Recruitment Process Outsourcing
Outsourcing is the management and/or day-to-day execution of a business function by a third party service provider. Outsourcing can be provided on or off premises, in the same country or in a separate country.

Recruitment Process Outsourcing (RPO), then takes outsourcing one more step to a specific department, in this case HR or personnel.  RPO, also known as Employment Process Outsourcing is that subset of BPO which is very new, few people have heard of it, and only a handful offer it.  Argus Search is a helping drive the market and is a leader in the Recruitment Process Outsourcing industry.  (see RPO Services)

In most organizations, the recruitment function is either assigned to various people in HR or is comprised of a dedicated group within HR. It is a critical function, which includes sourcing, assessment, interviewing, and sometimes new-hire administration and orientation. An effective RPO arrangement involves standardized recruiting processes and platforms for workforce planning, applicant tracking, and workflow. By specializing, an RPO firm can invest in the most efficient technology and processes. They also reap significant scale advantages in relationships with vendors in staffing search, online recruiting, recruitment marketing, background check and profiling, to name a few.

ROI for Recruitment Process Outsourcing

Regardless of how you slice it, the market is substantial. The worldwide Human Resources Outsourcing (HRO) market will reach $80 billion by 2008, at a compound annual growth rate of 12 percent over the five-year forecast period. So in effect the RPO industry counts to around $30 billion.

How are we reaching there?

  • Companies globally are witnessing an attrition rate of an average of 18 % ( With figures for industries like the call center being as high as 45% and also higher attrition rates in growing sectors like IT and Biotech) this in effect means that a fifth of the world's working population takes a new job every year.
  • In addition there are about keeping in mind a conservative figure the average growth rate of the GDP of all countries in the world at 4%, there are 4 new jobs added for every 100 every year.
  • As per clients estimates 25% of hiring happens through search firms. In other words 10% of the entire working population of the world gets a job every year through a search firm.

Recruitment services are the most popular in HR BPO and are driving the growth of the market. Best practices and vendor scalability have been proven in HR over time, and enterprises perceive RPO options as being less risky and offering good value for money. According to Gartner, the revenues touched $46 billion in 2003, an 18 percent increase from 2002 revenue of $39 billion. As per the current growth trends HR BPO is forecast to reach $51 billion in 2004 and represent 39 percent of all BPO revenue. So in effect the RPO industry counts to around $20 billion.