Human resource outsourcing (HRO) has a lesser-known cousin called recruitment process outsourcing (RPO). But lesser-known does not mean less successful. RPO in India does an annual business of $92 billion (Rs 414,000 crore) and is all set to be the next crest of the outsourcing wave.
Based in India, this new generation of headhunters recruits candidates across the world for clients across the world. They handle the task of finding suitable candidates for different jobs, screening and assessing them, getting them on-board into their clients' companies and orientating them to the work culture of the firm they join. HROs in contrast mainly handle administrative processes related to wage, salary and benefits for their clients.
“India is fertile soil for this business model," says RPOworldwide Executive Vice President Murali Balasubramanyam. Take for instance, 'sourcers' or those who spot likely recruits.
"We have a big pool of educated people - women, or some of the physically challenged who want to work from home. They completely fit into our model as sourcers and recruiters for the IT sector," he notes.
Overseas clients stand to save a lot of money by outsourcing recruitments to Indian RPOs. The recruitment cost for a candidate in the United States works out to about $100,000 a year.
Getting it done from India lowers the cost by a third. RPO outsourcing is estimated to throw open opportunities worth $30 billion by 2008, according to the Bangalore-based RPO firm PeoplePoint. The company claims that it reduces the time taken to make recruitments by at least 50-60 per cent.
The scope of services offered cover everything from searching candidates from internal database, jobboards, posting open positions ads, resume screening, response handling, research for passive candidates, corporate intelligence research, down to analyzing market trends and recruiting market, according to Delhi-based Blue Square.
The model is doing well, irrespective of geographical boundaries in which the sourcers operate. “Through the home-base sourcer model, I continue to manage the operations of more than 70 sourcers based in India from my home in Shanghai while being able to devote time to my five-year old son,” says RPOworldwide Sourcing Manager Tanuja Dhuper.
RPOworldwide started off as a captive handling recruitment section for iGate Mestech, a subsidiary of iGate Global Services. However, in early 2006, it was hived off as a separate subsidiary of iGate Global Services to become a third party vendor.
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