The Global "Recruitment Process Outsourcing Market" is expected to grow at a high CAGR of 18.5% during the forecasting period (2022-2029).
The rise in the demand for efficient recruitment processes with a reduction in talent acquisition spend will drive the Recruitment Process Outsourcing market in the forecast period.
Recruitment process outsourcing (RPO) is a form of business process outsourcing (BPO) where an employer transfers all or part of its recruitment processes to an external service provider, according to the Recruitment Process Outsourcing Association (RPOA). An RPO provider can deliver the necessary staff, technology, and methodology needed to fulfill a client’s recruitment requirements.
The report covers all the major trends and drivers playing a vital role in the growth of the global Recruitment Process Outsourcing market. The global Recruitment Process Outsourcing market has been segmented based on Type of Outsourcing, Industry Vertical, and Region.
The global Recruitment Process Outsourcing market growth is primarily driven by the growing demand for efficient recruitment processes coupled with a reduction in talent acquisition spend by the organizations. Under a full, end-to-end RPO solution, hiring processes are more efficient – with all permanent hiring centralized. Because RPO providers work with businesses worldwide, they also have the knowledge, experience and best practices required to deliver the best results for a client. Outsourcing recruitment through an RPO solution is one of the most effective ways for businesses to reduce their talent acquisition spend. Finding talent is a time-consuming process, even for the best talent acquisition and HR professionals.
As every business knows, time is money. According to Glassdoor, unfilled jobs in the US tech market add up to a total value of $20.1 billion, and that’s just the tech market. For every position that remains vacant within an organization, a business is losing money. RPO providers, however, can quickly fill even the most difficult roles thanks to their dedicated expertise and their ready-made talent pools.
However, the regulatory issues will hinder the growth of the Recruitment Process Outsourcing market for the forecast period.
By Type of Outsourcing, the global Recruitment Process Outsourcing market is Partially outsourced and Fully outsourced. Fully outsourced RPO market players are responsible for conducting the entire recruitment process. Additionally, they are responsible for document verification of the hired employee. Partially outsourced RPO providers are responsible for understanding the profile requirements for the employer and search & shortlist candidates for the company. However, the market for the fully outsourced segment is expected to grow at a higher CAGR in the forecast period, owing to the new analytical software adoption by the industry to have more efficient and accurate recruitments.
By Industry Vertical, the global Recruitment Process Outsourcing market is segmented into IT and telecom, Manufacturing, BFSI, Healthcare, and Others. IT and telecom have the dominant position in the RPO industry vertical segment. They are expected to retain their dominance in the forecasted period due to the large requirement of people now and then regularly due to changes in technology. However, the growing e-commerce retail segment will grow with a higher CAGR for the forecast period.
By geography, the global Recruitment Process Outsourcing Market is segmented into North America, Asia-Pacific (APAC), Europe, South America, and the Middle East and Africa (MEA).
North America holds the largest market share for Recruitment Process Outsourcing Market due to large manufacturing and tech giant companies in the region. The region is the first adopter of the RPO services. U.S. manufacturing is the largest in the world. It produces 18.2 percent of the world's goods. That's more than the entire economic output of Canada, Korea, or Mexico. Manufacturing is an essential component of gross domestic product. In 2018, it was $2.33 trillion. That drove 11.6 percent of U.S. economic output, according to the Bureau of Economic Analysis. The healthcare sector has also grown. It was grown from 5 percent of the economy in 1960 to 18 percent in 2015.
Asia Pacific region is estimated to grow considerably over the forecast period in the RPO market owing to a growing number of small, medium, and large organizations. Additionally, the global expansion of organizations is expected to drive the regional market. India and China are estimated to grow in the forecast period due to high industrial sectors, including manufacturing, healthcare, pharmaceutical, and IT. According to NASSCOM, the sector aggregated revenues of US$160 billion in 2017, with export revenue standing at US$99 billion and domestic revenue at US$48 billion, growing by over 13%. The United States accounts for two-thirds of India's IT services exports.
Key players are adopting strategies such as investing in R&D, new product launches, expansion in Industry Verticals to stand out as strong competitors in the market. Global Recruitment Process Outsourcing Market is a fragmented market with various global and regional players in the market. The major players include Accenture, ADP, Hudson RPO, Infosys, and Randstad Sourceright. Other key players in the market include Alexander Mann Solutions, ManpowerGroup Solutions, Kenexa Corporation, Randstad Holdings NV, an Atterro Human Capital Group.
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