NEW YORK, Aug. 26, 2024 /PRNewswire/ -- The recruitment process outsourcing (RPO) market size in APA is estimated to grow by USD 3.59 billion from 2024-2028, according to Technavio. The market is estimated to grow at a CAGR of 21.31% during the forecast period. Need to improve hr value chain and compliance is driving market growth, with a trend towards evolution of BPaaS. However, quality of service concerns poses a challenge. Key market players include Accenture Plc, Adecco Group AG, Alexander Mann Solutions, Allegis Group, Automatic Data Processing Inc., Cielo Inc., EuroDev Holding B.V., GECO Asia Pte. Ltd., Hunt India Pvt. Ltd., Hays Plc, Hudson Inc., Infosys Ltd., International Business Machines Corp., Kelly Services Inc., Kite Consulting, Korn Ferry, ManpowerGroup Inc., Randstad NV, Systemart LLC, and TrueBlue Inc..
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Recruitment Process Outsourcing (RPO) Market Scope In APAC |
|
Report Coverage |
Details |
Base year |
2023 |
Historic period |
2018 - 2022 |
Forecast period |
2024-2028 |
Growth momentum & CAGR |
Accelerate at a CAGR of 21.31% |
Market growth 2024-2028 |
USD 3592.2 million |
Market structure |
Fragmented |
YoY growth 2022-2023 (%) |
17.29 |
Regional analysis |
APAC |
Performing market contribution |
APAC at 100% |
Key countries |
Australia, India, Japan, China, and Rest of APAC |
Key companies profiled |
Accenture Plc, Adecco Group AG, Alexander Mann |
Market Driver
The Recruitment Process Outsourcing (RPO) market in APAC is experiencing significant growth due to the adoption of cloud technology and Business Process-as-a-Service (BPaaS). RPO solutions are hosted on remote infrastructure, managed by cloud providers, and offer flexible and scalable services for businesses. These services include recruitment, payroll, finance and accounting, contact centers, and specialized HR solutions. The competition in the market is intensifying, with leading vendors acquiring BPaaS-specialized firms and HR outsourcing firms partnering with cloud-computing solution providers. This adoption of efficient technology is crucial for businesses in APAC to remain competitive in the global market and support digital transformation in industry verticals such as BFSI and healthcare. The demand for cloud-based RPO services is expected to continue growing rapidly during the forecast period.
The Recruitment Process Outsourcing (RPO) market in APAC is witnessing significant growth as businesses seek to streamline their recruitment-related operations. RPO providers offer services such as candidate screening, job posting, staffing, offer execution, and on-site and off-site services for various industrial sectors. This allows companies to focus on their core business tasks while reducing overhead expenses. RPOs cater to different industries and skill levels, from recent graduates to high-skilled positions. Cloud-based and web-based services enable on-demand and function-based RPO solutions for SMEs and multinational corporations alike. RPOs help improve process efficiencies by offshoring support offices and reducing attrition rates. Cost reduction is a key driver for businesses opting for RPO services. Recent trends include the use of selective RPO models, MEA expansion, and multi-country RPOs. RPOs offer cost-effective hiring solutions by partnering with external service providers to manage HR work and source new talent. By outsourcing recruitment processes, businesses can improve selectivity and focus on their core abilities, ultimately enhancing their overall business associations.
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Market Challenges
- When an organization outsources its recruitment functions to a Recruitment Process Outsourcing (RPO) vendor in APAC, it may relinquish control and potentially face risks such as excessive demands, loss of sensitive information, and dependency on the outsourced agency. Effective communication between the client and vendor is crucial to mitigate these risks and build trust. Clear and consistent communication is essential at various stages of the IT service delivery system to prevent system failures and ensure backup and recovery facilities. Vendors must prioritize transparency and adaptability to meet the evolving needs of their clients. By fostering strong partnerships and maintaining open lines of communication, RPO providers can help organizations navigate the complexities of outsourcing and drive successful recruitment outcomes in APAC.
- The Recruitment Process Outsourcing (RPO) market in APAC is witnessing significant growth due to various challenges faced by businesses. High attrition rates and the need for cost reduction are driving companies to outsource their HR functions to external service providers. However, managing fresh graduates and postgraduates requires core abilities that not all businesses possess. Large enterprises seek on-demand, function-based, off-site, and on-site RPO services to handle their hiring solutions. Industries like Healthcare, IT and Telecom, Manufacturing, Financial sector, and Employment sectors are heavily relying on RPO to overcome labor shortage and employment laws. RPO solutions offer automation through Applicant Tracking Systems, Artificial Intelligence, Machine Learning, Chatbots, and Recruitment Audits. Multinational companies benefit from industry experience and a skilled workforce, enabling strategic workforce planning and candidate engagement. Recruitment models cater to record-keeping, talent acquisition, and recruitment costs. The RPO market faces challenges such as talent pool management, recruitment models, and third-party involvement. Overcoming these challenges requires a deep understanding of business associations and applicant engagement to provide job opportunities for new talent.
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Segment Overview
This recruitment process outsourcing (rpo) market in APAC report extensively covers market segmentation by
- Service
- 1.1 Blended RPO
- 1.2 MCRPO
- End-user
- 2.1 Manufacturing
- 2.2 BFSI
- 2.3 Services
- 2.4 Energy
- 2.5 Others
- Geography
- 3.1 APAC
1.1 Blended RPO- The APAC recruitment process outsourcing (RPO) market is experiencing robust growth, driven by the emergence of Small and Medium Enterprises (SMEs), innovations in recruitment processes, and the inherent cost-effectiveness, flexibility, digitization, and outsourcing trends. Blended RPO, a service that combines permanent and temporary hiring, is gaining popularity in the region. Service providers known as Managed Service Providers (MSPs) manage contingent hiring, while Recruitment Process Outsourcing (RPO) providers handle permanent hiring. Blended RPO offers benefits such as scalability, cost savings, adherence to compliance and regulatory standards, faster recruitment, and mixed benefits of temporary and permanent recruitment. It is particularly suitable for contingent hiring and can result in cost savings of 8-20%. The market's shift towards blended RPO solutions is faster in APAC compared to mature markets in North America and Europe. These solutions enable organizations to strategically achieve long-term competitive advantages and have seen increased adoption in recent years due to innovative and integrated RPO service delivery systems.
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Research Analysis
The Recruitment Process Outsourcing (RPO) market in APAC has witnessed significant growth due to the increasing need for cost reduction and improving attrition rates among multinational companies. RPO services provide external service providers with the responsibility of managing recruitment-related operations for businesses. This includes job posting, candidate screening, offer execution, and staffing services. Fresh graduates and postgraduates are a major focus for RPOs as they offer a large talent pool for businesses. The use of technology such as Artificial Intelligence (AI), Machine Learning (ML), Chatbots, and Applicant Tracking Systems (ATS) has automated various recruitment processes, leading to increased efficiency and reduced overhead expenses. However, employment laws and labor shortage are key challenges for RPOs in APAC. Business associations play a crucial role in addressing these challenges by advocating for favorable employment policies and providing resources for talent acquisition. RPOs help businesses focus on their core abilities by outsourcing non-core recruitment tasks, allowing them to allocate resources towards their core business operations.
Market Research Overview
Recruitment Process Outsourcing (RPO) in APAC is a growing market that helps businesses address their talent acquisition needs through external service providers. RPO offers cost reduction by allowing companies to shift their HR work to third-party vendors, reducing overhead expenses. It caters to various employment sectors, including IT and Telecom, Manufacturing, Healthcare, and the Financial sector, among others. RPO services cover on-site and off-site models, handling job posting, candidate screening, offer execution, and record-keeping. RPOs also offer automation solutions, such as Applicant Tracking Systems, Artificial Intelligence, Machine Learning, Chatbots, and Automation, to streamline recruitment processes and increase selectivity. RPOs cater to large enterprises, SMEs, and multinational corporations, providing on-demand, function-based, and enterprise-wide solutions. RPOs help businesses navigate employment laws, labor shortages, and talent acquisition challenges, ensuring strategic workforce planning and candidate engagement. RPOs offer recruitment audits and recruitment models tailored to different industries, including Industrial sectors, and recruitment solutions for recent graduates and high-skilled positions. RPOs provide staffing services and support offices, offering cloud-based and web-based services to meet the evolving needs of businesses.
Table of Contents:
1 Executive Summary
2 Market Landscape
3 Market Sizing
4 Historic Market Size
5 Five Forces Analysis
6 Market Segmentation
- Service
- Blended RPO
- MCRPO
- End-user
- Manufacturing
- BFSI
- Services
- Energy
- Others
- Geography
- APAC
7 Customer Landscape
8 Geographic Landscape
9 Drivers, Challenges, and Trends
10 Company Landscape
11 Company Analysis
12 Appendix
About Technavio
Technavio is a leading global technology research and advisory company. Their research and analysis focuses on emerging market trends and provides actionable insights to help businesses identify market opportunities and develop effective strategies to optimize their market positions.
With over 500 specialized analysts, Technavio's report library consists of more than 17,000 reports and counting, covering 800 technologies, spanning across 50 countries. Their client base consists of enterprises of all sizes, including more than 100 Fortune 500 companies. This growing client base relies on Technavio's comprehensive coverage, extensive research, and actionable market insights to identify opportunities in existing and potential markets and assess their competitive positions within changing market scenarios.
Contacts
Technavio Research
Jesse Maida
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UK: +44 203 893 3200
Email: [email protected]
Website: www.technavio.com/
SOURCE Technavio
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