The start of a new decade for the RPO market 2020-2021
Growth with double digits, providers broadening their service offerings, clients from new industries, and a competitive landscape that is shifting rapidly. In a market where everything is moving as rapidly as seems to be happening in the market for Recruitment Process Outsourcing (RPO), it can be a challenge to keep check of all developments. These developments are therefore explored in the whitepaper ‘The start of a new decade for the RPO market 2020-2021’ published by Intelligence Group.
Since it can be a challenge to keep check of developments, taking stock where things stand once in a while can be of great value. Therefore nine leading leaders from the Recruitment Process Outsourcing sector were asked to share their insights. Seven topics were discussed, covering every aspect of RPO. From general market developments, their service offerings, customers, and competition, up to the regulatory landscape, data and tooling.
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RPO market developments 2020-2021
As for market developments, the RPO market has seen rapid growth in the past several years, with more and more industries embracing RPO. This is expected to continue in 2020 and beyond, though growth will likely be more unevenly distributed across the world. Regarding services, the data reveals that recruitment is becoming more and more complex, and that RPO providers support their clients with expertise in widely varying areas. This means RPO providers must also broaden their service offerings.
For recruiters, the increasing complexity means that the proverbial bar is always going up. Recruiters have to be consultants of all sorts, while at the same time having to specialize. For customers, we notice tight labour markets, rapid technological changes and a need for flexibility. RPO customers navigate a complex landscape when it comes to their talent management. This leads them to demand ever more of their providers.
In Europe and other emerging markets, RPO is quickly breaking new ground. This attracts new entrants, and leads to an increasing fragmentation in the marketspace. Meanwhile, GDPR and other European privacy regulations have had a big impact on all HR processes in the past few years. And regulations will only get tougher. For RPO providers, their clients’ compliance with regulations remains key, thereby reinforcing an already strong selling point for them.
If there is one trend in RPO in 2020 that every expert in the industry recognizes, it is the increasing importance of data. Combining data from different sources, generating insights and presenting these in a way that supports the recruitment process is almost a prerequisite for being in business as an RPO provider. Furthermore, The HR market has been one of the most buoyant areas of investment in technology in the last five years, possibly only surpassed by investments in fintech. For every imaginable part of the process new tooling is popping up. However, this flood of tooling does make it difficult for providers and their clients to find their way in a very crowded marketplace. This makes consolidation in the tooling space inevitable.
Do you want to know more about developments in the RPO market? Download the full whitepaper “The start of a new decade for the RPO market 2020-2021” below. The whitepaper is free to download for everyone.