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Recruitment Process Outsourcing (RPO)

Definition

What is recruitment process outsourcing?

Recruitment Process Outsourcing (RPO) can refer to handling the entire recruitment process or be tasked with providing talent to satisfy specific project requirements. Ultimately, an RPO provider, as opposed to a recruiter, will work with the business and management team to be able to meet their staffing requirements.

Much like everything in the outsourcing industry, it is a relationship between companies and experts to clarify their business needs and create strategies to address them. Similarly, companies and business owners can choose the degree to which they commit to developing that relationship, depending on their time, focus, and resources.

How does the recruitment process outsourcing work?

Our Hudson RPO quality recruitment outsourcing program blends dedicated recruiters, technology, and best practice hiring processes to transform an organization’s talent acquisition function. 

Aligned to your hiring managers, RPO solutions drive the end-to-end recruitment process from forecasting to sourcing, assessing, placing, on-boarding, and reporting while utilizing expertise, innovative technology, and key performance indicators.

Through clearly defined processes and deep specialization, RPO solutions can dramatically reduce cost-per-hire, time-to-hire, and attrition, plus measurably improve quality of hire, reporting, and scalability, delivering you a far greater return on investment.

RPO recruitment definition

Through a complete set of external recruiting tools, recruitment process outsourcing can support part or all of your company’s permanent staff hiring. RPO recruitment helps you find the appropriate talent efficiently by providing process excellence, a scalable model, cost savings, and market information.

Your RPO recruitment strategy may be customized to include a specific collection of services that are suited to your company’s goals, needs, and recruitment difficulties. Recruitment resources may be scaled up or down in response to changing hiring demands, giving your company a lot of flexibility.

Benefits of recruitment process outsourcing

At its best, recruitment process outsourcing is an ongoing process that starts from understanding the business environment and vision to branding the business as an employer that attracts the ideal talent, all the way to acquiring, hiring, and onboarding new talent needed by the business teams.

Outsource Accelerator provides you access to Recruitment Process Outsourcing suppliers from the Philippines starting from $6 per hour, where you can save up to 70% on staffing cost. We make it easier for clients to learn about, and engage with recruitment process outsourcing.

Benefits of recruitment process outsourcing
Benefits of recruitment process outsourcing

The outsourcing recruitment process has numerous benefits over traditional hiring methods. It makes use of existing talent resources and innovations to find the best applicants depending on the needs and preferences of companies.

Some benefits of the recruitment process outsourcing are as follows.

Improves scalability and flexibility of recruitment

Most organizations’ recruiting requirements differ throughout the year, depending on established targets and goals. In these situations, determining the exact number of employees necessary for maximum workplace efficiency can be difficult. 

A competent recruitment process outsourcing firm will recognize this and handle it with ease. Recruitment will be done on a project or on-demand basis, based on analyzing the specific requirements of diverse businesses. 

It ensures that the right number of the most competent workers are needed to fill workforce roles at all times. Further, companies must adapt rapidly to the ever-changing market environment.

Provides access to an exclusive talent pool

Without the services of a recruitment process outsourcing provider, acquiring the essential talent required to meet corporate goals and objectives may be a problem.

In addition, deploying an RPO solution can help you take a more controlled approach while ensuring a high-quality partnering service.

The majority of well-known RPO providers have a thorough, broad database of complicated individuals required to fill critical employment positions. 

The demonstrated experience of recruitment process outsourcing providers, when combined with their exclusive access to these highly desired talents, will make it easier for client firms to obtain the services of in-demand candidates. 

Lessens the burden in HR Department

Using a skilled recruiting service provider will relieve stress on the human resources department and boost efficiency and production significantly.

When all parts of recruiting are handled by a recruitment process outsourcing agency, HR can focus more on dealing with internal issues that arise inside the company.

Provides a robust recruitment service

Recruitment process outsourcing is ideally committed to making a full recruiting solution to the businesses they represent, especially to their experience and exclusive access to internationally sourced talent.

From the target candidate screening process through the testing phase and final employment, these recruitment outsourcing services will pay close attention to the smallest of details to offer the finest prospects potential.

What services does an RPO offer?

The services provided by recruitment process outsourcing are not limited to filling roles. Their objective is to guide you in improving your overall recruitment techniques.

As a response, here are a few factors to expect from recruitment process outsourcing.

Complete assistance with the hiring process

Your recruiting manager will benefit from an RPO’s assistance with their tasks. Companies can rely on professional recruitment services to bring the potential individuals to work who can be approved by you, the hiring manager, and your RPO.

The use of advanced technology

To discover candidates, a recruitment process outsourcing will not use traditional approaches. Instead, they’ll employ technology that interacts with other leading candidate-sourcing platforms. This will allow you to reach out to a larger pool of qualified individuals.

Monitoring

Clients will be able to see progress using real-time portals and dashboards provided by recruitment process outsourcing. Over time, this will assist the management in improving the hiring process.

Consulting and evaluating

Many RPO providers will provide consultation services if you want further assistance. They will assist you in evaluating your existing recruiting practices and making intelligent suggestions for improvement.

Outsourcing FAQ

What is a Customer Service?

What is customer service?

Customer service is a process of delivering a product or service to a customer in an efficient, accessible, cost-effective, and satisfying manner. It is creating a relationship that involves trust and builds loyalty, even after the delivery is made. Customer service is knowing how to deal with customers and understanding their needs and wants. It is finding what customers want during the entire process of delivering the product or service.

Excellent customer service is knowing when to ask the right questions to get the correct answers. It is listening wholeheartedly to your customers as if you’ve known them for a very long time. Excellent customer service is learning to adapt and provide solution to each individual client. It is discovering the right level of judgment then and there. Most importantly, in-depth knowledge of the products or services you offer is the ultimate foundation of a great customer service experience. Communication skills, creating the right environment, and being friendly aren’t enough if you don’t have in-depth knowledge of the product or service that your company offers.

Outsourcing of customer service

Outsource Accelerator provides you the best customer service outsourcing companies in the Philippines, where you can save up-to 70% on staffing cost. We have over 3,000 articles, 200+ podcast episodes, and a comprehensive directory with 700+ BPOs… all designed to make it easier for clients to learn about, and engage with, outsourcing.

What is Digital Marketing?

What is digital marketing?

Digital marketing is the use of a management strategy that incorporates electronic products and services. Digital marketing may apply to the use of content marketing, social media marketing, or affiliate marketing to increase brand or business awareness. 

Businesses use different marketing strategies to reach more customers and deliver the information they can use in decision making. At the heart of digital marketing is defining clear goals. Without these goals, digital marketing would be a waste of time, effort, and financial resources. 

Types of digital marketing

Digital marketing campaigns require both creative and technical aspects to work. These include:

Content marketing Search engine optimization Social media marketing Email campaigns Affiliate marketing

A digital marketing campaign can either be paid or free. Paid marketing campaigns might have a better chance of being successful than with free marketing. However, one can’t rely on just paid marketing efforts. You still have to ensure you aren’t wasting valuable resources.

Outsource digital marketing

Outsource Accelerator is the most trusted source for independent information & advisory for Business Process Outsourcing (BPO). We have over 3,000 articles, 200+ podcast episodes, and a comprehensive directory with 700+ BPOs… all designed to make it easier for clients to learn about, and engage with outsourcing digital marketing.

What is Human Resources?

What is human resources?

People are considered a crucial asset to any company. The human resources team is responsible for transitioning companies and organizations into a more people-involved and developmental association. The HR trains and develop employees according to company values and goals. Employees make the company grow. The company, in return, develop these employees better individuals in their chosen fields.

It is vital for employees to be motivated and be placed in a healthy environment. However, the human resources department is also involved in dealing with an employee's disciplinary action as needed. Every company or organization has its own house rules and policies that employees are supposed to abide and follow.

Outsourcing human resources

The HR workforce’s goal is to recruit people who have the right qualifications that are specific to the job description. They should not compromise the company's standards and must evaluate them thoroughly. HR is an essential part of a business, and it is their responsibility to equip the business with an efficient and productive workforce.

Outsource Accelerator is the most trusted source for independent information & advisory for Business Process Outsourcing (BPO). We have over 3,000 articles, 200+ podcast episodes, and a comprehensive directory with 700+ BPOs… all designed to make it easier for clients to learn about, and engage with outsourcing human resources.

What is What is business process outsourcing??

Business Process Outsourcing (BPO) is the delegation of business processes to an external service provider to a nearby or farther location. BPO uses various technology-enabled services to optimize the delivery of services.

Some of the usual outsourced business functions are the following.

Payroll Accounting Human resources Customer service Sales Marketing

In the case of content providers, these could mean hiring writers, remote editors, or virtual assistants.

BPO speeds up processes and enhances efficiency. Companies that outsource some of their business processes use their time on core services and competencies.

With this shift in focus, companies improve their current processes which may result in improved customer satisfaction. BPO helps companies divert their resources to more critical business strategies.

Often, companies find it impractical to hire a full-time position in-house because of the cost associated with doing so. Outsourcing services can also help them save costs and resources in hiring suitable employees.

The definition of BPO outsourcing

In business process outsourcing, a company delegates their services to a service provider. It can be a local firm, nearshore, or offshore company.

Upon reaching an agreement, the service provider will then set up a team for their client. They will shoulder the costs and resources needed, including the office space, workplaces, connection, cloud storage, and IT infrastructure.

The providers are responsible for tracking the staff’s performance and progress. The clients, meanwhile, are responsible for providing the tasks, processes, and KPIs needed for their operation.

In some instances, they are also allowed to incorporate their culture and values to their team and absorb them as a part of their company.

What is BPO? How does Business Process Outsourcing work?

Business process outsourcing happens when a business taps a third-party service provider to operate some of its internal processes. Such ‘processes’ include customer service, accounting and finance, or sales.

It is different from hiring an agency to do specific tasks, as the outsourcing provider (BPO) is more concerned with the ongoing production of labour-intensive tasks, instead of the higher-level strategy and guidance.

Now, BPO has broadened and is more akin to staff augmentation, or staff leasing.

What are the benefits of business process outsourcing?

There are many benefits to outsourcing, as well as some downsides and risks. Outsourcing powerhouses like the Philippines and India produce high-quality talents at a lower rate due to their low operational costs and full government support.

Since outsourcing companies hire and produce experts in the field, clients can assure better results in their operations – whether in customer service, accounting, or marketing. Their staffs are trained to ensure that their clients achieve the outcome they expect.

Companies are able to scale their staff depending on the demand and availability of their tasks. This also helps them improve their operations by letting their service providers contribute in streamlining their processes.

Outsourcing poses more growth opportunities for businesses of all shapes and sizes. While there is still drawbacks to this practice, it is safe to say that its advantages outweigh its risks. 

To explain it further, below we have outlined the top benefits of outsourcing business processes: 

Cost savings

Companies can enjoy savings of up to 70% by leveraging the salaries and costs in offshore countries.

In the Philippines, for instance, companies can hire offshore staff with a US$500/month salary for starting positions. A team of 10 employees would only cost them as much as a single worker in the US with an equal position.

Global market

Small and medium-sized businesses find it most difficult to hire local employees that suit their roles. 

The widened skill gap in developed countries paired with economic crises affects their capacity to expand their teams as needed.

Businesses get to access a bigger pool of talent that can fit their requirements. They can have better options in hiring employees since they are not limited to what is available in their home countries.

Global presence

At the same time, outsourcing opens clients to global trade opportunities. They can establish their global presence and expand more easily to other locations since they already have operations in the area.

Flexible workforce

Outsourcing is a great way to establish a remote workforce, especially for companies looking to implement this setup for the first time.

BPO reduces internal local compliance obligations including providing additional office spaces to employees. Instead, organizations can hold their business operations on a remote setup, most usually having their teams in an office provided by the BPO firm.

Leverage skill

Companies cannot always do everything on their own. Burnout within entrepreneurs and teams are more common than everyone thinks, especially with everyone filling up the tasks beyond their skill sets.

A BPO company enables them to leverage the skills of other specialist companies on more complex tasks such as accounting and IT.

Focus

Lastly, BPO enables organizations to focus on their core business functions. This is since most of their non-core business operations are done with the help of a reliable service provider.

Business process outsourcing examples

The BPO sector is a vast industry, generating over $200bn annually, and employing millions of people worldwide.

As stated in the Market Analysis Report, the global business process outsourcing market reached over USD 245.9 billion in 2021. Thus, it is foreseen to acquire a compound annual growth rate (CAGR) of 9.1% this year, 2022 to 2030. 

The proliferation of the global BPO sector is utterly driven by several key factors that organizations take full advantage of: 

Improved efficiency and agility Focus on core competencies Decreased operational costs Adapt to the ever changing business dynamics

In general, when we speak of outsourcing, it always entails contracting out parts of business processes to an external provider either domestically or offshore. 

BPO can be seen in different forms and contexts, from hiring single staff to getting an offshore team.

Here we have listed some of the examples of business process outsourcing:

Big enterprise

Corporate outsourcing has been around since the industry started. The new breed of large companies are still taking advantage of its benefits and use it to expand their offerings further.

Some of the known enterprises that outsource their services today include the following.

Google. Google has been ramping up its outsourcing efforts since 2016 by delegating development and customer support. Facebook. Meta, particularly Facebook, outsources content moderation to the Philippines as a way to filter toxic content and keep the platform safe for its users. Wells Fargo. Wells Fargo has been outsourcing their operations to the Philippines since 2011. It has recently pulled out its functions in the country, though the company retained its BPO center in Manila. Medium-size businesses

A medium business with 50-500 staff might outsource the labour-intensive accounting and finance functions to a team in the Philippines.

Small business and entrepreneur

The recent Clutch survey stated that around 90% of small businesses plan to outsource their services in 2022 due to the efficiency and flexibility that companies get.

It is common for small business owners to have a Virtual Assistant (VA) working for them full time and remotely from the Philippines.

Aside from this, organizations can delegate other services such as development, IT, and digital marketing.

What are the different types of BPO?

Outsourcing can be executed in different forms, depending on the outsourcer’s needs. Truth is, not everyone are fully aware, and has an in-depth grasp of the BPO sector. 

For most people, BPO can simply mean farming out business processes to third parties located in another country, but this is just one type of BPO. 

As for businesses, it is always vital to be familiar with the various classifications and functions of BPOs. This way, they are able to opt for a business process outsourcing provider that is best suited for their type of requirements and industry. 

More importantly, outsourcing is not a one size fits all strategic approach, this is why it is not enough just know what outsourcing is and how it works. 

There are several types of BPOs that businesses can choose from. The type of business process outsourcing can be characterised by their specialisation, location, and size.

Generalist or specialist BPOs

Business process outsourcing is in the human resources and professional services sector. 

However, their services extend across all industries. The majority of BPOs are generalists, in that they offer a full range of professional services.

Meanwhile, some specialise in certain verticals such as the following.

Legal process outsourcing

Legal process outsourcing deals more with delegating legal processes and compliances to legal firms in another area.

Knowledge process outsourcing

Meanwhile, knowledge process outsourcing enables companies to outsource knowledge-related work including research and development, innovation, and creatives.

Location

Business process outsourcing typically operates from developing nations such as the Philippines, India, and Colombia. They typically have cheaper cost-of-living and bigger populations. Different locations offer different advantages.

Size of BPO

The bigger BPOs employ more than 250,000 people. They are huge, global operations. Medium-sized BPOs range from 500-5,000 staff and offer a full range of services. The smaller BPOs might have 1-500 people.

Offshore

Offshore outsourcing refers to the process of delegating a part of operations or a department to an offshore country.

To maximize profitability and efficiency, companies choose to outsource to a different region or timezone. India, the Philippines, and South Africa are some of the popular countries known for offshore outsourcing services.

Onshore

Onshore outsourcing or onshoring, meanwhile, is preferred by firms looking to delegate their services within their country.

Onshoring does not offer much savings as that of offshoring or nearshoring. However, clients prefer this as a way to maintain their branding and satisfy their local markets.

Nearshore

Lastly, nearshore outsourcing is preferred by companies that do not want the hassles of time zone and cultural differences in offshoring but still want to get the best out of their delegated services.

Through nearshoring, businesses can collaborate with their teams located in a nearby country. This gives them the opportunity to maintain their local compliance and save on costs since most nearshore locations are cheaper than their onshore counterparts. 

Functions of business process outsourcing

Collectively, business process outsourcing provides any kind of staffing solution. Common functions of BPO include:

Finance and accounting

Outsourced finance and accounting services help businesses manage their books, monitor cash flow, and keep up with corporate income tax compliances without fuss.

Healthcare

Healthcare outsourcing, meanwhile, organizes various back- and front-end functions done for the healthcare and insurance industries.

Creative and content

Creative services outsourcing covers everything from post-production of Hollywood movies to newspaper and website content.

Tech, IT and development

IT outsourcing involves delegating network management, web and app development, and cybersecurity protection to IT firms in different countries.

Sales & customer support

Some BPO providers specialize in sales and customer support for pre- and post-sales transactions. This helps companies meet the expectations and demands of their customers, keeping them satisfied even after their purchase.

Marketing

BPOs and marketing firms can help in ongoing marketing, communication and branding activities for their clients. This helps them attract more suitable leads in a cost-efficient way.

Talent and HR

Businesses can delegate HR, recruitment and compliance to professional employer organizations to maximize recruitment and workforce management.

Administration

Generalist BPOs help organizations accomplish general business administration and operational activities. This includes data entry, appointment setting, and other related functions.

Supply chain management

Lastly, e-commerce stores benefit from outsourcing supply chain management to manage warehouse and delivery processes.

The future of BPO outsourcing

We have gathered five expert opinions from renowned global business leaders. They shared how they perceive the future of outsourcing will be, including the trends that will prevail in the coming years.  

Meg Marrs, Safer Senior Care

Meg Marrs of Safer Senior Care strongly believes that entrepreneurs and business leaders should outsource their essential tasks. “Outsourcing certain roles has freed up my time to focus more on big picture strategy, rather than being completely meshed in the day-to-day tasks.” 

One thing is certain, outsourcing to support businesses growth is something that will never go out of trend. 

Sean Nguyen, Internet Advisor

As for Sean Nguyen, Director of the Internet Advisor, outsourcing to streamline processes is another essential trend that businesses will continue to apply. 

He quotes, “Outsourcing can be really helpful, even at the most incipient levels, because it allows you to streamline operations. If it’s not essential to have it taken care of in-house, there is no reason to do so.”

Elandas Miller, Kicking It Sports

Elandas Miller of Kicking It Sports, has been outsourcing back office and creatives since 2017. “I like to think of outsourcing as a tool to help me get to my goals faster and more efficient without burning myself out.” 

Outsourcing to support both organizations' short and long term goals is another trend that companies will practice in the foreseeable future. 

Tom Baker, Tom’s Projects

The founder of Tom’s Projects, Tom Baker, offshores his entire product and development. “Outsourcing means that we can scale the team up and down when need be.” Scaling workforce through outsourcing is yet again, among the trends that will remain prevalent. 

Bobby Reid, Capitol Tech Solutions

For Bobby Reid, founder of Capitol Tech Solutions “Outsourcing has helped our business by being able to provide expertise for a service quickly. While these contracts are outsourced, they are incorporated into our company culture when possible, since they are working full time with our firm.” 

Lastly, outsourcing to fill-in talent gaps and expertise is one of the key trends that more and more organizations will utilize in the coming years. 

The future of work is digital, says Outsource Accelerator Founder and CEO Derek Gallimore.

The world has moved on from manufacturing and creating products to providing services. And as we enter the post-pandemic world, he says we are “moving towards a single global economy.”

The concept of work dramatically changed with COVID, and things have changed for good. These changes made us realize that technology is available for remote and digital work interfaces.

Once showed an unsteady growth, the global outsourcing market spiked to US$245.9 billion in 2021. The sudden surge of demand brought by the pandemic along with the worsened talent shortage has led companies to increase their outsourcing efforts.

In a podcast episode, Derek explained, “There are eight billion people on the planet, and they are now all increasingly connected digitally.

There are [also] four billion people who are highly-qualified professionals sitting around the world, and they’re not just virtual assistants and basic roles. You can find [people with] PhDs, architects, accountants, or whatever you need for your business.”

To conclude, Derek believes that the global economy and a globally-sourced workforce is the future, and it is not going away.

Leaders all over the world also know that outsourcing is here to stay. Former US President Barack Obama says that jobs that have been outsourced cannot be brought back to the country. 

As a result, it is better to retrain and re-skill the workers who have lost their jobs on account of outsourcing.

Obama further suggests that community colleges could provide the necessary skills for a person to be gainfully re-employed in the workforce. He adds that this is a necessity that Americans look forward to in the future.

Looking back doesn’t always make people feel good, so it is essential that they retrain for the ‘jobs of the future.’

How to choose a Business Process Outsourcing vendor

Over the years, outsourcing has been the go-to strategic practice for businesses looking to scale their operations effectively.

But just like any other venture, companies should be wary of the possible drawbacks of outsourcing before selecting a BPO company. 

Risks of BPO outsourcing 

Despite its advantages, business process outsourcing done incorrectly leads to outsourcing risks that affect a company one way or another. 

Hidden charges

Some BPO vendors do not totally disclose the total fees they charge and their terms. Clients could experience “bill shock” upon seeing the hidden charges they get.

Compliance issues

Compliance is crucial, especially in handling financial information and dealing with intellectual property. BPOs that violate compliances could risk their clients’ reputation and branding.

Problems with security

Lastly, BPO vendors with loose security compliance could risk getting their client’s data exposed and used for malicious purposes.

Choosing the right business process outsourcing vendor

The key to successful outsourcing lies in choosing a suitable business process outsourcing vendor and working with them along the way. Here are some of the considerations to look for in a BPO vendor.

Expertise

A BPO vendor’s expertise can be shown primarily through their approach to their clients. Even without getting too technical, they can comfortably discuss the initial solutions to provide according to their client’s requirements.

Compliances

Especially when delegating functions involving sensitive information, a BPO vendor should be up-to-date and compliant with regulations relevant to their services. Check for ISO, HIPAA, and PCI certifications as much as possible.

Employee satisfaction

A good BPO vendor also places employee satisfaction to their priority. Check on employee reviews online to see how the staff feels about their company.

Technology

The tools and equipment a BPO vendor uses largely affect their performance in general. Check to see if they use updated technology at work and how they train their employees on using them.

Top BPO companies in the world’s top outsourcing hubs

A wide range of business process outsourcing companies in different parts of the world provide the utmost services to their Western and local clients. Many of them even earned recognition by award-giving bodies due to their performance in both their roles and their level of care for the employees.

Check out the top BPO companies in several outsourcing destinations below.

Top BPO companies in the Philippines Top Indian BPO companies Top South African BPO companies Business Process Outsourcing (BPO) services

With the rise of new offshore outsourcing locations, companies can have better options in terms of location and services they can delegate. However, finding a suitable BPO company can be a daunting task to be done on their own.

Good thing advisory services such as Outsource Accelerator is there to help them.

Outsource Accelerator is the most trusted source for independent information & advisory for Business Process Outsourcing (BPO). We have over 5,000 articles, 400+ podcast episodes, and a comprehensive directory with 3,000+ BPOs from different locations.

Outsource Accelerator’s offerings make it easier for clients to learn about, and engage with, business process outsourcing companies worldwide.

Want to learn more about outsourcing? Check out the Inside Outsourcing book as well as the Inside Outsourcing book review today!

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About OA

Outsource Accelerator is the trusted source of independent information, advisory and expert implementation of Business Process Outsourcing (BPO).

The #1 outsourcing authority

Outsource Accelerator offers the world’s leading aggregator marketplace for outsourcing. It specifically provides the conduit between world-leading outsourcing suppliers and the businesses – clients – across the globe.

The Outsource Accelerator website has over 5,000 articles, 350+ podcast episodes, and a comprehensive directory with 3,000+ BPO companies… all designed to make it easier for clients to learn about – and engage with – outsourcing.

About Derek Gallimore

Derek Gallimore has been in business for 20 years, outsourcing for over eight years, and has been living in Manila (the heart of global outsourcing) since 2014. Derek is the founder and CEO of Outsource Accelerator, and is regarded as a leading expert on all things outsourcing.