RPO industry growing at healthy rate: Study

NEW DELHI: The market for recruitment process outsourcing (RPO) continues to grow at a healthy rate notwithstanding the tough economic condition with the number of deals signed rising this year, a study said.

Recruitment Process Outsourcing 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.

The study by global consulting and research firm Everest Group said that there is a marginal increase in deal signings this year compared to 2008, but decreased hiring volume is resulting in more selective, smaller-sized deals.

"RPO is witnessing a fair amount of interest among buyers given the focus and specialisation that RPO suppliers bring to the table," Everest Group Country Head Gaurav Gupta said.

"While the hiring volumes are down in the current economic environment, the value proposition of RPO is still resonating with buyers that are looking for a cost-effective option to withstand the current turmoil," he added.

Increasing cost pressures in the current economic environment has led North American and UK buyers to start receiving the back-office RPO services from offshore location such as India, the study added.