Recruitment process outsourcing (RPO) - global industry analysis 2020
Friday, Jun 10, 2016


Recruitment process outsourcing (RPO) is a segment of business process outsourcing (BPO). It is also known as employment process outsourcing. Under RPO, a company (employer) outsources its recruitment process or processes therein to a third party service provider. Recruitment process outsourcing services are beneficial for the employers who lack internal resources essential for hiring top talent to help the employer thrive in the marketplace. Additionally, recent trend across the industry, driven by strategic requirements, is that the employers opt for recruitment process outsourcing services to focus on their core competencies and reduce cost. Companies that offer recruitment process outsourcing services are responsible for performing tasks such as vacancy monitoring, job posting, candidate/resume searching, application tracking, resume screening, resume processing, resume marketing, candidate screening/short listing, finding skilled recruiters and maintain database.

Recruitment process outsourcing market is primarily driven by the increasing attrition rate across several industries. Moreover, the demand for such services is boosted by rising number of fresh graduates and post graduates every year. In addition, the implementation of software solutions, cloud and web based services has helped to streamline the recruitment process which supports the growth of the market and provides opportunities for new players to enter the recruitment process outsourcing market. However, the major challenge for such service providers is to understand the profile desired by the employer and be able to adapt the process to their standards. This challenge is overcome with proper coordination between the service provider and the employer. The employer has to specify its requirements to the RPO prior to initiation of the recruitment process.

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RPO services are categorized under two major categories namely, on-site and off-site RPO services. Under the on-site RPOS service, a recruitment team is designated within the premise of the employer and offers end-to-end recruitment services to the employer. In this model the RPO provider has access to the internal technology and the hiring managers. In off-site RPO services, the employers contact the RPO providers and then they are responsible for the entire technology, methodology and reporting used for recruiting new employees. Owing to the rising globalizations globalization, the off-site RPO services is expected to dominate the market over the coming years.

On the basis of type of outsourcing, RPO services are classified as fully outsourced and partially outsourced. In fully outsourced RPO service, the RPO providers are responsible for the entire process i.e. from understanding the employer’s requirement to the on-boarding of the candidate. Additionally, in fully outsourced RPO services, RPO providers also responsible for conducting document verification and medical fitness check of the candidates. In partial RPO services, the RPO providers understand the requirements, search candidates, shortlist candidates and provide a final list of eligible candidates to the employer. The type of RPO service chosen depends upon the requirements and the availability of resources with the employers. The cost involved in partial RPO services is less as compared to fully outsourced RPO services.

On the basis of geography, the market is segmented into North America, Europe, Asia-Pacific and Rest o the World. Asia Pacific is the potential market for RPO services due to the increasing number of small and medium sized organizations in these regions. In addition, large multinational organizations are expanding their business in these geographies. As a result, the demand for RPO services is expected to increase in these regions.

The recruitment process outsourcing market include players such as Argus Recruitment Solutions, Seven Step RPO, Randstad Holding Company, Zyoin, Pontoon Solutions, Pinstripe, Inc., Accolo, Inc., Futurestep, The Rightthing, Alexander Mann Solutions, TalentFusion, Kelly Outsourcing and Consulting Group, and Manpower Group Solutions.

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