Is RPO a threat to traditional recruitment?

An increasing number of companies are turning to Recruitment Process Outsourcing providers in a bid to lower the overall cost of recruitment.

As well as making the process more efficient these RPO companies are specifically tasked with increasing the numbers of direct hires and by inference decreasing the number of hires from third parties.

Have any of the traditional recruiter seen a drop off in business with companies using the RPO model (or those that have an in-house recruitming team for that matter)?

For those in RPO what has your relationship been like with previous recruitment suppliers to the businesses you now work with? Do they see you as a threat or as someone who can help smooth the way?

Replies to This Discussion

Permalink Reply by Ray Towle on January 18, 2008 at 3:43pm

Harpoo,

It would be unrealiatic not to expect some of a drop off; but the Recruiting industry in the USA in 2007 accounted for a total of about $15 Billion, give or take a few hundred Million.

In my opinion, the real question is how much of the total reduction will be a loss to me, or to us?

Ray "VirtualSourcer" Towle
+++

Permalink Reply by The Recruiting Guy on February 6, 2008 at 11:14pm

Harpo,

In my humble opinion and direct experience RPO has been a major value add to the recruitment industry. Through this model the firms I have worked with directly or in consulting were able to not only get the contract or direct placement opportunities but they also were able to land the 10 to 1,000 head RPO projects. I was fortunate enough to be on the leading edge of RPO many years ago and assist major global organizations along with local companies in this model.

People will debate me all day long on the “lost revenues” due to this emerging boom, but those people usually are not forward thinkers who can run at a faster pace, which is what RPO is to most clients. Filling their staff needs when they are in a time crunch, can’t do it themselves and don’t have the funds to pay 30-35% per head.

Chris

Permalink Reply by Sean McGillen on April 15, 2008 at 4:03pm