With the changes in the fiscal decisions of the developed nations having a major impact on the profitability of the companies around the world, the companies need to be always on the look out for better decisions that can exhibit greater outcome. Outsourcing of various functions is one method adopted by the companies to reap better results. The advantage of outsourcing certain functions helps the company to concentrate their time and resources on the key activities.

Recruitment process outsourcing is becoming popular with the demand for new recruits being on the rise and with the companies competing with each other for getting the best candidate. By outsourcing the recruitment process, the human resource department can divert their attention to crucial matters which can aid in creating a better brand image for the company as a best employer to work for. This has the power to minimise the employee attrition which consumes a sizeable portion of the company profits, directly or indirectly. With companies trying to increase their market share of business, reducing employee attrition can lead to better customer satisfaction, thereby influencing income generation.

Outsourcing can help in bringing down the cost of recruitment to a large extent. With newer selection processes being sought out for recruiting the right candidate the cost of selection tools have increased. Outsourcing a portion of recruitment process will be effective if the outsourcing partner has the required skills, experience and industry knowledge. Selection of a suitable candidate through better expertise can help in improving the goodwill of the HR.

On transferring the task of recruitment to an outsourcing partner, the HR can concentrate their time and resources for retaining the existing key employees, providing a better working environment and a work culture, providing better scope for growth and development within the organisation, etc. Concentration on these key tasks helps in creating a better image for them in the eyes of the employees and the management. An increase in employee satisfaction can have a direct impact on the productivity of the company.

Recruitment process outsourcing also aids the human resource department to concentrate their efforts on strategy and succession planning, and other major decisions that have a long term impact on the company performance. Time can be allocated for analysing and coming up with good decisions.

With the number of false résumés being on the rise, a background check on the employee profile has become a time consuming and expensive task. Though NASSCOM has created an NSR or the National Skills Registry which has the details like personal, academic and employment details of those in the IT sector including their photographs and finger prints, and the background check on them, the firms which form part of the NSR is negligible. The hassle of background check can be transferred to the outsourcing partner on recruitment outsourcing.

The popularity of RPO is on the rise as this helps the HR in improving other key functions, thereby improving their goodwill. As said by Vati Consulting, CEO, Amitabh Das, “HR managers have a tough task on hand. Firstly they have to recruit large chunk of IT professionals’ quarter-on-quarter basis to maintain their business growth, find suitable replacement for retiring or outgoing candidates and lastly try to keep attrition in check. Though they may succeed in their mission of keeping attrition in check, the study reveals an overwhelming majority look to RPO’s to speed up recruitment.” Thus the popularity of RPO is on the rise.