The Concept Of Recruiting Process Outsourcing
The concept of recruitment process outsourcing has gripped the entire world today
. Almost every nation has invested in outsourcing recruitment in one way or the other. This is because it shows the brightest prospect ever.
Business process outsourcing or BPO is the latest trend of global business. There is considerable economic disparity between the opulent nations of the west most specifically those of Europe and North America and the under developing third world nations of Asia and Africa. BPO aims to strike a balance between the two to some extent. The essence of this nature of business is to outsource jobs from the developed nations and export them across the globe to the third world countries. Even skilled labor is in abundance and cheap in the developing nations as compared to the developed ones. Therefore, BPO as a sector provides massive cost cutting in production and services for the developed countries. Simultaneously, it provides jobs and means of livelihood for the people of Asia and Africa in particular. Both the parties involved in this trade thus equally reap the benefit. BPO is divisible in several categories like, knowledge process outsourcing or KPO, legal process outsourcing or LPO etc. Recruitment process outsourcing or the RPO is another typical derivative of the BPO industry. In this setup, an employer transfers all or a part of its recruitment activities to an external third party entity. This entity performs the vital tasks on behalf of the recruiter in terms of carrying out the entire recruitment or hiring process. Outsourcing recruitment is a booming sector especially in India.
The history of recruitment process outsourcing was initiated way back in 1970s. However, it was confined mostly within the Silicon Valleys hugely competitive, hi-tech labor sector. With the radical growth of computer and internet, outsourcing recruitment became immensely popular. A recent study shows the present value of RPO India is worth USD 2.5 billion. The speculated annual growth rate is in between 35% to 40% and trend is certainly going to last for at least a couple or so years. These mind blowing figures are enough to depict the promising fortune of recruitment process outsourcing in India. Naturally, such robust health of this segment is drawing more and more companies into this business every day. This exercise provides mutual benefit to both parties concerned.
The cost cutting aspect on behalf of the recruiter is the ultimate boost that that this sector provides. Agencies dealing with RPO India are capable to save at least 40% to 45% of recruitment cost for their clients. As an addition, the HR personals in the recruiting organization get the time and opportunity to involve themselves with core HR strategic issues. The HR thus invests more time on productivity and subscribe towards the growth of the organization. Outsourcing recruitment is catching up fast in India like nowhere else. Even the most prominent names from the corporate sector are opting for this strategy. It has opened up a brand new career option for many people.
by: Frankwinn
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