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Budget Management for Recruitment Process Outsourcing

Budget Management for Recruitment Process Outsourcing

Out of the many benefits that come as part of the advantages from Recruitment Process Outsourcing services is cost cutting or decreasing the overall fixed and variable costs that are associated with recruiting. This leads to a crucial question which every company wants to know before making an agreement for an RPO partnership i.e., how much should they invest for the RPO solution. A specific research in the matter after interviewing a few industry experts revealed that there is no fixed budget that can be chalked out as the norm. It all depends upon the services required, duration and outcome.

Recruitment process outsourcing services in itself is a combination of processes. As such, the price would reflect much more than just the services, it would reflect the precise requirements of the buyer as well as the degree of involvement of the provider among other things that needs to be taken into consideration. The RPO pricing models depend on a number of factors. Nonetheless, it costs less than the typical talent acquisition procedure. Region, volume, complex positions, labor pressure and demographics are all driving factors that influence the pricing of several RPO models.

In certain situations, the pricing for several RPO models do subsist but are heavily modified as they depend on the scale of RPO engagement. There are many types of pricing models based upon the requirement such as, Project based, End-to-End, On- going, Partitioned and Transactional. These pricing models also comprise a variety of RPO services and may be subject to change depending upon the provider. The standard RPO agreement may range from anything between a year to three years and hence has an impact over the pricing too.

In addition to the above factors, it is also seen that different processes of the Recruitment Process Outsourcing bears a different effect on the performance of the organization, thereby it has to be remembered that value over cost is becoming the preferred choice in RPO pricing these days.

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