Recruitmant Process Outsourcing, RPO
Staffing is one of the nucleus functions of Human Resources Management which has crossed beyond the boundaries. Recruitment functions itself consumes lots of time and money driving serious concern over many corporate entities across the country. Constant increase in the complexities in recruitment process forces many companies to redefine the whole processes. Numerous entities come ahead to take the challenge to serve various industries in their staffing functions. Non-core part of their recruitment services are handled by service providers locating in other shores. The era of recruitment process outsourcing (RPO) has been emerged allowing many leaders in human resource staffing companies to blow in the outsourcing market. From screening to the boarding of candidates, RPO services providers manage non-core functions of recruitment activities with its unparallel solutions. Wide range of services have been delivered from the offshore front to manage the staffing functions of overseas consulting firms, staffing and other private firms.
Offshore companies get lots of advantageous by outsourcing their part of or whole of recruiting functions such as:
- Reducing operative costs to a outstanding extent
- Lessen time taken recruitment process
- Access to all available job boards
- Get considerably skilled search recruiters
- Deliver of results in shorter period
- Turnaround working time makes company’s work to be processed on 24 X 7 basis
- Can generate leads by research on various portals
- Able to provide the details of passive candidates which are not mentioned in any job portals
- Can process collaborative with in-house recruitment staff
- Quick area dimension on job market through search recruiter
- Unhidden costs are not involved
- Job postings can be done within safe hand
- Able to expand or reducing its existing team as per client’s requirement
Scope of Recruitment Process Outsourcing in various industries:
- Information Technology Sector
- Healthcare Sector
- Engineering & Automobile industries
- Healthcare domain
- Education & other sectors
- Government including defense
- Accounting & Finance
Offshore companies can rely on these RPO players for better outcomes. Having overseas contact centers nearby clients’ location can be fruitful for overseas client to consider recruitment process outsourcing for their non core recruitment functions. Companies with having sufficient years of experience in recruiting ideal candidates for the suitable positions are possessed competitive edge over other entities.
Recruitment process outsourcing market growing
LONDON: Recruitment process outsourcing (RPO) is growing rapidly and has the potential to be a multi-billion dollar market, taking advantage of the trend towards single process deals in human resources outsourcing. This is according to the latest report by independent market analysis firm Datamonitor.
The report “Opportunities for recruitment process outsourcing in a changing HRO market” estimates the global RPO market in 2007 to be worth US$720 million and forecasts it will grow by 22% in 2008 to US$880 million, surpassing the US$1 billionn level in 2009. According to the report, demand is predominately from Fortune 1000 companies in the US, but the market is growing rapidly in the UK and continental Europe and is beginning to gain traction in the Asia Pacific region.
Lure
While RPO vendors claim to reduce costs by up to 40% in some cases, it is the lure of recruiting a higher quality workforce that is driving growth. Although the strategic importance of recruitment means quality will remain of utmost importance, it is likely in an economic downturn that it is those who can deliver on both quality and price that will succeed.
“Despite the expectation that outsourcing will thrive as companies search for ways to cut costs, increased unemployment will result in lower business volumes which will be reflected in the variable price nature of RPO contracts. But, this will be mitigated by the increasing demand for RPO from new clients,” says Patrick O’Brien, IT and BPO analyst at Datamonitor and author of the report.
“For RPO to continue its rapid growth in the near term, vendors may have to go to market by pricing more aggressively as recruitment will need to be seen as a primary function for easy cost reduction among company processes.”
RPO vendors are split over the use of offshore provision. Many players have little experience or understanding of how to derive the fullest benefits from RPO, while others see it as unworkable in recruitment services which require constant contact with both the client organisation and, using the client’s brand, with candidates.
Customer demand
Approximately half of RPO vendors have some offshore workforce, mainly carrying out tasks around name generation, sourcing, early screening of resumes and other administrative duties. A few have moved tasks which involve contact with the candidate offshore as per customer demand.
“While there is a lot of resistance from vendors, the increasing competitiveness of the market and the growing focus on cost cutting in the economic downturn will push vendors into examining ways in which to begin to increase the use of offshore delivery,” says O’Brien.
The first half of 2008 has seen a wave of acquisitions as vendors attempt to build out their recruitment expertise, technology capabilities and geographic footprint. A number of competing vendors still need to broaden their capabilities, and many of the larger vendors are looking to expand further overseas.
Some companies have put forward global request for proposals (RFPs), but these have subsequently been split into regions and handed to different vendors. The one-vendor global deal has not arrived yet, but a number of vendors believe that a breakthrough will occur in the next 12 months. The key reason for the break-up of global RFPs has been the fact that vendors do not have the capabilities to deliver on an international basis. Many have taken heed and are busy investing in international expansion, acquiring companies, building a global set of processes and forming partnerships with vendors in other regions
