Despite all the innovations in the HR segment, finding talent remains a troublesome affair. Around two decades ago, trade front-runners identified recruitment as a different HR activity, but companies considered and created ‘talent acquisition’ a different function outside the important HR strategy. In fact, talent acquisition helps organizations measure with more emphasis and increased outcomes. Still, companies operate majorly with internal focus.
Over a period, they become stationary with insignificant solutions and delivery models which don’t solve any critical problems. In India, there are above 30,000 placement agencies which are supporting hiring needs of corporate by handling the sourcing section of recruitment along payroll processing and other related services. Unfortunately, there is still a talent demand and supply gap.
On the other hand, the economy of India is in a row to grow at 7% which will create more job opportunities. Till 2013, the formal workforce volume was 1 million which is expected to grow to 88 million by 2022. The RPO, or Recruitment Process Outsourcing industry, assures to be a robust assistance to the recruitment sector where it would bridge the delivery gap in the following years.
To know what RPOs stand for, you should remember that RPOs differ from the traditional placement agencies on three broad terms:
RPO handles multiple recruitment processes including process management, talent sourcing and demand management, governance, and analytics.
Terms and Outcomes
RPO includes long-term activities and paying attention to automation of processes, SLA and KPI delivery, driving shareholder experience, and building business intellect.
Structure and Fee
The only way RPOs or staffing firms can win customers’ confidence successfully is with dedicated teams for the customers. To deploy dedicated teams for RPO activities, there are different kinds of fees besides rewards and penalties such as:
• Position handover fee
• Position closing fee
• Technology fee
• Supervision fee
• Success-based fee
The size of global recruitment market is about $4 billion. By 2022, it’s expected to grow to $12 billion. Moreover, 75% RPOs offer the organizations with the flexibility to manage its recruitment needs. And, 25% are end-to-end RPOs targeting long-term gains. RPOs are best and aggressively utilized among the five industry verticals:
2. IT & Telecom
4. ITeS & BPO
In India, the business potential of RPOs is very promising. Firms like Randstad, HirePro and Kelly Services have started evolving their traditional models of permanent placements to RPO solutions in the country. However, with more success stories across different business models, the RPO industry would grow significantly!