Outsourcing Of Recruitment Process Is Growing Rapidly

Global Staffing players believe that recruitment process outsourcing (RPO) — where an employer transfers all or part of its recruitment processes to an external service provider — is truly the next Biggest thing happening in India

Major RPO Players have seen requests for RPO in India more than quadrupling, registering a 120 per cent growth YoY. Principle RPO Group has set up a formal RPO unit recently in New Delhi to cater to increased demand for RPO and has ramped up its headcount from 100 to 860 employees over the last three years.

“The top three growth drivers for the RPO boom in 2015 are the need for organisations to enhance quality of hiring, reduce cost of hiring and increase speed of hiring.

RPO model

Organisations are moving up the value chain, from outsourcing one or two processes and short-term projects to end-to-end RPO that includes everything from sourcing, scheduling, selection to job offer roll-outs and on-boarding hires.

RPO has been adopted by MNCs, especially in the US, and also a few Indian companies, since this model, backed by technology, helps in cost-effective and consistent talent acquisition. There are clients in telecom, pharma, banking and manufacturing that rely completely on RPO and have shrunk their talent acquisition teams. We have a sourcing centre in India that caters to our American clients — people sit together jointly and look for candidates supported by technology, including platforms like LinkedIn.

 With RPO, HR departments are freed from non-transactional activities and can focus on value added work such as, predicting skill trends required in future, identifying patterns of successful hires, organisations can save 70 per cent of their time by resorting to RPO, a good end-to-end RPO provider can help organisations incur cost savings ranging between 30 and 70 per cent.

Most companies start with outsourcing background verifications or testing of candidates. We advise clients to go in for RPO for lower-end and mid-level hires; however, we ask them to retain top-level hiring to lower the risk of being saddled with a candidate who does not have the right competency, culture or value fit.