Tag: RPO

RPO Buyers Value Analytics | Market Insights™

Capturing Strat Value in RPO - I3

  • Buyers have high interest in deepening their use of analytics beyond the basic to more advanced levels, and the use of talent communities and social media is high on the agenda of quite a few firms
  • On the other hand very few organization have future plans regarding assessment and process reengineering
    • Most organizations have a well-planned, long-standing policy on assessment (on whether and how to do it) which is unlikely to change in the near future
    • While process re-engineering is regularly done, especially by RPO providers, it does not occupy buyer mindshare as a necessity

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The Pinstripe/Ochre House Merger: Proof that the Single RPO Provider Model Trumps Partnerships | Sherpas in Blue Shirts

In the earlier days of the recruitment process outsourcing (RPO) and broader talent management services industry, partnerships between providers as a means to deliver enhanced service offerings and greater geographic coverage were common. Yet, in the past couple of years, many of these partners have taken the M&A path in response to increasing buy-side desire for consistency and standardization in their recruitment operations.

The Pinstripe/Ochre House merger – announced on July 18, 2013 – certainly plays to the market’s preference for a single provider model. Yet, in their case, the drivers extended beyond buyers’ preference for a single provider model, complimentary capabilities, and a time-tested partnership construct. In fact, Pinstripe could have faced serious client, potential new business, and time-to-market losses had it not taken the merger route.

So what does Everest Group see as the key implications of Pinstripe’s and Ochre House’s union? As excerpted from our just-released breaking viewpoint on the merger:

  • It trumpets the departure of partnership-based RPO models, in favor of single, end-to-end providers
  • It propels the combined firm solidly into the Leaders category on Everest Group’s RPO PEAK Matrix
  • It provides both companies’ clients with geographic and service expansion opportunities
  • It will drive greater attention within the RPO market from the investor community
  • Despite the complimentary nature of the firms, (including TAAHEED and Carmichael Fisher, which Ochre House acquired in 2012), lack of clarity on the integration path is likely to delay the synergy realization
  • The combined entity will still need to figure out how to fill emerging market gaps

For more details on the merger and its impact on the market – both buy-side and sell-side – please see Everest Group’s breaking viewpoint, Pinstripe Merges with Ochre House: Demise of Partnership-Based RPO Model.

The Next Generation | Sherpas in Blue Shirts

Originally published in HRO Today


Talent is clearly the true differentiator in the 21st century. Having the right talent at the right time and in the right place is even more paramount in the current economic situation. However, organizations will need to understand the megatrends impacting the talent market, including the demographic shift, generational differences, globalization, and changing workplace requirements and expectations. Organizations need to align their talent acquisition strategies to remain successful in the long run.

The success of recruitment process outsourcing (RPO) in creating value for buyers is evinced by the rapid growth of this market over the last few years. The RPO market has reached $1.4 billion in annual contract value (ACV) in 2011, and the market is expected to continue on a high-growth trajectory.

RPO has the potential to create value and impact at three levels: cost, business, and strategic. In the early stages of RPO (RPO 1.0), it addressed the cost and the business impact considerations focusing on elements that are low hanging fruits and easy to measure and quantify. The next generation of RPO (RPO 2.0) addresses the cost and business impact on a holistic basis and also starts to create strategic benefits for organizations. It calls for taking a comprehensive approach to talent acquisition—inclusion of internal and external hire management both as well as wide process inclusion—in particular and talent management in general. It requires identifying, impacting, tracking, and measuring more strategic metrics that are business-outcome oriented.

Read more in HRO Today

 

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