The rapid growth of the recruitment process outsourcing (RPO) market in 2010 can result to a 25-30 percent growth rate in 2011. This is based on the “Recruitment Process Outsourcing Annual Report 2010 - A Year of Rapid Growth and Intense Competition” by global services advisory firm Everest Group.
It is projected that the annual contract value (ACV) of the RPO market will reach US$1.38 to 1.45 billion in 2011. According to research director Rajesh Ranjan, the market is seeing rapid growth with new contracts - smaller deals, fewer employees, and buyers going for the selective approach. “Beyond direct cost impact, we expect to see more buyers look to achieve business impact by taking a more strategic approach with RPO and look for total workforce solutions, but adoption will be gradual due to lack of integrated solution availability. While the market is dominated by large buyers, we expect the mid-market to grow as these buyers look to scale up in an improving economy.”
Moreover, the report reveals that North America is ahead of the pack in RPO adoption, and buyers go for the multi-vendor approach due to lack of comprehensive global RPO services.