Recruitment Process Outsourcing Market Expected to Reach $26.4 Billion by 2031—Allied Market Research

According to a new report published by Allied Market Research, titled, “Recruitment Process Outsourcing Market," The recruitment process outsourcing market was valued at $4.8 billion in 2021, and is estimated to reach $26.4 billion by 2031, growing at a CAGR of 19.1% from 2022 to 2031.

 Recruitment Process Outsourcing helps free up time on processes that the company does not do efficiently and lets it offer more time on activities that generate the greatest profit. It also implies that the company may make money even when employees are not there. After all, outsourcing a range of tasks at the same time means that things may be done much more rapidly, allowing the organization to boost its production and efficiency. Hiring managers that are stressed for time or have many candidates to go through may overlook few attributes that decide whether the recruit can continue with the role or not. An RPO solution can address such characteristics while still seeking people with the necessary expertise and education.

The COVID-19 pandemic outbreak caused a significant shift in how business is conducted in the sector. Businesses changed their recruiting practises to comply with the social distance norms set throughout many areas in order to lower the chance of infection. Datum RPO, a UK-based provider of workforce solutions, recently advised its customers and staff to be extra cautious when interviewing candidates, consider where they are, and ask for a 14-day backdated history. Businesses are increasingly emphasising the use of cutting-edge recruiting technologies and digital assets to avoid face-to-face meetings.

However, employees who are hired may require further training. They require more training. An additional expenditure is necessary to train new candidates to equip them with new abilities. If a recruiter lacks desirable traits, they must work hard to remain in the firm. This places a financial strain on both the firm and the individual.

This increase in the worldwide RPO market is related to the value that RPO solutions provide to clients and that value has certainly increased significantly over the previous ten years. Simply put, every location, every industry, and businesses of all sizes are turning to RPO to increase the value and efficacy of talent acquisition. To increase market share and maintain current clients, RPO providers in general have built an ever-more complex range of services and capabilities, and  many SMEs frequently face workforce challenges, such as sickness and dismissals, dealing with poor performance, where recruitment process outsourcing removes these problems. These factors are anticipated to boost the market growth in the upcoming years.

The recruitment process outsourcing market share is segmented on the basis of type, end user, and region. By type, it is classified into permanent Staffing, Flexible Staffing, and Others. By end user, it is fragmented into BFSI, IT & Telecom, ITES & BPO, Healthcare, Manufacturing, Retail & E-Commerce, and Others. By region, the market is analyzed across North America, Europe, Asia-Pacific, and LAMEA.

The key players profiled in the recruitment process outsourcing market report include lexander Mann Solutions, ManpowerGroup Solutions, Hudson Global Inc., IBM Corporation, Randstad Holdings NV, ADP LLC, Advantage Resourcing America Inc., Orion Talent, Kelly Outsourcing and Consulting Group, and Cielo Inc.   

The report offers a comprehensive analysis of the global recruitment process outsourcing market trends by thoroughly studying different aspects of the market including major segments, market statistics, market dynamics, regional market outlook, investment opportunities, and top players working toward the growth of the market. The report also sheds light on the present scenario and upcoming trends & developments that are contributing to the growth of the market. Moreover, restraints and challenges that hold power to obstruct the market growth are also profiled in the report along with the Porter’s five forces analysis of the market to elucidate factors such as competitive landscape, bargaining power of buyers & suppliers, threats of new players, and emergence of substitutes in the market.

Impact of COVID-19 on the Global Recruitment Process Outsourcing Industry

• The COVID-19 pandemic had a negative impact on the RPO market. Owing to the pandemic and the need for businesses to follow the social distance standards, there has been a significant change in the recruitment procedures.
• COVID-19 impacted almost all industries and the recruiting process outsourcing market is no different. With the number of layoffs experienced globally during the pandemic, the recruitment-to-employee termination ratio suffered a significant hit in the market.
• Social distancing norms, closed borders, and production constraints due to the pandemic across various countries such as China, India, and the U.S. have affected the global market.

Key Findings of the Study

• By type, the flexible staffing segment emerged as the global leader in 2021 and permanent staffing segment is anticipated to be the fastest growing segment during the forecast period.
• By end user, the IT and telecom segment emerged as the global leader in 2021 and the segment is expected to show the fastest growth in the upcoming years.
• By region, the Asia-Pacific market registered the highest market share in 2021 and is projected to maintain the position during the forecast period.