Asia-Pacific outsourcing deals most likely to include recruitment

According to a report by global management consulting firm Everest Group, recruitment outsourcing was included in 59% of MPHRO (multi-process human resources outsourcing) deals in APAC in 2013. This compares with 36% in EMEA and 24% in North America.

When comparing the performance and succession planning component within MPHRO deals, the Everest Group found that again that APAC came top with 34% of deals compared with 30% and 17% for deals in Europe and North America respectively.

The report also found that APAC continued to be the fastest growing region in the MPHRO market with over a third of the new deals being signed in that region. Within APAC, the report noted how activity has moved beyond the traditional markets such as Australia into countries such as China, India, Indonesia and Japan.

With the report’s findings in mind, Elizabeth Rennie, human resources outsourcing (HRO) research director at business process outsourcing (BPO) analyst firm NelsonHall, told Recruiter that growth is reflected in:

“…significant investment in new offices by RPO specialists such as Hays, KellyOCG and IBM Kenexa in Vietnam, Thailand and Malaysia…. RPO vendors are moving beyond just permanent hires to offer a unified approach for combined permanent and contingent labour through blended managed service programme (MSP)/RPO services.”


“There has recently been a marked up-tick in employer branding services, now increasingly being complemented by the provision of workforce planning, building and management of talent pools, and labour market analysis.”

According to Rennie, the worldwide RPO market as a whole is growing at around 15% a year, with the US and the UK remaining the most important markets with a major factor being that “everybody wants people with five to seven years’ experience,” with employers not willing to train sufficient people “because of the cost.”

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