Recruitment Process Outsourcing Global Market Report 2024

The recruitment process outsourcing market size has grown rapidly in recent years. It will grow from $6.05 billion in 2023 to $7.0 billion in 2024 at a compound annual growth rate (CAGR) of 15.7%. The growth observed during the historic period can be attributed to several factors. These include a heightened focus on core competencies, increased globalization facilitating access to talent pools worldwide, the proliferation of remote work opportunities, and the necessity of addressing compliance and regulatory challenges.

The recruitment process outsourcing market size is expected to see rapid growth in the next few years. It will grow to $12.71 billion in 2028 at a compound annual growth rate (CAGR) of 16.1%. The anticipated growth in the forecast period can be attributed to several factors. These include ongoing talent shortages and skill gaps in the workforce, the increasing demand for flexibility and scalability in recruitment processes, a heightened focus on enhancing the candidate experience, the adoption of data-driven decision-making in recruitment strategies, and continual innovations in recruitment technologies. Major trends expected in the forecast period encompass the integration of artificial intelligence (AI) and automation into recruitment processes, the emergence of virtual recruitment platforms facilitating remote hiring, the enhancement of employee value propositions (EVPs) to attract top talent, the utilization of human-centric AI for personalized candidate interactions, and the implementation of talent pooling and pipelining strategies to ensure a steady supply of qualified candidates.

The surge in remote work culture is anticipated to drive the growth of the recruitment process outsourcing (RPO) market in the foreseeable future. This cultural shift entails organizations embracing flexible work arrangements that allow employees to fulfill their job responsibilities outside of traditional office settings, often working remotely from home or other locations. The increasing adoption of remote work culture is fueled by the desire for improved work-life balance, cost-saving opportunities for both employers and employees, and advancements in technology facilitating seamless collaboration from remote locations. By transcending geographical barriers, remote work enables organizations to tap into a broader and more diverse talent pool. RPO providers can capitalize on their expertise and resources to source candidates from various locations, thereby enhancing the chances of securing the most suitable talent for remote positions. For example, reports from Forbes Media LLC indicate that in June 2023, approximately 12.7% of full-time employees in the US worked from home, with 28.2% adopting a hybrid model. It is projected that the number of remote workers will reach 32.6 million by 2025, underscoring the significant impact of the rise in remote work culture on the growth of the RPO market.

Leading companies in the RPO market are increasingly prioritizing the development of artificial intelligence (AI)-based solutions to gain a competitive advantage. One such solution is Kelly Arc, an AI-powered platform developed by Kelly Services Inc., a US-based company. Kelly Arc streamlines the recruitment process by automating resume screening, identifying qualified candidates, and enhancing decision-making through data-driven insights, thereby optimizing time management and efficiency in talent acquisition. The launch of Kelly Arc in October 2023 underscores the growing demand for AI and automation in talent acquisition, connecting employers with specialized professionals such as robotics process automation (RPA) developers and project managers.

In a strategic move in October 2022, Teleperformance, a France-based digital business services company, acquired PSG Global Solutions for $300 million. This acquisition is aimed at reinforcing Teleperformance's specialized services portfolio, strengthening its presence in the US healthcare vertical, and enhancing its digital recruitment capabilities. Through this strategic expansion, Teleperformance is diversifying its offerings and augmenting its value proposition to clients in the recruitment process outsourcing market. PSG Global Solutions, the acquired company, is a US-based digital recruitment process outsourcing firm.

Major companies operating in the recruitment process outsourcing market are Accenture Plc, International Business Machines Corporation, Deloitte Touche Tohmatsu Ltd., Randstad N.V., The Adecco Group AG, ManpowerGroup Inc., Infosys Ltd., Allegis Group Inc., Aon Hewitt LLC, Hays plc, AMN Healthcare Services Inc., Kelly Services Inc., Pontoon Solutions Inc., Korn Ferry International, Advantage Resourcing America Inc., Alexander Mann Solutions Ltd., PeopleScout Inc, Kenexa Corporation, Sevenstep RPO LLC, Hudson Global Inc., Orion Talent LLC, Atterro Human Capital Group, Accolo Inc.

North America was the largest region in the recruitment process outsourcing market in 2023. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the recruitment process outsourcing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.

The countries covered in the recruitment process outsourcing market report are Australia, Brazil, China, France, Germany, India, Indonesia, Japan, Russia, South Korea, UK, USA, Canada, Italy, Spain.

Recruitment process outsourcing (RPO) is a strategic approach in which an organization delegates some or all of its recruitment activities to an external service provider. The primary aim is to optimize the efficiency and effectiveness of the recruitment process by leveraging the specialized expertise and resources of a third-party provider. This allows organizations to concentrate on their core business functions while benefiting from external support to achieve more streamlined and successful recruitment outcomes.

The main categories of RPO include on-demand, function-based, and enterprise-based solutions. On-demand services are accessible whenever required, rather than being scheduled at specific intervals. These services can be provided both on-site and off-site, catering to organizations of various sizes, including small and medium enterprises (SMEs) and large enterprises. They are utilized across diverse industries such as banking, financial services and insurance, healthcare, manufacturing, IT and telecom, education, and others.

The recruitment process outsourcing market research report is one of a series of new reports that provides recruitment process outsourcing market statistics, including recruitment process outsourcing industry global market size, regional shares, competitors with a recruitment process outsourcing market share, detailed recruitment process outsourcing market segments, market trends and opportunities, and any further data you may need to thrive in the recruitment process outsourcing industry. This recruitment process outsourcing market research report delivers a complete perspective of everything you need, with an in-depth analysis of the current and future scenario of the industry.

The recruitment process outsourcing market includes revenues earned by entities by providing services such as talent acquisition and human resource services, candidate identification, resume screening and shortlisting, candidate assessment, talent pool management, and customized recruitment strategies. The market value includes the value of related goods sold by the service provider or included within the service offering. Only goods and services traded between entities or sold to end consumers are included.

The market value is defined as the revenues that enterprises gain from the sale of goods and/or services within the specified market and geography through sales, grants, or donations in terms of the currency (in USD, unless otherwise specified).

The revenues for a specified geography are consumption values that are revenues generated by organizations in the specified geography within the market, irrespective of where they are produced. It does not include revenues from resales along the supply chain, either further along the supply chain or as part of other products.


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