Recruitment Process Outsourcing (RPO) Market

Market Overview:

The global recruitment process outsourcing (RPO) market size reached US$ 6.8 Billion in 2022. Looking forward, IMARC Group expects the market to reach US$ 18.98 Billion by 2028, exhibiting a growth rate (CAGR) of 18.25% during 2023-2028. The increasing adoption in SMEs, rising number of candidates applying for jobs in banking, and the growing number of M&A represent some of the key factors driving the market.

Recruitment process outsourcing (RPO) is a business strategy wherein an organization partners with an external service provider to handle all its recruitment processes. It involves transferring the responsibility for sourcing, screening, and hiring candidates to a specialized RPO provider. Its services include tasks, such as job posting, sourcing, and screening candidates, conducting interviews, coordinating assessments, managing background checks, facilitating offer negotiations, and onboarding. RPO assists in enhancing the efficiency and effectiveness of the recruitment process, improving the quality of hires, and providing scalability to handle high-volume or specialized hiring needs. It can help reduce recruitment costs by leveraging the RPO economies of scale and expertise of providers. It also allows organizations to tap into specialized recruitment knowledge and technology they can not possess in-house.

Recruitment Process Outsourcing (RPO) Market Trends:

The increasing adoption of RPO services in small and medium-scale enterprises (SMEs) to streamline the recruitment process, handling tasks like candidate sourcing, screening, and coordination of interviews represents one of the primary factors bolstering the market growth around the world. Moreover, RPO is employed in the banking, financial services and insurance (BFSI) sector to build and maintain a talent pool of pre-screened candidates with compliance and regulatory expertise. It also allows BFSI organizations to tap into a ready pool of qualified professionals when urgent hiring needs arise. This, coupled with the rising number of candidates applying for jobs in banking on account of its numerous advantages is favoring the growth of the market. In addition, the growing use of RPO for short-term or project-based hiring needs, such as opening a new branch, launching a product, or executing a specific project, that requires specialized skills is influencing the market positively. RPO providers also help in quickly assembling a team of qualified candidates for the duration of the project. Apart from this, the rising number of mergers and acquisitions (M&A) or business reconstruction is increasing the adoption of RPO services to manage the talent transitions and harmonize recruitment processes. Furthermore, the advent of mobile recruitment applications in RPO that allow candidates to access job postings and engage in the recruitment process is creating a positive outlook for the market.

Key Market Segmentation:

IMARC Group provides an analysis of the key trends in each segment of the global recruitment process outsourcing (RPO) market, along with forecasts at the global, regional, and country levels from 2023-2028. Our report has categorized the market based on type, service, enterprise size, and end use. 

Type Insights:

• On-demand RPO
• Function-based RPO
• Enterprise RPO
   

The report has provided a detailed breakup and analysis of the recruitment process outsourcing (RPO) market based on the type. This includes on-demand RPO, function-based RPO, and enterprise RPO. According to the report, on-demand RPO represented the largest segment.

Service Insights:

• On-site
• Off-site
   

A detailed breakup and analysis of the recruitment process outsourcing (RPO) market based on the service has also been provided in the report. This includes on-site and off-site. According to the report, off-site accounted for the largest market share.

Enterprise Size Insights:

• Small and Medium Enterprises
• Large Enterprises
   

The report has provided a detailed breakup and analysis of the recruitment process outsourcing (RPO) market based on the enterprise size. This includes small and medium enterprises and large enterprises. According to the report, large enterprises represented the largest segment.

End Use Insights:

• BFSI
• Healthcare
• Manufacturing
• IT and Telecom
• Education
• Others
   

A detailed breakup and analysis of the recruitment process outsourcing (RPO) market based on the end use has also been provided in the report. This includes BFSI, healthcare, manufacturing, IT and telecom, education, and others. According to the report, IT and telecom accounted for the largest market share.

Regional Insights:                                                            

• North America
  • United States
  • Canada
• Asia Pacific
  • China
  • Japan
  • India
  • South Korea
  • Australia
  • Indonesia
  • Others
• Europe
  • Germany
  • France
  • United Kingdom
  • Italy
  • Spain
  • Russia
  • Others
• Latin America
  • Brazil
  • Mexico
  • Others
• Middle East and Africa
   

The report has also provided a comprehensive analysis of all the major regional markets, which include North America (the United States and Canada); Asia Pacific (China, Japan, India, South Korea, Australia, Indonesia, and others); Europe (Germany, France, the United Kingdom, Italy, Spain, Russia, and others); Latin America (Brazil, Mexico, and others); and the Middle East and Africa. According to the report, North America (the United States and Canada) was the largest market for recruitment process outsourcing (RPO). Some of the factors driving the North America recruitment process outsourcing (RPO) market included the expansion of the IT industry, rising automation, technological advancements, etc.

Competitive Landscape:

The report has also provided a comprehensive analysis of the competitive landscape in the global recruitment process outsourcing (RPO) market. Detailed profiles of all major companies have been provided. Some of the companies covered include Alexander Mann Group Limited, Automatic Data Processing, Inc., Cielo Inc., Hudson Global Inc., IBM Corporation, Korn Ferry, ManpowerGroup, PeopleScout Inc. (Trueblue Inc.), Pontoon Solutions Inc. (The Adecco Group), Randstad N.V., Sevenstep, WilsonHCG, etc. Kindly note that this only represents a partial list of companies, and the complete list has been provided in the report.

Report Coverage:

Key Questions Answered in This Report:

• How has the global recruitment process outsourcing (RPO) market performed so far, and how will it perform in the coming years?
• What are the drivers, restraints, and opportunities in the global recruitment process outsourcing (RPO) market?
• What is the impact of each driver, restraint, and opportunity on the global recruitment process outsourcing (RPO) market?
• What are the key regional markets?
• Which countries represent the most attractive recruitment process outsourcing (RPO) market?
• What is the breakup of the market based on the type?
• Which is the most attractive type in the recruitment process outsourcing (RPO) market?
• What is the breakup of the market based on the service?
• Which is the most attractive service in the recruitment process outsourcing (RPO) market?
• What is the breakup of the market based on enterprise size?
• Which is the most attractive enterprise size in the recruitment process outsourcing (RPO) market?
• What is the breakup of the market based on the end use?
• Which is the most attractive end use in the recruitment process outsourcing (RPO) market?
• What is the competitive structure of the global recruitment process outsourcing (RPO) market?
• Who are the key players/companies in the global recruitment process outsourcing (RPO) market?

Key Benefits for Stakeholders:

• IMARC’s report offers a comprehensive quantitative analysis of various market segments, historical and current market trends, market forecasts, and dynamics of the recruitment process outsourcing (RPO) market from 2017-2028.
• The research study provides the latest information on the market drivers, challenges, and opportunities in the global recruitment process outsourcing (RPO) market.
• The study maps the leading, as well as the fastest-growing, regional markets. It further enables stakeholders to identify the key country-level markets within each region.
• Porter's five forces analysis assist stakeholders in assessing the impact of new entrants, competitive rivalry, supplier power, buyer power, and the threat of substitution. It helps stakeholders to analyze the level of competition within the recruitment process outsourcing (RPO) industry and its attractiveness.
• Competitive landscape allows stakeholders to understand their competitive environment and provides an insight into the current positions of key players in the market.