With businesses expected to ramp up hiring activities, a large number of companies are expected to outsource their recruitment process work, especially by the IT & ITeS industry, in the near term, according to HR experts.

1. Many CompaniestoOutsource RecruitmentWorkinNearTerm: Experts
Withbusinessesexpectedtorampuphiringactivities,alarge numberof companiesare expectedto
outsource theirrecruitmentprocesswork,especiallybythe IT& ITeS industry,inthe nearterm,
accordingto HR experts.
India'srecruitmentprocessoutsourcing(RPO),afastgrowingindustry,isprojectedtosee anannual
growthof 25-35 per cent,accordingto estimates.
These expectationsalsocome againstthe backdrop of highhopesthateffortstorevive the domestic
economywouldgenerate lakhsof newemploymentopportunities.
In signsof improvingmarketsentiment,leadingHRservicesfirmRandstadIndiasaidthatRPO
industry"hasbeenevolvingrapidlyinIndiainlast12 months".
Goingby itsmarketstudy,more than 70 per centof Indianemployersare likelytooutsource all or
part of theirhiringprocessinthe nextfive years.
"Thoughthistrend(of doingRPOs) has beenprevalentmajorlywithMNCs,we are seeingmany
Indianfirmsoptingforthismodel of recruitment,"RandstadIndiachief executiveMoorthyK
Uppaluri toldPTI.
Expertssaidthat the IT & ITeS sectordoesmore of RPO inthe country.Amongothers,the BFSI
(banking,financial servicesandinsurance) segmentande-commerce industryalsoresortto
outsource theirrecruitmentprocessactivities.
"Servicescompaniesthathail fromsectorslike IT,BFSI,etcwoulduse more RPOservicesasthese
businessesare people-drivenandassuchthe largestcostcentre at any such organisationwouldbe
theiremployees,"SpectrumTalentManagementdirectorVidurGuptasaid.
RPO servicesare majorlyusedforrecruitmentneedsforjunior-levelandmid-level employeesmainly
whenthere are "highvolumesof hiring".
"The numberand varietyof rolesrecruitedare greaterandhence isa challenge fororganisationsto
manage it inhouse,"saidRajeevMenon,head-innovationandproductmanagementatMeritTrac, a
talentassessmentfirm.
RPO service providershave accesstoreach out to largertalentpool andmake these specialised
recruitmentshappenmore effectively,he added.
Mr Uppaluri saidthat the RPO service providersare "predominantly(utilised) formidtojuniorlevel
employeesinthe talentpyramidastypicallyRPOissuitable forhighvolumesof hiring,withalow
mix of differentprofiles".
In the run up to LokSabha elections,HRexpertspinningtheirhopesonastable governmenthad
saidthat such a scenariowouldhelpcreate overtwomillionnew jobsandboosthiringactivitiesby
30-40 percentthisyear. A stable governmenthasbeenformedwithNarendraModi atthe helm
afterBJP got simple majority.Nosinglepartyhaswona simple majoritysince 1984.

2. Executive-searchfirmLighthousePartnersmanagingpartnerRajivBurmanobservedthatemployers
are nowlookingatoutsourcinghiringservicesasthe RPOshave substantiallyreducedtheirfeesin
past five yearsowingtothe slowdown.
CareerBuilderIndia'smanagingdirector,PremleshMachama,saidthateventhoughIndiaIncwas
slowto embrace outsourcingservices,the trendhaschangedinrecentyears.
"...inthe lastcouple of years,Indiancompanieshave reallyunderstoodthe benefitsof outsourcing
to RPO andthe numberof companiesavailingthese servicesisrapidlygrowing,"he said.
The increaseddemandforRPOservicesisalsoanticipatedtospurthisindustry'sgrowthbyas much
as 25-35 percent annually,RandstadIndiasaid.
Globally,the RPOmarketisestimatedtobe worthabout$1.5 billion.
Source : PressTrust of India/profit.ndtv.com
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