Introduction

Recruitment Process Outsourcing (RPO) is one of the fastest growing single process HRO markets with a growth rate of over 25% to reach US$1.4 billion in annualized spend. The fast growing market continues to attract providers with different backgrounds, value propositions, and service delivery models. In addition, the rise of multi-country RPO and blended RPO considerations mean that the buyers require increased rigor and sophistication in their service provider selection process. The continued M&A activity within provider landscape further complicates this. In this backdrop, buyers will have to utilize a comprehensive framework to compare and assess increasing provider options. Service providers, on the other hand, need to have a better understanding of their competitive environment to bridge or expand the gap between them and their key competitors

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

• RPO market overview
• RPO PEAK Matrix 2012 and Star Performers 2012
• Key insights on PEAK dimensions
• Areas of differentiation
• Implications for buyers and service providers 

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 only temporary hires
• All geographies and industries 

Content

This report examines the dynamics of the global RPO service provider landscape and its impact on the RPO market. It gives an overview of the market and analyzes the areas in which service providers differentiate themselves. Based on comprehensive Everest Group PEAK Matrix, each of the 20+ RPO service providers are segmented into Leaders, Major Contenders and Emerging Players and RPO Star Performers 2012 are selected. Additionally, it provides key insights on individual PEAK dimensions and implications for buyers and service providers. Some of the findings in this report, among others, are:

• The RPO market continues to show accelerated growth across geographies to reach US$1.4 billion in annualized spend in 2011
• Significant end-of-term market represents both value creation opportunity, as well as potential risks for buyers and service providers
• Based on Everest Group’s comprehensive evaluation framework, PEAK Matrix, the 22 established RPO service providers evaluated are segmented into three categories – Leaders, Major Contenders and Emerging Players
• Everest Group selected RPO Star Performers 2012 based on the relative year-on-year movement of each service provider on the PEAK Matrix
• Key insights on comparing the top quartile performers and other performers on delivery capability dimensions:
• Top quartile performers have built greater economies of scale in their operations
• Top quartile performers deliver specialized and expanded set of services to differentiate themselves
• The competitive intensity continues to remain high in the RPO market fuelling the need to differentiate
• RPO providers differentiate themselves along multiple dimensions – geographic coverage, industry and buyer size, scope of services, types and sources of hires, technology, and global sourcing