[Skip to content]

Search our Site
Thursday 23 February 2017
To read the latest issue, Recruiter cover
To view past issues, click here


March 2017 start up supplement
HOT 100 - 2017
FAST 50 - 2017
Guide to Recruitment Software 2017
Recruitment industry suppliers 2016/17
Managing agency workers & contractors
Software Guide
Fast 50
HOT 100
Digging His Scene
Guide to Recruitment Industry Suppliers
Managing agency workers 2015
Recruiter - Guide to recruitment software 2015
Fast 50 2015
Recruiter Software Supplement
Hot 100

Asia-Pac outsourcing deals most likely to include recruitment

Fri, 6 Jun 2014

A new report has found employers in Asia Pacific (APAC) are more likely to sign up to outsourcing deals that include recruitment than employers in North America and Europe, Middle East and Africa (EMEA). 

According to the report by global management consulting firm Everest Group, recruitment outsourcing was included in 59% of MPHRO (multi-process human resources outsourcing) deals in APAC in 2013. This compares with 36% in EMEA and 24% in North America. 

When comparing the performance and succession planning component within MPHRO deals, Everest Group found that again that APAC came top with 34% of deals compared with 30% and 17% for deals in Europe and North America respectively

The report found that APAC continued to be the fastest growing region in the MPHRO market with over a third of the new deals being signed in that region. Within APAC, the report notes how activity has moved beyond the traditional markets such as Australia into countries such as such as China, India, Indonesia and Japan.

In addition, the MPHRO market showed a 3% compound annual growth rate (CAGR) in 2013 compared to 2012, reaching $3.3bn (£1.96m). However, the company noted that the APAC region “has become the hub of new activity in the segment”.

Elizabeth Rennie, human resources outsourcing (HRO) research director at business process outsourcing (BPO) analyst firm NelsonHall, agrees that APAC is one of the fastest growing region for deals. She tells Recruiter: This is reflected in "significant investment in new offices by RPO specialists such as Hays, KellyOCG and IBM Kenexa in Vietnam, Thailand and Malaysia.” 

"Japan has the biggest talent issue in the world because of its huge ageing population retiring," Rennie continues.

She adds: “RPO vendors are moving beyond just permanent hires to offer a unified approach for combined permanent and contingent labour through blended managed service programme (MSP)/RPO services.”

According to Rennie, the worldwide RPO market as a whole is growing at around 15% a year, with the US and the UK remaining the most important markets. A major factor in the growth of RPO is that “everybody wants people with five to seven years’ experience”, with employers not willing to train sufficient people “because of the cost”, she says.  

And Rennie points to a significant trend in what large organisations expect from RPO deals. “There has recently been a marked up-tick in employer branding services, now increasingly being complemented by the provision of workforce planning, building and management of talent pools, and labour market analysis,” she says. 

Page Comments
Please enter your comments below
Fill out the all the boxes and click the 'Submit' button to make a comment on this page
*Comments are added to the bottom of the page. They are moderated and will not be published until approved by the Recruiter team. They may be edited.