Recruitment Process Outsourcing (RPO) Annual Report 2014 – Time to be strategic

6 Jun 2014
by Rajesh Ranjan



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Recruitment Process Outsourcing (RPO), one of the fastest growing single-process HRO markets, continued its momentum and grew at 16% in 2013 to reach US$ 1.8 billion in annualized spend. The most mature RPO market, North America, made a strong comeback with a growth of 21%, the highest in the last three years. However, on the other side of the Atlantic, the growth slowed down. After growing at more than 30% in the last three years, growth in APAC moderated while Latin America witnessed strong growth. In addition to the evolving geographic mix, the RPO market is itself evolving into a RPO+ value proposition, enabled through value-added services. Value-added services now play an important role during renewals and will have a distinct bearing on the future of the market.

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 2014-2015

RPO Market 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

Service Provider Market Share


This research provides comprehensive coverage of the 2013 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 2014-2015 RPO market. Some of the key findings are:

  • Multi-Country RPO (MCRPO) engagements are on the rise with higher number of multi-continent deals, which reflects the increased maturity of the MCRPO model
  • While manufacturing remained the biggest contributor to RPO adoption, increased adoption was also witnessed in the services sector (including financial services)
  • The base-fee-plus-variable price is the most prevalent pricing structure. Base fee as a percentage of the overall fee, however, varies by the type of RPO contract (RPO+ versus vanilla RPO)
  • The competitive environment remains intense with several providers contending fiercely to gain market share

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