6 Reasons Companies go for Recruitment Process Outsource (RPO) Services

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The recruitment landscape is frequently changing, leading to additional pressure on the in-house hiring managers to acquire the right candidate, quickly and efficiently. Further, companies are struggling to source appropriate, qualified talent with a potential shortage of 2.4 million workers in the next decade to fill highly technical roles. No wonder why The Wall Street Journal referred to recruiting has become one of the hardest jobs in the market.

Moreover, the rapid technological changes and growing acceptance of freelance work is making it harder for companies to hire the best talent. All this is leading to organizations outsourcing their recruitment process to experienced and competent end-to-end recruitment solution providers. This hiring arrangement is known as Recruitment Process Outsourcing (RPO) model.

The main reasons for any organization to select RPO services are cost reduction, saving time and energy in recruitment activities, and more time to focus on core business operations. Let’s understand these factors in detail, along with some other benefits that organizations can gain as a result of outsourcing the recruitment process:

1. Reduce cost per hire substantially

Employment process can be cumbersome. More than that, it can be an expensive affair. The cost of recruitment activities includes advertising on job portals, background screening of candidates, applicant tracking systems, and recruiting technology. These expenses are altogether folded into one when organizations choose RPO services.

Cost-per-hire often goes down along with time-to-hire, and quality-to-hire experiences a boost because of dedicated recruiting resources working towards hiring the best matches for the company’s requirement. Hiring RPO providers help companies scale up and scale down their recruitment activity to match the fluctuating hiring needs without a hole in their pockets.

2. Enable companies to focus on their core, strategic business

For most organizations, recruitment is not a core function of their business. Even human resources teams have an entire array of core functions laid in front of them. With the recruitment process outsourced to recruiting experts, it saves valuable business hours for employers, and they can keep their focus on their core business operations, which ultimately bring them the money.

3. Niche skill hiring

The companies which are working in niche sectors find it challenging to get specialized talent on time. This delay and untimely hiring activity can affect their productivity and cause unnecessary waste of time. So, organizations opt for RPO, which gets them the right talent with niche skills timely.

4. Shorten time to hire

Recruitment Process Outsourcing reduces time to hire by 40%. Startups or smaller companies that are in their initial phase must concentrate more on the business process than hiring. For these startups filling the right candidate within the right time frame becomes essential.  Most of the RPO service providers have customary time to hire models.

5. Accountability

RPO firm rendering the service is accountable to provide the necessary recruitment metrics required to measure the productivity of the process. However, if an internal team along with multiple agencies must analyze the performance, it becomes a challenge to provide a ‘big picture’ to the management of the organization, so RPO becomes a good fit while measuring the performance parameters.

6. Improved effectiveness of the recruitment process

The competition in the global job market is increasing, and companies are finding it increasingly challenging to find the right candidate. As per recent RPO trends, nearly 80% of candidates are those who are already employed, also referred to as passive candidates. This is the demographic segment which companies are targeting due to the lack of skilled labor in the market. However, juggling between active recruitment and skimming through passive candidates, a lot of resources are wasted.
With the recruitment process outsourcing, the entire process becomes a lot more effective, and employers would not need to worry about missing the right talent.


The value that RPO service providers offer is beyond costs and faster time to hire. They bring critical resources and competencies that many companies lack, ensuring persistent hiring success. RPO services providers act as your extended arm, enhancing your organization’s ability to attract and retain top talent to drive growth.

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