The recruitment process outsourcing market size is projected to reach US$ 66.54 billion by 2031 from US$ 8.20 billion in 2023. The market is expected to register a CAGR of 29.9 % in 2023–2031. The growing demand for streamlined recruiting processes and new hiring approaches has boosted the recruitment process outsourcing (RPO) market growth potential.
Vendors of Recruitment Process Outsourcing (RPO) rely on technology adoption and social media integration to provide more innovative talent sourcing. The top RPO organizations have already adopted big data, cloud, SaaS, and mobile technologies. The use of applicant tracking systems (ATS), computerized CV screening for keywords, and self-scheduling interviews all help to increase candidate quality while controlling costs. As a result, RPO suppliers concentrate on technology-oriented tactics, typically by cooperating with technology providers and developing their solutions. The demand for an efficient hiring procedure and lower overhead are the two main reasons propelling the market's growth.
Recruitment Process Outsourcing (RPO) service providers handle a variety of duties, including candidate sourcing, candidate selection, and recruit quality maintenance. In order to improve their capacities, service providers are putting cutting-edge technology like artificial intelligence (AI) and machine learning (ML) into practice for automated CV screening and self-scheduling interviews. Better applicant involvement is being further facilitated by service providers using chatbots and other assessment tools. Artificial Intelligence is predicted to revolutionize the employment sector. To enhance strategic personnel planning, it automates processes related to sourcing candidates, rediscovery, employee references, and diversity hiring.
Recruitment process outsourcing (RPO) is required to generate continual corporate value while minimizing operating costs whenever possible. As a result, firms are increasingly pursuing RPO services to reduce the cost of employment. When a company expands into a new product category or region of the world, recruitment must increase considerably. Similarly, during an economic crisis, worker layoffs are necessary. Such disparities are costly to any business. To solve such market disparities, RPO partners speed up the recruitment process.
Organizations focuses on time efficient process of hiring. It consists of several steps, beginning with initial screening and progressing through numerous rounds of assessment and background checks.HR personnel are unable to keep up with industry trends; thus, the employment process is outsourced to RPO providers who use technology-based platforms. These online platforms save hiring time by roughly 40%. Companies have created an effective selection process that promotes the brand while reducing recruiting time by utilizing AI, video interviewing, and selection methodology.
Key segments that contributed to the derivation of the recruitment process outsourcing market analysis are type and industry.
The geographic scope of the recruitment process outsourcing market report is mainly divided into five regions: North America, Asia Pacific, Europe, Middle East & Africa, and South America/South & Central America. The US economy is returning to normalcy, with greater employment rates, rising demand for higher education credentials, and upskilling in new areas. The manufacturing and healthcare industries, with healthcare being one of the most rapidly expanding, are producing new work possibilities across the country. Several government initiatives and favorable conditions have helped to revitalize the industrial sector in the United States, producing new jobs.
The regional trends and factors influencing the Recruitment Process Outsourcing Market throughout the forecast period have been thoroughly explained by the analysts at Insight Partners. This section also discusses Recruitment Process Outsourcing Market segments and geography across North America, Europe, Asia Pacific, Middle East and Africa, and South and Central America.
| Report Attribute | Details |
|---|---|
| Market size in 2023 | US$ 8.20 Billion |
| Market Size by 2031 | US$ 66.54 Billion |
| Global CAGR (2023 - 2031) | 29.9 % |
| Historical Data | 2021-2022 |
| Forecast period | 2024-2031 |
| Segments Covered |
By Type
|
| Regions and Countries Covered | North America
|
| Market leaders and key company profiles |
The Recruitment Process Outsourcing Market market is growing rapidly, driven by increasing end-user demand due to factors such as evolving consumer preferences, technological advancements, and greater awareness of the product's benefits. As demand rises, businesses are expanding their offerings, innovating to meet consumer needs, and capitalizing on emerging trends, which further fuels market growth.
Market players density refers to the distribution of firms or companies operating within a particular market or industry. It indicates how many competitors (market players) are present in a given market space relative to its size or total market value.
Major Companies operating in the Recruitment Process Outsourcing Market are:
Disclaimer: The companies listed above are not ranked in any particular order.
The recruitment process outsourcing market is evaluated by gathering qualitative and quantitative data post primary and secondary research, which includes important corporate publications, association data, and databases. The following is a list of developments in the market:
(Source: Hudson Global, Company Website, 2022)
(Source: TrackTik Software, Company Website, 2023)
The "Recruitment Process Outsourcing Market Size and Forecast (2021–2031)" report provides a detailed analysis of the market covering below areas:
The global recruitment process outsourcing market is expected to reach US$ 66.54 billion by 2031.
The key players holding the majority of shares in the global recruitment process outsourcing market are SevenStep RPO, Kites Consulting, Randstad Sourceright, ManpowerGroup Solutions, and Alexander Mann.
The introduction of big data and advanced analytics in recruitment process outsourcing to play a significant role in the global recruitment process outsourcing market in the coming years.
Expanding uses of outsourcing the recruiting process are the major factors that propel the global recruitment process outsourcing market.
The global recruitment process outsourcing market was estimated to be US$ 8.20 billion in 2023 and is expected to grow at a CAGR of 29.9% during the forecast period 2023 - 2031.