RPO to gain popularity

• Published Month : Friday, 30 Aug 2019 05:26 pm

The popularity of recruitment process outsourcing solutions is growing mainly due to the demand for customizable talent acquisition solution by employers

The Recruitment Process Outsourcing (RPO) is an extension of human resource function of any organization which facilitates staffing services to an employer and also take full responsibility of designing and managing the entire recruitment process as well as the outcomes of the whole activity. Recruitment Process Outsourcing solutions aim at optimizing the entire recruitment process through streamlining of company operations/processes and focusing on long-term business strategy. All this planning reduces both cost and time for the employer.

The popularity of recruitment process outsourcing solutions is growing mainly due to the demand for customizable talent acquisition solution by employers. In today’s outsourcing scenario, employer is not only looking at simple hiring solutions, but they want customized solutions based on specific hiring demands to improve employer branding and candidate/hiring personnel experience. The trend of RPO is growing across the world with its benefits for both RPO providers and employers. The RPO marketplace has great potential, and it is attracting more and more players. Recruitment process outsourcing is one of the fastest-growing service models in major geographical regions worldwide. The better candidate quality, scalability analysis, effective recruitment strategies, analytics, and greater flexibility, are some of the major factors driving the adoption of RPO solutions by more and more employers worldwide. Organizations that invest in RPO services instead of traditional hiring agencies can reduce their hiring costs and hiring time on a y-o-y basis at an impressive rate. The RPO implementation gives business access to excellent recruiters and cutting edge technologies which allow them to focus on their core operations. The cost and time saving for employers by investing in RPO services will drive the growth of this market in the coming years.

The global recruitment process outsourcing market accounted to US$ 4.16 Bn in 2018 and is expected to grow at a CAGR of 29.1% during the forecast period 2019 - 2027, to account to US$ 40.67 Bn by 2027.

The adoption of RPO over traditional staffing agencies is increasing in all the major geographical regions such as North America, Europe, and the Asia Pacific. Global companies in these regions are looking for multi-country RPOs who can provide global processes and governance structure. The implementation of Applicant tracking system which results in higher process efficiency by reducing the required time and cost is also rising. These two trends offer excellent opportunities for RPO service providers to grow in the coming years. Introduction of big data, AI, predictive analytics and other advanced tools is expected to further create new opportunities for the global recruitment process outsourcing service providers. The dominance of North America is majorly due to a significantly large number of recruitment process outsourcing market players in the US. Also, the trend of adoption of newer technologies is consistently higher in the US and in terms of employment opportunities the country is densely populated with numerous organizations from different industries. This presents an excellent opportunity for the growth of RPO service providers in the US. Also, with an objective to reduce operational costs and time, the HR functions in various companies in the US are being outsourced to hiring process experts such as recruitment process outsourcing service providers, which is helping the market to propel over the year in the country.

The major companies operating in the recruitment process outsourcing market includes Seven Step RPO, Kites Consulting, Randstad Sourceright, Manpower Group Solutions, Alexander Mann, Adam Recruitment, Proven SA, Talent Hunters, TASC Outsourcing, and Ajeets Management & Manpower Consultancy among others.