A

Project Report

On

A STUDY ABOUT OUTSOURCING IN RECRUITMENT –

“Pros and Cons” – IT industry
In ‘TECHBRIDGE’ - RPO
Submitted to

Prof. Anand Aivalli

Submitted by

Nikita H. Nagpal

Reg no. 1020250

MBA-C

Christ University Institute of Management

 INTRODUCTION:

According to Edwin B. Flippo, recruitment is the process of searching the candidates for

employment and stimulating them to apply for jobs in the organisation”. Recruitment is the
activity that links the employers and the job seekers.

Traditionally, recruitment is seen as the cost incurring process in an organization. HR

outsourcing helps the HR professionals of the organisations to concentrate on the strategic
functions and processes of human resource management rather than wasting their efforts,
time and money on the routine work.

What is Outsourcing?
Outsourcing is an allocation of specific business processes to a specialist external service
provider. Most of the times an organization cannot handle all aspects of a business process
internally. Additionally some processes are temporary and the organization does not intend
to hire in-house professionals to perform the tasks. Once the task is assigned to the service
provider, he will take the responsibility of carrying out the tasks and maintaining the
organization’s assets.
However prior to outsourcing any component of your business to a third-party vendor, it is
essential to understand the advantages and disadvantages of outsourcing. Although
outsourcing presents a variety of benefits to your organization, it could also pose difficulties
if not outsourced to the right service provider.
 RECRUITMENT PROCESS OUTSOURCING:
Recruitment Process Outsourcing is a form of business process outsourcing (BPO) where an
employer outsources or transfers all or part of its recruitment activities to an external
service provider.
The Recruitment Process Outsourcing Association defines RPO as follows: "when a provider
acts as a company's internal recruitment function for a portion or all of its jobs. RPO
providers manage the entire recruiting/hiring process from job profiling through
the onboarding of the new hire, including staff, technology, method and reporting. A
properly managed RPO will improve a company's time to hire, increase the quality of the
candidate pool, provide verifiable metrics, reduce cost and improve governmental
compliance."

ADVANTAGES:

 Swiftness and Expertise: Most of the times tasks are outsourced to vendors who
specialize in their field. The outsourced vendors also have specific equipment and technical
expertise, most of the times better than the ones at the outsourcing organization. Effectively
the tasks can be completed faster and with better quality output

 Concentrating on core process rather than the supporting ones: Outsourcing the

supporting processes gives the organization more time to strengthen their core business
process.

 Risk-sharing: one of the most crucial factors determining the outcome of a campaign

is risk-analysis. Outsourcing certain components of your business process helps the
organization to shift certain responsibilities to the outsourced vendor. Since the outsourced
vendor is a specialist, they plan your risk-mitigating factors better.

 Reduced Operational and Recruitment costs: Outsourcing eludes the need to hire

individuals in-house; hence recruitment and operational costs can be minimized to a great
extent. This is one of the prime advantages of offshore outsourcing.

DISADVANTAGES:
RPO can only succeed in the context of a well-defined corporate and staffing strategy. As
with any program, a company must manage its RPO activities, providing initial direction and
continued monitoring to assure the desired results.

 Loose Definition of RPO - As RPO is a commercial concept rather than a specific

definition, there is little regulation to RPO providers. As such, a recruitment agency may
brand their services as RPO without actually structuring them in a way that will provide
the most benefit to their clients.
 Cost - The cost of engaging an RPO provider may be more than the cost of the
internal recruitment department, as an RPO provider is likely to have higherbusiness
overheads.

 Effectiveness - Improperly implemented RPO could reduce the effectiveness of

recruitment, should an RPO provider not understand or seek to understand the
recruitment solution that they will be providing.

 Failure to Deliver - RPO service providers may fail to provide the quality or volume of
staff required by their clients, especially when finding candidates in industry sectors
where there are staff shortages.

 Lack of Competition - Placing all recruitment in the hands of a single outside provider
may discourage the competition that would arise if multiple recruitment providers were
used.

 Pre-Existing Issues - An RPO solution may not work if the company's existing
recruitment processes are performing poorly, or if the service provider lacks appropriate
recruitment processes or procedures to work with the client. In this situation, it is better
for the company to undergo a recruitment optimisation programme.

 Employer Branding - RPO providers do not necessarily act as custodians of their

clients' employer brand in the way that a strongly aligned retained search firm orinternal
recruiting resource would.

 Engagement - Many RPO organisations perform their staffing functions and

service offsite or offshore, disconnecting the provider from the client company's growth
and recruiting strategy. While this effect can be mitigated through strong relationship
management, some of the momentum and energy associated with the rapid upscaling of
a workforce through recruitment may dissipate.

With all these pros and cons of outsourcing to be considered before actually approaching a
service provider, it is always advisable to specifically determine the importance of the tasks
which are to be outsourced. It is always beneficial for an organization to consider the
advantages and disadvantages of offshoring before actually outsourcing it.
COMPANY PROFILE:
‘TECHBRIDGE’ – the RPO (Recruitment Process Outsourcing) company of Sun Microsystems
started off with a view of handling the recruitment process of the company and being more
efficient in its operations. Mr. Anish Singh, founder of TechBridge is an excellent HR person
himself. The company exists with a purpose to try and help their clients meet their Talent
Acquisition & People capability in 3 ways:

1) Recruitment Process Outsourcing (RPO)

2) Involved recruiter contingency staffing
3) Employer branding

TechBridge helps empower its clients’ win the talent war by creating the necessary
ecosystem where hiring world class talent to build superior products/ services is the least of
their worries.

The company is very selective about whom they work with and they strive ti have their
clients from non – conflicting lines of business.

Currently, the company is filling more than 2000 positions annually across all our clients.
The company has uniquely positioned to offer total onsite recruitment outsourcing lifecycle
solutions (start to finish).

TECHBRIDGE’s Value Addition to its Clients:

 Streamline hiring workflow processes and tracking mechanisms.

 Sourcing – Proactive sourcing, headhunting and also through agenicies.
 Resume screening and processing.
 Scheduling and administering interviews and tests.
 Candidate relationship management.
 Employee referral response management.
 Offer preparation, management and post offer follow up.
 Recruitment advertisement response, job fair response management.
 Campus hiring co – ordination.
 Reference check and employment verification.
 Data, Reports & Management Information Systems.
 Vendor payment process management.
 Periodic feedback survey with Key stakeholders for course correction.
 Cut down cost of hiring.
 Significant reduction in average hiring cycle time.

Clients:

 Sun Microsystems
 EMC
 GXS
 Evolving Systems