Recruitment Process Outsourcing – Service Provider Landscape with PEAK Matrix™ Assessment 2014
The landscape of the US$1.8 billion RPO market continues to be shaped by mergers and acquisitions. However, it still remains a fragmented space, with small and specialized service providers competing for market share with large-scale players. Moreover, the competition is further intensified by the continuous entry of new service providers. To succeed in the RPO market, service providers differentiate their offerings by specializing across geographies, buyer segments (industry, size, and job family), and alternate recruitment models. Service providers also provide strategic value-added services such as analytics, employer branding, talent community management, and assessment. Buyers need to understand the service provider’s value proposition in its entirety, while taking a holistic view of their own requirements, to create an effective and successful engagement.
In this research, we analyze the global RPO service provider landscape across the following dimensions:
- Market overview and service provider landscape
- 2014 RPO PEAK Matrix and Star Performers
- Key insights into PEAK Matrix dimensions
- Key areas of differentiation and specialization
- Third-party RPO deals; it does not include shared services or Global In-house Centers (GICs)
- RPO deals with a minimum of four recruitment processes, which are at least one year in contract length, and are not limited to temporary hires only
- All geographies and industries
- Buyer objectives and satisfaction levels gathered through executive interviews and survey questionnaires
This report examines the global 2013 RPO service provider landscape and its impact on the RPO market. It focuses on service provider position and growth in the RPO market, changing market dynamics, emerging service provider trends & differentiating factors, and assessment of service provider delivery capabilities. Some of the findings in this report are:
- On the back of robust new deal activity and decreased terminations, the RPO market grew at 16% in 2013
- However, there was significant regional variation in growth
- Based on Everest Group’s comprehensive evaluation framework, PEAK Matrix, the 22 established RPO service providers evaluated are segmented into three categories – Leaders, Major Contenders, and Emerging Players
- Everest Group selected RPO Star Performers for 2014 based on the relative year-on-year movement of each service provider on the PEAK Matrix
- Key insights on comparing the top quartile performers with others on delivery capability dimensions:
- Market success: Leaders have not experienced runaway success, a sign of an intensely competitive RPO market
- Scale: Leaders realize better productivity due to their scale. However, with rapid growth, others are also benefiting from the economies of scale
- RPO providers differentiate themselves along multiple dimensions – value-added services, geographic focus, buyer segment focus, alternate recruitment models, and global sourcing
Everest Group has a complimentary four-page PEAK Matrix preview document for this service provider landscape report.
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The Finance & Accounting (F&A) function comprises three end-to-end processes – Procure-to-Pay (P2P), Order-to-Cash (O2C), and Record-to-Report (R2R). This report focuses on the third-party outsourcing of R2R activities.