According to the latest report by Everest Group, Recruitment Process Outsourcing (RPO) market is likely to grow at a rate of 25% to reach $1.4 billion this year. The new research report titled “Recruitment Process outsourcing (RPO) Annual report 2012- Raising the Bar to Sustain Momentum” by the leading research and analyst firm claims that RPO is the one of the fastest growing process in Human Resourcing Outsourcing market.
Recruitment Process Outsourcing is a process where a service provider takes care of all the recruitment process for a company. In a RPO concept, the service provider acts as the internal recruitment function for a part or whole of the company. The RPO service provider manages the entire recruiting process including
- Job profiling
- Sourcing Candidates
- Screening of applications
- Post appointment training and induction.
The difference between RPO and other type of staffing process is that in RPO the company assumes the complete ownership of the process while other staffing service providers are controlled by the organization that use their services.
According to the report, since recruitment is becoming the most time consuming, significant and cost incurring activity, more and more companies are warming up to the idea of outsourcing their recruitment activities and looking for vendors who can do it at a low cost better than them. Everest Group has analyzed the RPO market across various dimensions that include:
- Overall RPO market view
- Key business drivers of RPO
- Trend followed by buyer in adopting RPO
- Solution and transaction trends
- Service provider landscape
As per the report, almost 74% of the RPO deals that were signed in the year 2010 were local based and only 10 % were global. Currently, lack of competitive global RPO service providers is holding back the growth of the market but will grow at the end of the 2012 owing to huge demand in the global market for the service which will put pressure on the existing regional services providers to go global to meet the challenges.
Excerpts from the report
- The RPO market is likely to grow at rate of 25% a year.
- The key driver of growth of RPO market will be continuous focus on cost efficient recruitment approach due to the prevailing slow down in global economy.
- There is an increase in adoption of RPO in Europe and Asia Pacific region.
- There is an increasing demand for blended RPO model that combines permanent and contingent recruitment under one process.
- RPO service providers are limited in number but have experience in specialized areas such as blended RPO and multi-country RPO.
- There will be increase in the use of social media websites for recruitment.
- There will be reduction in the time taken for recruitment because of adoption of RPO.
You can view the entire report by following the link.