What is RPO? (Recruitment Process Outsourcing)

July 6, 2023

What is RPO? Understanding Recruitment Process Outsourcing (RPO) is essential. It's a form of business process outsourcing (BPO), where an employer transfers all or only part of its recruitment processes to an external service provider.

In this article, we'll investigate RPO and examine different pricing structures that can address distinctive organizational needs. We'll also discuss the types of RPO engagements available in today's market.

Furthermore, you'll learn about the multitude of benefits that a good RPO provider brings to your hiring process.

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What is RPO?

Recruitment Process Outsourcing, commonly known as RPO, is a form of business process outsourcing (BPO) where an employer transfers all or part of its recruitment processes to an external service provider. RPO can be a beneficial way to streamline the hiring process and concentrate on what an organization does best, their business or service.

By leveraging the expertise and resources of an RPO provider, companies can access a larger talent pool equipped with the necessary IT skills, quicker.

How Does RPO Work?

Recruitment Process Outsourcing (RPO) is a game-changer. But how does it work? Let's break it down.

RPO providers can manage the entire recruitment process from start to finish. This includes job profiling, candidate sourcing, resume screening, interviews, hiring coordination, and new hire onboarding.

1. Job Profiling

The first step in any recruitment process is understanding what kind of talent you need. An RPO provider will work closely with your company to develop detailed job profiles for each open position.

2. Candidate Sourcing

Once the job profile is complete, the RPO provider uses various strategies and technologies to find qualified candidates. You can base the quality of the RPO provider on the way they source their candidates, and their quality.

3. Resume Screening

After sourcing candidates, an RPO provider will screen resumes based on predetermined criteria set by your company.

4. Hiring Coordination

If a candidate passes initial screenings, they'll be forwarded onto hiring managers for further evaluation and interviewing. The RPO provider coordinates this effort, ensuring smooth communication between all parties involved.

5. New Hire Onboarding

The final step in the process involves getting new hires up-to-speed as quickly as possible so they can begin contributing immediately upon their arrival at your company. New hire onboarding is a very vital step in the hiring process.

RPO Pricing Models

Cost Per Hire

With this model, you pay a fixed price for each successful placement. It's ideal for when you require multiple employees in a brief period.

The best part? You only pay for successful placements. No placement, no payment, and you decide when the placement is made, and approve or disapprove the candidate.

Monthly Management Fee

Under this model, you pay an ongoing fee to manage your recruitment process, regardless of how many hires are made. This option provides predictable costs and may be more suitable if hiring needs fluctuate throughout the year. It's like a subscription service for your hiring needs.


The hybrid approach combines elements from both previous models. It includes a lower cost per hire combined with a reduced monthly management fee. This offers flexibility and can be tailored to meet unique business requirements.

Types of RPO

Recruitment Process Outsourcing (RPO) comes in different forms to suit the unique needs of businesses. Understanding these types can help you choose the right solution for your organization.

Enterprise RPO

With Enterprise RPO, an external provider manages all recruitment activities for a company.

Selective RPO

Selective RPO is perfect for companies that want to retain some control over their hiring practices while still benefiting from expert assistance.

Project RPO

Project-based RPO solutions are perfect when there's a need to fill multiple positions within a specific timeframe, on a specific project.

On-Demand RPO

On-Demand RPO provides services as needed without long-term commitments, just simply on-demand hiring. This is where your RPO provider sits on standby until you need them.

Benefits of RPO

Recruitment Process Outsourcing (RPO) offers numerous benefits to businesses, particularly in the IT sector.

Cost Reduction

RPO services can significantly reduce hiring costs by streamlining the recruitment process, reducing HR costs per department, decreasing turnover and decreasing time-to-hire.

Improved Efficiency

An efficient recruitment process is crucial to attracting top talent in a competitive market. An RPO provider brings industry best practices and advanced technology solutions that improve efficiency at every step of the recruiting cycle.

Larger Talent Pool Access

In the current world, locating the right individual for your organization's requirements is no longer limited to just nearby areas. With an experienced firm, you gain access to a larger pool of qualified candidates from anywhere you'd like.

FAQs in Relation to RPO?

What is RPO and how is it different from outsourcing?

RPO involves outsourcing the entire recruitment process, while traditional outsourcing typically refers to contracting out specific tasks or functions.

What does RPO cover?

RPO covers all aspects of the hiring process, including candidate sourcing, interviews, onboarding, and employer branding strategies.

How do RPO recruiters get paid?

RPO recruiters are usually compensated based on a fee structure agreed upon by both parties, which may be per hire or as a percentage of annual salary for each placement.


So what is Recruitment Process Outsourcing (RPO)? It is a game-changer for businesses looking to save time and money while accessing top talent. By outsourcing recruitment efforts to a third-party provider, companies can increase efficiency, improve candidate quality, and reduce turnover rates.

Understanding the different pricing models and types of RPO available can help you determine which option best suits your needs.

If you're ready to leverage the benefits of using an RPO provider to recruit your workforce, reach out to the Biblioso team here.

If you're a job seeker, and want to view current openings you can be quickly placed in, view our current openings here.

Outsource your recruiting efforts to us, on your terms, so you can focus on growth.
Become a partner
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