Global Recruitment Process Outsourcing (RPO) Market is Expected to Grow Threefold by 2022
The Recruitment Process Outsourcing (RPO) market is one of the fastest growing segments today. Credence Research, a known market research consulting firm in San Jose, USA has published a new market research report which states that the global recruitment process outsourcing market is poised to grow from 3.54 Bn in 2014 to 10.67 Bn by 2022, worldwide.
Owing to rapid business growth in India and and fast growing industries in United States, we are witnessing a spurt in hiring. Meeting hiring demands of rapidly scaling up companies and the quest to hire the best talents is a cumbersome process and is taking a toll on HR managers. This pressure to hire and keep the best talents is leading to increased adoption of recruitment process outsourcing services worldwide. Most of the companies are looking for external service providers who can help them reduce the overhead costs. Not just the costs, RPO companies are specialized partners and hold relevant skills to support companies in hiring the right talent. Additionally, outsourcing the recruitment processes to a third-party provider has been a part of the business strategy as it enables organizations to focus on their core competencies thereby enhancing their business operations. Making good use of external suppliers helps them save their valuable time and engage in more productive activities. Presently it may seem we are at the baseline stage in the evolution of outsourcing but RPOs are playing a major role in increasing the flexibility and diversity in organizations. Core and critical processes which were handled in-house at one time are now getting outsourced.
Besides just hiring, outsourcing recruitment processes enable business organizations to hire candidates as per their requirement and the good part is that organizations do not have to bear the costs internally. Everything is planned and managed by the partner recruitment process outsourcing firm. Owing to all these positive aspects and advantages over traditional methods of recruitment, the demand for RPO services has witnessed strong growth which will only accelerate during the forecast period. By 2022, it will be an important business strategy for many organizations.
The RPO market can be categorised in many ways. Predominantly, it is segmented on the basis of geographies or locations, industries and the employee engagement models that the corporate firms practice. A candidate can be employed on end-to-end basis or on-demand basis. Currently, the market is dominated by the on-demand engagement model segment due to the changing volatility of hiring needs. This model is accounting for more than 75% of the total market share, in terms of revenue.
Employers can increase or downsize their workforce from quarter to quarter based in their workload and targets. To meet this recruiting requirement, on-demand RPO model is best suited. This model offers greater flexibility, scalability and convenience to the client organization because companies have a contract-based engagement with a qualified recruitment process outsourcing firm. Hence, the segment is expected to hold its dominant position in the market throughout in the near future.