USD 6098.9 million
Recruitment Process Outsourcing Market Size, Share, Growth Analysis, By Type(On-demand, Function-Based, and Enterprise-Based), By Enterprise Size(Small & medium enterprises (SMEs), and Large Enterprises), By End Use(BFSI, Healthcare, Manufacturing, IT & Telecom), By Region - Industry Forecast 2024-2031
Report ID:
SQMIG45B2105 |
Region:
Global |
Published Date: October, 2024
Pages:
165
|Tables:
63
|Figures:
75
Recruitment Process Outsourcing Market Insights
Global Recruitment Process Outsourcing Market size was valued at USD 7.33 billion in 2022 and is poised to grow from USD 8.51 billion in 2023 to USD 28.09 billion by 2031, growing at a CAGR of 16.1% in the forecast period (2024-2031).
One of the main problems facing the labour market today is the shortage of correctly skilled people required to fill important corporate responsibilities. Without the help of a recruitment process outsourcing provider, finding the critical employees to meet business goals and objectives could turn into a nightmare. The terms of an employment contract are sometimes easier to implement than those of a consultancy agreement, which are expected to impede the growth of the global recruitment process outsourcing market. This is true even though the written agreement between the parties should outline all of the conditions of the outsourcing, including duties for data protection and confidential information risk.
To move away from the transactional aspects of HR management to that of strategic decision making, small and medium sized enterprises are embracing recruitment process outsourcing services. Recruitment process outsourcing is gaining more acceptance due to increased emphasis on workforce planning and recruitment to address HR challenges. However, larger companies tend to adopt the one-stop shop for all their human resources management needs. Major competitors in the business have previously provided such potent recruitment process outsourcing services. Specialized and varied service offerings are being developed by recruitment process outsourcing vendors in order to get a competitive edge in the market. Outsourcing the recruitment process allows businesses to avoid the high costs of using conventional recruiting strategies like job boards, advertising, and headhunters.
US Recruitment Process Outsourcing Market is poised to grow at a sustainable CAGR for the next forecast year.
Market Snapshot - 2024-2031
Global Market Size
Largest Segment
Cloud
Fastest Growth
Cloud
Growth Rate
6.62% CAGR
Global Recruitment Process Outsourcing Market ($ Bn)
Country Share by North America (%)
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Recruitment Process Outsourcing Market Segmental Analysis
Global Recruitment Process Outsourcing Market is segmented on the basis of type, enterprise size, end use, and region. By type, market is segmented into on-demand, function-based, and enterprise-based. By enterprise size, market is segmented into small & medium enterprises (SMEs), and large enterprises. By end-use, the market is segmented into BFSI, healthcare, manufacturing, IT & telecom, education, and others. By region, the market is segmented into North America, Europe, Asia Pacific, Middle East and Africa, and Latin America.
Recruitment Process Outsourcing Market Analysis by Type
As per categorization by type, the market is classified as permanent staffing, flexible staffing, and others. Among these, flexible staffing earned the largest share and continues to dominate the global recruitment process outsourcing market share. There is a growing trend towards offering creative solutions in the form of flexible staffing services in the global recruitment process outsourcing market, which can be attributed to the need for managing workforces in a more agile manner. In this sense, companies are adopting flexible staffing to respond quickly to the changing markets and the skills required, thereby allowing them to tap into a larger talent pool. This facilitates increased operational efficiency and reduces costs, thereby becoming the most preferred method in the recruitment process outsourcing market as companies are focused on recruitment solutions that can easily scale up or down.
The permanent staffing type is poised to become the fastest-growing segment in the global recruitment process outsourcing market due to several key factors. The growing acknowledgement of the significance of a reliable and competent work force has led many organizations to pay attention to permanent placements than temporary ones. This is also motivated by the hunt for strategically related talents, hence encouraging stability and professionalism within the organization. In addition, the increase in remote work has increased the available talent as recruitment process outsourcing providers can now look for potential and qualified candidates across the globe. This intentional tactical shift on permanent placements improves organizational decades and growth in a hard-battled environment.
Recruitment Process Outsourcing Market Analysis by End-User
The IT and telecom sectors are leading the global recruitment process outsourcing market, characterized by ongoing innovation and a robust demand for specialized talent. Given the dynamic nature of these sectors fueled by technology and digitalization, it is imperative that firms have competent people capable of driving intricate projects to stay ahead of competition. Recruitment process outsourcing service providers have strategically incorporated sophisticated analytics, artificial intelligence-oriented sourcing devices and customized recruitment approaches for the IT and Telecom business sectors. The demand for human resources experienced in global recruitment process outsourcing market and the provision of these processes to IT and telecom end user type are the two main factors that contribute to growth and flexibility in the global recruitment process outsourcing industry.
The ITES (Information Technology Enabled Services) and BPO (Business Process Outsourcing) sectors are set to become the fastest-growing end users in the global recruitment process outsourcing market due to their increasing reliance on skilled labor and the need for cost-effective staffing solutions. In an effort to improve operational efficiency and smooth out processes, companies are now looking for recruitment process outsourcing providers to help them with sourcing, recruiting and managing people. The rapid adoption of technology in the operations of many services along with the continued rise in customer support, data analysis, and IT management roles also stimulates this growth making ITES and BPO the key trends in recruitment evolution.
Global Recruitment Process Outsourcing Market By Type (%)
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Recruitment Process Outsourcing Market Regional Insights
North America is dominating the global recruitment process outsourcing market due to its robust economy, advanced technological infrastructure, and a highly competitive business environment. Due to the lack of available talent and the need for faster recruitment processes in the course of digital transformations, the companies in this region are increasingly adopting recruitment process outsourcing solutions. Furthermore, the region’s large labor pool attracts international recruitment vendors seeking to enhance the global recruitment process outsourcing market size by developing solutions catering to different sectors. There is also a growing emphasis on convenience, compliance and employer branding which makes recruitment process outsourcing even more attractive, reinforcing North America’s position in the recruitment business no matter which geographic region is under consideration.
The Asia-Pacific region is emerging as the fastest-growing region in the global recruitment process outsourcing market, driven by rapid economic growth, a burgeoning middle class, and increasing investments in technology. For instance, as businesses in nations like India, China, Australia, and so forth grow, so do their efficient recruitment drive needs to attract and retain people in competitive labor markets. Owing to the presence of a diversifying workforce and the increasing notion of digital transformation, there is a high need for specialized recruitment process outsourcing services in this region. Nevertheless, the increased focus on compliance and branding of the employer provides the wide draw of recruitment process outsourcing as an attractive proposition, thus making Asia Pacific a hot bed of innovative recruitment ideas and practices.
Global Recruitment Process Outsourcing Market By Geography
- Largest
- Fastest
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Recruitment Process Outsourcing Market Dynamics
Recruitment Process Outsourcing Market Driver
Increasing Demand for Specialized Talent
- The global recruitment process outsourcing market is fueled by the increasing demand for specialized talent in various sectors. As skills shortages become evident and technological progression becomes rampant. These companies resolve to work with recruitment process outsourcing providers to source, screen, and hire niche candidates in order to maintain market relevance.
Focus on Cost Efficiency
- Prominent factors contributing to the growth of the recruitment process outsourcing market include the need for cost effectiveness and positive working. Companies are beginning to carry more and more of their recruitment processes to other providers in an attempt to simplify hiring, minimize the paperwork involved and save costs. Through the use of recruitment process outsourcing support facilities, companies can fine-tune their policies on acquiring human capital but will focus their efforts on the more productive processes.
Restraints
Quality of Service Variability
- Variability in the quality of service offered by different recruitment process outsourcing providers can restrain market growth. Companies may face challenges in identifying vendors who can reliably fit their recruitment requirements and benchmark. Repeatedly disappointing performance brings about discontent and lack of faith which makes many organizations reluctant to hand over the recruitment processes to such a company.
Integration Challenges
- The issue of integrating internal current human resources systems with outer recruitment process outsourcing services is also a challenge for the market. Often companies experience difficulties in synchronizing their processes and technologies as well as workflows with those of the recruitment process outsourcing providers. Such intricate processes lead to longer durations and higher costs of implementation which discourage organizations from seeking recruitment process outsourcing collaborations.
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Recruitment Process Outsourcing Market Competitive Landscape
The competitive landscape of the global recruitment process outsourcing market is characterized by a diverse array of providers offering tailored solutions to meet varying client needs. Some of the significant international players include ManpowerGroup, Randstad, Allegis Global Solutions, and Korn Ferry, contribute significantly to the global recruitment process outsourcing market trends and incorporate evolving technology and analytics into their recruitment processes. These companies compete on the quality of service, level of innovation, and scalability of operations and this promotes further growth of the industries as the companies tend to look for strategic alliances from other enterprises, which are focused on their recruiting processes.
Top Players in the Recruitment Process Outsourcing Market
- ADP, Inc. (US)
- Alexander Mann Solutions (UK)
- Cielo, Inc. (US)
- Hudson Global Inc. (US)
- IBM Corporation (US)
- ManpowerGroup (US)
- Korn Ferry (US)
- PeopleScout - A TrueBlue Company (US)
- Pontoon Solutions (US)
- Randstad N.V. (Netherlands)
- Sevenstep (US)
- WilsonHCG (US)
Recruitment Process Outsourcing Market Recent Development
- In August 2023, Allegis Global Solutions has revealed the availability of its all-encompassing AI-powered applicant tracking and sourcing solution for recruiting along with the introduction of the newest selection processes. The technology in question is designed to simplify the recruitment processes enabling organizations to hire suitable personnel within the required period, hence minimizing the time taken to fill a vacancy.
- In September 2023, Randstad unveiled a new flexible staffing solution focused on the healthcare market. The objective of this initiative is to meet the rising need for healthcare workers by offering recruitment services that can shift with the changing needs of the workforce and therefore ensure that healthcare organizations can always have the right number of staff.
- In October 2023, ManpowerGroup announced a strategic alliance with a prominent technical company to enhance its capacity for recruitment analytics. The initiative is aimed at the application of data analytics in understanding the labor market’s dynamics and optimizing the client’s talent acquisition activities thus empowering their hiring decisions with up-to-the-minute information.
Recruitment Process Outsourcing Key Market Trends
- Emphasis on Technology-Driven Solutions: The expansion of the global recruitment process outsourcing market has technology at the wheel and such technology inclusive of AI and automation. Such developments in Technology optimization of recruitment processes, sourcing for candidates, and the general management and handling of resources makes it easier for organizations to meet changes in demand for labor in their regions and stay competitive in the labor market.
- Growing Adoption of Flexible Staffing Models: Within the recruitment process outsourcing marketplace, there is a growing trend towards the acceptance of flexible staffing models, mainly due to the rising need for flexibility in managing workforce resources. To this effect, more employers are seeking services from recruitment process outsourcing service providers to enjoy flexible and scalable talent solutions that are up to the task of providing a steady supply of talents even in times of demand overload optimizing their hiring processes and operational in general.
Recruitment Process Outsourcing Market SkyQuest Analysis
SkyQuest’s ABIRAW (Advanced Business Intelligence, Research & Analysis Wing) is our Business Information Services team that Collects, Collates, Correlates, and Analyses the Data collected by means of Primary Exploratory Research backed by robust Secondary Desk research.
As per SkyQuest analysis, in conclusion, the global recruitment process outsourcing industry is navigating a dynamic landscape influenced by workforce demands and technological advancements. The critical shortage of skilled talent is prompting organizations to seek recruitment process outsourcing solutions to streamline hiring and enhance efficiency. While the market faces challenges, such as variability in service quality and integration difficulties.
The rising focus on permanent staffing and flexible models positions recruitment process outsourcing providers to play a crucial role in shaping the future of recruitment. With innovation and strategic partnerships, companies can leverage recruitment process outsourcing to drive sustainable growth and address evolving human resource needs effectively.
| Report Metric | Details |
|---|---|
| Market size value in 2022 | USD 7.33 billion |
| Market size value in 2031 | USD 28.09 billion |
| Growth Rate | 16.1% |
| Base year | 2023 |
| Forecast period | 2024-2031 |
| Forecast Unit (Value) | USD Billion |
| Segments covered |
|
| Regions covered | North America (US, Canada), Europe (Germany, France, United Kingdom, Italy, Spain, Rest of Europe), Asia Pacific (China, India, Japan, Rest of Asia-Pacific), Latin America (Brazil, Rest of Latin America), Middle East & Africa (South Africa, GCC Countries, Rest of MEA) |
| Companies covered |
|
| Customization scope | Free report customization with purchase. Customization includes:-
|
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Table Of Content
Executive Summary
Market overview
- Exhibit: Executive Summary – Chart on Market Overview
- Exhibit: Executive Summary – Data Table on Market Overview
- Exhibit: Executive Summary – Chart on Recruitment Process Outsourcing Market Characteristics
- Exhibit: Executive Summary – Chart on Market by Geography
- Exhibit: Executive Summary – Chart on Market Segmentation
- Exhibit: Executive Summary – Chart on Incremental Growth
- Exhibit: Executive Summary – Data Table on Incremental Growth
- Exhibit: Executive Summary – Chart on Vendor Market Positioning
Parent Market Analysis
Market overview
Market size
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- SWOT Analysis
KEY MARKET INSIGHTS
- Technology Analysis
- (Exhibit: Data Table: Name of technology and details)
- Pricing Analysis
- (Exhibit: Data Table: Name of technology and pricing details)
- Supply Chain Analysis
- (Exhibit: Detailed Supply Chain Presentation)
- Value Chain Analysis
- (Exhibit: Detailed Value Chain Presentation)
- Ecosystem Of the Market
- Exhibit: Parent Market Ecosystem Market Analysis
- Exhibit: Market Characteristics of Parent Market
- IP Analysis
- (Exhibit: Data Table: Name of product/technology, patents filed, inventor/company name, acquiring firm)
- Trade Analysis
- (Exhibit: Data Table: Import and Export data details)
- Startup Analysis
- (Exhibit: Data Table: Emerging startups details)
- Raw Material Analysis
- (Exhibit: Data Table: Mapping of key raw materials)
- Innovation Matrix
- (Exhibit: Positioning Matrix: Mapping of new and existing technologies)
- Pipeline product Analysis
- (Exhibit: Data Table: Name of companies and pipeline products, regional mapping)
- Macroeconomic Indicators
COVID IMPACT
- Introduction
- Impact On Economy—scenario Assessment
- Exhibit: Data on GDP - Year-over-year growth 2016-2022 (%)
- Revised Market Size
- Exhibit: Data Table on Recruitment Process Outsourcing Market size and forecast 2021-2027 ($ million)
- Impact Of COVID On Key Segments
- Exhibit: Data Table on Segment Market size and forecast 2021-2027 ($ million)
- COVID Strategies By Company
- Exhibit: Analysis on key strategies adopted by companies
MARKET DYNAMICS & OUTLOOK
- Market Dynamics
- Exhibit: Impact analysis of DROC, 2021
- Drivers
- Opportunities
- Restraints
- Challenges
- Exhibit: Impact analysis of DROC, 2021
- Regulatory Landscape
- Exhibit: Data Table on regulation from different region
- SWOT Analysis
- Porters Analysis
- Competitive rivalry
- Exhibit: Competitive rivalry Impact of key factors, 2021
- Threat of substitute products
- Exhibit: Threat of Substitute Products Impact of key factors, 2021
- Bargaining power of buyers
- Exhibit: buyers bargaining power Impact of key factors, 2021
- Threat of new entrants
- Exhibit: Threat of new entrants Impact of key factors, 2021
- Bargaining power of suppliers
- Exhibit: Threat of suppliers bargaining power Impact of key factors, 2021
- Competitive rivalry
- Skyquest special insights on future disruptions
- Political Impact
- Economic impact
- Social Impact
- Technical Impact
- Environmental Impact
- Legal Impact
Market Size by Region
- Chart on Market share by geography 2021-2027 (%)
- Data Table on Market share by geography 2021-2027(%)
- North America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- USA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Canada
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Europe
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Germany
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Spain
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- France
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- UK
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Europe
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Asia Pacific
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- China
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- India
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Japan
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Korea
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of Asia Pacific
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Latin America
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- Brazil
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of South America
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Middle East & Africa (MEA)
- Chart on Market share by country 2021-2027 (%)
- Data Table on Market share by country 2021-2027(%)
- GCC Countries
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- South Africa
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
- Rest of MEA
- Exhibit: Chart on Market share 2021-2027 (%)
- Exhibit: Market size and forecast 2021-2027 ($ million)
KEY COMPANY PROFILES
- Competitive Landscape
- Total number of companies covered
- Exhibit: companies covered in the report, 2021
- Top companies market positioning
- Exhibit: company positioning matrix, 2021
- Top companies market Share
- Exhibit: Pie chart analysis on company market share, 2021(%)
- Total number of companies covered
Methodology
For the Recruitment Process Outsourcing Market, our research methodology involved a mixture of primary and secondary data sources. Key steps involved in the research process are listed below:
1. Information Procurement: This stage involved the procurement of Market data or related information via primary and secondary sources. The various secondary sources used included various company websites, annual reports, trade databases, and paid databases such as Hoover's, Bloomberg Business, Factiva, and Avention. Our team did 45 primary interactions Globally which included several stakeholders such as manufacturers, customers, key opinion leaders, etc. Overall, information procurement was one of the most extensive stages in our research process.
2. Information Analysis: This step involved triangulation of data through bottom-up and top-down approaches to estimate and validate the total size and future estimate of the Recruitment Process Outsourcing Market.
3. Report Formulation: The final step entailed the placement of data points in appropriate Market spaces in an attempt to deduce viable conclusions.
4. Validation & Publishing: Validation is the most important step in the process. Validation & re-validation via an intricately designed process helped us finalize data points to be used for final calculations. The final Market estimates and forecasts were then aligned and sent to our panel of industry experts for validation of data. Once the validation was done the report was sent to our Quality Assurance team to ensure adherence to style guides, consistency & design.
Analyst Support
Customization Options
With the given market data, our dedicated team of analysts can offer you the following customization options are available for the Recruitment Process Outsourcing Market:
Product Analysis: Product matrix, which offers a detailed comparison of the product portfolio of companies.
Regional Analysis: Further analysis of the Recruitment Process Outsourcing Market for additional countries.
Competitive Analysis: Detailed analysis and profiling of additional Market players & comparative analysis of competitive products.
Go to Market Strategy: Find the high-growth channels to invest your marketing efforts and increase your customer base.
Innovation Mapping: Identify racial solutions and innovation, connected to deep ecosystems of innovators, start-ups, academics, and strategic partners.
Category Intelligence: Customized intelligence that is relevant to their supply Markets will enable them to make smarter sourcing decisions and improve their category management.
Public Company Transcript Analysis: To improve the investment performance by generating new alpha and making better-informed decisions.
Social Media Listening: To analyze the conversations and trends happening not just around your brand, but around your industry as a whole, and use those insights to make better Marketing decisions.
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