As competition for managerial and professional talent increases, companies with significant hiring needs are outsourcing the recruitment function to external firms with specialized expertise in sourcing, screening, assessing and hiring candidates.

Recruitment process outsourcing (RPO) is the fastest growth area in HR outsourcing. While many companies have traditionally outsourced recruiting for lower-level jobs, increasingly organizations are recognizing the value of RPO for high-skill positions.

In addition, an RPO provider can help organizations restructure their recruiting processes, streamline critical hiring activities and improve retention. The right RPO provider also brings expertise in workforce planning.

Gartner Group, a technology-related research company, estimates that RPO will grow from approximately $20 billion in 2005 to $30 billion by 2008. While a significant portion of that volume will come from long-term HR outsourcing contracts, the number of companies outsourcing recruitment on a project basis also is growing.

One significant advantage of long-term, full-scale RPO is that the provider creates and transfers intellectual capital to the client. The provider does a great deal of work developing online advertising, searching databases, mapping out the available talent, conducting market research and building an applicant database. “All that intellectual capital is owned by the clients. They get return on investment, as opposed to sinking capital into recruiting,” said John Hancock, senior business director at Hudson Talent Solutions.

RPO providers specialize in helping clients address the biggest challenge in recruiting today—finding high-quality applicants. "There are tens of thousands of applicants, but only 2 percent are the right people because the level of specialization that organizations require and the expectations organizations have are so high," Hancock said.

Hudson Talent Solutions is part of the Hudson Highland Group, a global staffing and talent management firm with more than $1.4 billion in annual revenue and 3,800 employees in 20 countries. Hudson Talent Solutions, which works in the mid-level salary range, has more than 20 full-service RPO arrangements and 50-60 project-based RPO clients.
RPO providers should always take accountability for recruitment outcomes. “One of our core benefits is offering a flexible solution that is properly researched and designed to meet our client's hiring objectives. Our risk management approach mitigates potential changes in the market to ensure that we meet those objectives,” commented Josh Sorkin, leader of Talent Solutions North America, Hudson’s RPO practice. In addition, by managing the recruitment process, RPO providers can get all the stakeholders lined up to do what needs to be done. For example, said Sorkin, “To manage a successful outcome, both line and HR executives need be engaged in the process.” 

A recent survey conducted by HRO Today found that the most important qualities buyers of RPO services look for in a provider are flexibility, speed, experience/sourcing expertise and "quality of candidate." Other important factors the survey uncovered include understanding of company culture, customer service, low costs, and a trained and dedicated service team.

http://www.expert-insights.com/report.asp?id=732&page=1