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Published Date: 2015-04-06Number of Pages: 118

Recruitment Process Outsourcing (RPO) (On-demand RPO and End-to-end RPO) Market - Southeast Asia Industry Analysis, Size, Share, Growth, Trends and Forecast 2014 - 2020

 
Recruitment process outsourcing (RPO) refers to outsourcing of different recruitment processes to an external service provider. It is a type of business process outsourcing (BPO) where the employer eliminates all or a part of recruitment processes to the RPO provider. RPO providing companies work as an extension to the human resource department of the client organization and manage the recruitment process depending upon the requirements of the client. Different processes outsourced by the client organization include searching for candidates, scheduling their interviews, jobs posting and other important functions in recruitment.
 
The market for recruitment process outsourcing (RPO) in Southeast Asia is majorly driven by high advantages offered by these solutions over conventional in-house recruitment processes. The most significant advantage of outsourcing the recruitment processes is the reduction in operational costs. Additionally, RPO providers have a dedicated team of recruiters that ensures proficient management of recruitment processes of the client organization. Apart from this, RPO providers assume the responsibility of hired candidates and other recruitment processes for the client organizations. Thus, by outsourcing recruitment processes to the RPO provider, client organizations can focus on their core competencies more efficiently. 
 
The market for recruitment process outsourcing in Southeast Asia is also driven by the rapidly growing economic development in the region. Countries such as Philippines, Vietnam and Indonesia have emerged as among the most lucrative destinations for different industries such as manufacturing; healthcare and pharmaceuticals; information technology (IT); IT enabled services (ITeS) and others. Due attractive government policies such as lower taxes, higher limit for foreign investment and low minimum labor wages, the industrialization in Southeast Asia is predicted to rise substantially in the coming years. Thus, with the rising demand for recruitment of skilled employees in these countries, the RPO market in the region is anticipated to witness high growth during the forecast period. However, lack of confidence in the client organizations regarding the knowledge level of RPO providers may significantly hamper the growth of this market.
 
The recruitment process outsourcing (RPO) market in Southeast Asia is segmented on the basis of engagement type, end-use industries and geographic regions. Based on the engagement type, the RPO market is further segmented into on-demand RPO and end-to-end RPO. Amongst these engagement types, the on-demand RPO segment led the Southeast Asia market with highest revenue share in 2013. This was mainly due to superior advantages of on-demand RPO engagement type as compared to the end-to-end RPO type. For instance, the on-demand RPO includes outsourcing some parts of the entire recruitment processes. This makes on-demand RPO services cheaper as compared to end-to-end RPO and allows client organizations to establish better control over their recruitment processes. Furthermore, on the basis of end-use industries, the market for recruitment process outsourcing (RPO) in Southeast Asia is segmented into banks, financial services and insurance (BFSI); IT, IT enabled services (ITeS) and telecommunication; manufacturing; healthcare and pharmaceuticals; hospitality and others. The others segment includes aerospace, marine and construction industry. In 2013, IT, ITeS and telecommunication segment accounted for the largest market in Southeast Asia. This was majorly due to the high demand for recruitment in IT industry. Another significant factor fueling the demand for RPO solutions in this segment is the rapidly growing IT outsourcing industry in the region.
 
In 2013, the Rest of Southeast Asia (RoSEA) accounted for the largest market share of around 78% of the Southeast Asia recruitment process outsourcing (RPO) market. This growth was attributed to fairly high adoption of these services in Malaysia and Singapore. Additionally, the demand for RPO solutions in RoSEA is driven by the rising IT outsourcing industry in Philippines and Myanmar. The market for recruitment process outsourcing in Southeast Asia is expected to witness highest growth in Indonesia. The demand for RPO solutions in Indonesia is majorly governed by the rapidly rising manufacturing and IT outsourcing industries in the nation.
 
The major companies in the Southeast Asia recruitment process outsourcing (RPO) market include Kenexa Corporation (an IBM Corporation Company), Randstad Holding Company, Accolo, Inc., Atterro Human Capital Group, Kelly Outsourcing and Consulting Group, Cielo, Inc. (Pinstripe, Inc.), ManpowerGroup Solutions, Pure Recruitment, Argus Recruitment Solutions, Pontoon Solutions, Zyoin Web Pvt. Ltd., Futurestep (a Korn Ferry Company), TalentFusion, Inc., Alexander Mann Solutions and Hudson Global, Inc. The RPO market in Southeast Asia is highly consolidated with major players in the market accounting for over 80% of the total market revenue. Major players such as ManpowerGroup Solutions, Hudson Global, Inc., Kelly Outsourcing and Consulting Group and others focus on targeting international organizations penetrating in the region.

Recruitment process outsourcing (RPO) is a type of business process outsourcing (BPO) which includes the outsourcing of different recruitment functions of an organization to third-party  vendor. The RPO solutions primarily include screening of the candidates, interview scheduling, job posting, offer execution and other important activities in the recruitment process. The major difference between the RPO providers and staffing companies is the proficient recruitment process management and responsibility of its results by the RPO providers. Outsourcing recruitment processes to a RPO provider enables the client organization to focus on their core competencies. In addition, outsourcing these processes is highly beneficial for reducing the operating costs of the organization related to the recruitment functions. This is the most significant factor fuelling the adoption of RPO solutions among different end-use industries.
 
The market for recruitment process outsourcing (RPO) is segmented, based on the type of engagement, into on-demand and end-to-end RPO service. On-demand RPO refers to the RPO service in which some of the recruitment services are outsourced to the RPO provider. On the contrary, end-to-end RPO refers to outsourcing of all the recruitment processes to the RPO providing company. On-demand RPO enables the client organization to have better control over the recruitment processes as only a part of recruitment process is outsourced to the providing company. Moreover, the cost of on-demand RPO is lower as compared to the end-to-end RPO solution. Due to these advantages and higher flexibility and scalability, the penetration of on-demand RPO services is currently high as compared to the end-to-end RPO solutions.
 
This report studies the current scenario as well as the future market potential for recruitment process outsourcing in Southeast Asia. The market for recruitment process outsourcing has been segmented into six major end-use industries, namely, banks, financial services and insurance (BFSI); information technology (IT), IT enabled services (ITeS), and telecommunication; manufacturing; healthcare and pharmaceuticals; hospitality; and others. The others segment comprises aerospace, marine and construction industries. The market for these recruitment process outsourcing systems has been extensively analyzed on the basis of factors such as types of engagement service and countries in Southeast Asia region. On the basis of engagement type, the market has been segmented into on-demand RPO and end-to-end RPO. The market size and forecasts in terms of revenue (US$ Mn) for each of these segments have been provided for the period 2010 to 2020, considering 2012 and 2013 as the base years. The report also provides the compounded annual growth rate (CAGR) for each segment of the market for the forecast period 2014 to 2020.
 
Geographically, the market for RPO in Southeast Asia has been segmented into four regions, namely, Thailand, Indonesia, Vietnam and Rest of Southeast Asia (RoSEA). The market size and forecast for each region has been provided for the period 2010 to 2020 along with the CAGR (%) for the forecast period 2014 to 2020. The study also includes qualitative analysis of the competitive scenario in these regions. The overview section of the report comprises qualitative analysis of the overall market highlighting the factors determining the market dynamics such as drivers, restraints and opportunities, along with the key trends analysis.
 
The report also provides a section on the competitive landscape, wherein the market positioning analysis of the leading players in Southeast Asia RPO market in 2013 has been discussed. The report concludes with the profiles of major players in the Southeast Asia RPO market such as Kenexa Corporation (an IBM Corporation Company), Randstad Holding Company, Accolo, Inc., Atterro Human Capital Group, Kelly Outsourcing and Consulting Group, Cielo, Inc. (Pinstripe, Inc.), ManpowerGroup Solutions, Pontoon Solutions, Zyoin Web Pvt. Ltd., Futurestep (a Korn Ferry Company), TalentFusion, Inc., Alexander Mann Solutions and Hudson Global, Inc.
 
Recruitment Process Outsourcing (RPO) Market Segmentation:
 
Recruitment Process Outsourcing (RPO) Market, by Engagement Type
  • On-demand RPO
  • End-to-end RPO
Recruitment Process Outsourcing (RPO) Market, by End-use Industry
  • Banks, Financial Services and Insurance (BFSI)
  • IT, ITeS and Telecommunication
  • Manufacturing
  • Healthcare and Pharmaceuticals
  • Hospitality
  • Others (Aerospace, Marine and Construction Industry)
Recruitment Process Outsourcing (RPO) Market, by Geographic Region
  • Thailand
  • Indonesia
  • Vietnam
  • Rest of Southeast Asia (RoSEA)


 
 
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