ASGN Stock

ASGN Incorporated (ASGN) operates as a provider of 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 11 'tuck-in' acquisitions. Each of these acquisitions align with the company's strategy to expand the company's IT consulting services and solutions capabilities, offer higher-value technical solutions, and become a leading provider of these high-end services to the commercial and federal government markets.

From a client perspective, ASGN has grown by effectively understanding the company's clients' IT needs and providing them with qualified professionals who maintain a unique combination of skills, experience, and expertise to meet those needs. The company is responsible for recruiting, verifying credentials upon request, hiring, administering pay and benefits, compliance and training, as applicable. As the company supports clients across a diverse set of industry verticals, no client, other than the U.S. federal government, represented more than 10 percent of revenues in 2023. Revenues from contracts directly with several U.S. federal government agencies combined were approximately 24.3 percent of 2023 consolidated revenues.

From a business advancement perspective, ASGN invests in six core areas, including leadership, recruitment of in-demand skillsets, training and skill development, partnerships, internal artificial intelligence ('AI') tools, and client AI roadmaps.

Segments

The company operate through two segments, Commercial and Federal Government.

Commercial Segment

The company's Commercial Segment (71.3 percent of 2023 consolidated revenues) provides a broad spectrum of IT services and solutions to Fortune 1000 and large enterprise 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 the company's clients' businesses, while its consulting offerings enable the company to offer more value to its accounts via higher-end, higher margin work, including workforce mobilization, modern enterprise, and digital innovation IT consulting services. 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 solutions to support the company's 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 developing technologies, such as Microsoft's Copilot and Azure OpenAI, to increase the efficiency of the company's own teams, while at the same time developing AI roadmaps for the company's 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 branch offices across the United States, and branch offices across Canada and Europe. In addition, the company has two near-shore delivery centers in Mexico, and the company maintains a small delivery center in India.

Consulting - The company's business focus and growth strategy of today lies in providing its clients with higher value IT consulting services.

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. The company's billable professionals have 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 (28.7 percent of 2023 consolidated revenues), the company's sixth industry vertical, delivers advanced solutions in cloud and enterprise IT, cybersecurity, AI/ML, application, and digital transformation to some of the world's leading agencies in both the public and private sectors. The company's team of skilled experts tackle critical and highly-complex challenges for customers in the U.S. defense, intelligence, and federal civilian agencies. The company maintains relationships with leading cloud, cybersecurity, and AI/ML providers; and holds specialized certifications in these technologies. The company has over 1,000 combined certifications, accreditations, and awards in AI/ML alone, and continue to invest in the company's traditional and generative AI skillsets through the company's Data and AI Center of Excellence, the company's hub for training and innovation that empowers federal agencies to harness the full potential of AI technology.

Markets

ASGN helps leading corporate enterprises and government organizations develop, implement, and operate critical IT and business solutions through its integrated offering of IT consulting and professional staffing. The company's total addressable market includes commercial IT consulting, government IT consulting, and professional staffing. The company's total addressable market has significantly expanded as clients have actively pulled the company 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, higher-margin IT consulting services and solutions capabilities, particularly those related to digital transformation and other areas of technology change and specialization including data analytics, AI/ML, including both traditional and GenAI, big data, process automation, and information security. By employing the company's professional staffing and consulting services, the company's 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 accounts that are quick adopters of new technologies. The company will invest in its organic growth while simultaneously looking to execute acquisitions in the commercial and federal government end markets focusing on 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 leading provider of IT services and professional solutions to the commercial and federal government sectors. The company is focused on high-margin, scalable IT work for large commercial enterprise accounts and federal government customers. The company has built a sizable consulting platform, with over 55 percent of its revenues in a combination of commercial and federal government IT consulting work in the fourth quarter of 2023. The company has grown its IT consulting revenues both organically and through acquisitions.

The company's strategic innovation efforts and technology investments focus on putting the best productivity tools in the hands of the company's recruiters, the company's candidates, and the company's 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 the company's businesses and continuously improve how the company serve clients and consultants.

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 2018.