Recruitment Process Outsourcing (RPO) Annual Report 2010 - A Year of Rapid Growth and Intense Competition

18 Nov 2010
by Rajesh Ranjan




The Recruitment Process Outsourcing (RPO) market has quickly moved beyond the pioneer phase of the market maturity curve and now is firmly in the rapid growth phase. It has shown robust growth emerging from the economic downturn RPO in 2010 with its value proposition as a cost-effective, efficient and effective talent-acquisition process resonating well with buyers. However, the maturity of the market varies significantly across different geographies. There is a significant interest in Global or multi continent RPO, although there are few service providers that can comprehensively meet that demand. Established service providers are trying to increase their market share and build new capabilities through various organic and inorganic routes. At the same time, there is an increased focus from the traditional MPHRO service providers to tap the stand alone RPO market.

In this research study, we analyze the RPO market across various dimensions. We focus on

  • Market overview and key business drivers
  • Buyer adoption trends
  • Current transaction characteristics
  • Service provider landscape
  • 2011 market predictions


Scope of analysis

  • RPO deals in which a minimum of four or more recruitment processes are included
  • 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 and industries


This research report provides a comprehensive coverage of the 2010 RPO market and analyzes it across various dimensions such as market overview and key business drivers, buyer adoption trends, transaction characteristics, and supplier landscape. Additionally it includes predictions for market size, buyer adoption, transaction characteristic and service provider landscape for the 2011 RPO market. Some of the findings in this report, among others, are:

  • Compared to other stand-alone HR outsourcing markets, the RPO market is relatively new. However, it has quickly moved beyond the pioneer phase of the market maturity curve and now is firmly in the emerging rapid growth phase
  • North America continues its position of leadership with a share of more than 50% in terms of number of deals. However, adoption in Continental Europe is on the rise
  • Most RPO deals continue to be single country, and there was a perceptible increase in this trend
  • A lack of comprehensive global RPO offerings led to a large percentage of buyers adopting a multi-vendor strategy
  • Manufacturing continues to lead adoption with rapid growth occurring in the services sector that is comprised of verticals such as professional services, hotels, education, etc. Healthcare, high-tech and telecom saw a dip in adoption
  • There is intense competition amongst the various RPO players in the market place coming from different backgrounds

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