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World – Recruitment process outsourcing industry is changing

19 September 2012

Recruitment process outsourcing (RPO) has evolved into something that has been branded RPO 2.0, addressing new challenges HR leaders are faced with in making business impact through their talent acquisition and management practices.

A new report by global research firm Everest Group challenges RPO buyers and providers to no longer just rely on process efficiencies as a measure of solution success.

It says that the next generation of recruitment partnerships, coined RPO 2.0, builds on the efficiency foundation. But it also focuses on increasing internal hiring, reducing new hire attrition and reaching out to new, non-traditional talent pools to enable organisations to react quickly to rapidly changing marketplaces.

“HR leaders are required to drive true business results in addition to their traditional role as a support function,” said Rajesh Ranjan, vice president of business process outsourcing research at Everest Group. “Perhaps the greatest advantage that RPO 2.0 can provide is to turn the dream of aligning workforce planning with overall business strategy into a reality.”

The paper suggests that the RPO industry is moving away from just addressing immediate recruitment needs.

“Industry leaders are focusing on ahead of the curve architecture, wherein strategic workforce planning, employment branding and talent communities are employed to build effective and integrated internal and external pipelines to support critical roles within the organisation,” according to Sue Brooks, managing director of talent management specialist Ochre House.

The report makes out the rising in trend in the RPO industry, showing that the RPO market is growing rapidly as buyers become more sophisticated and want more strategic support than is offered by many traditional RPO providers. 


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