Demand for Multi-country Recruitment Process Outsourcing (MCRPO) is growing, allowing firms to outsource recruitment services for several countries to a single provider. But new research shows that market penetration remains low, according to Randstad Sourecright and Everest Group.

A study on how firms use MCRPO identified the perspective of buyers and best practices in the industry, finding that around 96% of multinational corporations have not realised their potential in adopting MCRPO solutions. Out of the 11,000 companies considered for the research, only 4% to 5% have in fact done so.

The findings suggest that “significant” growth opportunities exist for providers of MCRPO solutions. But despite the increasing demand for MCRPO and the largely untapped market, companies that have already adopted MCRPO have reported mixed levels of satisfaction, which means there is more scope for improvement.  

“The research reveals the enormous potential that MCRPO provides for meeting the talent needs of global companies,” said Rebecca Callahan, President at Recruitment Process Outsourcing for Randstad Sourceright.

Among the key findings of the study are also the following:

• A major factor determining buyer satisfaction involves the centralisation and decentralisation of certain processes, with high-touch activities being most decentralized and back-office processes generally centralized
• Although output-based pricing is most commonly used, the pricing model has minimal effect on overall satisfaction levels
• Well defined metrics form the basis for clearly communicating the desired outcome and assessing the provider's performance
• A formalised governance structure is essential for success in MCRPO. It will provide a structured mechanism to solve issues and help to build trust between buyers and service providers
• As most buyers keep the technology decision separate from the MCRPO decision, the choice of technology model has limited impact on the outcome
• While price is among the most commonly used criteria for considering service providers, experience and country-specific expertise are given higher priority when choosing a provider