Executive Summary
Talent is THE differentiator in the 21st century. The right talent, at the right time, and in the right place, can mean make or break for an organization, especially, in troubled times such as the current economic situation. In order to remain successful in the long run, organizations need to understand the megatrends impacting the talent market, such as the demographic shift, generational differences, globalization, and changing workplace requirements & expectations, and accordingly align their talent acquisition strategies.
As a result of the rapid growth in the first phase, Recruitment Process Outsourcing (RPO) touched US$1.4 billion in Annual Contract Value (ACV) in 2011. It is expected to continue on a high-growth trajectory, with the buyers clearly appreciating the value it offers.
The next phase of RPO, RPO 2.0, involves taking a holistic approach to the overall value proposition by considering the business as well as the strategic impact of RPO. The additional savings manifested by RPO 2.0 are likely to fall in the range of 15-20% as a result of increased internal hiring and reduced new-hire attrition. Further, it helps bring the required focus on business critical roles, quickens the talent deployment cycle, and improves the quality of hires by creating access to a wider and more engaged talent pool. From a strategic perspective, RPO 2.0 helps better alignment of workforce planning to overall business strategy and creates a competitive edge in the talent market.
However, specific challenges will need to be overcome to realize the enhanced value proposition of RPO 2.0. This report is aims to identify and articulate this enhanced value proposition. The report discusses:
- Key changes in the talent market
- Need for RPO 2.0 over RPO 1.0 and its impact across various value-creation levels (including scenario-based analysis and quantification of cost benefits from RPO 2.0)
- Challenges and best practices in realizing RPO 2.0
- Case study of an engagement showcasing the RPO 2.0 value proposition
