I like to keep my finger on the pulse when it comes to the RPO world. It's the sector I work in, and at times it can be very exciting.
So, in doing my research and reading articles I came across this one from August last year (2018). It's a very interesting read and insight into where the RPO sector is heading.
I thought it would be a good exercise to see if some of the predictions where coming true and if others had not yet materialised.
The articles discusses 3 channels developing within the industry.
1. The mega provider BPO solution - driven by cost and efficiency and augmented by technology and process
2. Traditional RPO - BAU solutions over a typical 3-year contract
3. Agile Recruitment Services - organisations are building their own internal and in-house solutions
I have to agree with these channels, I've experienced all of them in the past 12 months. There is a definite shift from clients to explore an inhouse solution and it is no longer unusual to come across an internal team when tendering. The big BPO solution is being driven by companies wanting a total talent solution provider, a one stop efficient and cost saving service.
And then there is the traditional RPO. My opinion is that here in the UK and wider into Europe this remains the mainstay of the industry. I myself have been involved with 5 different tenders that were all in this "channel" and all with a minimum of a 3-year contract.
Perhaps the shift away from this channel is coming, perhaps it is reliant on technology improving. My company and I are certainly not seeing a big shift away from this channel.
Maybe the missing channel is more Project based RPO work. Where it is not covering all permanent recruitment but is simply for a specific project over a set period from 6 months to 2 years. To me this is where our industry is beginning to move more and more to.
It would be good to hear your thoughts on this and the article.
If you follow the world of RPO, you may have noticed an interesting trend. According to the Everest Group’s annual report on the industry, the average deal length has been dropping, and for the first time since Recruitment Process Outsourcing emerged as a tool in the talent acquisition leader’s tool belt, it’s approaching just two years. Today buyers seem to be heading away from the traditional three year format.