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recruitment process outsourcing

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.***

Where is the RPO Industry Headed? | In the News

By | In The News

Are organizations backing away from the traditional three-year RPO format?

If you follow the world of RPO, you may have noticed an interesting trend. According to the Everest Group’s annual report on the industry, the average deal length has been dropping, and for the first time since Recruitment Process Outsourcing emerged as a tool in the talent acquisition leader’s tool belt, it’s approaching just two years. Today buyers seem to be heading away from the traditional three year format.

Read more in Recruiting Daily

2017: The Utopian Year for Talent Acquisition? | Sherpas in Blue Shirts

By | Blog, Talent

Talent acquisition teams across companies and countries have spent decades looking for a utopian talent acquisition solution through which they can find the right talent, at the right time, in the right place, and at the right cost. This rare, elusive combination may just start becoming a reality in 2017, as promising themes from 2016 begin to emerge on the mainstream, and new technologies and ideas surface.

Think about the unification of these, resulting in an ideal world order for talent acquisition teams in which:

  • Companies can leverage workforce planning tools to decide on the type of talent – permanent versus, temporary, internal versus external –they want to hire
  • Sourcers, in a split second, can decide on the talent source they want to leverage, immediately access their diligently cultivated employer-specific talent pools, and screen candidates by parsing resumes using cognitive, AI and NLP-enabled tools
  • There is a seamless flow of data between HRMS and talent acquisition systems, and recruiters can leverage this data to run predictive analytics to gauge the candidate fit
  • Employers can attract and engage candidates through their brand by continuously interacting with them leveraging chatbots for email, chat, and voice communication. Availability of add-on tools allows recruiters to interview candidates remotely, run background checks, and conduct mobile assessments
  • HR managers can identify candidates who are susceptible to attrition, and devise effective strategies to retain them
  • Recruiters are able to map the entire employment lifecycle of a potential hire, and leverage it for making an informed decision about the candidate

Integrating all these scenarios into one single solution offering might feel like fiction, but Everest Group feels it will start manifesting into reality later in the year. Enterprises and providers alike have been using video interviewing, self-scheduling, and background screening tools for quite some time. Other more advanced technologies such as AI, cognitive, predictive analytics, and NLP-enabled tools are evolving fast. And service providers that are the flag bearers of innovation in RPO are already investing in and working on some of these technologies. It will be interesting to see which service provider is able to integrate all these technologies into a one-stop solution, whether through new investments, or through partnerships and acquisitions.

But, one thing is certain: this whole ecosystem is about to be disrupted, to such an extent that we believe that 2017 will probably be remembered as the year in which the concept of technology became deeply entrenched in the talent acquisition function psyche. This will also result in technology slowly becoming an extension of a recruiter’s physical being in the years to come.

For more insight into some of these technologies, please see our reports including Technology in Recruitment Process Outsourcing – Enabling a Paradigm Shift, and Giving Talent Acquisition the “Analytics Nirvana” Edge.

More Employers Embrace RPO as Hiring Battles Heat Up | In the News

By | In The News

Everest Group’s practice director for business process services, Arkadev Basak, finds that RPO buyers are expecting more proactivity and innovation from service providers. “Providers are responding to this opportunity by developing niche areas of expertise, adding talent advisory capabilities and improving their internal efficiencies by leveraging technology,” he said.

Read more at SHRM.org