The world of Recruitment Process Outsourcing (RPO) is making a shift and inquiring minds might be wondering, where is it headed? Before we dive into where the RPO industry is headed, we first have to look at where it was.
CEOs and Corporate leaders love to see their company’s dollar stretch while still providing results in the company’s favor. In-house recruitment programs can be costly and time-consuming — enter RPO providers. With the significant savings these firms bring to companies it was only a matter of time before partnering with an RPO firm became a regular practice. With so many new RPO providers popping up, RPO firms had to look for ways to make themselves stand out, so they started to specialize and made promises to companies to validate their higher price points. All this was to solidify their spot as a reputable and successful RPO provider and to beat the competition.
But with the competition getting bigger and companies being able to differentiate a sales pitch from actual results, RPO providers had to lower their prices. This then drove the RPO industry market down altogether and resulted in some firms getting bought out.
Now, with the changing times and the growing tech-centered world, RPO firms have had to evolve and with a closer look, it seems the RPO industry might be splitting off into three avenues:
The first avenue is the traditional Recruiting Process Outsourcing (RPO). There are still active RPO firms that are bringing high value to their clients with moderate to minimal investments in technology. They also have great harmony between the recruiting process, the customization of the process, and their recruiters’ experience and expertise.
The second avenue is the Better People Outsourcing (BPO) solution. This would be a method in which the technology is relied on due to its efficiency. Also, the process of recruiting the right fit for a company is most important instead of the recruiter being the most important aspect. Lastly, the customization of the RPO process is kept to a minimum. In this method, the firm will be most invested in the ease, accuracy, and efficiency of the technology to bring about success in finding the right fit for whichever role the partnering company wants to be filled. With the customization being kept to a minimum, the actual operations and efficiency at which the recruiting process should be executed can take priority.
The third avenue is the Agile Recruitment Services (ARS) process. This form of recruitment came about due to a competitive employment market. This method gets rid of the RPO/BPO route with longer contract options and instead works with shorter contracts between the company and the partnering firm. It’s primary focus is on the in-house talent and service industries. One firm might focus on limiting spending while the other might focus on planning networking and hiring events. The ARS method is an appealing and welcomed addition to the RPO industry.
Watching these different avenues of the RPO industry emerge and take flight is exciting and shows the continuous growth between RPO service providers and client relationships. It is encouraging to know that companies don’t have to be alone and waste resources when looking to hire the right person(s) for a position. The benefits of partnering with an RPO service provider are immense as long as you choose the right partnership for your company.
Contact AG Globe Services and let our talent empower your company to source, engage, and find the best candidates for your positions.