Recruitment Process Outsource Service provides Numerous Task

Recruitment Process Outsource Service provides Numerous Task

Outsourcing has evolved the most popular business trends in the last couple of years because of its growing profile as a management technique for enhancing efficiency in the management of resources. To reduce expenses and improve the quality of their recruitment process, many companies transfer part or whole of their recruitment process to external service providers – referred to as recruitment process outsourcing (RPO).

Recruitment Process Outsourcing (RPO)

Recruitment outsourcing can be considered as an act where a company makes a contract with another company or person to handle its tasks related to recruitment. The recruiter who provides this outsourcing service is called a third-party vendor or service provider. The recruitment process is essentially outsourced under the scenario where a company intends to save money and time for the other main functions of the business.

Recruitment Process Outsourcing in Different segments

RPO in Banking, Financial Services and Insurance (BFSI) Sector

The banking, financial services, and Insurance (BFSI) sector are those companies that provide different financial products or services. The potential for growth for this segment is significant for developing nations like India. Currently, The BFSI industry is becoming more demanding. BFSI industry needs people who can add value to their organization and to their customers. BFSI sector in India is anticipated to outsource their recruitment procedures. It is because there is a massive need for junior and mid-level employees in this industry. Therefore, the BFSI sector is looking to outsource their recruitment process so that they can focus on their core business area.

RPO in the Healthcare Industry

Currently, recruitment agencies face a huge challenge in the healthcare industry. Challenges like quality talent, clinical expertise, cost-savings, etc. continue to daunt the RPO agencies. However, the good news is that many new recruitment agencies focus on resolving those issues by ensuring to hire the best talent pool for the healthcare industry. From the time of sourcing to providing payments to negotiating the pay; healthcare RPO requires a deep understanding. This is possible only by those RPO professionals who have years of experience.

RPO in the Education Industry

RPO in the education industry can really be a complicated process. An ideal combination of highly specialized job functions, the constant need for temporary cover, growing expectations, and severe competition for the talent pool can develop a highly challenging situation. Imagine a situation in which Mathematics lecturers of a large University planning to move to another city to join a new position there. In such a scenario, Recruitment agencies or localized agencies are unlikely to find a similarly qualified person for a new job at the time of need. Nor are they likely to give suitable qualified temporary cover at short notice. However, as RPO agencies start using advanced tools, they deal with such challenges head-on.

RPO in Manufacturing Industry

The biggest barrier to growth for manufacturing companies is not the technology but the people. With the right and talented people, the revenue of companies suffers. Manufacturers companies who have the right and effective recruitment processes will continue to hold a competitive edge in recruiting talent to fulfill both conventional job positions as well as those roles that require new creative skills and knowledge that the young generation probably offers. That is the reason why many visionary organizations of all scope, expertise, locations, and focus are considering the RPO solutions that can be integrated into different talent strategies. Recruitment process outsourcing (RPO) solutions can provide the essential hiring support strategy to select and recruit the talent pool they require – especially when they need it.

Recruitment Process Outsourcing based on service

We can divide the RPO based on service into two types i.e. Off-site and On-site. Let’s understand each in the following paragraphs.


The meaning of Off-site outsourcing is that outsourced work is performed away from the location of the client’s facilities. RPO agencies can perform Off-site outsourcing either onshore (at a similar geographic location as that of the client) or offshore (away from the geographic location of the client). This has gained traction since the outbreak of Covid-19. Due to the strict lockdown guidelines imposed by almost every country across the world, the functions and recruitment of several companies continue to remain disrupted. Therefore, Off-site RPO has been assisting the organizations in their recruitment processes and becomes relevant at the time of Covid-19.


On-site outsourcing means when a vendor places its employees at the facility of the client during the outsourcing project. This arrangement allows both the client and the service provider to constantly communicate and interact with each other. The primary difference between the task performed in-house or by on-site outsourcing is the involved people. The employees of the vendor will still have to work inside a similar atmosphere as the employees of the client would if they were performed in-house.


Based on the rising significance of recruitment process outsourcing, it can be expected that the RPO industry will grow immensely in the future. Many factors add to the development of RPO such as enhanced quality, cost savings, time pressure, improved capacity, availability of manpower, easy replacements, and the pool of applicants and competence of applicants. In today’s times, RPO is being utilized across different industries as explained above which is adding to its further popularity. The Global Recruitment Process Outsourcing Market size is expected to rising at a market growth of 19.7% CAGR during the forecast period.