Recruitment Process Outsourcing Market Size, Share, Growth Analysis, By Type (On-Demand, Function-Based), By Enterprise Size (Small & Medium Enterprises (SMEs), and Large Enterprises), By End Use (BFSI, healthcare), By Region - Industry Forecast 2024-2031

Global Recruitment Process Outsourcing Market size was valued at USD 7.33 billion in 2022 and is poised to grow from USD 8.51 billion in 2023 to USD 28.09 billion by 2031, growing at a CAGR of 16.1% in the forecast period (2024-2031).

A company engages in recruitment process outsourcing (RPO) when it outsources all or a portion of its permanent hiring to a third party. In most cases, a provider serves as an outsourced HR or resourcing department for a business, offering a comprehensive hiring solution while onsite with the client. RPO is a subset of the Business Process Outsourcing (BPO) business in which a company outsources all or some of its recruitment-related operations to a third-party provider. Candidate screening, offer execution, job posting, and other crucial steps in the recruitment process are mostly covered by the vendors' RPO services.

RPO should not be confused with staffing services, since the latter entails competent management of the hiring process and accountability for the outcomes. RPO is a type of outsourcing when a company outsources all or a portion of its hiring procedures to an outside company. For your company, it primarily serves as an extension of the human resources department. There are several advantages to outsourcing to a skilled provider. It's a great way to maximize recruitment efforts that your human resources team might not have the time or capacity to do on their own.

RPO services are quickly gaining popularity since they enable the client company to focus on its core business operations and provide a significant decrease in overhead. The two main services provided by their suppliers are off-site and on-site. The general recruitment process outsourcing market is being fueled by consumers' increased preference for off-site services as a result of rapid globalization. Services for outsourcing the recruitment process have become a significant tool for reducing the rising attrition rate in a number of industrial sectors. A growing number of organisations are starting to select RPO services to specialize in their core competencies and cost reduction. Over the past few years, the global RPO market has benefited greatly from this trend. Additionally, the need for such services has increased due to the rise in the number of recent graduates and postgraduates. The use of cloud-based and web-based services and software is growing in popularity today, which helps to streamline RPO and, as a result, will help the recruitment process outsourcing industry grow. For fresh new businesses eager to enter the recruitment process outsourcing sector, this trend also offers enormous prospects. Selectivity, on the other hand, is a significant difficulty for service providers. They frequently find it challenging to understand the profile that the employer seeks and to be willing to adapt the approach to meet those expectations.

US Recruitment Process Outsourcing Market is poised to grow at a sustainable CAGR for the next forecast year.