Global Recruitment Process Outsourcing Market By Enterprise Size (Large Enterprise and Small & Medium Enterprise), By Type (Enterprise, On-demand and Function-based), By Service (Off-site and On-site), By End User (BFSI, Healthcare, IT & Telecom, Education, Manufacturing and Others), By Region, Industry Analysis and Forecast, 2020 - 2026
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Market Report Description
The Global Recruitment Process Outsourcing Market size is expected to reach $14.5 billion by 2026, rising at a market growth of 19.7% CAGR during the forecast period. Recruitment process outsourcing (RPO) is a type of business process outsourcing (BPO) where an employer hand over all or some portion of its recruitment cycles to an outside service provider, as per the Recruitment Process Outsourcing Association (RPOA). An RPO provider can provide the required staff, technology, and approach expected to satisfy a customer's recruitment prerequisites.
Recruitment Process Outsourcing Market Size, By End Use, 2020-2026
The requirement for an efficient recruiting process and a decrease in overhead expenses are the two essential components driving the market development. The Recruitment Process Outsourcing (RPO) service providers can do numerous tasks, from sourcing to selecting applicants and keeping up the quality of enlisted people. Service providers are executing creative technologies, for example, Artificial Intelligence (AI) and Machine Learning (ML) for self-planning interviews and robotized screening of CVs to improve their capacities. Service providers are further channelizing on better applicant engagement through chatbots and other appraisal instruments. AI is anticipated to be a distinct advantage in the recruitment business. It computerizes numerous tasks, for example, competitor sourcing, competitor rediscovery, employee reference, and diversity recruiting to enhance strategic workforce planning.
In the midst of the COVID-19 pandemic, the business is seeing a significant change in activities. Organizations are changing their recruitment practices to comply with the social distancing standards implemented across numerous regions to moderate the danger of infection. Moreover, organizations are underscoring on utilizing advanced solutions for recruitment and digital resources to maintain a strategic distance from the face to face meetings.
Recruitment Process Outsourcing Market Share, By Type, 2019
In the coming decades, innovation is anticipated to assume a significant role in improving the recruitment process. HR automation is preparing for the new age of recruitment by advancing recruiting solutions across companies. Numerous companies are now utilizing Artificial Intelligence (AI) for sourcing and screening applicants. The utilization of such advanced decreases human errors, manual workload, and smoothens the whole HR process. Additionally, the utilization of data-driven devices, mobile application platforms, and social media recruitment marketing rearranges the recruiting cycle.
Based on Enterprise Size, the market is segmented into Large Enterprise and Small & Medium Enterprise. Based on Type, the market is segmented into Enterprise, On-demand and Function-based. Based on Service, the market is segmented into Off-site and On-site. Based on End User, the market is segmented into BFSI, Healthcare, IT & Telecom, Education, Manufacturing and Others. Based on Regions, the market is segmented into North America, Europe, Asia Pacific, and Latin America, Middle East & Africa.
Free Valuable Insights: Global Recruitment Process Outsourcing Market to reach a market size of $14.5 billion by 2026
KBV Cardinal Matrix - Recruitment Process Outsourcing Market Competition Analysis
The major strategies followed by the market participants are Partnerships and Product Launches. Based on the Analysis presented in the Cardinal matrix; IBM Corporation and ADP, Inc. are the forerunners in the Recruitment Process Outsourcing Market. Companies such as Alexander Mann Solutions Ltd., Randstad NV, Cielo, Inc., The Adecco Group, and ManpowerGroup, Inc., and Korn Ferry are some of the key innovators in the market.
The market research report covers the analysis of key stake holders of the market. Key companies profiled in the report include IBM Corporation, The Adecco Group, Randstad NV, ManpowerGroup, Inc., ADP, Inc., Korn Ferry, Hudson Global, Inc., Alexander Mann Solutions Ltd., Allegis Group, Inc., and Cielo, Inc.
Recent Strategies Deployed in Recruitment Process Outsourcing Market
» Partnerships, Collaborations, and Agreements:
- Apr-2020: Randstad partnered with Vndly, a leading cloud-based technology provider in the vendor management systems (VMS) category. The partnership provided Randstad Sourceright an additional intuitive technology for their solution set that does not require lengthy training or complicated change and update processes.
- Sep-2019: Pontoon teamed up with Vndly, a provider of businesses with a work management system designed to help them manage their contingency workforce. Under this collaboration, the former company is providing superior MSP programs that enabled the latter company to strategically architect solutions around business challenges the clients face today.
- May-2019: Cielo announced its partnership with Sanofi, a global biopharmaceutical company. Following the partnership, the former company was aimed to provide end-to-end talent acquisition services for the latter company in several countries across Asia. Cielo has been providing its expertise in terms of people, process, technology, and brand, to secure the best talent for Sanofi in a highly competitive labor market.
- Jul-2018: Talent Collective, the consulting business of Alexander Mann Solution signed a partnership agreement with Enboarder, an onboarding technology company. The partnership was focused on improving the onboarding experience for both candidates and Hiring Managers post-offer and into the candidate's employment with client's businesses.
- Jun-2018: IBM extended its collaboration with Cornerstone OnDemand, a global leader in cloud-based learning and human capital management software. The expansion was aimed to provide organizations around the world with the best HR consulting services and talent management technology. Additionally, Cornerstone clients can access to IBM’s comprehensive talent management consulting services. IBM can now directly engage with Cornerstone clients, giving them access to a pool of global consultants who drive end-to-end talent management offerings, including enterprise transformation, strategy, process, systems integration, application management, outsourcing, and learning curriculum design.
- Feb-2018: ADP came into partnership with ZipRecruiter, a leading online employment marketplace. The partnership was focused on making small businesses more competitive in Hiring. Under this partnership, the latter company integrated its online employment marketplace platform with the former company's RUN Powered HR packages. Together, the companies have been enabling small businesses to quickly find the talent they need inside their HR and payroll solution.
- Jan-2018: Alexander Mann Solution partnered with FlexAbility, the Recruitment Process Outsourcing (RPO) subsidiary of ABC Consultants. Together, the companies have been working on investing and continuing to deliver innovative, impactful RPO services in India.
» Acquisition and Mergers:
- Mar-2020: Cielo took over AsiaNet China, an RPO, executive search, recruitment, and payroll (HRO) business based in Shanghai. The acquisition strengthened its capabilities in both RPO and executive search.
- Jun-2019: Alexander Mann Solutions acquired Karen HR Inc., the HR technology company. The acquisition extended Alexander Mann Solutions' global engineering capabilities with teams based in both Canada and Poland and further supported the company's aggressive growth plans and commitment to expand its footprint in the Americas.
- Nov-2016: Randstad completed its acquisition of Monster Worldwide, Inc., a global leader in connecting jobs and people. After the acquisition, Monster has been operating as a separate and independent entity under the Monster name. The acquisition strengthened the company's capabilities in RPO.
» Product Launches and Product Expansions:
- Apr-2020: Alexander Mann Solutions released the first self-developed technology platform, Hourly. The platform enabled organizations to hire hourly workers faster and with greater precision through a completely conversational experience from explore-to-offer, in a single built-for-mobile solution.
- Jan-2020: ManpowerGroup announced the launch of Talent Solutions, integrating three of its current global offerings: RPO (recruitment process outsourcing), TAPFIN MSP (managed service provider), and Right Management. Talent Solutions would provide delivery, technology, and extensive workforce insights across multiple countries at scale, from talent attraction and acquisition to upskilling, development, and retention.
- Oct-2019: ADP launched the Recruitment Process Outsourcing (RPO) Advertising Services. The services enabled businesses to improve their job advertising and recruiting operations. The services have been helping HR professionals and talent acquisition staff through improving the exposure of their job opportunities to probable candidates. It leverages ADP’s proprietary blend of expertise, data, and programmatic technology for capturing a higher volume of the talent pool for an equal ad spend.
- Sep-2019: Pontoon, part of the Adecco Group, unveiled the first-ever recruiter-less RPO product, Recruiterless RXO (Recruitment eXperience Outsourcing) Solution. The solution uses technology across the recruitment cycle to increase both candidate and hiring manager experience while also reducing the cost to the customer and increasing speed to hire.
- Feb-2019: ADP Canada introduced a new suite of high-performance features for ADP Workforce Now. The ADP Workforce Now aimed to help Canadian companies to manage their HR needs. The new suite of features provides seamless cross-border capabilities, broader mobile access to HR tools in real-time, simplified talent management, and AI-powered recruiting.
- Oct-2018: Korn Ferry introduced two new products; the enterprise product for large organizations and the Korn Ferry product for medium-sized organizations. The enterprise product for large organizations uses data from a company’s applicant tracking system, which tracks and filters applications in a recruitment system and integrates the data with Korn Ferry’s innovative tools, which include AI-driven sourcing and machine learning. Korn Ferry Direct enhanced the effectiveness of the talent search process for smaller companies that may not have in-house recruiting resources.
Scope of the Recruitment Process Outsourcing Market Analysis
- Large Enterprise
- Small & Medium Enterprise
- IT & Telecom
- North America
- Rest of North America
- Rest of Europe
- Asia Pacific
- South Korea
- Rest of Asia Pacific
- Saudi Arabia
- South Africa
- Rest of LAMEA
- IBM Corporation
- The Adecco Group
- Randstad NV
- ManpowerGroup, Inc.
- ADP, Inc.
- Korn Ferry
- Hudson Global, Inc.
- Alexander Mann Solutions Ltd.
- Allegis Group, Inc.
- Cielo, Inc.
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Recruitment Process Outsourcing Market Related Reports:
How valuable the recruitment process outsourcing market be in the future?
The recruitment process outsourcing market is projected to reach USD 14.5 billion by 2026.
What are the key factors that drive recruitment process outsourcing industry?
There are several reason that cause high demand of this market one of them is decreases overhead expenses of businesses.
Who are the leading players in recruitment process outsourcing market?
IBM Corporation, The Adecco Group, Randstad NV, ManpowerGroup, Inc., ADP, Inc., Korn Ferry, Hudson Global, Inc., Alexander Mann Solutions Ltd., Allegis Group, Inc., and Cielo, Inc.
At what CAGR is the recruitment process outsourcing market estimate to grow in the forecast period?
The expected CAGR of recruitment process outsourcing market is 19.7% from 2020 to 2026.