Recruiting has become an enormously daunting task, no matter the industry, location or the size of a company. This is true for all levels of positions needed in a company, whether for a vast mix of positions spanning multiple departments, locations, and functionalities in a multi-national company or a dozen experts for a start-up firm. All companies have a dedicated human resources department that is also responsible for undertaking the task of recruiting for vacant positions along with their other core responsibilities. However, it may be difficult for the human resources departments to handle recruitment demands at a moment’s notice and also carry out other important human resource management tasks.
Human resource outsourcing, a subset of business process outsourcing (BPO), is a widely accepted strategic business service that reduces a company’s operating costs and improves competitiveness. The constant shortage of qualified workers across the globe is driving the overall demand for HRO market. One sub-sector of the HRO market in particular, the recruitment process outsourcing (RPO), is quickly emerging on the forefront of the global market. Analysts state that the global RPO market is worth more than US$1.7 billion.
Browse Market Research Report of Southeast Asia Recruitment Process Outsourcing Market:
Global RPO Market – A Million Dollar Industry
Transparency Market Research estimates that the RPO market in Southeast Asia, a region that is highly favorable for human resource market owing to the robust economic growth and rising industrialization, will have a net value of US$154.7 million by 2020, rising at a CAGR of 19.3% during the period 2014-2020. The flourishing IT, IT enabled services (ITeS), and telecom sectors of Southeast Asia are the biggest contributors to the excellent growth trajectory exhibited by this region’s RPO market. In 2013, these three market sectors collectively accounted for 48% of the total revenue generated by the market.
The RPO market is not only profiting from these three markets; demand for RPO services across banking, finance, manufacturing, pharmaceuticals, healthcare, marine, construction, hospitality, and aerospace industries is also rising significantly.
Why is the demand for RPO rising?
Earlier, outsourcing recruitment processes was considered a way to offload certain activities of human resource departments that were either non-core, or involved substantial overhead costs, and were time-consuming. These days, however, RPO activities are being rapidly adopted by companies as a more efficient talent management model than just a cost and time-saving agenda.
A dedicated RPO provider can optimize the traditional best practices in recruitment by many ways, such as:
- Collecting, analyzing, and refining a vast set of data that companies do not usually consider, or do not have the suitable tools to assess, giving the recruitment process undertaken by a dedicated RPO provider an edge over internal recruitments of companies.
- Using automated tools for talent management, allowing the integration of real-time data, statistics, workforce planning information, and many other data points to better meet the needs of the constantly changing business scenario.
- Offering the client a dedicated market analysis, evaluating its overall competitiveness in the broader marketplace, the strength of its brand relative to other employers, and compensation scales. This enables companies to develop strategies for retaining and attracting better quality talent.
- Filtering the workforce of a company according to specific qualifications, experience set, etc., to analyze current as well as future hiring needs.
Browse Market Research Press Release of Southeast Asia Recruitment Process Outsourcing Market: http://www.transparencymarketresearch.com/pressrelease/south-east-asia-rpo-market.htm
In short, working with a quality RPO provider allows companies to transcend traditional recruitment practices by replacing them with integrated, well-defined, and technologically enhanced processes that are capable of driving superior quality, mitigating inefficiencies, and optimizing the overall costs related to not only the process of recruitment, but also of talent management.