The global recruitment process outsourcing (RPO) market is projected to expand by $11.41 billion from 2024 to 2028, according to Technavio, a market research and advisory company. The market is expected to grow at a compound annual growth rate (CAGR) of 18.68%, with the growth for 2024 projected at 15.28%.
Report from Technavio
Key drivers include companies’ need to reduce costs and improve operational efficiency in hiring processes, along with the adoption of artificial intelligence (AI) and machine learning (ML) in applicant tracking systems (ATS).
Deeper insights
The report offers detailed analyses of 20 companies, including major players such as Accenture, Adecco Group, Cielo, Deloitte Touche Tohmatsu, Hays, Infosys, and ManpowerGroup.
The IT and telecom segment, valued at $1.08 billion in 2018, is a major contributor to the projected market growth. Factors like just-in-time recruitment and the adoption of social, mobile, analytics, and cloud (SMAC) technologies have driven the market’s expansion. Other contributing sectors include manufacturing, BFSI (banking, financial services, and insurance), healthcare, and more.
North America is projected to be a key contributor to market growth, accounting for 38% of the overall expansion. This growth is driven by an increasing skilled workforce and the adoption of cloud computing, AI, and other advanced technologies in the region.
Significant Market Trends
Task-based crowdsourcing, or the gig economy, has emerged as a significant trend in the RPO market. This approach focuses on short-term contracts or freelance work rather than permanent jobs, benefiting corporations by reducing overhead costs, providing access to a global talent pool, and increasing productivity.
However, the report also highlights unstable labor laws and regulations as a major market challenge. Companies, particularly in sectors like automotive, IT, energy, retail, telecom, hospitality, and manufacturing, which are increasingly shifting to contract-based employment, are advised to stay updated on the latest regulations and amendments.
