Many companies to outsource recruitment work in near term: Experts

Jun 08 2014, 15:48 IST
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SummaryIndia's Recruitment Process Outsourcing (RPO), a fast growing industry, is projected to see an annual growth of 25-35 per cent, according to estimates.

With businesses expected to ramp up hiring activities, a large number of companies are expected to outsource their recruitment process work, especially by IT & ITeS industry, in the near term, say HR experts.

India's Recruitment Process Outsourcing (RPO), a fast growing industry, is projected to see an annual growth of 25-35 per cent, according to estimates.

The expectations also come against the backdrop of high hopes that efforts to revive the domestic economy would generate lakhs of new employment opportunities.

In signs of improving market sentiment, leading HR services firm Randstad India said that RPO industry "has been evolving rapidly in India in last 12 months".

Going by its market study, more than 70 per cent of Indian employers are likely to outsource all or part of their hiring process in the next five years.

"Though this trend (of doing RPOs) has been prevalent majorly with MNCs, we are seeing many Indian firms opting for this model of recruitment," Randstad India CEO Moorthy K Uppaluri said.

Experts said that IT & ITeS sector does more of RPO in the country. Among others, BFSI (Banking, Financial Services, Insurance) segment and e-commerce industry also resort to outsource their recruitment process activities.

"Services companies that hail from sectors like IT, BFSI, etc would use more RPO services as these businesses are people driven and as such the largest cost centre at any such organisation would be their employees," Spectrum Talent Management Director Vidur Gupta said.

RPO services are majorly used for recruitment needs for junior-level and mid-level employees mainly when there are "high volumes of hiring".

"The number and variety of roles recruited are greater and hence is a challenge for organisations to manage it in house," talent assessment firm MeritTrac Head-Innovation and Product Management Rajeev Menon said.

RPO service providers have access to reach out to larger talent pool and make these specialised recruitments happen more effectively, he added.

Uppaluri said that the RPO service providers are "predominantly (utilised) for mid to junior level employees in the talent pyramid as typically RPO is suitable for high volumes of hiring, with a low mix of different profiles".

In the run up to Lok Sabha elections, HR experts pinning their hopes on a stable government had said that such a scenario would help create over two million new jobs and boost hiring activities by 30-40 per cent this year.

A stable government has been formed with Narendra Modi at the helm after BJP got simple majority.

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