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Index
Sr.n
o
Particulars
Page
no.
1
Executive Summary
4
2
Objective of study
5
3
Recruitment process outsourcing an overview
6-9
4
Outsourcing process flowchart
10
5
Critical requirement
11
6
Factors to be consider before selecting a
recruitment consultant
12-13
7
Types of rpo
14
8
Benefits of rpo
15-16
9
Technique use by rpo for recruitment
17
10
Core and non-core activities of corporate hr
18
11
Choice of outsourcing model
19
12
Understanding recruitment process
20
13
The recruitment process lifecycle
21-22
14
Advantages of rpo
23
15
The roi of rpo: recruitment expertise
24-25
THAKUR INSTITUTE OF MANAGEMENT STUDIES & RESEARCH
Prsented by Safakat Ibrahim Agashiwala(PGDM 2008-2010)
3

Talent Corner HR Services Pvt. Ltd.

16
Rpo process model
26
17
The big 3 efficiency metrics in recruitment
27-28
18
Conclusion
29
19
Acknowledgement
30
20
Bibliography
31
Executive Summary

Outsourcing the human resource (HR) processes is the latest practice being followed by middleand large sized organizations. It is being witnessed

across all the industries. In India, the HRprocesses are being outsourced from nearly a decade now. Outsourcing industry is growing at ahigh rate.

Human Resource Outsourcing refers to the process in which an organisation uses the expertservices of a third party (generally professional

consultants) to take care of its HR functionswhile HR management can focus on the strategic dimension of their function. The functions thatare

typically outsourced are the functions that need expertise, relevant experience, knowledgeand best methods and practices. This has given rise to

outsourcing the various HR functions ofan organization.

Recruitment Process Outsourcing (or “RPO”) to India is characterized by identifying thoseexpertise that are not inherent to the core of the client
organization, i.e dividing the process ofrecruitment into core and non-core HR activities.
The non-core recruitment processes such as database searching, job advertisements, head huntresearch, internet mining, etc. involve 50 - 60% of
the recruiters time, energies and costs.Outsourcing the non-core recruitment process creates additional efficiencies, whilesimultaneously allowing
for a focus on building relationships with candidates and clients

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Recruiters, thus, are able to focus better on core recruitment functions and work on important
hiring strategies that create profitable growth and sustain business success.

For reasons of having no time and resources to manage human resource functions, companies

usually resort to HR outsourcing. It is a cost-effective way of managing human resource

functions without having to resort to employing personnel for an in-house HR staff.

There are a lot of benefits that businesses can gain from outsourcing HR tasks. One of the mostappealing benefits is the ability of a company to

focus on their core business activities while stillhaving effective HR policies.

Objective Of Study
The objective of project was to identify the benefits of outsourcing recruitment and
understanding the recruitment process.
The Project contains details about the various criteria of outsourcing recruitment.
The project highlights the reasons why companies indulge in outsourcing recruitment and the
merits and advantages of outsourcing recruitment to direct hiring.
It also enumerate various factors to be considered before outsourcing recruitment.
.Identify the various practices of recruitment existing in the industry. The project should
have a detailed understanding of the methods adopted by recruitment agencies to make
the hiring process quicker

RECRUITMENT PROCESS OUTSOURCING

an overview
Meaning.
Recruitment Process Outsourcing (RPO) is a form of business process outsourcing (BPO) where
an employer outsources or transfers all or part of its recruitment activities to an external service
provider.
To quote the Recruitment Process Outsourcing Association, "Recruitment Process Outsourcing iswhen a provider acts as a company's internal
recruitment function for a portion or all of its jobs. RPOproviders manage the entire recruiting/hiring process from job profiling through the on-
boarding of thenew hire, including staff, technology, method and reporting. A properly managed RPO will improve acompany's time to hire,
increase the quality of the candidate pool, provide verifiable metrics, reducecost and improve governmental compliance."
The RPO Alliance, a group of the Human Resources Outsourcing Association (HROA), approved thisdefinition in February 2009: "Recruitment
Process Outsourcing (RPO) is a form of business processoutsourcing (BPO) where an employer transfers all or part of its recruitment processes to
an externalservice provider. An RPO provider can provide its own or may assume the company's staff,technology, methodologies and reporting.
In all cases, RPO differs greatly from providers such asstaffing companies and contingent/retained search providers in that it assumes ownership
of the designand management of the recruitment process and the responsibility of results."
On the other hand, occasional recruitment support, for example temporary, contingency and executive
search services is more analogous to out-tasking, co-sourcing or just sourcing. In this example th

service provider is "a" source for certain types of recruitment activity. The biggest distinction betweenRPO and other types of staffing isPr oces s.
In RPO the service provider assumes ownership of theprocess, while in other types of staffing the service provider is part of a process controlled
by theorganization buying their services.
History .
While temporary, contingency and executive search firms have provided staffing services for manydecades, the concept of an employer
outsourcing the management and ownership of part or all of theirrecruiting process wasn't first realized on a consistent basis until the 1970s in
Silicon Valley's highlycompetitive high tech labor market. Fast-growing high tech companies were hard-pressed to locate andhire the technical
specialists they required, and so had little choice but to pay large fees to highlyspecialized external recruiters in order to staff their projects. Over
time, companies began to examinehow they might reduce the growing expenses of recruitment fees while still hiring hard-to-findtechnical
specialists. Toward this end, companies began to examine the various steps in the recruitingprocess with an eye toward outsourcing only those
portions that they had the greatest difficulty withand that added the greatest value to them. Initial RPO programs typically consisted of
companiespurchasing lists of potential candidates from RPO vendors. This "search/research" function, as it wascalled, generated names of
competitors' employees for a company and served to augment the pool ofpotential candidates from which that company could hire.
Over time, as business in general embraced the concept of outsourcing more and more, RPO gainedfavor among Human Resource management:
not only did RPO reduce overhead costs from theirbudgets but it also helped improve the company's competitive advantage in the labor market.
As labormarkets became more and more competitive, RPO became more of an acceptable option. Furthermore,through the advent in the 1980's
and 1990's of human resources outsourcing (HRO) companies thatbegan taking on the processes associated with benefits, taxes, and
payroll, companies beganrecognizing that recruiting--a significant cost of HR--should also be considered for outsourcing. In theearly 2000's more
companies began considering the outsourcing of recruitment for major portions oftheir recruiting need.
There have been fundamental changes in the US labor market that serve to reinforce the use of RPO aswell. The labor market has become
increasingly dynamic: workers today change employers more oftenthan in previous generations. De-regulated labor markets have also created a
shift towards contract andpart-time labor and shorter work tenures. These trends increase recruitment activity and mayencourage the use of RPO.
It should also be noted that even in slower economic times or higherunemployment, RPO is still considered by companies to assist in an
increasing need to screen througha larger candidate pool.

enefits.
RPO's promoters claim that the solution offers improvement in quality, cost, service and speed.
RPO providers claim that leveraging economies of scale enables them to offer recruitment processesat lower cost while economies of
scope allow them to operate as high-quality specialists. Thoseeconomies of scale and scope arise from a larger staff of recruiters, databases of
candidate resumes,and investment in recruitment tools and networks.
RPO solutions are also claimed to change fixed investment costs into variable costs that vary withfluctuation in recruitment activity. Companies
may pay by transaction rather than by staff member,thus avoiding under-utilization or forcing costly layoffs of recruitment staff when activity is
low.
Problems.
If a company failed to define its overall recruitment strategy and hiring objectives, then any recruitingprogram may fail to meet the company's
needs. This is especially true for outsourced programs likeRPO: RPO can only succeed in the context of a well-defined corporate and staffing
strategy.
As with any program, a company must manage its RPO activities. A company must provide initialdirection and continued monitoring to assure
the desired results. Overall, providing guidance toexternal activities can present a significant management challenge. Outsourcing of company
processesmay fail or prove a poor organizational fit. Improperly implemented RPO could reduce theeffectiveness of recruitment.
The costs charged for outsourced recruitment transactions may total more than the cost of the internal
recruitment department.
RPO service providers may fail to provide the quality or volume of staff required by their customers.
Placing all recruitment in the hands of a single outside provider may discourage the competition that
would arise if multiple recruitment agencies were used.
An RPO solution may not work if the company's existing recruitment processes are performing poorly.An RPO solution may not work if the
service provider has inadequate recruitment processes orprocedures to work with the client.
RPO may not resolve difficulties that organizations have hiring staff when the organization isperceived negatively by potential employees. This
will instead require improved branding and anadjustment of image. The perception is that very few RPOs can successfully integrate their
client'sbrand and therefore do not represent their client's brand as well as a retained search or internalrecruiting resource may drive brand
representation and or marketing.
Further, most RPOs perform their staffing functions and service offsite, further disconnecting theclient's growth & recruiting strategy from the
actual workforce within the client company. This isimportant because during a period of rapid recruitment growth, one of the many positive
effects that acompany typically enjoys is an increase in the workforce wellness or an overall workforce positivity ofsentiment of optimism that
comes with personnel additions... this may be lessened with an offsiterecruiting function. Organizations with efficient hiring process that are
viewed as employers of choiceby potential staff may stand to gain negligible benefits from RPO.
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