Top 3 Trends shaping the fast growing RPO market today.

1. The value proposition is expanding. Buyers expect service providers to deliver a robust value proposition that goes well beyond economic/cost savings benefits. Service providers are developing solutions that also achieve strategic, operational, technology, human resources, and risk management benefits.

2. RPO providers are extending the value chain to deliver a robust value proposition and significantly increase the ROI for buyers. The firms now shaping the RPO market recognize that you need to win the war for talent on two fronts – acquisition and retention. This new breed of service provider is moving towards a true “end to end” definition of talent acquisition: from outsourcing simple recruiting, to the talent acquisition and management value chain. It starts at the opening of the requisition and extends through initial on boarding, orientation, and training. This end-to-end process is designed to deliver maximum value, making a huge difference in lowering costs and improving business performance.
3. The pricing equation is changing. Sophisticated buyers are moving away from per hire fees. They have become smart enough NOT to look just for labor arbitrage or cost savings driven by outsourcing alone. They are moving towards a BPO pricing model with performance guarantees and performance pricing. They recognize that business transformation and performance improvements result in competitive advantage and enduring value.