Southeast Asia Recruitment Process Outsourcing (RPO) Market Driven by Demand from Indonesia

Augmentation of the recruitment process outsourcing market is increasing due to soaring economic growth. Recruitment process outsourcing (RPO) is outsourcing of a section of or the whole recruitment process to an RPO provider. The appeal for RPO solutions is primarily driven by the cost curtailment leverage of these solutions. Outsourcing RPO solutions to an extrinsic service provider facilitates companies to eradicate the onus of recruitment processes and target on their core expertise.

The Southeast Asia recruitment process outsourcing (RPO) market was valued at US$45.6 Mn in 2013 and is expected to reach US$154.7 Million by 2020, expanding at a CAGR of 19.3% between 2014 and 2020.

Indonesia: Steadily Growing Market for RPO Solutions

The requirement for RPO solutions in Indonesia is galvanized by the huge growth of industrial sectors such as healthcare, pharmaceuticals, manufacturing, and others. Another major factor augmenting the demand for RPO solutions is the constantly increasing IT-enabled services (ITeS) and IT industries in the country.

Additionally, RPO vendors have progressive tools and technologies needed for recruitment processes, which establish quality recruitment outcomes for the client organizations. RPO providers also provide accountability for hired candidates. Therefore, if any employed candidate quits the organization in a stipulated period of time, the RPO organizations find a replacement for the candidate free of cost, or provide a suitable payoff.

As mentioned earlier, another critical factor inciting the augmentation of the RPO market in Southeast Asia is soaring economic growth in the region. Booming industrialization leads to growing demand for proficient employees in any country. Thanks to the soaring industrialization in Southeast Asia, the appeal for RPO solutions is predicted to grow extensively during the forecast period.

On-Demand RPO Solutions: The Leading Contributor to RPO Market

The market for recruitment process outsourcing (RPO) in Southeast Asia is segregated on the ground of end-use industries, engagement type, and geography. On the structure of engagement type, in Southeast Asia, the RPO market is segregated into end-to-end RPO and on-demand RPO. In 2013, the on-demand RPO engagement type took up a share of about 81% of the entire RPO market in Southeast Asia. On-demand RPO solutions added to outsourcing of a minimal part of the recruitment processes and are more profitable than end-to-end RPO solutions. This is the most momentous factor sustaining the demand for these solutions in the province. The on-demand RPO segment is predicted to expand at a CAGR of 19.3% between 2014 and 2020 in the Southeast Asia recruitment process outsourcing market.

On the ground of end-use industries, the Southeast Asia recruitment process outsourcing (RPO) market is divided into IT-enabled services (ITeS) banks, financial services, and insurance (BFSI); IT; manufacturing; telecommunication; healthcare; hospitality; pharmaceuticals; and others. The others segment comprises the marine, construction, and aerospace industries. ITeS and telecommunication and IT segments accounted for the biggest share of approximately 48.0% on the basis of revenue of the Southeast Asia recruitment process outsourcing (RPO) market in 2013. These sectors are expected to remain the biggest division, expanding at the highest CAGR of 19.6% between 2014 and 2020.

In 2013, Rest of Southeast Asia (RoSEA) led the Southeast Asia recruitment process outsourcing (RPO) market, accounting for a share of approximately 78% of the Southeast Asia market. Countries such as Malaysia and Singapore are among the major stakeholders in the region. Additionally, the demand for RPO solutions is aided by booming industrialization in countries such as the Philippines and Myanmar. The recruitment process outsourcing (RPO) market in RoSEA is expected to expand at a CAGR of 19.2% between 2014 and 2020.

The Southeast Asia recruitment process outsourcing (RPO) market included RPO vendors such as Randstad Holding Company, Accolo, Kenexa Corporation (an IBM Corporation Company) Inc., Kelly Outsourcing and Consulting Group, Atterro Human Capital Group, Cielo Inc., Pontoon Solutions, ManpowerGroup Solutions, Zyoin Web Pvt. Ltd., and TalentFusion Inc.

Browse the full Market Research report at http://www.transparencymarketresearch.com/south-east-asia-rpo-market.htm