The Concept of Recruiting Process Outsourcing

The concept of recruitment process outsourcing has gripped the entire world today. Almost every nation has invested in outsourcing recruitment in one way or the other. This is because it shows the brightest prospect ever.

Business process outsourcing or BPO is the latest trend of global business. There is considerable economic disparity between the opulent nations of the west – most specifically those of Europe and North America and the under developing third world nations of Asia and Africa. BPO aims to strike a balance between the two to some extent. The essence of this nature of business is to outsource jobs from the developed nations and export them across the globe to the third world countries. Even skilled labor is in abundance and cheap in the developing nations as compared to the developed ones. Therefore, BPO as a sector provides massive cost cutting in production and services for the developed countries. Simultaneously, it provides jobs and means of livelihood for the people of Asia and Africa in particular. Both the parties involved in this trade thus equally reap the benefit. BPO is divisible in several categories like, knowledge process outsourcing or KPO, legal process outsourcing or LPO etc. Recruitment process outsourcing or the RPO is another typical derivative of the BPO industry. In this setup, an employer transfers all or a part of its recruitment activities to an external third party entity. This entity performs the vital tasks on behalf of the recruiter in terms of carrying out the entire recruitment or hiring process. Outsourcing recruitment is a booming sector especially in India.

The history of recruitment process outsourcing was initiated way back in 1970s. However, it was confined mostly within the Silicon Valley’s hugely competitive, hi-tech labor sector.  With the radical growth of computer and internet, outsourcing recruitment became immensely popular. A recent study shows the present value of RPO India is worth USD 2.5…

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