The polarisation of the recruitment process outsourcing (RPO) market is set to continue, leaving companies in the middle facing the biggest challenge, according to Chris Herrmannsen, chief executive of RPO Ochre House.

Herrmannsen told Recruiter that the RPO market was a continuum. At one end, he said are companies, “where efficiency is at the heart of what customers are trying to achieve”.

At the other end of the scale are companies such as Ochre House, said Herrmannsen, which are “completely embedded with the organisation”.

This is characterised by “a high touch strategic partnership, in sourcing rather than outsourcing, and long-term relationships”.

He added: “This requires a very different mindset.

“I think you will still find that you will get people who do brilliantly around the efficiency piece, and the high-volume technology piece, and you will get people on the other side who are talent partners. The challenge is going to be for the biggest businesses who are stuck in the middle.”