RPO market soars on rise in deal signings: Study

Written by: Super Admin
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New Delhi, Nov 11: A new industry study by the Everest Group on the changing trends in the Recruitment Processing Outsourcing (RPO) indicates that the RPO market has shown sustained growth in terms of deals from past two years.

However, the study found that the nature of the deals in 2009 has changed on decreased hiring volume, which is leading to a more selective and small-sized deals.

The study titled 'Recruitment Process Outsourcing (RPO) – Moving Beyond the Pioneer Stage' has determined that the increasing cost pressures in the current economic scenario has led North American and UK buyers to start receiving the back-office RPO services from offshore location like India.

While Indian suppliers such as Infosys, Wipro, and Caliber Point have already entered the RPO arena during the past two years, western suppliers such as Momentum and PeopleScout are also leveraging India for delivering RPO services.

Despite the fact that the offshoring leverage within RPO is currently lower than overall Human Resources Outsourcing (HRO), the study has projected an uptrend in deal signings in 2009 as against 2008.

While North American firms claim over half of the deals, adoption is on the rise by buyers in the United Kingdom and Continental Europe, particularly Germany and France, the study notes.

In another significant finding, the study indicates that the RPO market in China and India, which derives unmatchable potential due to the large hiring volumes, is yet to develop completely as RPO is essentially adopted by MNCs with operations in these countries.

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