Before, a company’s reaction when faced with challenges in getting the right person for a specific position is to hire a human resources expert or to hire someone with a behavioral sciences background and provide them with training kits in order to become more honed in the field. Such processes entail a costly and time-consuming set of actions. But this is now evolving through a specific industry under outsourcing which is now known as recruitment process outsourcing. An effective talent acquisition can lead to a successful venture, as most would say; which could be the very main reason as to why recruitment process outsourcing is attracting more companies, leaving the talent acquisition processes to the experts.
In outsourcing a company’s recruitment processes, the service providers do not require their clients to outsource their Human Resources functions entirely; it can be simply candidate sourcing, applicant profiling and building a talent pool or screening resumes. Candidate sourcing can be done after the company seeking the service of recruitment outsourcing companies provides the qualifications and positions that needs to be filled. Recruitment analysts, who undergo necessary training, then assess their pool of talents acquired from resources that are available to them, such as subscription-based databases and professional networking groups.
Main reasons as to why companies seek to outsource some of their administrative functions, as well as some of their services, are to lessen their costs and to allow them to focus on their core businesses. However, in recruitment process outsourcing, it is more than just those two key advantages that companies seek to achieve. Companies also look at being able to identify and hire a number of applicants that have the necessary skill sets and experience in a short span of time. This can be done with recruitment process outsourcing especially since service providers will be fully equipped with best practices and will have the right amount of familiarity with the processes that allow them to source all types of candidates. This other key advantage does not only address the challenges on looking for qualified applicants, but it also addresses the issue of turnaround time. Another benefit of engaging in recruitment process outsourcing is that company administration can make better use of their internal staff time through the elimination of recruitment processes.
Back in 2009, recruitment process outsourcing was said to have generated $2.9 billion and was deemed to be bullish, thus growth is expected for this year and for the following year. It is even projected for the recruitment process outsourcing industry to increase its annual contract value between 25-30 percent in 2011. It is now clear that recruitment process outsourcing, having surpassed the experimental stage, has achieved a more stable position in the industry and it has attracted more attention towards the benefits of outsourcing. North American companies are the primary companies who adopt recruitment process outsourcing services while the European companies are beginning to embrace the idea. However, in the first three quarters of 2010, the adoption of such type of outsourcing in Asia Pacific is emerging.
It has now become very evident that the market for recruitment process outsourcing is no longer limited to large buyers after industry experts have projected that medium-sized businesses are also looking into outsourcing some, if not all, of their human resources functions.