APAC Recruitment Process Outsourcing (RPO) Market Analysis APAC - Australia, India, Japan, China, Rest of APAC - Size and Forecast 2024-2028

APAC Recruitment Process Outsourcing Market Size 2024-2028

The APAC recruitment process outsourcing (RPO) market is forecast to increase by USD 3.59 billion and is estimated to grow at a CAGR of 21.31% between 2023 and 2028.  In the Asia Pacific (APAC) region, the market expansion hinges on several critical factors. Primarily, there is a pressing requirement to enhance HR value chains and ensure compliance with evolving regulations. Second, neo-sourcing's adoption is on the rise, as companies seek cost-effective and flexible talent solutions. Lastly, digital transformation is a significant driver, with RPOs leveraging technology to streamline processes, improve candidate experience, and provide data-driven insights. These trends are shaping the APAC RPO market landscape, fostering growth and innovation.

What will be the Size of the Market during the Forecast Period?

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Market Dynamics and Customer Landscape

In the dynamic market, businesses are increasingly turning to outsourcing services to streamline recruitment-related operations and mitigate overhead expenses. Core abilities in talent acquisition and management are crucial for handling business tasks efficiently, especially in the face of labor shortages. RPO providers leverage advanced Applicant Tracking Systems to support multinational companies in their staffing needs, often acting as a reliable third party. Off-site services and support offices play a vital role in optimizing human resources department functions, including job posting and staffing services, thus reducing overhead costs. As the demand for efficient recruitment processes grows, RPO emerges as a strategic solution for businesses and associations navigating the complexities of talent acquisition in the APAC region. Our researchers analyzed the data with 2023 as the base year, along with the key drivers, trends, and challenges. A holistic analysis of drivers will help companies refine their marketing strategies to gain a competitive advantage.

Key Market Driver

The increased use of neo-sourcing is notably driving the market growth. companies in APAC have recently changed how they view IT in the BPO sector. BPO operations are clearly moving in the direction of automation, which helps service providers compete more successfully. Many businesses in APAC are attempting to combine their technological and business solutions, not just to cut costs but also to boost creativity and productivity. Neo-sourcing, often known as the combination of IT outsourcing and BPO, is an advancement of the BPO models provided by outsourcing businesses.

Neo-sourcing refers to the coordinated management of technology and back-office operations for process re-engineering that would lead to business transformation and optimization. Process optimization, cost savings, access to the best global practices, greater productivity, boosted employee morale, and shortened cycle times are some of the advantages of this technology, which will enhance the RPO market growth during the forecast period.

Significant Market Trend

The evolution of BPaaS is the key trend in the market. The way that business procedures are being outsourced has changed with the adoption of cloud technology. Recruitment Process Outsourcing  solutions are categorized as business process-as-a-service (BPaaS) and are hosted on remote infrastructure under the management of cloud providers. Some business processes that are being enabled by cloud-based BPOs include recruitment, payroll, finance and accounting, contact centers, and specialized HR solutions.

The emergence of modern technologies in APAC has given IT infrastructure more flexibility, which has increased demand for flexible BPO services. Depending on the scale of their organization, companies can choose RPO services and later adjust them to be competitive in the global market. The need for cloud-based services will increase as BPaaS adoption grows quickly within enterprises, allowing businesses to gain a competitive edge and access to new platform solutions within the IT ecosystem. Such adoption of efficient technology will boost the growth of the RPO market during the forecast period.

Major Market Challenge

Regulatory issues is the major challenge in the RPO market. Employment laws and regulations are ever-changing. Businesses are required to keep up with the latest regulations and amendments that affect the workplace. HR workers are under tremendous pressure as a result of changes to payroll, hiring, employee benefits, and grievance procedures. Nowadays, businesses in industries including manufacturing, IT, energy, retail, telecom, and hospitality are moving more and more toward the temporary staffing model. The situation is less competitive compared to the unorganized players because staffing companies must adhere to the legislation that applies to employers of permanent personnel, such as gratuity, bonus, and provident funds.

Moreover, the Employment Act and other laws in nations like Singapore, India, and Japan, along with the ongoing implementation of new rules every year, present a challenge to the recruitment process outsourcing (RPO) business in APAC. Such factors will hamper the growth of the RPO market during the forecast period.

Market Customer Landscape

The report includes the adoption lifecycle of the market, covering from the innovator’s stage to the laggard’s stage. It focuses on adoption rates in different regions based on penetration. Furthermore, the report also includes key purchase criteria and drivers of price sensitivity to help companies evaluate and develop their growth strategies.

Customer Landscape

Who are the Major Market in APAC Market Players?

Companies are implementing various strategies, such as strategic alliances, partnerships, mergers and acquisitions, geographical expansion, and product/service launches, to enhance their presence in the market.

Cielo Inc. - The company offers RPO solutions with total talent acquisition which includes employer brand practice, executive search, technology consulting and DEI strategies. The company offers recruitment process outsourcing such as Cielo RPO as its key offering.

The report also includes detailed analyses of the competitive landscape of the market and information about 15 market companies, including:

• Automatic Data Processing Inc.
• EuroDev Holding B.V.
• GECO Asia Pte. Ltd.
• GlobalHunt India Pvt. Ltd.
• Hays Plc
• Hudson Global Inc.
• Infosys Ltd.
• International Business Machines Corp.
• Kelly Services Inc.
• Kite Consulting
• Korn Ferry
• ManpowerGroup Inc.
• Randstad NV
• Systemart LLC
• TrueBlue Inc.

Qualitative and quantitative analysis of companies has been conducted to help clients understand the wider business environment as well as the strengths and weaknesses of key market players. Data is qualitatively analyzed to categorize companies as pure play, category-focused, industry-focused, and diversified; it is quantitatively analyzed to categorize companies as dominant, leading, strong, tentative, and weak.

What is the Fastest-Growing Segment in the Market?

The market share growth of the blended RPO segment will be significant during the forecast period. The market  is growing significantly and witnessing accelerating growth momentum over the forecast period. The emergence of SMEs; the innovations in the recruitment process; and the inherent cost-effectiveness, flexibility, digitization, and increasing outsourcing of recruitment processes are expected to drive the growth of the market during the forecast period.

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The blended RPO segment was valued at USD 618.70 million in 2018 and continued to grow until 2022. Blended RPO solutions are helpful in reducing the cost of recruitment by 8%-20%. The blended recruitment process has evolved as an alternative for firms that are struggling to manage their current recruitment process. These solutions are implemented by organizations strategically to achieve a long-term competitive advantage. The deals for blended RPO solutions have increased in the past few years as the service providers are offering innovative and integrated RPO service delivery systems. Hence, such factors are fuelling the growth of this segment during the forecast period.

Segment Overview

The market research report provides comprehensive data (region wise segment analysis), with forecasts and estimates in "USD billion" for the period 2024 to 2028, as well as historical data from 2018 to 2022 for the following segments

• Service Outlook 
  • Blended RPO
  • MCRPO

• End-user Outlook 
  • Manufacturing
  • BFSI
  • Services
  • Energy
  • Others

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• Recruitment Process Outsourcing Market: Recruitment Process Outsourcing Market Analysis North America, APAC, Europe, Middle East and Africa, South America - US, UK, Canada, Australia, India - Size and Forecast
• Human Resource Outsourcing (HRO) Market: Human Resource Outsourcing (HRO) Market Analysis North America, Europe, APAC, South America, Middle East and Africa - US, China, Germany, UK, Japan - Size and Forecast
• Business Process Outsourcing Market: Business Process Outsourcing Market by End-user, Business Segment, and Geography - Forecast and Analysis

Market Analyst Overview

The market is witnessing rapid growth driven by factors such as attrition rate management, cost reduction strategies, and the demand for skilled workforce solutions. With a focus on addressing labor shortages and recruitment costs, businesses are turning to external service providers to streamline HR work and enhance efficiency in hiring processes. The market landscape depends on the On-demand RPO, Function-based RPO, MEA, Web-based software, Multi-Country RPOs, Offshore, Support offices. Fresh graduates and postgraduates form a significant portion of the talent pool targeted by RPO providers, who leverage their industry experience and strategic workforce planning to attract new talent. The market caters to a diverse range of industries, including healthcare, IT and Telecom, financial sector, and multinational corporations operating in APAC.

Artificial Intelligence, machine learning, and chatbots are increasingly integrated into recruitment solutions to improve process efficiencies and candidate engagement. Web-based and cloud-based software solutions facilitate record-keeping, candidate screening, and offer execution across multiple employment sectors. RPO models such as on-demand, function-based, and enterprise RPO cater to the needs of large enterprises and small and medium enterprises (SMEs) alike. Off-site and on-site services offer flexibility and support core business operations, while recent graduates benefit from tailored hiring solutions and job opportunities. In summary, the RPO Market in APAC is characterized by its focus on talent acquisition, cost optimization, and strategic partnerships between businesses and external service providers. With an emphasis on process efficiencies and support for high-skilled positions, RPO continues to drive innovation and growth across industrial sectors in the region.

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What are the Key Data Covered in this Market Report?

• CAGR of the market during the forecast period
• Detailed information on factors that will drive the growth of the market between 2023 and 2028
• Precise estimation of the market size and its contribution of the market in focus to the parent market
• Accurate predictions about upcoming trends and changes in consumer behavior
• Growth of the industry across APAC
• Thorough analysis of the market’s competitive landscape and detailed information about companies
• Comprehensive market forecast analysis of factors that will challenge the growth of the market players

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