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.
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.
Factor
RPO Services
Traditional Recruitment
Scope
End-to-end hiring, including employer branding and compliance
Fills specific job roles
Engagement
Long-term partnership
Transactional
Technology
Uses AI, ATS, and data analytics
Minimal tech involvement
Cost Structure
Custom pricing based on hiring volume and needs
Commission per hire
Scalability
Can scale up or down as needed
Limited flexibility
Now, let’s explore the different RPO models.
Choosing the right RPO model depends on hiring volume, industry, and budget. Here are the five main types:
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.
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.
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.
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.
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.
Why are RPO companies in India becoming a preferred choice for businesses?
Lowers hiring costs by reducing reliance on staffing agencies
Streamlines recruitment, saving time and resources
AI-driven sourcing finds better candidates in less time
Reduces time-to-fill for critical positions
Strengthens employer brand with consistent, professional hiring practices
Enhances candidate experience, improving offer acceptance rates
Ensures hiring follows Indian labor laws and regulations
Manages background verification and legal compliance
Adapts to changing business needs, whether hiring increases or decreases
Ideal for expansion, seasonal hiring, or project-based recruitment
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:
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.
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.
Predictable monthly costs for budgeting.
Ensures a dedicated recruitment team.
Reduces time-to-hire with continuous candidate sourcing.
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.
Provides a stable recruitment process while keeping costs flexible.
Suitable for scaling businesses with changing hiring demands.
This task-based model charges a fee for specific recruitment tasks, such as sourcing, screening, or interview scheduling.
Transparent pricing based on defined tasks.
Allows customization without committing to full-scale RPO.
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!
Divij Chadha is a seasoned professional leading Collar Search, a Recruitment Process Outsourcing (RPO) firm that specializes in offshore IT staffing and recruitment. With a strong foundation in the IT industry and over years of experience, Divij focuses on delivering high-quality recruitment and staffing solutions to clients globally. Under his leadership, Collar Search has become a trusted name in the RPO domain, known for its timely and reliable client services. Based in India, with a sales presence in New Jersey, USA, Divij ensures the company harnesses the best of both regions to meet diverse client needs.
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