Tag: RPO

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

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

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

Recruitment Process Outsourcing Market Remains Hot, Posting 17 Percent Growth Rate in 2015 | Press Release

New deal activity tops 18 percent growth as service providers from all backgrounds, diverse regions taste success in highly competitive, fragmented RPO market.

The global Recruitment Process Outsourcing (RPO) market continued to remain one of the fastest growing single-process HRO markets. Buoyed by a resurgence of growth in the North American market, RPO posted a strong growth rate of 17 percent in 2015 over 2014 and touched the US$2.4 billion mark. A majority of the global growth is attributed to new deal activity, which grew at a rate of more than 18 percent year on year.

From a regional perspective, the United States, United Kingdom and Australia are the relatively more mature and bigger RPO markets, and they account for a large chunk of the global deal activity. Nonetheless, many countries in different regions across the world are emerging as strong RPO markets on their own, particularly in Latin America, Continental Europe and Asia Pacific.

“Across the globe, the key challenge in today’s recruitment landscape is the need to find and engage the required talent, especially for high-skilled roles, and buyers are expecting greater proactiveness and innovation from service providers in that regard,” said Arkadev Basak, practice director, Business Process Services, at Everest Group. “Providers are responding to this opportunity by developing niche areas of expertise, adding talent advisory capabilities, and improving their internal efficiencies, by leveraging technology, providing targeted training, and addressing division of labor fundamentals.”

Over 40 percent of RPO deals are bundled with a technology capability. In particular, many service providers are making dedicated investments in developing bundled RPO offerings that include advanced analytic services.

“Service providers are using technology as a productivity lever as well,” adds Ranjan. “For example, we are beginning to see providers adopting Robotic Process Automation to improve efficiency and save on costs, and we expect RPA adoption to rise rapidly in the future.”

These and other research findings are explored in a recently published Everest Group report: Recruitment Process Outsourcing (RPO) Annual Report 2016 – Opportunities Abound in a Buoyant Market.

This report provides comprehensive coverage of the RPO market across dimensions such as market overview, key business drivers, buyer adoption trends, solution and transaction trends, emerging themes and areas of investment, and service provider landscape.

Other key findings in the report:

  • Single-country RPO accounts for a majority of the deal activity. Interest in Multi-Country RPO (MCRPO) engagements is high; however, the size and scope of such deals is witnessing a downward trend. In fact, very few incidents of global mega-sized deals were witnessed of late.
  • Emerging RPO markets, such as India, China, Poland, and Colombia, which were mostly included as part of multi-country deals earlier, are now increasingly witnessing greater single-country deal activity, characterizing the growing maturity of RPO in these markets
  • While cost reduction is an important RPO driver, operational scalability and flexibility is what most buyers, especially the large ones, seek from an RPO engagement.
  • With growing maturity of the RPO market, inclusion of value-added services, such as employer branding, talent communities, workforce planning, etc., has almost become table-stakes in RPO, especially among second- and third-generation buyers
  • Service providers are increasingly offering separate, more targeted offerings around niche areas such as veterans, diversity hiring and outplacement. Not only does this trend help address buyer needs better, it also provides differentiation for the service provider
  • Almost all major RPO service providers are investing in developing talent advisory capabilities. Such services bulk up the value proposition of existing RPO offerings, especially among the first-time buyers, and can also act as potential door openers for new business opportunities

The RPO market continues to remain intensely competitive and fragmented. Providers from all backgrounds (including staffing, broader BPO, and pure-play RPO) have tasted success in this fast-growing market

Reimagining RPO through the RPA Lens | Sherpas in Blue Shirts

The economic downturn following the financial crisis of 2008 forced companies to look at their internal costs and find ways to rationalize spend on various business activities. Recruitment was quickly identified as an area ripe for significant cost cutting, and in subsequent years Recruitment Process Outsourcing (RPO) was widely adopted by enterprises.

While cost reduction had long been RPO buyers’ main aim, in recent years they’ve been facing another set of problems – talent shortage and hard to fill roles.

Employers are always on the lookout for better candidates with niche capabilities. However, these desirable employees can be hard to find, especially in a timely manner. To fulfill their hiring requirements, many employers hire contract or offshore recruiters. Unfortunately, hiring additional contract recruiters results in additional expenses, and offshoring results in loss of personal touch. And in both cases, the recruiters spend a substantial amount of their time on transactional tasks, rather than on professional recruiting activities.

The answer to this problem is robotic process automation (RPA). RPA is being used to automate a wide variety of repetitive, low touch recruitment-related tasks and processes including data entry and validation, file and data manipulation, multi-format message creation, web scraping, text mining, workflow acceleration, etc. Through RPA, the productivity of the recruitment team can be improved manifold, resulting in better and faster hiring.

Processes where RPA can be leveraged to improve the effectiveness of the recruitment process:

RPA - RPO - Recruitment Process Outsourcing

There’s little question that RPA helps reimagine the whole recruitment value chain. RPO providers and buyers that make investments in RPA, and automation in general, thereby enabling their recruiters to handle the professional aspects of recruiting, will differentiate themselves by more quickly and efficiently identifying, securing, and onboarding the most desirable candidates.

For more information on how RPA can improve various recruitment-related processes, please refer to Everest Group’s RPO Annual Report, 2016.

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