How Recruitment Process Outsourcing Works

Despite the growing headcount of tech experts, the global market still faces a talent shortage. The hiring process becomes no easier, considering the lack of required expertise, high competition in overcrowded niches, and scaling struggles faced by businesses.

In this article, we answer the question: How can outsourcing assist in the recruitment process? Learn how to use the help of an experienced assistant to win the top workforce for your projects.

Starting with Basics: What Is Recruitment Process Outsourcing and Who Provides Services

RPO, or recruitment process outsourcing, is a type of business service which involves a third party to cover the need for talent acquisition in a business. The specialised company acts as an extension of your HR department to fill the talent gaps.

Unlike the traditional staffing agencies, a PRO provider becomes your long-term partner to build and realise the recruitment strategies. For example, IBM Talent Solutions works with Fortune 500 clients to help them evolve.

The business processes outsourcing industry covers various niches from the IT outstaffing in Ukraine to the remote resourcing of hospitality, healthcare, financial, and other tech-savvy fields in European and American countries. Grand View Research claims that the RPO market will reach $27.65 billion by 2027.

How Does It Work: Core Functions of the RPO

The recruitment process outsourcing (RPO) is especially useful for businesses in a phase of rapid growth or when a new market expansion is planned. They can become an irreplaceable partner in the management of the recruitment process:

Take over the tasks of job posting, sourcing, initial screening, candidate interviewing, and contractors onboarding.
Support you in the complicated cases of international recruitment, staffing the voluminous or narrow niche project.
Bring to your table the specific recruitment technologies, like applicant tracking systems or AI screening apps, that can be too expensive or complex to use internally.

Depending on your project needs, you can engage a partner through one of three models:

End-to-end RPO for the complete recruitment lifecycle coverage.
Project-based model to cover a specific timeframe or scope of work.
Selective recruiting to fill the positions for specific functions.

Yes or No: Benefits and Downsides of the Recruitment Processes Delegating

According to data from Everest Group, the IT recruitment process outsourcing reduces companies’ hiring costs by 30-50%. Compare common benefits and downsides to build an idea of whether this method would be applicable to your case.

RPO Benefits	RPO Downsides
Reduced cost per hire. RPO providers apply enhanced HR processes to hire more effectively. They get perfect fits within a shorter time, helping you save on your budget. Greater scalability. You concentrate on the core business functions and result delivery, while the service provider covers your growing recruitment needs. Improved recruits quality. Being focused on recruitment, service providers give you access to a greater candidate base.	Threat to the internal HR culture. You will have to invest extra effort and money into the internal talent acquisition process if you decide to manage HR on your own again. Dependence on external partnerships. Relying on a partner to provide you with a workforce, you have to be confident about their competence and the partnership security. Potential misalignment with client needs. There is a risk of miscommunication between the potential contractors and you, as a client.

RPO Benefits

RPO Downsides

Reduced cost per hire. RPO providers apply enhanced HR processes to hire more effectively. They get perfect fits within a shorter time, helping you save on your budget.
Greater scalability. You concentrate on the core business functions and result delivery, while the service provider covers your growing recruitment needs.
Improved recruits quality. Being focused on recruitment, service providers give you access to a greater candidate base.

Threat to the internal HR culture. You will have to invest extra effort and money into the internal talent acquisition process if you decide to manage HR on your own again.
Dependence on external partnerships. Relying on a partner to provide you with a workforce, you have to be confident about their competence and the partnership security.
Potential misalignment with client needs. There is a risk of miscommunication between the potential contractors and you, as a client.

Get Supported on a Talent Market: Tips for Choosing a Pro RPO Provider

According to the recruitment process outsourcing definition, an RPO provider is an organisation that takes control over your headhunting and recruiting processes. They know for sure how to hire an offshore workforce for your business, and offer their services on a contract basis.

These 3 tips will help you choose a partner who will assume the recruitment function and free your resources for the core activities:

Evaluate key factors that tell about the service provider’s quality. Check the industry expertise, proven success metrics like the retention rate and time-to-fill. Discuss the reporting capabilities.
Look through the case studies and ask about the KPIs. It would be great to find the case studies that can relate to yours: e.g. by the industry, location, or type of task.
Search for the personal fit. A lot will depend on the quality of your partnership. Make sure that your communication standards match and the culture fits to cooperate comfortably and effectively.

Conclusion: Outsource Recruitment to Transform Your HR Strategy

Getting an RPO partner is not only about cutting costs on recruitment needs. It is also about applying the strategic approach to building your team. The recruitment process outsourcing helps you offload resources for strategic moves, gives access to top-tier talent, and boosts your efficiency. The right RPO model and a reliable service provider are the keys to success in building a robust team that will bring your business into the future.