Recruitment Process Outsourcing Benefits and Models

Recruitment and staffing is one of the most crucial functions of an organization. Head hunting process have always been a tiresome process for the business heads. Since this process has become more complex and time consuming for the companies, companies have started to hire the expertise and knowledge of third party service providers to manage their recruitment process. Today, the trend of recruitment process outsourcing (RPO) is gaining momentum in the BPO industry. It is seen that many large companies including Vodafone and Wipro are moving towards outsourcing their recruitment process to RPO service providers. Moreover, mid-sized companies are also choosing the services of RPO providers to take off the burden of the tiresome process.

Recruitment outsourcing. Image source

What is Recruitment Process Outsourcing (RPO)?

Recruitment Process Outsourcing (RPO) is a derivative of business process outsourcing (BPO) concept. RPO is the process by which a company outsources all or part of its recruitment functions to a third party service provider. In this concept, the strategic framework for recruitment policy will be developed and remain in-house and only the implementation of these policies will be transferred to the RPO provider. The outsourced processes usually include job postings, sourcing, application screening, interview scheduling, offer execution and system compliance.

The demand of organizations for candidates with higher quality and increased efficiency has grown manifold in recent years and they spend lot of resources and money for talent hunting. An RPO service helps the companies to reduce the cost and bridge the gap between demand and supply of talents in the market.

According to the latest report by Everest Research Group, the global RPO market is estimated to grow by 25% to 2012.  The report highlights that cost cutting factor remains as the main catalyst driving the RPO market and adoption of this is said to increase as a result of challenges posed by a weakening economy. The Indian RPO market is estimated to be $ 2.5 billion and is expected to grow at 35-40%. The promising figures are drawing the attention of many companies who are planning to offer these services in India and more companies are set to join the bandwagon.

Two widely practiced models in RPO

  1. Pure Sourcing: In this model, the RPO provider, provide support services to on-shore recruiters to enhance their productivity and organizational effectiveness.
  2. Cycle Recruiting: In this model, the RPO provider performs the entire recruitment functions such as sourcing, screening, interview scheduling, appointment execution and even on-boarding for permanent and temporary positions. This method helps the companies to reduce overall cost on recruitment process and increase their core competencies.

Benefits of RPO

The outsourcing of recruitment process benefits an organization in many ways. The main benefits are listed below:

  1. Reduced costs: Often recruitment process carried out by in-house HR management involves a lot of expenses which includes the cost of in-house recruiters, job portal access fee, consultation fee and other maintenance fee. RPO service provider helps the companies to cut these costs by managing their end-to-end recruitment process and will be responsible for managing the recruitment budget.
  2. Enhance core competencies: By outsourcing the process, the internal HR management of the company can focus on other core HR strategies.

Major players of RPO industry  

Even though there are limited providers in the industry, they have a meaningful experience in the area of RPO. Top five players in the industry are listed below:

  1. Accenture: They provide support to clients from improving their internal recruitment process to providing complete recruitment process outsourcing.
  2. Aon Hewitt: They provide complete recruitment solutions to companies. They also manage recruitment on the basis of projects as well as provide global recruiting solutions to a company.
  3. Manpower group: The company offers best practices and technologies in RPO processes for their clients.
  4. IBM: They help the companies in sourcing the right talents for them and training and development of these talents.
  5. Source Right:  They provide end-to end, project and selective recruitment process outsourcing services. In addition they also provide the facility of recruiter’s on-demand to help the clients in internal recruitment process.

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  1. says:

    Recruitment Process Outsourcing is very beneficial which helps to the organization to make them free from the recruitment activities & hire a recruitment outsourcing company to perform the work for them, this will help them to concentrate on their ultimate object whether to find employees & it is also very cost effective process.

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