The concept of the RPO model is rapidly evolving with the best-in-class talent management recruitment models. This model helps in aligning a workforce plan, creating competitive differentiation, and offering better employee engagement.
Overview of Curent RPO Market Landscape
The current RPO model is different from traditional staffing, recruitment, and outsourcing. It provides end-to-end recruitment solutions and full ownership. Here, the whole recruitment process or a few functions (depending on the company’s requirement) are solely handled by a single provider. Traditional recruitment models were not functionally adequate because of unsuitable recruitment policies for the current dynamic environment and the low adoption of technology.
Though application tracking systems and job boards and portals have been in use for many years, new technologies are still entering the market. Application tracking systems are no longer helpful in managing a wide range of talent from different locations. Thus, social media and mobile devices are gaining traction in the RPO market in the APAC region. Nowadays, social networking helps RPO providers in attracting job seekers with proactive recruitment.
Technology’s Role in the RPO Market
The emergence of various channels such as social media, expert location systems, and online collaboration tools increases the number of options for recruitment outsourcing agencies. Proactive recruitment and the extensive use of big data analytics and social media are gaining momentum in the RPO industry. Proactive recruitment, also known as headhunting, is a continuous process to attract employees based on job and cultural fit. Innovations are taking place in the interviewing and the testing part of the recruitment process. The right RPO provider deploys big data technology to track valuable data.
In addition, organizations are also adopting social media for sourcing, advertising job vacancies, and generating leads for the best candidate. With the advent of social media, the need to monitor user interactions on Twitter, Facebook, and LinkedIn has increased. Organizations have realized the need to augment their data warehouses with external data sources. In the current competitive scenario, employers recruit through social media to instantly reach out to applicants at a low cost.
Also, technology platforms such as HireVue, GoToMeeting, and MeetingPlace are most popular for video recruiting. Moreover, the advent of SMAC technologies in RPO provides the option to manage cost, mobilize the workforce, and enhance candidate experience.
The majority of enterprises have started adopting the blended RPO model to provide an effective recruitment system and technological approach, the best pricing structure, and a holistic business case to maintain their competitive advantage. Blended RPO fulfills the needs of talent acquisition through a service provider and derives substantial financial, business, and strategic benefits. A blended workforce solution supports both permanent and temporary hiring.
Globalization has also contributed to the changing landscape of the RPO concept. Now, RPO agencies are focusing on multi-country deals to tap global talent and explore maximum the workforce with multiple demographics. The need to migrate talented professionals across various locations has created new opportunities and career paths for them. Currently, developed countries are preferring contingent talent. Companies based in the US are exploring high-tech talent at a low cost from countries such as India and China.
Evolving RPO Models
Currently, organizations are seeking outsourcing partners that have exposure to multiple countries and are able to handle the whole recruitment functions through advanced methods such as benchmarking, best practices, and process improvement. A rapid adoption of RPO strategies is expected among MNCs.
Globalization provides opportunities in bringing flexibility for international expansion without dealing with the complexity and difficulties of diverse national regulations. MCRPO is leading this market in the APAC region and helps employers optimize their global recruitment process and ensure consistency across all countries and regions. The rise in multi-continental deals reflects the increased maturity and need for the MCRPO model. This model is evolving quickly and many innovative practices have emerged.
The establishment of a single recruitment hub serves the entire gamut of clients in the region. At the same time, the existence of a workforce that exhibits multilingual capabilities is expected to be a growing trend. MCRPO deals are expected to witness an increased adoption during the forecast period and the BRIC countries are also emerging as key buyers in MCRPO deals.
The integrated RPO model is also an emerging trend in the market. This helps companies in managing their supply chain and tackle workforce management issues. This helps in establishing control of the entire gamut of the workforce, including both temporary and permanent resources.
