How Is Recruitment Process Outsourcing to India Shaping the Future of IT Hiring?

Hi, I am preparing a presentation on Recruitment Process Outsourcing activities in India. As we all know, some US-based IT consulting companies have partly outsourced their recruitment/placement activities to India. I would like to know your views on these activities, such as the short-term and long-term impacts, and what the future holds for this activity.

Regards,
Rajesh Pradhan
ADECCO

Dear Rajesh,

The scenario in the recruitment process is probably like a funnel at present. IT companies are sourcing people, and the talents leave the organization for better prospects; only a few stay back in the same organization. If you have seen the trends in the recent past, you will find that a person having 3-8 years of experience in a specific sub-domain of IT has shuffled organizations for better prospects.

The outsourcing people (mostly through agencies) are fresher HR professionals just out of campus in search of a job, and in many cases, they are just graduates. So their primary objective is to obtain experience in sourcing and then go for better opportunities. In the majority of cases, there is a lack of seriousness (with a few exceptions), and many do not wish to specialize in IT sourcing.

If you are proceeding, in my opinion, it's better to do a sampling of various sourcing agencies – the conversion rates, billing, pattern of clients – this you can do via telecon. (No consultancy will try to repel a prospective client, isn't it?)

In the short term, you can expect growth for at least 2 years. All the big giants in IT are recruiting, and the vacuum is being created for the left-out positions. All you need to do is MAPPING... where a position is created, from where the person has sourced, again, a vacuum is created! How to do it efficiently is the task of a consultant.

In the long term, in my opinion, go for specialization. Be it Open Source, J2EE, or Siebel... and source for specific industries. Probably, you may wish to generalize for 1-2 years to get a fair idea...

Wishing you luck and success.

Dear Rajesh/Colleagues,

The concept of outsourcing

The concept of outsourcing became very popular as a result of constant and repeated labor union activities in the area of wage negotiation and eventual strikes. To address the issue at hand, I would suggest that it is okay to outsource, but make sure such a task is given to very reputable Human Capital Consulting Firms—(I have deliberately defined them this way) because this is what they ought to be.

Creating a database for applicants

If possible, let them create a database for all applicants that respond to your company's job placement adverts; this would allow for an easy search for replacements when the need arises. Even though it is not pleasant to hear, most consulting firms poach for their clients—hence the suggested database would help in reducing the duration in getting a replacement.

Collaboration with consulting firms

It is also suggested that the HR Manager should work closely with the consulting firm.

Thanks.

Dear Rajesh, I'm working as a Recruitment Manager with a full-fledged UK-based RPO. Rajesh, if you could be a bit more explicit about what you want to know regarding RPOs in India, I might be able to help you.

Regards,
Sri

Hi Rajesh,

I am a new member and your posting on RPO caught my attention since I work as an RPO manager myself. The RPO concept is not limited to the US markets only. I work for a Bangalore-based company, and our clients include big names in the IT industry.

The advantages of outsourcing are that the client can save their time and resources by outsourcing mundane/routine processes and utilize the same time of their employees in other more efficient processes. For the RPO company, it's a business opportunity. Also, the resources deployed to the client location may not necessarily be freshers since the expectation from the client is pretty high. They look for value addition, and the resources are expected to sync into the client's system and deliver.

Do let me know if you need more info.

Thanks and regards,
Prathibha

Dear Pratibha,

I am working as an HR executive in one of the outsourcing companies in Bangalore. We have observed an increase in the attrition rate among contract employees whom we outsource. I have been tasked with developing retention strategies. Could you please share any innovative retention strategies that have been adopted in your company? Your insights would be greatly appreciated.

Thank you and regards,

Pramod N
09342889585
Website: www.pramodn.us.tt
Email: pramod.n@marlabs.com

Hey,

I've just submitted a project on HR Outsourcing. It included outsourcing of all HR functions (including recruitments), wherein we visited a few companies as well as consultancies and got their perspective (the basic premise for outsourcing, the benefits received, the teething problems, how they select the service providers, the contracts with the service providers, etc.).

The main reason for any HR function to be outsourced is to free the in-house HR department from routine HR jobs so that they can concentrate on strategic functions. Most HR managers felt that presently they spent only 15-20% of their time doing strategic activities, whereas they would rather spend 30% or more.

One thing I found, to my surprise, is that many times cost was not the primary reason for outsourcing; rather, it was convenience and sometimes peculiar and very specific candidate requirements by the clients. Moreover, the large database of the consultancies eased the process for the in-house HR department along with providing replacement recruits.

If you want more details, I could email you some part of my project which could give you a clearer picture... Just let me know exactly what you are looking for.

-- Anjali

Dear Anjali,

This is Sakshi. Presently, I am doing my internship project on outsourcing. It was good to know that you are ready to share some of your project samples. I appreciate your willingness to help out others. It would be a lot of help to me if you could share some of your project papers (particularly the research) details at [Login to view].

Looking forward to your favorable reply.

Sakshi

I am sorry for posting a question a little off-topic, but I see there are some professionals in here working in RPO. I was wondering if you may have any information on the top emerging RPO firms in the Delhi NCR region.

Regards,
Vaibhav.

Hi All,

I have read each of your comments on Recruitment Process Outsourcing and am delighted to share this awesome material. Please share any formats that can be used widely. This helps.

Thanks, Vikas Kuniyal Resource Manager Hyderabad

Dear RPO Professionals,

This is Sunil Kumar Singh working as a Business Development Manager in an engineering and consulting firm. I have gone through the replies and blogs that are placed on this page. I found a common thing in all the replies that they have praised the outsourcing scenario and it's advantages like cost cutting, effective time management, getting skilled resource etc… These points are good enough when you are promoting the RPO process to the client but it wouldn't come handy when we are introspecting or exploring for the new challenges that are in front of RPO process.

Currently good number of overseas companies are outsourcing their recruitment process but still it is only a small portion that is waiting to be outsourced .I think and I hope that most of us will be agreed with me that this whole process relies heavily on the quality of the candidate who is sourced by us to the client .I think placing a suitable candidate in minimum time is the biggest challenge to RPO companies and would be more challenging in coming years when the volume of outsourcing increases as it is expected to increase by 30% to 35% every year.

As placing a suitable candidate to the client, not only adds to our value over the client but we also get the confidence of the client in our selection process for short listing the suitable candidate. Once we get the confidence of the client, it helps us in establishing the long term relationship which is the most important thing for this business. This gives good word of mouth promotion in the corporate circle.

As far, India has emerged as a global outsourcing destination, not only in the field of IT

Services but in the other sectors also like hospitality, law.



Other than these there is one more sector which has natural potential internationally and locally too. There is a huge demand for the skilled design professional in the field of oil& gas, refineries, power projects and in detail engineering sectors and it is expected to increase by folds in the coming years. To cater such huge demands is a challenge in itself.

So I suggest to look for the strategic partners rather than going individually to the entire geographic region or to develop an intranet network of strategic partners which has expertise in dealing with other domain sectors but having same domain process, RPO. In this way we can mutually use the expertise of others to expand the business. So, we should look forward to develop a mutual, beneficial and long-term relationship with our strategic partners.

Sunil .k. Singh

(Manager-Business Development)

LIBRA PROCESS.TECHNOLOGIES.PVT.LTD

Vadodara-390002

Hi Anjali,

I am an MBA student and am planning to present a report on RPO. Is it possible for you to share the report that you prepared.

Looking forward to a positive response from your end.

Thanks,
Shweta

Hi Anjali,

I am an MBA student and am planning to present a report on RPO. Is it possible for you to share the report that you prepared? Looking forward to a positive response from your end.

Thanks,
Shweta

We are a consulting firm and now starting up an RPO process. We have mainly started the contact generation activity. Does anyone know what the general fee structure involves in it? Please share.

Thanks,
Sweta

Hi all,

I am a student doing my MBA in HR. Can anyone provide details regarding research questions or a research study for RPO? Specifically, I would like to know what information should be included in a research paper on the questions that need to be asked to companies to understand the recruitment process followed within the organization.

RPO (Recruitment Process Outsourcing) model is not very new to the Indian market. Even giants like Accenture are either involved in direct placement or body shopping in the US market. Since the market has started picking up in the US, all major IT and non-IT companies have begun recruiting. There are a lot of profiles circulating in the US market after a huge layoff there. It would be a great achievement to engage a US client with a good deal. Once they are comfortable with you, they will send requirements your way. Getting a candidate in the market is now very easy. You need to create the requirement in the client's mind. In my career, I have handled a good number of recruitments in the US and UK. I can provide more insights on the same.

Hi Sweta,

The consultant can charge the client anything between 5-8% of the annual salary of the candidate. In the current market, none will pay more than this amount.

Please let me know how a company can determine if its recruitment process is working effectively.

Thank you.

Hi dear, I want help. My name is Krishna, and I'm a student. I just want to know what challenges and issues are in RPO services in India.