After BPO and KPO, Here Comes The RPO

Recruitment Process Outsourcing is the latest buzz in the recruitment world

Aping the success of business process outsourcing industry, companies are keen on transferring all or part of their recruitment activities to external service providers, cutting down their human resource expenses significantly, say experts.

“Recruitment Process Outsourcing (RPO) analyses client and candidates in the best possible way. Besides, it saves time and cost for corporates as well,” global recruitment firm Manpower’s official spokesperson told PTI.

Corporates today are faced with rising attrition and are thus turning towards recruitment process outsourcing. RPOs are designed to meet the need of speed and cost optimisation of companies, experts said.

There exists a strong need for HR processes in the developing countries, especially India, that are witnessing growth in all domains — top-level middle level or freshers — at a never before rate, HR services provider PeopleStrong said.

“As an RPO, we see a great opportunity arising for our services in the next 4-5 years in the country’s HR space. Going forward, we see the HR departments of corporates becoming leaner as outsourcing will prove to be more helpful for them,” PeopleStrong CEO Pankaj Bansal said.

The human resource domain comprises of a group of activities, including payroll management, training, staffing, benefits administration, travel and expenses management, and retirement and benefits planning.

In case of RPO, all these activities are outsourced to a third party and the client can concentrate more on its core competency as the RPO team handles all the recruitment related works.

Meanwhile, experts said middle level employees such as team leaders, first and second rank mangers may be the next targets for the emerging recruitment process outsourcing industry.

“The middle level executives with a work experience of 2-10 years hold huge potential for the recruitment process outsourcers like us,” Bansal said.

The segment is left untapped as the top level gets head hunted and the freshers get taken up through campus recruitments and under trainee programmes, he added.

Source from Business-Standard.com

Web Exclusive | KPO industry to grow globally to $17 bn in 2010

Fielding questions on how KPOs are making inroads in India and how they compare vis-a-vis BPOs, is Anil Kaul, founder & CEO, AbsolutData Research and Analytics, in an interview with Nishu Kakkar

As India becomes a hub for multinationals to set up back-end offices, armed with a young, agile and cheap work force, job opportunities have soared in the IT sector, be it in the already established BPOs, (Business Process Outsourcing) fast emerging KPOs (Knowledge Process Outsourcing) or the niche RPOs (Research Process Outsourcing) and APOs (Analysis Process Outsourcing). Nishu Kakkar meets Anil Kaul, founder & CEO, AbsolutData Management, a company that provides consulting-oriented Advanced Analytics and Market Research services to organizations around the world. Excerpts from a free wheeling chat

Q: The average person is still unsure of what a BPO is and now you have KPOs, RPOs and APOs joining the list. What are their distinguishing features?

A: Basically there are two big categories – BPO and KPO. Processes like RPO and APO falls under the KPO umbrella. Whilst the former is a straightforward process restricted to following instructions, the latter focuses on outsourcing of a particular project to maintain expertise.

In terms of complexity of hierarchy, at the bottom is the BPO which is the simplest. Following that is the KPO family where you deliver a service by applying knowledge relating to multiple levels above the support function.

KPO typically requires advanced skills, judgment, talent and hard-core analysis. It calls for awareness of statistical programming that helps break monotony of BPO processes, as each task here is different from the other. Processes like analytical research requires data, calling for analysis and presentation of the same in a cogent concise manner.

Q: Is it safe to deduce that it is the evolution and maturity of the BPO that has led to the birth of the KPO?

A: Indeed. KPO undoubtedly is a logical progression or an extension of a BPO. There have been numerous ways in which BPOs have helped KPOs grow. The former succeeded in generating a level of confidence about the capability of Indians to take up crucial projects. This made it easier for establishing India as an ideal destination for outsourcing work. It also laid the foundation by installing infrastructure required for delivering services out of India, which KPOs are today benefiting from. However, BPOs are considered as lower-end value adds whilst KPOs are perceived to be higher-end.

Q: Lower wages and overheads – are these chief reasons for India emerging as a foremost outsourcing destination?

A: Attributing India’s cost-effectiveness as the only reason that makes it eligible for being a mega outsourcing destination would not be fair. The significant ‘other dimension’ is that we have a rich pool of intellectual capital.
Source from: Livemint.com