TEKsystems is a major IT staffing and technology services provider, often brought in when you need vetted tech talent fast, or when you want a partner to help deliver a defined project. On paper, it sounds simple: you tell them what you need, they send candidates, and you pay a rate.
In practice, pricing can feel less plug-and-play than people expect, because TEKsystems doesn’t publish a public “menu” of rates. Most pricing is negotiated and captured in a Statement of Work (SOW) or similar agreement, which means your final cost depends heavily on role, seniority, location, contract length, and how you structure the engagement.
In this guide, we’ll break down how TEKsystems pricing typically works, what can quietly increase your invoice, and what you can expect to pay in real-world scenarios, so you can budget accurately and avoid surprises.
TEKsystems Pricing Overview
TEKsystems operates across staffing and services (including managed programs), so pricing usually falls into a few common buckets.
1. Contract Staffing (Hourly “Bill Rate”)
How it usually works: You pay an hourly bill rate for the contractor. That bill rate is not the contractor’s pay rate; it typically includes:
- the worker’s pay
- employment burden (benefits, insurance, payroll admin, etc.)
- the agency’s margin
There isn’t one universal markup in staffing. Industry guidance commonly cites wide ranges, depending on role complexity and risk (often 20–75%, with higher ranges possible for specialized needs).
Best for: short- to mid-term needs, backfills, scaling delivery capacity, niche skills you don’t want to hire permanently yet.
2. Direct Hire / Permanent Placement (One-Time Fee)
If TEKsystems recruits a full-time employee for you, pricing is commonly a placement fee, often calculated as a percentage of the candidate’s first-year salary (percentages vary by market, role, seniority, and exclusivity).
Best for: leadership roles, hard-to-find specialists, or situations where you want ownership of the hire from day one.
3. Project or Service Engagements (SOW-Based)
For project-based work (implementation, modernization, support programs, etc.), pricing is typically defined in a Statement of Work with deliverables, timelines, and a pricing method (fixed, time & materials, or milestone-based). A real-world example of TEKsystems contracting language makes this explicit: services are performed “at the prices set forth in the Statement of Work.”
Best for: defined outcomes, transformation initiatives, and work you’d rather not manage contractor-by-contractor.
4. Managed Programs (MSP Support and Talent Delivery at Scale)
TEKsystems also participates in managed program ecosystems (MSP/VMS environments) and emphasizes scale, speed, and program support.
Best for: enterprise hiring at volume, standardized intake, and workforce program governance.
Bottom line: TEKsystems pricing is usually built around hourly bill rates (staffing) and SOW-defined pricing (services/projects), with your actual numbers determined by your contract terms, role requirements, and urgency.
Hidden Costs to Watch Out For
Even when the “rate” looks acceptable, a few common line-items and scenarios can push the total cost higher.
Overtime and After-Hours Premiums
If your contractor works overtime, your invoice may reflect time-and-a-half (or other multipliers) depending on how your agreement is structured.
Conversion / Buyout Fees
If you hire a contractor into a full-time role, you may owe a conversion fee. One TEKsystems public-sector agreement example shows a conversion fee schedule tied to time-on-assignment (e.g., 20% of annualized salary if converted within 0–45 days; 10% within 46–90; 0% after 90).
Scope Creep in SOW Work
If deliverables expand beyond what’s written, you’re typically looking at a change order, revised SOW, or added billable hours.
Onboarding, Compliance, and Screening Requirements
Background checks, equipment policies, onboarding overhead, or compliance requirements can add friction (and sometimes cost), especially in regulated environments.
Rate Resets and Extensions
Short initial terms sometimes price differently from longer commitments. Extensions, renewals, and “we need this person now” urgency can affect the rate you ultimately approve.
What You’d Really Pay by Hiring Through TEKsystems
Let’s translate the model into a concrete example, because that’s where budgets either survive or explode.
Example: Senior Software Engineer Contractor (40 hours/week)
Assume the contractor’s pay rate is $80/hour.
If we apply illustrative industry markup ranges often discussed publicly for staffing (which commonly vary by role and market), your bill rate might look like:
- 25% markup: $80 × 1.25 = $100/hr → $4,000/week
- 50% markup: $80 × 1.50 = $120/hr → $4,800/week
- 75% markup: $80 × 1.75 = $140/hr → $5,600/week
Now add two reality checks:
- If the contractor works 10 hours of overtime, your costs can jump quickly depending on OT terms.
- If you decide to hire them full-time early, a conversion fee may apply (depending on the contract).
In short, with staffing, the number you need to budget is the bill rate, not the pay rate, and the spread can be significant depending on specialty and urgency.
Advantages of Hiring Through TEKsystems
Speed When You Need Talent Yesterday
Large networks and dedicated recruiting capacity can shorten time-to-fill, especially for common IT roles.
Support Beyond “Here’s a Resume”
Staffing firms typically handle sourcing, screening, coordination, and (in many setups) contractor administration.
Flexible Scaling
Contract staffing makes it easier to scale up (or down) without committing to long-term headcount.
Options Beyond Staffing
If you prefer outcomes over headcount, TEKsystems also positions itself as a services partner for broader technology and business challenges.
Disadvantages of Hiring Through TEKsystems
Pricing Isn’t Always Transparent Upfront
Many engagements are contract/SOW-based, which means you’ll often need a quote to see the “real” number.
Markups Can Make Great Talent Harder to Afford
Even when the contractor is excellent, a higher bill rate can force tradeoffs (lower seniority, fewer seats, shorter runways). Industry guidance shows markups can swing widely.
You Can Pay Extra to Convert
If you want to hire a contractor permanently, conversion fees may apply depending on time-on-assignment and contract terms.
Vendor Layers Can Slow Things Down
In MSP/VMS environments, approvals, scorecards, and process layers can add friction (even when the talent is good).
Transparent Pricing: South vs. TEKsystems
When you’re expanding your team, cost transparency is non-negotiable. TEKsystems pricing is often negotiated and documented in SOWs and rate structures.
South takes a different approach: a single, flat monthly fee that’s easy to budget and built for long-term hiring, not one-off staffing transactions.
One consolidated invoice. No surprise add-ons. Clear visibility into what you’re paying for, so you can scale confidently instead of constantly recalculating.
If you’d like precise figures for your next hire, schedule a free call for a personalized quote; you won’t pay a cent until you make a hire.
The Takeaway
TEKsystems can be a strong option when you need IT talent quickly, want a partner familiar with enterprise hiring motions, or you’re working inside a structured staffing/program model.
But if your priority is predictable monthly costs, team stability, and hiring that feels like building (not renting) capability, a transparent monthly model is often easier to manage long-term.
Ready to upgrade from transactional staffing to a reliable remote team? Schedule a free call with us to get role-specific benchmarks and a custom quote; pay nothing until you make a hire.
Frequently Asked Questions (FAQs)
Does TEKsystems publish standard rates or a pricing page?
Typically, no. Pricing is commonly provided via quotes and documented in agreements/SOWs.
How does contract staffing pricing usually work?
Most commonly through an hourly bill rate that includes pay, burden, and agency margin (markup ranges vary widely by role and market).
Can TEKsystems pricing be negotiated?
Often, yes, especially for volume, longer terms, or standardized rate cards. Your leverage usually improves with commitment and repeat hiring.
What’s a conversion fee?
A fee some agreements charge if you convert a contractor into a full-time employee. One public example shows a sliding scale based on days worked (terms vary by contract).
Is TEKsystems only a staffing firm?
No, TEKsystems also positions itself as a technology services provider and highlights managed program support capabilities.
What should I ask for to understand the “real” total cost?
Ask for: (1) the bill rate, (2) overtime rules, (3) any conversion/buyout terms, (4) contract minimums/termination terms, and (5) what’s included vs. billed separately.
