RPO — Recruitment Process Outsourcing simply means handing over a wider range of recruitment processes to a third party via outsourcing platform. In this type of BPO (Business Process Outsourcing), the employer outsources part or the entire recruitment process to a recruitment process outsourcing provider.
Some of the processes that the client organization would outsource to an RPO provider include sourcing for qualified candidates, scheduling interviews, job posting and more. Southeast Asia is making a giant stride in recruitment process outsourcing.
Southeast Asia RPO Boom
Recruitment process outsourcing market in Southeast Asia is likely going to experience approximately 19 percent CAGR from now till the year 2020. In 2013, the market’s worth was estimated at $45.6m and is expected to grow to $154.7m by 2020.
The Major Driving Force of RPO Market in the Southeast Asia
The RPO market in Southeast Asia is chiefly driven by lofty benefits that the solutions offer compared to the traditional in-house processes. Chief among those benefits that come with RPO is operational costs reduction. In addition, RPO key operators work with a dedicated recruitment team that guarantees efficient recruitment process management on behalf of the client organization.
That’s not all; recruitment process outsourcing providers also take over the task of hiring candidates and handling other recruitment processes for their clients. This gives the organizations ample time to focus on strategizing how to generate and sustain a competitive edge in the present highly competitive business environment.
Another driving force for the RPO market in Southeast Asia is the region’s rapid economic development. The pioneering countries, in this case, include the Philippines, Indonesia, and Vietnam — these have grown to become the best and most alluring destinations for various industries like IT (Information Technology), Manufacturing, Pharmaceuticals, Healthcare, and IteS (IT-enabled services). Besides, attractive government policies in these destinations — e.g. lower foreign investment and lower taxes would eventually result in a substantial boom of the Southeast Asia industrialization in the nearest future.
Therefore, as the demand for skilled and talented candidates continues to rise, the RPO market in those Southeast destinations will grow higher in the nearest future, as long the RPO providers continue to stay at the cutting edge and offer superb RPO service to their client organizations.
In destinations such as the Philippines, RPO is not the only fast-growing outsourcing niche. BPO — Business Process Outsourcing is booming like never before in the Philippines, and the trend is expected to get even better in the coming years.
Daven Michaels is a New York Times Best Selling Author and CEO of premiere global outsourcing company, 123Employee. The company employs hundreds of young bright individuals on three continents. His International event, Beyond Marketing Live! Inspires entrepreneurs to build & grow their business with revolutionary new theories and systems allowing them to design the business and personal lifestyle of their dreams.