More and more corporates are adopting the recruitment process outsourcing (RPO) model for their hiring needs inside and outside India not only for senior level candidates but for entry level candidates as well. Outsourcing recruitment process slashes companies’ recruitment costs by 15-20% on an average. However, according to experts, the cost savings can range anywhere between 10-40%, depending on the complexity involved. The $2.5 billion RPO industry in India is growing at the rate of 30-40%. At present, only 8-10% Indian companies, across sectors, are outsourcing their recruitment process completely. However, the trend is catching up.
Companies like Zensar and Hinduja TMT Global Solutions now partly follow the RPO model but are looking at adopting it completely in the near future. ?At present we have recruitment partners who shortlist potential candidates for walk-in interviews. This saves time and money spent on back-end activities. However, if there is a spurt in our employee requirement simultaneously across our various centres, then we may consider completely outsourcing the recruitment process,? said Malini Deekshit, VP-HR, HTMT Global Solutions.
Yes Bank and Mumbai-based BPO Stream also outsource 50% of their recruitment work to agencies.
Similarly, Zensar Ltd is also moving towards outsourcing more process to agenci. Agreeing that there is cost saving through RPO, Prameela Kalive, global head-HR, Zensar says, ?The real effect of savings is likely to be felt in the second or third year, with the process stabilising by then. However, we do expect a reasonable saving even in the first year.? Recruiters have to do a lot of back-end activities like searching for candidates from database and job boards, testing their skills, checking their backgrounds, testing them for drugs, screening their resumes, etc., which save time and cost to companies when outsourced.