Recruitment Outsourcing


Recruitment Outsourcing Process (RPO) and its advantages to the companies

Recruitment Outsoucing is a part of human resource processes is the latest practice being followed by middle and large sized organizations where they outsouce the recruitment process to some the Recruitment consultant, search and select companies or recruitment Specialist companies. The Recruitment Process outsoucing is commonly know as RPO is itself a huge industry itlself and their are lots of national and international companies are practicing and doing great business worldwide.

Outsourcing industry is growing at a high rate.

Outsourcing refers to the process in which an organization uses the expert services of a third party (generally professional consultants) to take care of its recruitment while HR management can focus on the strategic dimension of their function. The functions that are typically outsources are the functions that need expertise, relevant experience, knowledge and best methods and practices.

Many organizations have started outsourcing its recruitment process i.e. transferring all or some part of its recruitment process to an external consultant providing the recruitment services. It is commonly known as RPO i.e. Recruitment Process Outsourcing. More and more medium and large sized organizations are outsourcing their recruitment process right from the entry level jobs to the top level jobs.

However, the number of companies outsourcing their recruitment processes is increasing at a very fast rate and so is the percentage of their total recruitment processes being outsourced.

Outsourcing organizations strive for providing cost saving benefits to their clients. One of the major advantages to organizations, who outsource their recruitment process, is that it helps to save up to as much as 40 per cent of their recruitment costs. With the experience, expertise and the economies of scale of the third party, organizations are able to improve the quality of the recruits and the speed of the whole process. Also, outsourcing enables the human resource professionals of organizations to focus on the core and other HR and strategic issues.

Outsourcing also gives a structured approach to the whole process of recruitment, with the ultimate power of decision making of recruiting with the organization itself.

Advantage of Outsourcing Recruitment

  1. HR outsourcing helps the HR professionals of the organizations to concentrate on the strategic functions and processes of human resource management rather than wasting their efforts, time and money on the routine work.
  2. Outsourcing organizations strive for providing cost saving benefits to their clients and also provide economies of scale to the large sized organizations.

Outsourcing is beneficial for both the corporate organizations that use the outsourcing services as well as the consultancies that provide the service to the corporate. Apart from increasing their revenues, outsourcing process provides business opportunities to the service providers, enhancing the skill set of the service providers and exposure to the different corporate experiences thereby increasing their expertise.

The advantages accruing to the corporate are:

  1. Optimal resources utilization
  2. A satisfied and , hence, highly productive employees
  3. Turning the management’s focus to strategic level processes of HRM
  4. Accessibility to the expertise of the service providers
  5. Structured and fair performance management
  6. Freedom from red tape and adhering to strict rules and regulations
  7. Value creation, operational flexibility and competitive advantage

Therefore outsourcing helps both the organizations and the consultancies to grow and perform better.



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