Recruitment Process Outsourcing (RPO) Annual Report 2013 - Dichotomy of Market Exuberance and Subdued Economy

21 Feb 2013
by Rajesh Ranjan



Recruitment Process Outsourcing (RPO), one of the fastest growing single-process HRO markets, continued its momentum in 2012 with record new deal signings. However, due to a decrease in hiring volumes on both sides of the Atlantic, the growth rate moderated to 12%. The US$1.5 billion RPO market continued to witness strong interest in North America, however, Continental Europe and Asia Pacific (APAC) are fast catching up as a result of a big surge in new deal activity in these regions. APAC-headquartered firms have also emerged as major adopters of RPO in 2012. RPO drivers differ across regions, posing different challenges and necessitating differing solution models. The successful implementation of these models will determine the success of RPO in the long run.

In this research, we analyze the RPO market across various dimensions:

  • Market overview and key business drivers
  • Buyer adoption trends
  • Solution and transaction trends
  • Service provider landscape
  • Outlook for 2013

RPO market size by geography 


  • RPO deals that include a minimum of four or more recruitment processes
  • The RPO deal is active and is at least one year in contract length
  • Service providers that offer RPO as a stand-alone outsourcing service
  • The deal scope should not be limited to temporary hires only
  • All geographies, industries, and job families

RPO FTE growth by delivery location (emerging economies) 


This research provides comprehensive coverage of the 2012 RPO market and analyzes it across various dimensions such as market overview, key business drivers, buyer adoption trends, solution and transaction trends, and service provider landscape. Additionally, it includes predictions for market size, buyer adoption, solution & transaction trends, and service provider landscape for the 2013 RPO market. Some of the findings are:

  • Multi-Country RPO (MCRPO) growth slowed down in 2012 after rapid upswing over the previous two years
  • Business services and high-skilled professionals accounted for more than half of the hires managed in 2012
  • The base-fee-plus-variable price is the most prevalent pricing structure. The inclusion of a variable component in pricing is increasing
  • The competitive environment remains intense with several providers competing fiercely to gain market share
  • Only a few service providers have “truly” global capabilities. More service providers are looking to expand through both organic or inorganic routes

Page Count: 66