Today’s global economy continues to increase at such a rapid pace that our education system and training programs are struggling hard to keep up with the changes. The increase in skill gap is making it difficult for employers to find the right talent.
As a result, organizations are forced to resort to external service providers or recruitment process outsourcing (RPO) to fulfill their hiring demands. The primary objective behind is to help organization grow with an increased focus on business objectives. Finding the right talent requires a combination of three things – human intelligence, certain methodologies and of course technology in modern times. There exists a delicate balance between science and art that eventually executes the process of recruitment.
Understanding Recruitment Process Outsourcing
Recruitment Process Outsourcing or RPO Services as it is commonly referred to is a form of business process outsourcing (BPO) where an employer outsources or transfers all or some of its recruitment activities to an external service provider – to help them attract and retain the best talent. RPO providers may offer services that comprise sourcing, job posting, screening, staff onboarding, research, recruitment and other administrative technologies as well.
Some of the benefits that employers reap from resorting to RPO are explained below:
#1. Reduced hiring costs and time to fill vacancies
#2. There is a greater chance of finding the best possible talent
#3. Since RPO providers have greater access to an extensive database, they can offer the best talent to organizations
#4. RPO providers also ensure right employer branding of an organization, hence letting them hire the best available talent.
#5. Engaging an RPO service implies that you would gain full access to strategic market insights and of course thought leaders.
#6. Finally, once you have handed over everything to an RPO service provider, you can finally focus more on the growth and planning of your business.
Growth and Expansion of RPO in India
Over the past five years, India has witnessed a substantial growth within the RPO segment. According to recent reports, more than 70 percent of Indian employers are likely to outsource recruitment functions either entirely or partially in the coming few years.
It might come as a surprise to many, but the current valuation of the RPO industry in India is INR 400 crores which are further expected to grow at a rapid rate of 40-50 percent. When organizations choose to opt for RPO services, they end up saving substantially on their recruitment costs. The expertise and experience of a partner can help companies improve the quality of recruits along with an overall smoother and faster hiring process.
The HR outsourcing services market in India is changing rapidly as external providers are designing more holistic solutions with a greater involvement of Applicant Tracking Systems (ATS) and of course HR analytics. Most of the major external service providers have sound sourcing centers that provide cost efficiency and enable pricing to be fully variable.
Now, organizations need to take a holistic approach towards their current workforce and thereby implement more innovative talent acquisition strategies, find the right talent and hence ensure substantial business growth.
With an ever-changing economy, the talent and recruitment landscape in India has been heavily influenced, and it is no longer about organizations hiring candidates. Even candidates analyze companies before making a decision.
Source: Times of India