The breakdown of revenues indicates that Commercial Segment consulting revenues amounted to $843.5 million (up 2.0% year-over-year), while Federal Government Segment revenues were $938.7 million (down 1.3% year-over-year).
Talent acquisition and management
ASGN's talent acquisition efforts are critical for maintaining its service delivery. The company reported a gross profit of $706.9 million from the Commercial Segment, which constitutes a gross margin of 32.5%. This indicates a focus on optimizing talent management to enhance profitability.
Project management for client assignments
Effective project management is a cornerstone of ASGN's operations. The company reported operating income of $230.2 million for the first nine months of 2024, with an operating margin of 7.4%. The firm manages a diverse portfolio of client assignments across various sectors, including Financial Services, Technology, Media, Telecom (TMT), Healthcare, and Business Services.
Compliance and risk management for government contracts
ASGN's Federal Government Segment reported revenues of $938.7 million, reflecting a 1.3% decrease year-over-year. The company maintains a robust compliance and risk management framework, evidenced by a contract backlog of $3.1 billion as of September 30, 2024. This includes a funded contract backlog of $612.2 million and an unfunded backlog of $2.5 billion, highlighting the importance of adhering to government regulations and managing risks effectively.
| Key Activity | Revenue (in millions) | Gross Profit (in millions) | Operating Income (in millions) | Contract Backlog (in millions) |
|---|---|---|---|---|
| IT Consulting and Professional Services | $1,800 | $706.9 | $230.2 | $3,128.5 |
| Talent Acquisition and Management | N/A | $706.9 | $230.2 | N/A |
| Project Management for Client Assignments | N/A | N/A | $230.2 | N/A |
| Compliance and Risk Management for Government Contracts | N/A | N/A | N/A | $3,128.5 |
ASGN Incorporated (ASGN) - Business Model: Key Resources
Skilled workforce with industry expertise
ASGN Incorporated relies on a highly skilled workforce to deliver its services. The company employs approximately 45,000 professionals across various sectors, including technology, healthcare, and government. The workforce is essential for providing IT consulting services and staffing solutions, which are crucial for meeting the diverse needs of its clients.
Proprietary technology and software solutions
ASGN has developed proprietary technology and software solutions that enhance its service delivery. These solutions include cloud-based applications that streamline operational efficiency and improve project management. In the first nine months of 2024, ASGN reported capitalized cloud implementation costs of approximately $28.2 million. Additionally, the company has invested in technologies that support data analytics and artificial intelligence, positioning itself to respond effectively to client demands.
Established client relationships in commercial and government sectors
ASGN maintains a diverse client portfolio, with established relationships in both the commercial and government sectors. For the nine months ended September 30, 2024, ASGN generated $1.3 billion in revenues from commercial assignments and consulting services. Furthermore, the Federal Government segment contributed $938.7 million in revenue during the same period. Key clients include government agencies such as the Department of Defense, which accounted for $433.2 million of revenue for the nine months ended September 30, 2024.
Brand reputation and market presence
ASGN has built a strong brand reputation in the staffing and consulting industry, recognized for its quality of service and expertise. The company ranks among the top staffing firms in the U.S. and has received numerous accolades for its performance. In 2024, ASGN reported a contract backlog of $3.1 billion, which reflects its strong market presence and ability to secure future business. The company’s brand strength is further supported by its consistent financial performance, with net income of $132.8 million reported for the first nine months of 2024.
| Key Resource | Description | Financial Impact |
|---|---|---|
| Skilled Workforce | Approx. 45,000 professionals across various sectors | Essential for service delivery and client satisfaction |
| Proprietary Technology | Cloud-based applications and data analytics tools | Capitalized cloud implementation costs: $28.2 million |
| Client Relationships | Established relationships in commercial and government sectors | Commercial revenues: $1.3 billion; Government revenues: $938.7 million |
| Brand Reputation | Strong presence in the staffing and consulting industry | Contract backlog: $3.1 billion; Net income: $132.8 million |
ASGN Incorporated (ASGN) - Business Model: Value Propositions
Tailored IT solutions for diverse industries
ASGN Incorporated offers customized IT solutions across various sectors, including Financial Services, Technology, Media, Telecom (TMT), Healthcare, and Business Services. The Commercial Segment generated revenues of $2.176 billion for the first nine months of 2024, accounting for 69.9% of total revenues. ASGN's ability to adapt its services to meet specific industry needs has been a significant driver of its business model, particularly in a fluctuating economic environment, where the TMT vertical experienced low single-digit growth, while other sectors faced declines.
Access to top-tier talent for client projects
ASGN prides itself on its ability to provide clients with access to highly skilled professionals. In the third quarter of 2024, the company reported consulting revenues of $285 million in the Commercial Segment, reflecting a 3.9% increase year-over-year. This growth indicates ASGN's effectiveness in securing top-tier talent for its consulting services, which are critical for driving successful client projects and enhancing overall client satisfaction.
Proven track record with government contracts
ASGN's Federal Government Segment generated revenues of $938.7 million for the first nine months of 2024, down 1.3% from the previous year. This segment primarily serves the Department of Defense and various federal agencies, emphasizing ASGN's established credibility and reliability in handling government contracts. The company reported a funded contract backlog of $612.2 million as of September 30, 2024, alongside an unfunded contract backlog of $2.516 billion, showcasing significant future revenue potential.
Innovative approaches in digital transformation
ASGN is at the forefront of digital transformation initiatives, offering innovative solutions that help organizations adapt to the rapidly changing technological landscape. The company's consulting segment, which includes digital marketing services, contributed $843.5 million in revenues for the first nine months of 2024. ASGN's commitment to leveraging cutting-edge technology and methodologies positions it as a leader in the digital transformation space, catering to both commercial and government clients.
| Metric | Commercial Segment | Federal Government Segment | Total Revenues |
|---|---|---|---|
| Revenues (9M 2024) | $2.176 billion | $938.7 million | $3.1147 billion |
| Gross Profit (9M 2024) | $706.9 million | $190.8 million | $897.7 million |
| Net Income (9M 2024) | $132.8 million | ||
| Contract Backlog | $3.1285 billion | ||
ASGN Incorporated (ASGN) - Business Model: Customer Relationships
Dedicated account management teams
ASGN Incorporated employs dedicated account management teams to foster strong relationships with clients. As of September 30, 2024, the company reported a total of 44.2 million shares outstanding. The dedicated teams are crucial for managing key accounts, especially in sectors requiring specialized IT and consulting services. This personalized approach helps in understanding unique client needs and providing tailored solutions, which enhances client satisfaction and retention.
Continuous engagement through feedback loops
ASGN emphasizes continuous engagement with clients through structured feedback loops. The company regularly collects client feedback to assess service quality and identify areas for improvement. In the first nine months of 2024, ASGN's net income was $132.8 million, down from $169.0 million in the same period of 2023, indicating potential areas for operational enhancement. This engagement strategy not only aids in retaining clients but also drives service innovation based on client insights.
Customization of services based on client needs
ASGN tailors its services to meet specific client requirements, particularly in its Commercial and Federal Government segments. For instance, in the nine months ended September 30, 2024, ASGN reported consulting revenues of $843.5 million, which represents a 2.0% increase year-over-year. This customization is evident in the diversified offerings across various industries such as Financial Services, Healthcare, and Technology, ensuring that solutions align with the distinct challenges and goals of each client.
Strong after-sales support and training
ASGN is committed to providing robust after-sales support and training to its clients. This includes ongoing assistance to ensure successful implementation of solutions and maximizing the value derived from ASGN's services. The company’s selling, general, and administrative expenses were $623.3 million for the first nine months of 2024, reflecting investments in client support and service enhancements. This strong support structure not only facilitates client satisfaction but also encourages repeat business and long-term partnerships.
| Metric | Value | Change YoY |
|---|---|---|
| Net Income (9 months 2024) | $132.8 million | -21.4% |
| Consulting Revenues (9 months 2024) | $843.5 million | +2.0% |
| SG&A Expenses (9 months 2024) | $623.3 million | -2.7% |
| Total Shares Outstanding | 44.2 million | N/A |
ASGN Incorporated (ASGN) - Business Model: Channels
Direct sales through account managers
ASGN utilizes a dedicated team of account managers who focus on building relationships with clients across various sectors. The revenue from the Commercial Segment, which includes both consulting and assignment services, was reported at $2.176 billion for the first nine months of 2024, down from $2.426 billion in the same period of 2023, indicating a 10.3% decline year-over-year.
Online marketing and lead generation
ASGN leverages digital platforms for marketing and lead generation, targeting potential clients through strategic online campaigns. In the fiscal year 2023, the company reported that total IT consulting services revenues reached $1.8 billion, representing 57.2% of total revenues, with a slight year-over-year increase of 0.3%. This growth reflects the effectiveness of their online marketing strategies in attracting new business opportunities.
Industry conferences and networking events
Participating in industry conferences and networking events is a key channel for ASGN to showcase its services and capabilities. These opportunities enhance visibility and foster connections with potential clients and partners. For instance, ASGN's Federal Government Segment generated revenues of $938.7 million in the first nine months of 2024, slightly down from $950.7 million in the same period of 2023. These events are critical for maintaining relationships and understanding market dynamics.
Partnerships with other service providers
ASGN actively pursues partnerships with other service providers to enhance its service offerings and expand its market reach. The company's contract backlog was reported at $3.128 billion as of September 30, 2024, indicating a robust pipeline of future business opportunities. Collaboration with partners allows ASGN to provide comprehensive solutions to clients, particularly in the Federal Government Segment, which has a diverse range of service needs.
| Channel | Revenue Impact (2024) | Change from 2023 |
|---|---|---|
| Direct Sales | $2.176 billion | -10.3% |
| Online Marketing | $1.8 billion (IT consulting) | +0.3% |
| Industry Conferences | $938.7 million (Federal Segment) | -1.3% |
| Partnerships | $3.128 billion (Contract Backlog) | N/A |
ASGN Incorporated (ASGN) - Business Model: Customer Segments
Fortune 1000 companies across various sectors
ASGN Incorporated primarily serves Fortune 1000 companies, providing IT services and consulting across multiple sectors. In the first nine months of 2024, revenues from commercial assignments totaled $1.3 billion, a decrease of 16.7% year-over-year, representing 42.8% of total revenues. The consulting segment contributed $843.5 million, marking a 2.0% increase year-over-year.
Federal government and defense agencies
ASGN's Federal Government Segment generated $938.7 million in revenues for the first nine months of 2024, a slight decrease of 1.3% compared to the same period in 2023, accounting for 30.1% of total revenues. This segment primarily serves various defense agencies, including the Department of Defense and intelligence agencies, with revenues of $433.2 million from these clients.
Mid-market companies seeking IT solutions
ASGN also targets mid-market companies looking for IT solutions. The company’s consulting revenues from mid-market clients were included in the overall consulting figure, which reached $843.5 million, reflecting a growing demand for specialized IT services. This segment has shown resilience, with a year-over-year growth of 2.0%.
Organizations requiring specialized consulting services
Organizations needing specialized consulting services represent another key customer segment for ASGN. The company reported total IT consulting revenues of $1.8 billion for the first nine months of 2024, which constitutes 57.2% of total revenues. The commercial consulting segment alone contributed $285.0 million in the third quarter of 2024, with a 3.9% increase year-over-year.
| Customer Segment | Revenue (Q3 2024) | Year-over-Year Change | Percentage of Total Revenue |
|---|---|---|---|
| Fortune 1000 Companies (Commercial Segment) | $1,332.5 million | -16.7% | 42.8% |
| Federal Government Agencies | $938.7 million | -1.3% | 30.1% |
| Mid-Market Companies (IT Solutions) | $843.5 million (Consulting) | +2.0% | 27.1% |
| Specialized Consulting Services | $1,800 million (Total IT Consulting) | +0.3% | 57.2% |
ASGN Incorporated (ASGN) - Business Model: Cost Structure
Personnel costs for skilled labor
ASGN's personnel costs, primarily related to skilled labor, are significant due to the nature of its services in technology and consulting. For the nine months ended September 30, 2024, the company reported costs of services amounting to $2.217 billion, which includes compensation for contract professionals and other direct costs . This figure reflects a decrease from $2.401 billion in the same period of 2023.
The gross profit for the same period was $897.7 million, yielding a gross margin of 28.8%, slightly down from 28.9% in 2023 . The company operates mainly under time-and-materials contracts, which ties compensation directly to labor hours .
Operational expenses related to service delivery
Operational expenses for ASGN, which include selling, general, and administrative (SG&A) expenses, were reported at $623.3 million for the nine months ended September 30, 2024, compared to $640.6 million in the same period of 2023 . This indicates a reduction in operational costs, attributed mainly to lower compensation-related expenses. The SG&A expenses for the third quarter of 2024 alone were $207.5 million .
Additionally, amortization of intangible assets for the nine-month period was $44.2 million, down from $53.8 million in 2023 , further reflecting a decrease in operational costs associated with service delivery.
Marketing and sales expenditures
ASGN allocates a portion of its budget to marketing and sales, primarily to maintain and grow its client base across both commercial and government sectors. While specific figures for marketing expenses are not disclosed separately, the overall SG&A expenses encompass these costs . The company has focused on enhancing its marketing strategies to adapt to changing market conditions, which may involve increased expenditures in response to competitive pressures.
Technology and infrastructure investments
Investment in technology and infrastructure is critical for ASGN to maintain its competitive edge. The company reported cash used in investing activities of $24 million for the first nine months of 2024, primarily related to capital expenditures . These investments are essential for developing and maintaining the technology platforms necessary for service delivery. In the third quarter of 2024, depreciation and other amortization related to capitalized cloud implementation costs amounted to $1.6 million .
The company’s total long-term debt as of September 30, 2024, was approximately $1.034 billion, which includes obligations for investments in technology . This financial commitment underlines the strategic importance of technology in ASGN's operational framework.
| Cost Category | Amount (in millions) |
|---|---|
| Personnel Costs | $2,217 |
| SG&A Expenses (9M 2024) | $623.3 |
| Amortization of Intangible Assets (9M 2024) | $44.2 |
| Cash Used in Investing Activities (9M 2024) | $24.0 |
| Total Long-term Debt | $1,034 |
ASGN Incorporated (ASGN) - Business Model: Revenue Streams
Fees from consulting and professional services
ASGN generates significant revenue through consulting and professional services. For the nine months ended September 30, 2024, consulting revenues amounted to $843.5 million, reflecting a 2.0% increase from $827.0 million in the same period of the previous year. During the third quarter of 2024, consulting revenues were $285.0 million, up from $274.2 million in Q3 2023.
Revenue from time-and-materials contracts
Revenue from time-and-materials (T&M) contracts is a key component of ASGN's business model. For the nine months ended September 30, 2024, T&M contract revenues in the Federal Government segment reached $395.4 million, compared to $377.9 million in the same period of 2023. In the third quarter of 2024 alone, T&M revenues were $128.0 million, slightly increasing from $126.8 million in Q3 2023.
Government contract revenues
ASGN's Federal Government segment contributes significantly to its overall revenues. For the nine months ended September 30, 2024, government contract revenues totaled $938.7 million, a slight decrease of 1.3% from $950.7 million in the prior year. In Q3 2024, government contract revenues amounted to $312.2 million, down from $334.4 million in Q3 2023. The breakdown of government revenues includes firm-fixed-price contracts, T&M contracts, and cost-reimbursable contracts, which are essential for ASGN's revenue structure.
Recurring income from long-term client relationships
Recurring income from long-term client relationships forms a stable revenue base for ASGN. The total revenues for the nine months ended September 30, 2024, were $3,114.7 million, down 7.8% compared to $3,376.5 million in the same period of 2023, indicating a need for focus on maintaining and expanding long-term client contracts. The commercial segment, which includes long-term client relationships, generated $2,176.0 million in revenues during the first nine months of 2024, a decline from $2,425.8 million in the prior year.
| Revenue Source | Q3 2024 Revenue (in millions) | Q3 2023 Revenue (in millions) | 9M 2024 Revenue (in millions) | 9M 2023 Revenue (in millions) |
|---|---|---|---|---|
| Consulting Services | $285.0 | $274.2 | $843.5 | $827.0 |
| Time-and-Materials Contracts | $128.0 | $126.8 | $395.4 | $377.9 |
| Government Contracts | $312.2 | $334.4 | $938.7 | $950.7 |
| Total Revenue | $1,031.0 | $1,116.8 | $3,114.7 | $3,376.5 |
Article updated on 8 Nov 2024
Resources:
- ASGN Incorporated (ASGN) Financial Statements – Access the full quarterly financial statements for Q3 2024 to get an in-depth view of ASGN Incorporated (ASGN)' financial performance, including balance sheets, income statements, and cash flow statements.
- SEC Filings – View ASGN Incorporated (ASGN)' latest filings with the U.S. Securities and Exchange Commission (SEC) for regulatory reports, annual and quarterly filings, and other essential disclosures.