Recruitment process outsourcing (RPO) industry is booming worldwide and the Indian market is thought of in the same vigor. As industrial growth in the country is positive, more rigorous recruitments of workforce is at hand. At the same time, India is emerging as an international destination for RPO. The worth of global RPO market is estimated around $1.5 billion. It is estimated to grow in the range of 25% to 35%.

A survey suggested that more than 70% of employers in India are expected to outsource parts of or the complete recruitment process in coming five years. Such traits will boost the recruitment industry further. IT and ITeS companies are the primary stimulant to this industry. Furthermore, as Indian hopes are high for a stable economy generating massive employment in both private and public sectors, the industry will receive further impetus.

RPO is soaring high globally. In fact, Indian growth scenario is gradual in comparison, with only a handful of homebred companies foraying to the global market. On the other hand, international companies are entering the home market fervently. Recently, a number of UK and US based players have entered the market. The emergence of international players in this domain will deliver advanced technology and enhance standards of operations in this sector. Indian recruitment companies are offering services to both international and country clientele. However, to catch up with international counterparts, Indian RPO companies will have to keep a close and active competition.

Apart from IT & ITeS, a number of industry sectors such as BFSI and e-commerce are expected to outsource their recruitment processes. Since there are massive requirements of junior and mid-level employees in this sector, the role of RPO will be crucial. Formerly, MNCs were primers to opt for RPO model of recruitment.  Now, Indian firms are joining in. The potential of payroll and benefits administration segment in HR outsourcing alone is estimated to be billions currently. Indian HR companies are contributing more to payroll processes for overseas clients. For Indian vendors, exploration of benefits in the administrative sector still has a long way to go. A recent trend of partnership between Indian and overseas RPO companies is observed. This will induce better opportunities and active improvement in both.

One of the advantages of Indian RPO market is its low cost. India has always been a choice for overseas customers because of its competitive pricing of services. Be it IT product development or outsourcing services, cost has been the major reason of emergence of this market as a destination for overseas players. The country’s RPO industry is also paving its way on the same lines growing to be a favorite destination for international companies.

As far as quality of service is concerned, the market has been outstanding. The exposure of Indian talents to the large and established BPO sector has provided a ready and well-honed workforce for the RPO industry. This makes Indian companies in the domain competent service providers for both country and overseas clients.

In contrast to positive aspects of Indian market, a number of setbacks are emerging as issues. One of the major is security of information and candidate’s data. Candidate’s data and information is obviously not the issue for Indian clients, however, for international ones, sharing information of candidates who are to be hired is a clear infringement of public information privacy by a foreign country. Indian RPO companies hiring people from other countries needs to have a strong commitment to security of Information. Many overseas companies are resilient to outsource to Indian HR agencies because of lack of confidence. Furthermore, the issue extends beyond the paradigms of industry and business, since misuse or disclosure of personal data about foreign nationals to wrong hands could escalate into massive security threats. IT infrastructure and its venerable security fronts in India has been the stumbling block for the industry.

IT security is still archaic in the country and it needs an immediate and serious intervention from both government and large IT organizations. Technology in used by RPO companies in India will have to be improvised largely. This is one of the pertinent reasons for why Indian companies should enter into collaboration with international players. Technology transfer will enable home companies to be in a sharper competitive edge. In fact, lack of improved technology has pestered Indian RPO providers to enter into collaborations with foreign entities. On the other hand, for international players, the ready Indian workforce has been the bull’s-eye.

RPO Industry is potential and its emergence in Indian market will bring massive opportunities. As the Indian market outshined many contenders of the BPO Industry making its way to be one of the best destinations, the RPO industry is also expected to follow the same track. However, the drawbacks that scourge the industry will have to be addressed adroitly.