Introduction

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. The RPO service provider landscape also continues to evolve rapidly. While new service providers continue to enter the market, 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 such a dynamic service provider landscape, it is important for buyers to have a clear understanding of available service provider options and their delivery capabilities. In order to compare the capability of service providers, buyers will have to assess each service provider’s capability along key dimensions such as scale, scope, technology capability, and global delivery footprint.

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

• RPO service provider landscape overview
• Detailed analyses on key areas of differentiation
• Service provider delivery capability assessment

Scope of analysis

• A minimum of four or more recruitment processes are included
• The outsourcing deal is active and is at least one year in deal length
• The deal scope should not be limited to temporary hires only
• RPO service provider offers stand-alone RPO services 

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 the service providers, analyzes the key areas in which service providers are creating differentiation, and provides a comparative assessment of delivery capabilities of 23 leading RPO service providers. These include: Accenture, Adecco, AMS, Aon Hewitt, Caliber Point, CDI World Concert, Futurestep, Hays, Hudson, Hyphen, IBM, Infosys, KellyOCG, Kenexa, Manpower, Ochre House, PeopleScout, Pinstripe, SourceRight Solutions, Talent2, The RightThing, Wipro, and Yoh Solutions. Some of the findings in the report amongst others are:

• There are 20+ established RPO service providers in the market which come from various background
• RPO service providers are creating differentiation along various dimensions such as geography coverage, industry focus, technology offering, process delivery, type of hiring, and global sourcing approach
• Each geography is dominated by only a few service providers; limited service providers have a global or multi-regional capability
• Most service providers have an onshore-centric delivery model. However, more service providers are investing to augment their global sourcing capabilities
• Several service providers are moving towards a more standardized approach by creating strategic partnerships with technology vendors
• Our assessment shows marked differences in overall RPO delivery capability of service providers along four key dimensions - scale, scope, technology capability, and geographic delivery footprint
• The Everest PEAK matrix categorizes RPO service providers into leaders, major contenders, and emerging players based on their market success and overall RPO delivery capability. 2010 leaders are: Manpower, The RightThing, Adecco, Kenexa, SourceRight Solutions, KellyOCG, Hays, and AMS.
• In 2010, some service providers made significant progress over their 2009 position on the Everest PEAK matrix. E.g., SourceRight Solutions moved from the major contenders category to the leaders in 2010; Ochre House and Aon Hewitt moved from the emerging players category to major contenders in 2010