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.
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)
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?
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.