What is Recruitment Process Outsourcing (RPO).

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  • May 19 2021

Recruitment process outsourcing is one of the fastest-growing business models nowadays in HR industry. It is a long-term strategy to determine critical hiring requirements.

If you are interested in bringing down your cost per hire and attract the best talent available in the market, then
Recruitment Process Outsourcing (RPO) activity is definitely worth considering.

Although Recruitment Process Outsourcing (RPO) is a common term used in many a business situation, most professionals are still unaware of this hiring activity. Here in this blog, we try to simplify the complex definition of Recruitment Process Outsourcing (RPO) and underline its key benefits and purpose in a business setting.

What is Recruitment Process Outsourcing (RPO)?

In its simplest definition, a “Recruitment Process Outsourcing (RPO)” is a business model where an organization will outsource its recruitment or hiring process to a third-party vendor or an external agency”. The external hiring agency acts as a middleman and takes over the entire or a part of the permanent recruitment process. 

Moreover, the external hiring agency shall offer your organization with the required skills, tools, suggestions, and technologies to execute the hiring function effectively. Recruitment Process Outsourcing (RPO) will bring in major cost savings and improvements in the overall quality of staffing.

In other words, the Recruitment Process Outsourcing business model is primarily a people, process and technology solution inclusive of consultative work. 

The purpose and advantages of Recruitment Process Outsourcing (RPO)

Recruitment Process Outsourcing offers phenomenal returns in the areas of Quality, Cost, and Speed. 

  • Quality

Hiring is a laborious task and lengthy process. It is further supported by the fact that hiring is repetitive and will never cease to exist. For instance, your business could have a very high demand for positions for a certain project each requiring diverse skill-sets, talents and experience. To recruit a team that is capable of mapping, sourcing and hiring these candidates is very tough. 

Recruitment Process Outsourcing (RPO) service providers have the necessary processes in place, proficiency, an elaborate database of profiles and the networking required to map and source such candidates. 

  • Cost

Your in-house recruitment expenses and costs can be considerably brought down because a Recruitment Process Outsourcing (RPO) service provider basically implements the “economies of scale”. 

They have the potential to handle volume fluctuations in a much efficient manner. For instance, the RPO service provider could assign 20 hiring executives to your business when volumes are high and then effortlessly transfer them to another client when volumes are low. 

If you as an organization were to hire these 20 hiring executives, you would either be compelled to pay for the resources that are not being used or terminate their services which involve overhead expenses.

  • Speed

A Recruitment Process Outsourcing (RPO) service provider will find it much easier to examine their internal database and build a pool of probable candidates that is ready to be interviewed. They need not take time to promote or hunt on various job portals for the exact job profile. 


Recruitment Process Outsourcing (RPO) is an important end-to-end business function. It has a significant rather powerful place in the market these days. With the growing rate of competition prevalent these days, it is impossible to proceed ahead without rendering the valuable services on an RPO.

Furthermore, RPO service providers are well connected to several organizations and the talent market. They have an extensive and attractive talent pool than any single business could probably have.



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