Recruitment outsourcing is the next big thing; expected to grow 50% a year
May 18, 2016
By PeopleStrong Team
MUMBAI: HR services and staffing firms in India are expanding their teams and operations to cater to the rapidly growing demand for recruitment process outsourcing (RPO) as organisations increasingly farm out all or part of the hiring functions to focus on their core businesses.
With the estimated Rs 400 crore RPO business in India expected to grow at a staggering 40-50 per cent a year for the next few years, firms such as PeopleStrong, Manpower Group, Quess Corp, Randstad and TeamLease Services are attracting a steady stream of new clients.
There is an increasingly sharper focus on understanding of the Indian market for RPO projects, said PankajBansal, cofounder of PeopleStrong. “Corporates are looking not only for a specialisation in sourcing but also in processing and technology, to which attention was not paid a couple of years ago,” he said.
A few months ago, PeopleStrong inked a deal with software exporter WiproBSE 0.76 % worth $16 million (about Rs 100 crore), according to an Everest Group report, for a period of five-seven years. PeopleStrong provides platformbased RPO solutions, taking end-to-end ownership of permanent recruitments for its clients. It has seen addition of 10 new RPO clients every year and growth of about 100 per cent over the past one year alone.
At Quess Corp ((formerly known as Ikya Human Capital Solutions), plans are underway to expand operations to other parts of the world by leveraging the group’s global presence across eight countries. “We are evaluating partnerships with international RPO firms to drive this next phase of growth,” said GuruprasadSrinivasan, business head, staffing solutions. Startup and growth stage companies are also inviting Quess Corp to discuss RPO possibilities, he said.
As hiring increases and the war for talent intensifies, more and more companies are expected to outsource their recruitment process work. This model helps provide a cost-effective and consistent talent acquisition process, keeping turnaround time low and allowing companies to scale up quickly when the business environment improves.