The Top Five Considerations for Cleared IT Contractors During Changes to The Federal Government

As federal layoffs continue nationwide, firms and organizations of all sizes have been impacted. Due to increasing uncertainty, some companies have resorted to focusing efforts on trimming the budget elsewhere in hopes of maintaining their internal federal workforce. A 2025 Staffing Industry Analyst (SIA) report shared that to address budget and workforce concerns, companies started cutting external contractors, especially within the IT department. Citigroup reduced its external IT staff by 30% and will be consolidating its IT operations in compliance with the directive. Though layoffs in the industry are rising steadily, cleared contractors are presented with the opportunity to shift into new territory.

What Should Be Considered When Exploring New Panes

The world is evolving rapidly to implement technological advances, and being a cleared IT contractor can be invaluable. Unfortunately, the urgency to limit federal spending means that workforce reduction practices will persist, but with preparations and planning, a new opportunity could be on the horizon.

With cleared IT contractors, the best path forward lies in considerations made today. Here are key incentives that allow contractors to stay ahead of what is to come:

1. Examine the Current State of the Industry -Remaining informed and staying ahead of emerging industry trends can support contractors in effectively creating a contingency plan for pursuing new opportunities. A recent Wall Street Journal article noted that "global IT spending will grow by 9.3% in 2025," reinforcing the likelihood that career progress is still possible.
2. Prioritize Health - During these uncertain times, is vital to maintain a positive mindset as contractors pursue new opportunities. Remaining optimistic can increase focus and allow contractors to stay persistent as they explore open positions.
3. Optimize Connections - A contractor's network could be one of their strongest tools. Building a trusted network can help expose a contractor to potential opportunities within the industry. By joining industry communities and optimizing connections that need cleared IT professionals, contractors can expand their reach and utilize those relationships. Firms like SOC have a strong reputation for placing contractors in beneficial technology roles across the federal government and in support of U.S. National Intelligence.
4. Sharpen Skills and Learn New Ones - Increasing layoffs in the IT industry can be daunting but learning invaluable skills can help open doors. Consider participating in career-building activities, such as coaching from SOC Talent Experts to up-skill proficiency with in-demand tech stacks or complete training to achieve cybersecurity certifications like SEC+.
5. Know When to Pivot - Sometimes success comes from venturing into new territory. Cleared IT professionals can possess highly marketable skills and that can prove profitable in alternative agencies. Consider exploring roles with organizations that continue to support the U.S. National Security mission and collaborating with firms like SOC that offer cleared resources for contract assignments.

During these uncertain times, it is critical to stay positive and keep going. There is always a silver lining ahead. For additional resources, connect with SOC's Federal Services team.

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