Blended RPO Can Yield Up to 25% Cost Savings Over Standard Recruitment Outsourcing Arrangements, Reports Everest Group
October 04 2011 - 7:00AM
Global business advisor Everest Group has published a new report
titled "Rise of Blended RPO: Addressing the Total Talent
Acquisition Need." Blended RPO is the process of combining
temporary staffing and permanent hiring into a single integrated
program that, according to the report, can yield cost savings of
nearly 25 percent over typical independent Managed Service Provider
(MSP) and Recruitment Process Outsourcing (RPO) arrangements.
"While outsourcing has emerged as an efficient and effective way
to manage both contingent and permanent hiring requirements,
organizations have largely followed a 'silo' approach to these core
talent categories," said Rajesh Ranjan, Research Director of
Everest Group. "Often there is non-existent collaboration and
visibility across these two arrangements and, as a result, they
fail to realize the synergies that can be gained from central
oversight."
"Hudson RPO has been an early leader in providing the benefits
of a blended RPO solution, as the Everest Group report outlines,"
said Kimberley Hubble, global leader of Hudson's RPO business. "Our
blended RPO clients realize a variety of business benefits beyond
cost savings such as increased access to talent, reduced time to
fill open vacancies, greater workforce flexibility, effective
re-use of skilled temps and contractors, and smoother conversion of
these workers to permanent employees."
The Everest Group's research addresses the drivers underpinning
the adoption of blended RPO, which include:
- Growth in the contingent workforce: The
temporary labor force has grown 33 percent since 2009, according to
the American Staffing Association.
- Demographic shifts: Some Generation X and Y
employees prefer temporary work assignments to achieve greater
work/life balance. Also, knowledge workers tend to shift between
contract and permanent positions, creating an overlap in permanent
and temporary talent pools.
- Economic forces: Firms continue to require
flexibility to scale up or down given the volatile nature of the
economy.
- Technology: Continued technological advances
make it possible to do high-value activities from remote
locations.
- Globalization: Companies continue to require
the flexibility to access talent from different geographies.
"Buyers need to evaluate their own unique situation and
considerations, and invest time and effort to design the solution
that best suits their needs," added Ranjan. "Buyers who
successfully implement a blended RPO solution will be able to
better leverage this total talent acquisition strategy as a source
of competitive advantage, as well as derive substantial financial,
business and strategic benefits."
"Globally we're seeing an interest spike in the blended RPO
model as firms seek to standardize their recruitment process and
leverage the benefits of a single provider across contingent and
permanent recruiting," added Hubble.
About Everest Group
Everest Group is an advisor to business leaders on the next
generation of global services with a worldwide reputation for
helping Global 1000 firms dramatically improve their performance by
optimizing their back- and middle-office business services. With a
fact-based approach driving outcomes, we counsel organizations with
complex challenges related to the use and delivery of global
services in their pursuits to balance short-term needs with
long-term goals. Established in 1991, we serve users of global
services, providers of services, country organizations and private
equity firms in six continents across all industry
categories.
About Hudson RPO
Hudson RPO manages the people, processes and technology
associated with recruitment on a fully outsourced or project basis.
A global force in talent solutions, Hudson RPO designs, implements
and manages custom recruitment process outsourcing programs for
mid- to large-cap multi-national companies. Hudson RPO was named in
HRO Today's 2010 and 2011 Baker's Dozen list, recognizing the top
recruitment process outsourcing providers worldwide. More
information is available at http://hudsonrpo.com or follow
@HudsonRPO on Twitter.
About Hudson
Hudson (Nasdaq:HHGP) is a leading provider of permanent
recruitment, contract professionals and talent management services
worldwide. From single placements to total outsourced solutions,
Hudson helps clients achieve greater organizational performance by
assessing, recruiting, developing and engaging the best and
brightest people for their businesses. The company employs more
than 2,000 professionals serving clients and candidates in
approximately 20 countries. More information is available at
www.hudson.com.
CONTACT: Leah Burdick
Phone: 312-795-4275
leah.burdick@hudson.com
Hudson Highland (NASDAQ:HHGP)
Historical Stock Chart
From Jul 2024 to Aug 2024
Hudson Highland (NASDAQ:HHGP)
Historical Stock Chart
From Aug 2023 to Aug 2024