What is Recruitment Process Outsourcing?

February 6, 2012: In the current scenario companies are more focused towards Recruitment Process Outsourcing as it is fairly promising and has many benefits for the companies. However, it is obvious that special skills are required to manage client’s requirements.

Well, going further into the current trend in the RPO sector, let’s look into what exactly RPO is all about. To be very specific, it can be said that RPO is a subset of Human Resource Outsourcing. The purpose of this process is to help buyer organizations to effectively manage talent acquisition. The companies will be assigning recruitment process to someone else outside, who will be responsible for all the recruitment processes end to end.

At present the value of RPO services are very high. Companies are more focused on such services and solutions which are available from various providers. Basically the RPO industry is having three segments. Those are the

  • Comprehensive RPO
  • Selective RPO and the
  • Recruiting services

Detailing about the comprehensive RPO, it basically deals with end-to-end management. It deals with each and every requirement from sourcing to on-boarding. The selective RPO is quite different from the earlier one. In this, the service providers will be dealing with only some part of the process. More emphasis will be given only to the major requirement of the buyer. The third segment is again different from the earlier two segments as it deals with multiple point services. It deals with short term process management engagements as well as other limited period services. 

One of the most important fundamentals of RPO, which has to be understood, is that the scope of the business of this sector is very much limited. In the outsourcing industries there are companies which depend on multiple RPO providers. This will help the companies to get benefited with different type of services.  There are multiple buyers who depend on different providers so that they can manage non-exempt talent acquisition as well as exempted.

After the introduction of “pay-as-you-go” funding model, the demand for such services has drastically increased. According to this model the service buyers need to make payment transaction only when the hire is made. Well, there are service providers who depend on other flexible payment models too. In the near future it is expected that the number of buyers of RPO services will be increased. Well, the growth of RPO sector is not at all happy news for people who are engaged into the direct hire business, and that is obvious.

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