Technavio analysts forecast the global recruitment process outsourcing market to grow at a CAGR of over 14% during the forecast period, according to their latest market research report.
The emergence of data analytics and artificial intelligence is one of the major trends being witnessed in the global recruitment process outsourcing market 2018-2022. Data analytics and artificial intelligence are revolutionizing recruitment processes at a very high pace. Huge volumes of data are generated and are further analyzed to make proper recruitment decisions. Certain analytical tools are used to extract the required information, either in the form of big data or real-time information. This data is used by HR executives to manage recruitment effectively. In data analytics, people analytics and recruitment analytics play a key role as they generate scientific information from raw data. These sources of interpreting huge volumes of information help recruiters select strong candidates and improve their ability to fill the job openings at a fast pace. Thus, with the various advantages associated with data analytics and AI, the market is expected to have a positive outlook during the forecast period.
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According to Technavio analysts, one of the key factors contributing to the growth of the global recruitment process outsourcing market is the cost reduction by streamlining the hiring process:
Global recruitment process outsourcing market: Cost reduction by streamlining the hiring process
To reduce the cost per hire, companies are actively approaching RPO firms. To constantly add business value and to cut operational costs wherever possible, RPO is required. Thus. RPO can prevent the demand-supply imbalance during adverse market conditions. When a business expands into another product category or another region of the world, recruiting needs rise considerably. Similarly, during downturns, the retrenchment of workforce needs to be done. Such imbalances incur heavy costs to any company. RPO partners streamline the hiring process to reduce such market imbalances. This happens due to the active involvement of RPO partners in examining recruitment process workflows to determine the overlaps in processes, the excessive costs incurred, and the curbing of inefficient practices. Thus, the need of various organizations to reduce their operating costs by streamlining the hiring process is expected to fuel the growth of the global RPO market during the forecast period.
According to a senior analyst at Technavio for research on IT professional services, Along with streamlining the hiring process, another major factor such as the advent of meritocratic recruitment is expected to boost the growth of the global recruitment process outsourcing market. Meritocratic recruitment is introduced to improve decision-making when it comes to hiring employees. This process of recruitment moves away from how the employees were previously recruited. Based on prioritizing candidates abilities over their experience, meritocratic recruitment focuses on acquiring a candidate based on his/her performance on a practical assessment instead of CV-based assessments and competency-based interviews. Since it is a skill-based system of recruitment, it focuses on avoiding biasness in the recruitment process. Currently. the number of companies adopting meritocratic recruitment is increasing.
Global recruitment process outsourcing market: Segmentation analysis
The global recruitment process outsourcing market research report provides market segmentation by end-user (IT and telecom, BFSI, manufacturing, healthcare, others), and by region (the Americas, EMEA, and APAC). It provides an in-depth analysis of the prominent factors influencing the market, including drivers, opportunities, trends, and industry-specific challenges.
The Americas held the largest share of the market in 2017, accounting for over 40% share, followed by the EMEA and APAC respectively. Although APAC held the smallest share of the market, it is expected to witness the maximum increase in its market share over the forecast period, followed by the Americas.
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Five Forces Analysis
- Regional comparison
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- Vendors covered
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- Competitive scenario
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