INTRODUCTION

Recruitment Process Outsourcing (RPO), one of the fastest growing single-process HRO markets, continues to evolve. The overall RPO market posed a healthy growth of 13% in 2014, fuelled largely by the strong growth in Europe and Asia Pacific. On the other hand, the most mature RPO market, North America, saw a somewhat sluggish year. Nonetheless, strong single-country deal activity was witnessed in the emerging economies of Continental Europe and Asia Pacific, forcing service providers to realign their strategies so as to tap the growing potential of these emerging markets.

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

• Market overview
• Technology, mobility, and analytics
• Evolving solution characteristics
• Other market trends
• Service provider landscape

SCOPE OF ANALYSIS

• 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

CONTENT

This research provides comprehensive coverage of the 2014 RPO market and analyzes it across various dimensions such as market overview, key business drivers, buyer adoption trends, solution & transaction trends, recruitment technology trends, and service provider landscape. Some of the key findings are:

• Multi-Country RPO (MCRPO) engagements are on the rise with higher number of multi-continent deals. This reflects the increased maturity of the MCRPO model
• Greater RPO adoption was witnessed from some of the non-traditional industries (such as travel, hospitality, etc.), making RPO a more broad-based market
• With growing maturity of the RPO market, numerous add-on / peripheral recruitment tools (especially analytics solutions) are being introduced in the market that enhance the recruitment value chain
• In addition to that, value-added recruitments services, such as employer branding and talent communities, are increasingly becoming table stakes and play an especially important role during renewals
• The market is also evolving in terms of more advanced and outcome-oriented pricing constructs and SLAs, wherein the buyers exercise greater control and the providers’ interests align with that of the buyers
• The competitive landscape continues to remain intense, forcing the service providers to continually bring in greater innovation in their solution elements so as to remain relevant