recruitment process outsourcing (RPO)

Contributor(s): Emma Snider

Recruitment process outsourcing (RPO) is the contracting of an organization's finding and attracting employees to a third-party service provider. 

The RPO provider can use its own recruiting methodologies and technology or adopt the client's techniques and systems. As with other forms of business process outsourcing (BPO), organizations that outsource recruiting hope to reduce cost and manual labor and improve compliance.

According to the research firm Gartner, globalization is another driver spurring the growth of RPO. As organizations expand into other countries, it's important to standardize sourcing, hiring and onboarding processes. Analysts say replacing multiple recruitment outposts with a centralized RPO provider might help companies achieve this aim. RPO can also provide companies with analytics on hiring practices.

Prominent RPO providers include ADP, Ceridian, NorthgateArinso and Xerox.

This was last updated in July 2013

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During peaks and troughs of an organization, RPO providers can help you flex accordingly. If you expand your business, you require more staff; if your business is downsizing, you have to implement the hiring freeze. RPO adapts any situation and helps you during these extreme contingencies.


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