Why are more RPO companies now looking to offer MSP services?

Recruitment Process Outsourcing (RPO) has revolutionised how companies manage their hiring processes. With 60% of businesses reporting improved candidate quality and a 40% reduction in time-to-hire, RPOs have proven their value in the talent acquisition space. Now, RPO providers are taking it a step further by offering Managed Service Provider (MSP) services, catering to the growing demand for integrated workforce solutions. This strategic expansion is helping businesses streamline their hiring processes, manage both permanent and contingent workforce, and achieve greater operational efficiency.

In this blog, we'll explore why RPO providers are offering MSP services and how this can benefit your organisation.

What is RPO?

Recruitment Process Outsourcing (RPO) is a business model where a company outsources all or part of its recruitment functions to an external provider. Unlike traditional recruitment agencies, RPO providers take full responsibility for managing the entire hiring process. This includes everything from job profiling and sourcing candidates to screening, interviewing, and onboarding. RPO offers a comprehensive, scalable solution tailored to meet a company’s specific needs.

"With 60% of businesses reporting improved candidate quality and a 40% reduction in time-to-hire, RPOs have proven their value in the talent acquisition space."

What is the difference between MSP and RPO?

RPO focuses solely on recruitment outsourcing, while a Managed Service Provider (MSP) can manage recruitment along with other HR tasks like payroll, benefits administration, and more for a client.

Why RPO Providers are Offering MSP Services:

1. Meeting market demand: Companies want complete workforce solutions that include both permanent and temporary staff. By offering MSP (Managed Service Provider) services, RPOs (Recruitment Process Outsourcing providers) can meet this need, becoming a one-stop-shop for all hiring needs.
2. Expanding services: Adding MSP services helps RPOs offer more to their clients. This variety can attract more clients and reduce the risk of depending on just one type of service, leading to increased revenue.
3. Building stronger client relationships: Offering both MSP and traditional RPO services can strengthen relationships with clients. Clients enjoy the convenience of one trusted partner managing all their workforce needs, boosting satisfaction and loyalty.
4. Cost efficiency and scalability: Managing permanent and temporary hiring allows RPOs to cut client costs through economies of scale. This integrated approach also offers greater flexibility to adjust to changing business needs.
5. Streamlined processes and technology: Combining RPO and MSP services leads to better integration of processes and technologies, making operations more efficient. This can result in better data analysis and decision-making for clients.
6. Adapting to workforce trends: The workforce is increasingly relying on temporary workers. By offering MSP services, RPOs can stay relevant and take advantage of this growing trend.
7. Compliance and risk management: Handling a temporary workforce involves complex legal issues. RPOs with MSP capabilities can help clients navigate these challenges, reducing the risk of non-compliance and penalties.
8. Competitive advantage: Offering both permanent and temporary workforce solutions sets RPOs apart from competitors who only provide traditional recruitment services. This added capability can attract new clients.
9. Client demand for simplicity: Many companies prefer to work with fewer vendors to simplify procurement and management. By offering a wide range of services, RPOs can meet this need for vendor consolidation.

RPO recruitment businesses are expanding into MSP services to meet market demand, diversify their offerings, enhance client relationships, cut costs, streamline processes, adapt to workforce trends, manage compliance, gain a competitive edge, and simplify vendor management for clients. By integrating these services, RPO providers can offer comprehensive, efficient, and flexible workforce solutions that address the evolving needs of modern businesses.

Partnering with Giant replaces the need for additional resources, time and infrastructure. Contact us today for further information at hello@giantgroup.com 

Also, check out our case study for our existing client Cielo, in which we provide these solutions to here.