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Why companies choose vendors. Wanted to know why all the companies depend on third party for internal recruitment rather than having their own recruitment team - Is it only because it is cost effective or are their any other reason.
Please suggest me on this

When i was working for clients, even many times i got same query but i got my answer when i became my self a client to other vendors.
An example: keep your self into a place of recruitment manager with a team of 10 recruiter's and you got 1000 internal requirements from your different department hiring manager's with a time line 15 days...
So is it possible for you to close this position in 15 days?
Think twice before you answer... suppose if you have taken another more 15 days to close all position then on the other hand company will lose projects from clients, even they do have SLA (Service level agreement ) time lines.
So here we do distribute our requirement to multiple vendors to close this requirement in time.
Money is not an matter, all about time is matter in corporate...
Hope you have understand

Thanks siraj, It was good one. Appreciate your quick response. But still even small companies now going to vendors why . they do not have pressure for 1000 requirements at a time.
Good response Mr. Siraj..Thanks,
Dear Sangeetha,
Mr. Siraj answer is well enough, yes small companies also prefer local vendors for the best supply, becasue they didnt want to waste time for some thing which can done by thrid party, and there is lots of formalities and time wasting further to hire new emp or procure, (Ad,follow-up etc etc), and even vendor has good sources as well which they can provide better,

Hi Sayeed, I do agree with Siraj, want to have an elobrated reason for it that is the reason asked him about why even small companies look for vendors rather than hiring them selves
Well here you go,

Advantages for the hiring company

The hiring company gains advantages from using a professional recruiter as well. The company does not have to waste its time sorting through piles of resumes from candidates who may or may not be qualified for a job opening. They also can start interviewing candidates more quickly because a professional recruiter likely has several qualified candidates already in mind.

Another advantage that many hiring companies appreciate is that a professional recruiter can handle as much or as little of the hiring process as they want. Some companies use a recruiter solely to obtain resumes of qualified candidates so that they can then conduct screening, interviews, background checks, etc. using their internal resources. Other companies prefer to be more hands off, allowing the recruiter to find suitable candidates, conduct preliminary interviews, and even do necessary background and evaluation tests before sending the candidate to see the hiring manager.

Advantages for both the job seeker and the hiring company

One of the biggest advantages for both parties is that each knows the other is serious about the open position. Companies are not about to spend the money to hire a professional recruiter if they do not intend to follow through and hire for the position in question, which is good for the job seeker. And only candidates whose qualifications meet the job requirements exactly are referred to the hiring company for consideration, which saves the company time and effort.


I have a few points that will help you,
  1. Small companies dont have recruitment round the year,If they appoint staff (recruiters) for this task, then most of the time, they will not be enough work for them
  2. Big companies sometimes have huge vacancies (in 100's) that needs to be filled in within a short span of time, there again distributing the work saves time & fastens the entire process
  3. Advantage of replacement clause, most vendors offer 90-120days of free replacement, if their candidate leaves on his own accord within that that specified time (90-120days)
  4. Cost of ads is high & managing the response consumes a lot of time of the manager & executives
  5. Cost of purchasing user id from portals like monster/ naukri is not that high but when the company doesnot have much vacancies, the money spent there is not fully utilised
  6. There are enough vacancies in the non-it sector wherein portals or any online ad campaign cannot provide candidates, in such cases again the vendors can get you the right people. For Example: garment factory workers, ITI welders/fitters, certain positions in oil rigs, cnc machine operators etc these candidates are usually not available online, newspaper ads too are'nt that effective in drawing their attention to the vacancies
  7. Vendors have their own methods of reaching out to the right crowd, shortlisting & finally sending the right candidates to the company.
  8. By outsourcing recuitment to (right/capable/experienced)vendors, you need to interview only ten candidates to fill up 6-7positions, thereby saving a lot of your time
Take Care


Why companies choose vendors.
Hi San Cute,
Let’s take for example that yours is a company that specialises in manufacturing an item ‘K’. It means that to achieve maximum output, all resources and efforts of your company must be directed towards maximising output. Any diversion of resources would dilute the aim and would affect output adversely. Now let’s address the point relating to recruitment of human resources. If you were to have your own integral recruitment division:
1. 1. It would be a diversion of resources. Peak production will not be possible!
2. 2. If you have an integral recruitment division, you have to pay them and look after their HR problems too. So, they are not a solution to the problem but a part of the problem! A drain on your resources!! Also, recruitment entails subscription to various recruitment portals, which cost money, a lot of money, which is a further drain on your resources. Recruitment agencies, being professional organisations, can spread this cost over many establishments/compannies. So for them it is more cost-effective to do the same job!!!
3. 3. A recruitment agency will provide you with personnel as per your job description, who may be selected or rejected by you, at no extra cost. There are replacement clauses too, which make this option even more financially viable.
4. 4. And finally, if an integral part of your own organisation makes a mistake, the problem and loss is entirely yours. You have no one else to blame! Whereas, if you outsource this aspect, you can hold the recruitment agency liable till you are satisfied. Hurrah!!
So, it makes sense to outsource, after due appreciation of all factors.
Warm regards and good luck.
Colonel Gahlot
Proprietor, 'TRURECRUIT'

hai all
it is great discussion
no doubt it is a debatable issue
i have a small query
is internal recruitment is possible in vendor recruitment(out sourcing)
why because is it is very important to satisfy the ego of some people in or out side the organizations(it may not be offering a job some times it may be conducting interview only)
please make it clear

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