Recruitment process outsourcing (RPO) refers to an outsourced service where a customer organization assigns all or some of the recruitment process to a third-party (RPO) vendor. The most important factor driving market growth is the reduction in overhead costs of customer organizations. Additionally, the outsourcing recruitment process makes recruitment much easier, faster and productive than traditional recruitment processes. It has created a large number of companies worldwide in recent years towards the adoption of RPO. Due to the increasing penetration of the overall outsourcing concept, the RPO market is expected to witness strong growth in the coming years. The RPO industry has seen spectacular growth over the years. The development of the RPO sector as a practical practice has evolved into a complete industry. Considering the many benefits, it was bound to be a success. In today’s candidate market, the cost of acquiring talent is rising. RPO can provide a service that will help your budget, but it provides more than just a filling position when demand is high. RPO is about enhancing the overall recruitment process. The market for recruitment process outsourcing (RPO) is primarily governed by the increasing adoption of outsourcing services worldwide. Most companies are looking for external service providers who can help them reduce their overhead costs. Additionally, outsourcing recruitment processes to a third-party provider enable organizations to focus on their core competencies thereby enhancing their business operations. The outsourcing recruitment process enables business organizations to appoint candidates according to their needs internally without affecting any cost.
In addition, demand for RPO services has seen strong growth due to their tremendous advantage over traditional methods of recruitment. Due to these factors, the recruitment process outsourcing market is likely to witness high growth during the forecast period.
RPO Sector growth Statistics
The RPO market today is one of the fastest-growing outsourcing markets in the world, with double-digit growth rates of 20% again in 2018. Although the RPO market has almost matured in some areas, growth has been high due to adoption from new industries, adoption from middle-and-small market buyers, and expansion of existing RPO deals. The global recruitment process outsourcing market is accounted for US$ 5.01 Bn in 2017, US$ 4.16 Bn in 2018, and is expected to grow at a CAGR of 29.1% during the forecast period of 2019-2027, to account for US$ 40.57 Bn by 2027. The growth witnessed by the industry is rapid. with a moderate acceptance of 20% in the year 2012 to market acceptance of over 50% at present, the industry has seen amazing results. The RPO sector grew from 20% offshore components in 2015 to figures of 24, 31, and 38 in subsequent years and is now at a high of 65% in 2019.
RPO is predominantly popular in North America and Europe where the adoption of these services dates back to the 2000s. However, the Asia Pacific region is projected to emerge as the most growing market for RPOs in terms of revenue and adoption in the coming years. The demand for RPO service is primarily controlled by the increasing number of business enterprises with the need for productive recruitment. The RPO market in the Asia Pacific region is expected to expand nearly four times by 2022, due to strong growth in various industrial sectors in China, India and some countries in Southeast Asia.
The global recruitment process outsourcing market is highly consolidated in nature with some key players contributing more than eighty percent of the total revenue. these players face significant entry challenges due to the presence of local/regional players. Most global RPO vendors have partnered/acquired regional players to establish their presence in the respective markets. Additionally, due to the increasing popularity of RPO services, more regional players are expected to emerge in the coming years, making the market more competitive.
According to a new market research report published by Credence Research “Recruitment Process Outsourcing (RPO) Market (On-demand RPO and End-to-end RPO) – Growth, Share, Opportunities, Competitive Analysis and Forecast 2015 – 2022”, the market for recruitment process outsourcing is poised to grow from 3.54 Bn in 2014 to 10.67 Bn by 2022, worldwide.
These figures clearly indicate and verify the associated benefits. It is clearly shown that the mentioned benefits are not just some points mentioned in a paper, they actually exist. The growth that the sector has seen clearly indicates that companies have seen success after their involvement with the sector. The results provided by the sector are the only reason for this increasing percentage of market acceptance. All the facts clearly show the progress and reasons and how offshore RPO sector growth has emerged into a reliable industry. This belief is evident from the increasing number of off-shore partnerships.
The Principle Group has also emerged as a trusted name in the RPO sector growth industry. We focus on meeting the actual needs of customers rather than just filling positions. Our team focuses on unique and innovative ways of hiring a candidate. We use our resources effectively.
“We believe that the workforce is the basic foundation for your organization, and turning them into assets can be the key to success.”
Globally, there’s an obvious shift in companies recognising the benefits that come with RPO Looking for an Recruitment Process Outsourcing provider?
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