Recruitment Process Outsourcing (RPO) Annual Report 2019: Steering 3D Growth on the Tides of Talent Shortage

19 Aug 2019
by Vishal Gupta, Krishna Charan, Karneek Patel

The RPO market is one of the fastest growing outsourcing markets in the world today, clocking, yet again, double-digit growth rate to the tune of 20% in 2018. North America continues to hold the majority share of the market with Europe, the Middle East and Africa and Asia Pacific, being the emerging markets, also witnessing a healthy growth rate. Although the RPO market has almost matured in certain regions, growth has remained high due to an increase in adoption from mid-and-small market buyers, from new industries, and expansion of existing RPO deals.

In this research, we categorize the growth in RPO market across three dimensions:

  • Acceleration of RPO market
  • Widening of RPO market
  • Deepening of RPO market

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


This research provides comprehensive coverage of the 2018 RPO market and analyses it across various aspects such as market overview, regional overview, adoption trends, total talent acquisition, value added services and capabilities, and digital in recruitment. Some of the key findings are:

  • Enterprises are entering into multi-country RPO deals with their service providers against the backdrop of globalization of talent pool and an increase in talent shortage
  • As the benefits of the RPO model disseminate, the market is witnessing an increase in adoption for mid- and small-market buyers. With RPO service providers developing industry-specific capabilities, new industries, especially healthcare and retail, are witnessing a high increase in their adoption
  • Enterprises are gradually resorting to Total Talent Acquisition (TTA) for both their permanent and contingent talent needs against the backdrop of cost, operational, and strategic advantages that TTA model has to offer
  • Innovative offerings, such as high-volume low cost RPO, consultative services, and value-added services are generating value over and above the traditional benefits of the RPO model RPO service providers are increasingly investing in next-generation technologies to create valuable insights, additional increase in efficiencies, cost reductions, and superior experience for both candidates and hiring managers


Recruitment Process Outsourcing (RPO)


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