Market Analysis
published on Mar 03, 2015
Report Overview:
NelsonHall's market analysis of the Recruitment Process Outsourcing industry and trends consists of 100 pages.
Who is this Report for:
NelsonHall's "Targeting Recruitment Process Outsourcing" report is a comprehensive market assessment report designed for:
- Sourcing managers investigating sourcing developments within recruitment process outsourcing
- HR decision makers exploring the benefits and inhibitors of Recruitment Process Outsourcing as evidenced from the clients and vendor capability
- Vendor marketing, sales and business managers developing strategies to target BPO service opportunities within recruitment process outsourcing
- Financial analysts and investors specializing in the IT services and BPO sector, including recruitment process outsourcing.
Scope of this Report:
The report analyzes the worldwide market for recruitment process outsourcing (RPO) and addresses the following questions:
- What is the market size and projected growth for the global RPO market by geography?
- What is the profile of activity in the global RPO market by industry sector?
- What is the average revenue per hire for RPO providers?
- What are the top drivers for adoption of recruitment process outsourcing?
- What are the benefits currently achieved by users of recruitment process outsourcing?
- What factors are inhibiting user adoption of recruitment process outsourcing?
- Who are the leading RPO vendors globally and by geography?
- What combination of services is typically provided within RPO contracts and what new services are being added?
- What is the current pattern of delivery location used for RPO services and how is this changing?
- Which services are delivered from onshore and which from offshore?
- What are the challenges and success factors within recruitment process outsourcing?
Key Findings & Highlights:
The Recruitment Process Outsourcing (RPO) market remains strong in 2014, with organizations continuing to make savings and improve talent quality by moving away from agency/staffing models to longer term recruitment process outsourcing. Talent shortages continue in key positions, and as unemployment continues on a downward trend in the key markets such as the U.S. and U.K., organizations look for more sophisticated recruitment practices and are increasingly attracted to RPO.
First time RPO organizations look to take out agency costs and seek improved quality of hire and speed to hire. Accordingly, RPO is the fastest growing area within HR outsourcing with demonstrable benefits available where agencies are in high use. RPO helps organizations increase their focus on talent quality and agility in addition to providing cost reduction. RPO vendors can also assist in addressing technology challenges in supporting organizational branding and by tapping into mobile market places to attract passive candidates in a market that is candidate centric.
Blended workforce services, combining support for both permanent and temporary hiring continues to be a trend to support optimization of sourcing, as does central governance and workforce-wide analytics.
Acquisitions continued in 2014, mostly by U.S. organizations acquiring U.K. RPO organizations to support increasingly global recruiting requirements, with the incidence of global and multi-country RPO deals continuing to increase. In addition, staffing organizations continue to acquire RPO companies to diversify service and drive greater growth.
Significant deals in 2014 included:
- Statoil (Norway) global contract supporting 5k hires per year
- A non-profit organization (U.S.) supporting ~10k employees per year.
