Why recruitment outsourcing is the next big thing in HR


Human Resources is one of the busiest departments in any company. It performs the difficult tasks of recruiting, hiring, workplace management and employee relations. And in this age of increasing need for talents in a rapidly-evolving economy, meeting hiring demands isn’t an easy feat for HR departments everywhere. Therefore, companies are turning towards specialized partners to support them with hiring the right talent.


This is where recruitment process outsourcing comes in. An RPO partner acts as an external consultant or assumes the entire recruitment process of a company, providing its own staff, technology, methodologies and reporting. It differs greatly from talent providers such as staffing companies and search providers since RPO assumes ownership of the design of the recruitment, as well as accountability for its results.


Many organizations have started outsourcing their recruitment process—with more medium to large scale companies turning to RPOs to find the talents for entry level jobs to senior management roles. In fact, India is expecting a major boost in this industry as HR services and staffing firms are expanding their operations to cater to a massive demand for this particular service since organizations are now more willing to farm out all or part of their hiring efforts to remain focused on core business functions. The RPO industry in the country is expected to reach a staggering 40-50% increase in the coming years.


A good argument can be made for the increasing popularity of RPO providers among companies.

One, an RPO decentralizes the work and helps companies concentrate on the business’ core competencies. HR professionals can focus their time and energy on strategic functions and processes of human resource management, rather than wasting resources on recruiting efforts that could sometimes yield unsuccessful results.


RPO professionals can also effectively align the right candidate with the right workplace. Unlike HR professionals handling massive employee ratios, RPO professionals’ main and only focus is on finding the perfect talent out of a pool of jobseekers. Outsourcing also gives a structured approach to the whole process of recruitment—supporting their recruitment process with strategically-designed methodologies that could easily identify topnotch applicants. The process helps accelerate the company’s ability to attract and retain top performing employees, thereby, improving overall company performance and reducing company turnover.


Lastly, RPOs provide a big boost in any company’s expansion efforts since they can provide the necessary human resources at an impossible schedule while remaining cost-effective. Outsourcing does a great job at providing cost saving benefits to their clients. With an RPO partner, companies can save up to 40 percent of recruitment costs. This would mean a lot to companies that are undergoing expansion. With the experience, expertise and the economies of scale of a third party provider, organizations are able to improve the quality of the recruits and the speed of the entire process.


Recruitment outsourcing does not just make the HR work easier, but it’s definitely a big help for businesses to take their performance up a notch. With these benefits, it’s highly possible that most businesses in the Philippines, another growing economy, will join this exciting trend in recruitment.


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