Monday, April 21

After BPO, KPO, it’s RPO’s turn to shine

INDIAN IT services companies are now looking at outsourcing their recruitment process.This has become one of the ways of reducing costs and also bringing in better efficiency to the recruitment process. This has led to the growth of recruitment process outsourcing (RPO) firms, creating a winwin situation for themselves and also the IT firms. Allegis India MD Pravin Tatavarti says RPO has been gaining traction not just from a cost point of view, but also because of the kind of value these firms are bringing to the table. Amitabh Das, CEO, Vati Consulting, feels that the concept and the business model of RPO have been gaining momentum for the last three to four years with number organisations becoming aware of it. He adds that RPO in India is still in the nascent stage but would catch on in the coming days and would be very useful, especially in greenfield projects. Hitherto, there has been functional RPO activity in the country, which includes services like screening of CVs or maintaining basic HR records. Now, there has been a move towards more specialised activity, where the RPO firms provide end-to-end services which include creating hiring strategies and providing tangible results to IT services firms. Some of the RPO firms claim that recruitment costs can brought down by over 30%. Further, they feel that recruitment is a specialised process to be treated as an administrative function of the HR department. Kannan Ramaswamy, MD, Ambletek Solutions, feels that RPO firms can be successful if they are focused on select technologies and build their expertise around these areas. Ambletek, for example, under its hire train and deploy (HTD) model keeps a sizeable number of IT professionals ready so that any company that hires them gets a good talent pool. Wipro, for example, which has pruned the number of its sourcing partners from an excess of 100 to around 50-55, is looking at streamlining this process. As a pilot project, Wipro has identified around four-five sourcing partners, who will be aligned with a particular business vertical so that they can focus on getting the right kind of people. The integration of such a model within a company has its own set of challenges as the HR department looks at it as a loss of administrative control.

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