About Recruitment Process Outsourcing
RPO is a sub-segment of the human resource outsourcing (HRO) market, in which recruitment processes are outsourced to external or third-party service providers. External service providers manage end-to-end or partial recruitment process of HR department. Many vendors in the market also provide RPO consulting services along with outsourcing services.
Technavio’s analysts forecast the global recruitment process outsourcing market to grow at a CAGR of 17.66% during the period 2017-2021.
Covered in this report
The report covers the present scenario and the growth prospects of the global recruitment process outsourcing market for 2017-2021. To calculate the market size, the report considers the revenue generated by the RPO solution and service vendors.
The market is divided into the following segments based on geography:
Technavio Announces the Publication of its Research Report – Global Recruitment Process Outsourcing Market 2017-2021
Technavio recognizes the following companies as the key players in the global recruitment process outsourcing market: ADP, IBM, ManpowerGroup, and Randstad Sourceright.
Other Prominent Vendors in the market are: Accenture, Alexander Mann Solutions, Allegis Global Solutions, Futurestep, Hays, Hudson, Infosys, KellyOCG, and Pontoon Solutions.
Commenting on the report, an analyst from Technavio’s team said: “One trend in market is advent of artificial intelligence in recruitment processes. Application of artificial intelligence (AI) technology to recruitment process helps recruiter to identify best candidates. AI tools, with application tracking systems, help the organizations to simplify the recruitment process. AI researchers are continuously developing innovative tools that can streamline the end-to-end recruitment process. Start-up firms are mainly developing AI solutions for the recruitment process. For instance, Connectifier Search, a product developed by start-up firm Connectifier, uses machine learning AI technology to identify the best suitable candidates from online sources. Connectifier was acquired by LinkedIn in February. This acquisition clearly indicates that recruitment firms are heading toward the next-generation technologies to smoothen the recruitment process.”
According to the report, one driver in market is increased usage of neo-sourcing. Many companies are trying to integrate business with technology solutions to reduce costs and improve productivity and innovation. The integration of IT outsourcing and BPO, termed as neo-sourcing, is an evolution of BPO models offered by outsourcing companies. Neo-sourcing is the combined management of back-office operations and technology for process reengineering, which would result in business transformation and optimization. Benefits of this technology include process optimization, cost reduction, access to the best global practices, improved productivity, increased employee morale, and reduced cycle time.
Further, the report states that one challenge in market is high attrition rate in BPO industry. The high attrition rate is one of the major challenges for both BPO and RPO markets. BPOs incur high costs in training their employees, and the high attrition rates make maximum ROI difficult. Work pressure, monotonous work, other career opportunities, and organizational culture are the top reasons behind the increased attrition rate in the BPO industry. Different industry verticals like the BFSI, healthcare, and telecom need to retain their talent to deliver high-quality BPO services in the healthcare sector with minimum possible errors. The attrition rates in BPO firms incur cost to organizations that can be saved through standard HR policies. The attrition rate in the BPO industry varies with industry verticals. In 2016, the attrition rate in the Indian BPO industry was between 28% and 45%.
ADP, IBM, ManpowerGroup, Randstad Sourceright, Accenture, Alexander Mann Solutions, Allegis Global Solutions, Futurestep, Hays, Hudson, Infosys, KellyOCG, Pontoon Solutions.