Recruitment Process Outsourcing Market by Type (On-demand RPO, Function-based RPO, and Enterprise RPO), Service (On-site and Off-site), Enterprise Size (Small & Medium Enterprises and Large Enterprises), End-use (BFSI, Healthcare, Manufacturing, IT & Telecom, Education, Others), and Regions (Asia Pacific, North America, Latin America, Europe, and Middle East & Africa) - Global Industry Analysis, Growth, Share, Size, Trends, and Forecast 2021 – 2028

The global recruitment process outsourcing market size is anticipated to expand at a substantial CAGR during the forecast period, 2021–2028. The growth of the market is attributed to the demand for an effective recruitment procedure and a decrease in overhead expenses.

According to the Recruitment Process Outsourcing Association, recruiting process outsourcing (RPO) is a type of business process outsourcing (BPO) in which an employer outsources all or part of its recruitment operations to an external service provider (RPOA). An RPO supplier can either supply its own employees or accept responsibility for the company's technology, procedures, and reporting. RPO differs from other providers such as staffing firms and contingent/ retained search firms in that it takes responsibility for the design and administration of the recruiting process as well as the outcomes. The recruitment landscape is complicated. One must negotiate a tight labor market, become competent in a set of essential technologies, and manage and nurture applicants and hiring managers in order to efficiently recruit top personnel. RPO providers are subject-matter specialists who specialize in talent acquisition. They understand how to navigate the recruitment landscape, are up to date on the newest recruiting technologies, and have the means to grow recruiting capacity to meet demand. People, technology, process, and Key performance indicators are all brought together in an RPO's talent acquisition department. The scope of traditional recruitment firms will be to source and place the candidate in the required role. Whereas, the recruiting process is designed and executed by the RPO provider, which includes services such as talent engagement, candidate management, strategic sourcing, compliance and risk management, hiring manager engagement, recruitment analytics support, employer brand consultation, vendor partnering and supply chain management, workforce planning, pre-employment screening, and early careers/graduate recruitment. There is no industry-wide standard charge for certain RPO services, nor is there a pricing range for small and big organizations. The cost of an RPO solution is determined by the objectives and goals of the company as well as the RPO provider. Management Fee Model (usually monthly), Cost Per Hire Model, Management Fee Plus Cost Per Hire, Cost Per Slate, and Cost Per Transaction are five popular RPO cost models used by RPO providers. RPO improves recruitment effectiveness and provides a company a competitive edge when done appropriately. By optimizing recruitment and hiring, a company can put the appropriate people in the right jobs, creating an atmosphere where everyone benefits workers are happier, management is more effective, executives achieve their targets, and the company as a whole is better positioned for success.

Market Trends, Drivers, Restraints, and Opportunities

• Increasing technological advancements such as artificial intelligence (AI) and machine learning (ML) for self-planning interviews and robotized screening of CVs are projected to drive the market growth.
• During COVID-19 pandemic, organizations are utilizing advanced solutions and digital sources for recruitment this is expected to boost the market growth in the coming years.
• Growing number of new graduates and postgraduates has increased demand for such services is anticipated to fuel the market growth during the forecast period.
• Increasing use of cloud and web-based services and software solutions has contributed in the simplification of RPO this is expected to push the market growth in the coming years.
• Selection of right profiles and to understand the employer's intended profile and adapt the procedure to meet their needs presents as major challenge that can hamper the market growth.
• Extensive focus on R&D for development of new effective recruitment methods and technological advancements are projected to offer lucrative opportunities for the market players.

Scope of the Report

The report on the global recruitment process outsourcing market includes an assessment of the market, trends, segments, and regional markets. Overview and dynamics have also been included in the report.

Market Segment Insights

On-demand RPO segment is expected to account for a key share
Based on type, the recruitment process outsourcing market is bifurcated into on-demand RPO, function-based RPO, and enterprise RPO. The on-demand RPO segment is expected to account for a key share of the market during the forecast period owing to its flexible, scalable, and low-cost services on demand basis. SMEs are understanding the benefits of RPO providers' services and are utilizing them for their recruiting requirements. SMEs frequently adopt cost-effective recruitment strategies due to financial restrictions. The firm may scale up or down its recruitment capabilities based on business demand using this strategy.

On the other hand, the enterprise RPO segment is anticipated to expand at a rapid pace during the forecast period owing to it relieves organizations of the burden of talent pooling, allowing them to focus on their main business. Enterprise RPO is often known as full-scale or end-to-end recruitment process outsourcing, is a comprehensive outsourced recruiting solution usually offered on a multi-year basis. It is a flexible system that covers services like talent sourcing, screening, interview scheduling, onboarding, monitoring, and interviewing.

Off-site segment is expected to hold a key share
Based on services, the recruitment process outsourcing market is bifurcated into on-site and off-site. The off-site segment is expected to hold a key share of the market during the forecast period owing to increased adoption by multinational companies for their global recruitment program. Off-site recruitment process outsourcing allows clients to hire for several locations from a single location. Clients and recruiting businesses collaborate to deliver the finest talent available across the world. Recruitment businesses use best practices and tailored methods to get the greatest results and encourage more diverse hiring in this process. Distinct nations have different labor laws and recruiting cultures, both of which must be taken into account during the hiring process. RPO firms play a critical part in the global hiring process because of their extensive understanding of the region and its culture, as well as their experience in labor laws and regulations.

On the other hand, the on-site segment is anticipated to expand at a rapid pace during the forecast period due to extensive use in a variety of end-use sectors because they help to create successful connections between the recruiter and the RPO business, simplify the hiring process by giving a single point of contact, and increase the efficiency and efficacy of the services. On-site service is a extension to the company's current human resources department. A recruiting service provider collaborates with a company's HR department to give a comprehensive hiring solution. The on-site service approach provides the customer with complete transparency in terms of recruiting expenses and the number of agencies engaged.

Large enterprise segment is expected to represent a key share
Based on enterprise size, the recruitment process outsourcing market is bifurcated into small & medium enterprises and large enterprises. The large enterprise segment is expected to represent a key share of the market during the forecast period owing to Greenfield projects, where firms are unable to build full-fledged HR departments and are searching for hiring partners that can provide end-to-end recruiting solutions. Furthermore, major companies have a larger budget and demand more complex services, such as recruiting and other HR activities, 360-degree interviews, recruitment audits, and application development.

SMEs frequently have a dedicated HR team that handles recruitment as well as other responsibilities like payroll, training, and employee relations. These firms have a smaller budget and a faster turnaround time when it comes to recruiting candidates. SMEs, on the other hand, confront difficulties in controlling the recruiting process's constant changes. SMEs are concentrating on lowering overall recruiting costs and streamlining the recruitment process for potential candidates, which has led to a rise in RPO usage among SMEs.

BFSI segment is expected to represent a key share
Based on end use, the recruitment process outsourcing market is segmented into BFSI, healthcare, manufacturing, it & telecom, education, others. The BFSI segment is expected to represent a key share of the market during the forecast period owing to digital disruptions, changing operating models, and new firms entering the market. Financial institutions emphasize recruitment process outsourcing for acquiring top talent because of the obstacles associated with hiring and developing employees with the appropriate skills and knowledge base. Insurance companies, commercial banks, co-operatives, asset management businesses, venture capitalists, and other minor financial institutions make up the sector. The expansion of these businesses results in significant economic activity, which leads to the creation of direct and indirect jobs. The need for financial services is also being driven by emerging nations' steady economic development and growing per capita income.

On the other hand, the healthcare segment is anticipated to expand at a rapid pace during the forecast period due to the aging population and people with chronic conditions. Hospitals, businesses, home health care services, community care facilities for the elderly, and medical and diagnostic labs are all part of the healthcare industry. To function in a regulated environment, all of these healthcare sectors demand a competent staff. The fastest-growing jobs in the healthcare industry are personal care aides and home health aides. More job possibilities in the healthcare sector are projected to emerge as a result of technological advancements, necessitating the use of outsourced recruiting.

North America is anticipated to dominate
On the basis of regions, the recruitment process outsourcing market is classified as Asia Pacific, North America, Latin America, Europe, and Middle East & Africa. North America is anticipated to dominate the market during the forecast period. The regional market growth can be attributed to increasing employment rate and demand for higher education credentials and upskilling across new fields. Furthermore, the healthcare and manufacturing industries, with healthcare being one of the fastest-growing sectors, are creating new job opportunities across the country. Several government efforts and favorable conditions have aided in reviving the industrial sector in the United States, resulting in the creation of new employment.

On the other hand, Asia Pacific is expected to exhibit a rapid growth rate in the coming years owing to increasing investments across the various sectors by multinational companies as these companies are perpetually looking for ways to remain competitive in the market. On account of the region's growing labor markets, such as India and China, several recruitment outsourcing transactions have been noticed.