The Growth Story
Use of recruitment process outsourcing (RPO) solutions continues to rise with record deals providing significant growth for the market. For many buyers with more than 5,000 employees, appetite to transfer ownership of all or part of the recruitment process is growing as the RPO market matures, the benefits of outsourcing are accepted, and successful implementations increase in number.
Staffing firms have been quick to offer RPO solutions with an estimated 36 percent offering RPO as opposed to only 25 percent for manages services. Further, staffing firms and specialist RPO service providers have identified an increased demand for talent sourcing and recruiting solutions globally. This has fueled mergers and acquisitions and a talent war for RPO professionals with successful delivery track records.
The overall RPO marketplace, however, remains fragmented with large service providers co-existing with significant numbers of much smaller, specialized vendors. Low barriers to entry and relatively low-cost models compared with contingent hiring has created fierce competition and, as a result, an opportunity for buyers to reap further business benefits.
As a new era of globalization unfolded, more ambitious and financially solid organizations entered new international markets to maximize their profits. They needed local talent, but lacked a wide area of expertise to locate better cadres in a new country. RPO providers that were first to spot emerging trends went global early on to help organizations in their talent acquisition endeavors which, in turn, helped them become a more formidable global presence. Utilizing proper benchmarks for powerful marketing campaigns, RPO providers are now able to take globalization to the next level.