Tag

next-gen solutions

Next-Gen Solutions Add Fuel to Fire of Blazing Recruitment Process Outsourcing Market—Everest Group | Press Release

By | Press Releases

As enterprises face unprecedented talent acquisition challenges, recruitment process outsourcing soars as one of the fastest growing outsourcing markets in the world, growing at 15% for the past three years

The Recruitment Process Outsourcing (RPO) market is one of the fastest growing outsourcing segments today, with growth hovering above 15 percent consistently for the past three years, according to Everest Group. Although the solutions applied in RPO have been slowly evolving for nearly two decades, the adoption of next-generation technologies is expected to surge and significantly alter the RPO market landscape in the near future, adding fuel to the fire of an already blazing RPO market.

Enterprises today are facing unprecedented challenges in talent acquisition, suffering from significant pain points such as forecasting workforce requirements, adapting to the changing nature of the candidate base, developing effective branding, and responding to rapid development in technology. According to Everest Group, RPO service providers are seizing this golden opportunity to help enterprises meet recruitment challenges with next-gen technologies like advanced analytics, benchmarking and workforce planning.

Evolving use cases of digital technologies in talent acquisition include the following:

  • Analytics: Use cases include spend analytics, supplier analytics, workforce analytics, peer benchmarking, and social media analytics to source, screen and engage candidates
  • Natural Language Processing (NLP): Chatbots can leverage NLP to improve candidate experience by engaging with candidates right from the sourcing and screening phases all the way to the interview scheduling and onboarding stages.
  • RPA: RPA can be used to parse key words in resume screening; automate job postings in job portals, banner advertisements and direct emails; and update all instances of workflow when a change is needed.
  • Machine Learning (ML): ML can be used to conduct first-level screening, including checking the relevance and quality of experience and the cultural fit of the candidate. ML also assists analytics applications with identifying and leveraging the most suitable sourcing channels.

“The technology in the RPO market to date has been largely focused on improving the efficiency of specific talent acquisition processes and has been limited to dealing with structured data,” said Vishal Gupta, practice director at Everest Group. “Going forward, we’ll see next-generation technologies such as RPA, analytics and AI that can deal with unstructured data and deliver insights and probabilistic solutions. The impetus to be on the front edge of this wave is driving significant technology investment on the part of RPO service providers. We’re also seeing more and more service providers embracing the RPO+ value proposition, offering value-added services such as employer branding, talent communities, and talent consulting services. These capabilities will become important differentiators in a fiercely competitive market where more than 700 deals are up for renewal in the next three years.”

These and other research findings are explored in a recently published Everest Group report: “Recruitment Process Outsourcing (RPO) Annual Report 2018: Orchestrating the Digital Talent Acquisition Symphony.” This research provides a comprehensive coverage of the market across dimensions such as evolving RPO value proposition, market overview, key trends, solution characteristics, buyer adoption trends, and digital in talent acquisition.

Other key findings of the report:

  • The RPO market touched the US$3.3 billion mark in annualized contract value in 2017.
  • As the RPO model gains maturity, the marketplace is witnessing the entry of hither-to unknown buyers. Industries such as retail, healthcare and pharmaceuticals, as well as small-sized buyers (less than 3,000 FTEs) are entering the market in increasing numbers, leading to new avenues for service providers to tap.
  • Total Talent Acquisition (TTA) is increasingly getting a prominent place in the discussion around the talent needs of enterprises. While still in its early stages, service providers would do well to develop TTA capabilities with an eye to the future.
  • North America continues to occupy the lion’s share of the market with the UK and Australia being the other major markets. Continental Europe and Asia Pacific are emerging markets with good potential for the future.
  • The competition in RPO remains intense, with not many players having a dominant market share, both in terms of number of deals as well as hires. With a large number of deals coming up for renewal in the next three years, service providers will have to be on their toes to maintain their market share as competition intensifies.

***Download a complimentary 10-page abstract of the report here.***

An Outsider’s Inside View of the Global Services Industry: New Value Props, and Bots to Boot | Sherpas in Blue Shirts

By | Automation/RPA/AI, Benchmarking, Blog

Just a month ago I rejoined Everest Group as its chief research guru. And while I thoroughly enjoyed my stints as chief research officer at Market Track (a competitive intelligence firm for advertisers) and The Hackett Group (an intellectual property-based strategic consultancy and benchmarking firm) over the last 10 years, I’m feeling like a kid in a candy store in today’s digitally-oriented global services industry!

Here are my gut reactions to visits I had last week with two sell-side organizations.

Wipro

Wow, wow, wow.

That’s research speak for how I felt after the inauguration of Wipro’s brand new Silicon Valley Innovation Center on August 1. The Center, which Wipro bills as, “…state-of-the-art R&D and incubation hub, designed to develop and showcase next-generation technologies and solutions for enterprises” clearly displayed how much its value proposition has changed.

It wasn’t that long ago that Wipro and its peers were promoting savings, quality, and scale, along with a thin layer of industry expertise. Now it’s showcasing innovative solutions along a broad array of concepts that include the future of retail, banking, and healthcare, to name just a few.

It’s clear Wipro knows that the robots are coming, rendering its traditional proposition passé, similar to what EDS, CSC, ACS, and HPE experienced over the past 15 or so years. So will its ideas be enough to compete in this dog-eat-digital global services environment? It’s hard to say, but it’s certainly going to give it the old college try. We’ll update our thoughts in due time.

Automation Anywhere

No C3POs to be found, but I did see some game changers.

I took advantage of my time in Silicon Valley to stop by Automation Anywhere’s headquarters. And I was sorely disappointed when they didn’t show me a warehouse full of R2D2 and C3PO robots. Instead, they showed me an evolutionary capability that has reached a tipping point that should make enterprise executives do an immediate rethink of how they design their organizations.

I had a spirited debate with CEO Mihir Shukla and his team about how Automation Anywhere’s RPA-based solution will impact enterprises. Our mutual thoughts were that some will use it incrementally to create short-term savings and process improvements, but that really innovative executives will use it as one of several key tools to change the competitive landscape in their markets. For them, it will be a thing of beauty. For others? Well, let’s be positive.

Watch this space for some really cool fact-based insights that help differentiate the winner and loser enterprises over the coming months.