Next in line after the Business Process Outsourcing (BPO) and Knowledge Process Outsourcing (KPO) boom, it is Recruitment Process Outsourcing (RPO) that is steadily gearing up for a new role.
RPO- it aims at taking the burden out of the head-hunting business of the corporate sector, particularly at a time when the dearth of talents is estimated by half a million in the coming years, RPO comes with lots of prospects. New and varied opportunity like retailing etc. has opened fresh horizon for RPO to play a major role to bridge this gap between demand and supply. This will increase RPO service providers role in India.
There is an intense war for talent. The hiring estimation for India is growing at an alarming state, and the clients are demanding higher quality candidates with increased efficiency. The RPO theory has been proved in the Western countries, however in India, the sector is currently at its infancy stage. Only few RPO firms currently cater to the needs of various domestic as well as multi-nationals in hiring employees for them.
RPO is primarily being practiced in two models - one is pure sourcing and providing support services to on-shore based recruiters to enhance their productivity and effectiveness. Second one- is a full cycle recruiting from sourcing, screening and on-boarding for both temporary contract as well as permanent positions. This is to reduce the overall cost of recruiting process and to improve competence at the same time.
The industry is expected to grow at around 30 to 35 percent in the next five years. It is estimated that within the Indian market, the total annual spend on recruitment is Rs.700 crore. This can supposedly be considered the potential size of the RPO business in India.
With the shortage of qualified talents and growing attrition rate, companies are forced to outsource the entire recruitment process, ranging from needs assessment to screening, and interviewing candidates.
The growing pressure to fill in vacancies every now and then, 80 percent of the HR personnel fail to concentrate on the real HR activities, including training, staffing needs, ensuring performance. So when it comes to RPO that takes care of the entire recruitment process and saves time and cost of companies, its a welcome move.
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