All Blogs Recruitment Process Outsourcing

Recruitment is crucial in business growth, but finding the right talent efficiently can be challenging. Recruitment Process Outsourcing (RPO) provides a structured approach by allowing companies to outsource their recruitment processes to specialized providers.

This blog covers:

• What is RPO in recruitment?

• Different RPO models used in India

• Benefits of RPO services

• Cost breakdown and pricing models

If you are considering outsourcing recruitment, this guide will help you make the right decision.

What is RPO in Recruitment?

Recruitment Process Outsourcing (RPO) is a hiring strategy in which a company transfers part or all of its recruitment process to an outsourced recruitment company.

RPO companies in India focus on filling specific roles and take full responsibility for sourcing, screening, hiring, and onboarding candidates.

How RPO Differs from Traditional Recruitment?

Now, let’s explore the different RPO models.

Types of RPO Models in India

Choosing the right RPO model depends on hiring volume, industry, and budget. Here are the five main types:

1. End-to-End RPO

• Best for: Companies with continuous hiring needs

• How it works: The RPO provider manages the hiring process, from job posting to onboarding.

• Services include: Workforce planning, sourcing, screening, interview coordination, employer branding, and compliance.

Example: A tech company expanding its workforce across cities uses End-to-End RPO for consistent, efficient hiring.

2. Project RPO

• Best for: Short-term hiring for specific projects

• How it works: The RPO provider handles recruitment for a defined period or project.

• Services include: Talent sourcing, assessment, onboarding, and HR compliance.

Example: A retail company preparing for the festive season scales up hiring quickly with Project RPO.

3. Selective RPO

• Best for: Companies needing expertise in specific hiring stages.

• How it works: Businesses outsource select recruitment tasks while keeping others in-house.

• Services include: Talent sourcing, interview scheduling, background verification, and employer branding.

Example: A fintech company needing skilled software developers uses Selective RPO for targeted hiring.

4. Recruiter On-Demand (ROD)

• Best for: Businesses facing sudden hiring spikes.

• How it works: The RPO provider deploys recruiters temporarily to support internal teams.

• Services include: Short-term recruitment support, talent pipelining, and workforce planning.

Example: A logistics company managing seasonal workforce demands uses ROD services.

5. Contingent Recruiter On-Demand

• Best for: Companies needing fast, short-term hiring solutions.

• How it works: Similar to ROD, businesses pay only for successful hires.

• Services include: Quick hiring, candidate shortlisting, and pre-screening.

Example: A construction firm hiring skilled workers for a short project opts for Contingent ROD.

Key Benefits of RPO Services in India

Why are RPO companies in India becoming a preferred choice for businesses?

1. Cost Efficiency

• Lowers hiring costs by reducing reliance on staffing agencies

• Streamlines recruitment, saving time and resources

2. Faster, High-Quality Hiring

• AI-driven sourcing finds better candidates in less time

• Reduces time-to-fill for critical positions

3. Better Employer Branding

• Strengthens employer brand with consistent, professional hiring practices

• Enhances candidate experience, improving offer acceptance rates

4. Compliance & Risk Management

• Ensures hiring follows Indian labor laws and regulations

• Manages background verification and legal compliance

5. Scalability & Flexibility

• Adapts to changing business needs, whether hiring increases or decreases

• Ideal for expansion, seasonal hiring, or project-based recruitment

RPO Pricing in India: Cost Breakdown

Choosing the right RPO pricing model is as important as choosing the right outsource recruitment company. The cost structure varies based on hiring volume, service scope, and contract duration. Here are the most common pricing models:

1. Cost Per Hire Model

In this model, businesses pay a fixed fee for each successful hire, typically a percentage of the candidate’s annual salary or a flat rate.

Why Choose It?

• You pay only when a hire is made.

• Cost-effective for one-time or seasonal hiring.

2. Management Fee Model

This subscription-based model involves a monthly fee paid to the RPO provider for handling recruitment. It’s suitable for businesses with ongoing hiring needs.

Why Choose It?

• Predictable monthly costs for budgeting.

• Ensures a dedicated recruitment team.

• Reduces time-to-hire with continuous candidate sourcing.

3. Hybrid Model (Management Fee + Cost Per Hire)

This model combines a monthly management fee with a per-hire cost. Businesses pay for ongoing recruitment services plus an additional fee per successful hire.

Why Choose It?

• Provides a stable recruitment process while keeping costs flexible.

• Suitable for scaling businesses with changing hiring demands.

4. Cost Per Transaction Model

This task-based model charges a fee for specific recruitment tasks, such as sourcing, screening, or interview scheduling.

Why Choose It?

• Transparent pricing based on defined tasks.

• Allows customization without committing to full-scale RPO.

Conclusion

With India’s competitive job market, outsourcing recruitment to an RPO company helps businesses hire faster, reduce costs, and access top talent. Whether you're a startup or an enterprise, RPO solutions streamline hiring with custom strategies that drive growth.

Looking for a reliable RPO partner in India? Collar Search delivers tailored recruitment outsourcing services to meet your hiring needs.

Optimize your hiring today with us and build a high-performing workforce!