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What’s a Recruitment Process Outsourcing and How it Works

IT Recruitment Team Lead
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Professional IT recruiter for product tech companies with 8 years of experience. Specializes in hiring senior engineers in Ukraine.
15 December 2020
5 min

Those who have ever considered getting external recruiting assistance have probably heard about RPO — Recruitment Process Outsourcing. Having access to RPO specialists can help you with the acquisition of rare IT talents and navigation in the unpredictable post-pandemic environment. According to a recent report, recruitment outsourcing companies can quickly adjust to updated business needs like speed and quality of hire, build a robust talent pipeline, and select candidates with the proper experience. In this article, you will get exhaustive answers to the questions: What is an RPO? How does it work? What are the benefits of RPO (in general and specifically) in the IT industry? and many more…

 

What is Recruitment Process Outsourcing?

 

IT recruitment process outsourcing (RPO) stands for the procedure of delegating all or part of your internal recruitment activities to external service providers. This model often includes consultations on the IT recruitment services, analytical reports, and executive search for rare IT specialists.

 

 

RPO: Recruitment Advantages

 

Mundane hiring operations like searches for candidates, collecting recommendations, pre-screening, interviews, etc. can be quite exhausting. That’s a good reason to cooperate with recruitment process outsourcing firms. They blend both effective hiring practices and devoted recruiters, which is a reliable solution for those who want to focus on the core business functions (instead of managing operational ones).

 

Let’s look closer at the recruitment process outsourcing benefits:

 

What are the Advantages of RPO

 

  • Flexibility

RPO companies can scale up or scale down the ongoing recruiting activity, based on client demands. It doesn’t matter how many talents you need. You are the one to set the limits. It is also up to you whether to delegate all or some of the hiring tasks (and to what extent).

  • Cost Reduction

The RPO model enables you to spend less on in-house HR resources. Headhunters can optimize hiring expenses and lower the cost per hire.

  • Time-saving approach

Recruitment process outsourcing is famous for its immediate results. With a broad contact network, it takes less time for providers to fill each of your open positions, thus empowering your business to grow faster and hire more engineers.

  • Quality Boost

The RPO model goes far beyond just cost and time optimization. For instance, with big enterprises, the recruiting activity is first of all a matter of quality. It’s especially relevant for IT companies that experience the lack of skilled software engineers, analysts, designers, or managers. Using advanced analytics, RPO providers ensure increased retention rates and well-versed candidates with common cultural points. In-depth personality and behavioral analysis is the key to comfortable working relationships.

To illustrate this, we suggest that you read about Alcor’s successful recruitment case with BigCommerce here.

 

RPO Provider VS Staffing Agency

 

RPO Provider vs. Staffing Agency: Main Distinctions

 

Before we go any further, let’s figure out how recruitment outsourcing is different from the staffing method. Firstly, IT recruitment process outsourcing means reduced cost and high-quality hiring. Unlike staffing agencies, the RPO recruitment model ensures a wide range of services like human resource planning, candidate assessment, and employer’s brand managing, etc. Accordingly, RPO recruiters are interested in long-term cooperation that is aimed at contributing to your business.

 

Contrary to this, staffing firms usually establish higher prices and fill positions within a shorter time. They are mostly interested in short-term projects and have a narrow focus on recruitment. Such firms get paid when the vacant place becomes occupied by the person they have found. In contrast, RPO providers usually work under a management fee model. Their income can vary according to different factors, such as the candidate’s productivity.

 

Based on your requirements, at Alcor we can provide customers with either/both recruitment solutions. Read more about our work here.

 

Basic Types of RPO

 

Once you’ve decided to use the RPO model, you have to choose a specific type that works well for your business. The most common ones include Project-based RPO, Recruiter On Demand, Hybrid, and End-to-End RPO.

 

The Project-based Model implies having an agreement which specifies a defined number of roles within a fixed period of time. Such an RPO solution is a great choice for companies that are satisfied with their in-house daily recruitment, yet want to engage external RPO providers for particular projects.

 

Similarly, having a Recruiter On Demand means engaging a qualified provider exactly when you need them. During the year, companies can have diverse hiring demands depending on the current business season. Accordingly, this type of recruitment outsourcing appears to be useful in case of a sudden spike in hiring. Just imagine having a partner who can give you a hand immediately whenever you need it.

 

The Hybrid RPO Model involves delivering part of your recruitment procedures to the RPO provider, while the other part is managed by your internal team. Therefore, it provides a high level of flexibility regarding what is outsourced and what is not.

 

Finally, the End-to-End RPO Model is a magic formula for those who seek a full-service (end-to-end) hiring solution. All you need to do is sit back and relax while the RPO company takes care of all major and minor recruiting tasks.

 

RPO Model: Recruitment Steps

 

RPO (recruitment process outsourcing) is designed to take care of multiple business operations and ensure cost-effective solutions. Let’s jump right into the key steps of the RPO solution:

 

1) Developing a hiring plan based on your business needs. The defining feature of the RPO model lies in the individual approach and personalization of existing hiring strategies to your specific demands.

 

2) In-depth sourcing to receive the best candidates. Targeted strategies and talent pipelining are used to find both passive and active job seekers.

 

3) Screening of hard and soft skills. As a result, you receive skilled professionals with values similar to yours. Sounds impressive, right?

 

4) Candidate selection process and offer management. You don’t have to schedule interviews or conduct stressful salary negotiations, as that is what the RPO provider is responsible for.

 

5) Effective onboarding process. Naturally, the adaptation in a new corporate setting might take some time. To ease first-day anxieties, recruiters interact with a new employee and help with any arising queries.

 

6) Reporting on outcomes. The recruiting firm keeps you up-to-date and provides detailed analytics regarding the above-mentioned procedures.

 

Final Thoughts

 

In essence, engaging professional employees who are committed to a company’s mission is a plan for success. If you are looking for extra hands to manage your IT recruiting operations, consider Alcor as an RPO provider. With us, you’ll receive individual support, weekly reports, pieces of advice regarding the Ukrainian tech market, and verified candidates with a proven track record.

 

Watch the video to get detailed information about our recruitment services.

 

 

A team of skilled professionals can be leveraged as a part of the bigger solution. When the team is all set, Alcor can take care of the real estate, legal support, accounting, and payroll. These services all together can even make up your own R&D office.

 

Doing business with Alcor doesn’t just sound easier – it actually is!

 

Your own software R&D center

 

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We respect your privacy and will never share your data with any third party

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