How Has the Recruitment Process Outsourcing Market Evolved Historically and What is its Current Size?
The recruitment process outsourcing market has seen considerable growth due to a variety of factors.
• In recent times, the market size for recruitment process outsourcing has experienced swift expansion. The market growth is projected to increase from $7 billion in 2024 to $8.14 billion in 2025, with a compound annual growth rate (CAGR) of 16.3%.
The historical growth phase can be linked to key factors such as a focus on core competencies, the international reach of the market, enhanced access to talent, the emergence of remote work, and the complexities of compliance and regulatory challenges.
What Does Future Hold for The Recruitment Process Outsourcing Market By 2029?
The recruitment process outsourcing market is expected to maintain its strong growth trajectory in upcoming years.
• Anticipations indicate a swift expansion in the market size of recruitment process outsourcing in the subsequent few years, reaching a valuation of $14.74 billion by 2029 with a compound annual growth rate (CAGR) of 16.0%.
The predicted expansion during the forecast period is linked to factors such as talent scarcities and skill breaches, adaptability and capacity to scale, enriched candidate experience, the influence of data on decisions, and groundbreaking recruitment technologies. Key trends during this period are forecasted to comprise the incorporation of AI and automation, the proliferation of virtual recruitment platforms, improved employee value proposition (EVP), AI focused on human needs, and strategies surrounding talent pooling and pipelining.
What Are The Primary Growth Drivers In The Recruitment Process Outsourcing Market?
The growth of the recruitment process outsourcing market is being propelled by an increase in remote work culture. This cultural shift within organizations allows employees to carry out their duties outside of conventional office space, often from their houses or other distant places. The emerging trend in remote work culture is driven by factors such as the wish for a better work-life balance, cost reduction for both companies and workers, and technological advancement that enables efficient remote cooperation. By removing geographical constraints, remote work permits access to a wider and more assorted pool of talent. Providers of recruitment process outsourcing can use their proficiency and resources to attract candidates from different regions, thereby enhancing the chances of finding the perfect talent for remote roles. Forbes Media LLC, a media firm in the US, reported in June 2023 that about 12.7% of full-time employees worked remotely that year, while 28.2% are projected to adopt a hybrid model in the US. It's predicted that by 2025, 32.6 million individuals will be working remotely. As a result, the increasing trend of remote work culture is fueling the growth in the recruitment process outsourcing market.
What Is The Segmentation Of The Global Recruitment Process Outsourcing Market?
The recruitment process outsourcing market covered in this report is segmented –
1) By Type: On-Demand, Function-Based, Enterprise-Based
2) By Service: On-Site, Off-Site
3) By Enterprise Size: Small And Medium Enterprises (SMEs), Large Enterprises
4) By End-Use: Banking, Financial Services And Insurance, Healthcare, Manufacturing, Information Technology (IT) And Telecommunication, Education, Other End-users
Subsegments:
1) By On-Demand: Temporary Staffing, Project-Based Hiring
2) By Function-Based: Recruitment For Specific Functions, Talent Mapping And Pipelining, Screening And Assessment
3) By Enterprise-Based: End-To-End Recruitment Management, Global Recruitment Services, Employer Branding And Strategy Development
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What Trends Are Reshaping The Future Of The Recruitment Process Outsourcing Market?
Leading corporations in the recruitment process outsourcing market are steadily concentrating their efforts on creating AI-integrated solutions such as Kelly Arc, in pursuit of competitive advantage. Kelly Arc is an innovative AI-driven tool designed to make the recruitment process more efficient through automation, identification of skilled applicants, and promoting data-informed decisions which save time and enhance performance in talent acquisition. Kelly Services Inc., a firm based in the United States, unveiled Kelly Arc in October 2023, an AI-centric recruitment platform. This new release speaks to the escalating need for AI and automated talents by linking employers with specialized professionals like robotics process automation (RPA) experts, developers, and project managers.
Who Are the Key Players In The Recruitment Process Outsourcing Market?
Major companies operating in the recruitment process outsourcing market are:
• Accenture Plc
• International Business Machines Corporation
• Deloitte Touche Tohmatsu Ltd.
• Randstad N.V.
• The Adecco Group AG
• ManpowerGroup Inc.
• Infosys Ltd.
• Allegis Group Inc.
• Aon Hewitt LLC
• Hays plc
• AMN Healthcare Services Inc.
• Kelly Services Inc.
• Pontoon Solutions Inc.
• Korn Ferry International
• Advantage Resourcing America Inc.
• Alexander Mann Solutions Ltd.
• PeopleScout Inc.
• Kenexa Corporation
• Sevenstep RPO LLC
• Hudson Global Inc.
• Orion Talent LLC
• Atterro Human Capital Group
• Accolo Inc.
What Are The Regional Insights Into The Recruitment Process Outsourcing Market?
North America was the largest region in the recruitment process outsourcing market in 2024. Asia-Pacific is expected to be the fastest-growing region in the forecast period. The regions covered in the recruitment process outsourcing market report are Asia-Pacific, Western Europe, Eastern Europe, North America, South America, Middle East and Africa.
