High attrition rates may be a blot on the great Indian BPO success story, but this problem has helped spin off a niche industry - Recruitment Process Outsourcing (RPO)- which is expected to grow by $1b this fiscal to about $3.5 billion.
The industry is set for growth with a large number of companies in India and from abroad seeking to outsource their hiring-related jobs to third-party vendors here in order to save costs as well as time.
This new buzzword is already enjoying success with a number of corporate giants adopting the RPO model for their hiring needs inside and outside India. The hiring needs of British mobile major Vodafone are taken care of by RPO provider Alexander Mann Solutions, which also handled accounts of clients such as Credit Suisse, HP, Prudential and Capgemini.
Closer home in India, the BPO arm of the country's third largest IT firm Wipro has outsourced its recruitment process to MeritTrac and aims to reduce its hiring costs by 15-20% by this move.
Source(s): Wipro, Alexander Mann