So it's no surprise that staffing firms are trying to increase the pool of job candidates available at minimum cost. According to Staffing Industry Analysts, the publisher of this newsletter, over the next two years, the number of U.S. staffing firms using U.S.-based outsourced and India-based offshore recruiters is projected to increase by roughly 50 percent, and the number using other offshore recruiters is projected to increase 175 percent.
The heaviest users of outsourced and offshore recruiters are those staffing firms primarily serving the tech/telecom, energy/chemical, government and pharma/biotech sectors, and those primarily selling IT temporary labor and direct hire.
Thanks to globalization and new technology, recruiters can work from anywhere and sign up people from anyplace. As a result, a number of staffing firms are turning to recruiters in low-cost areas like Central Michigan and the Dakotas. What this means for the end user of contingent labor is a better-quality worker at a lower cost structure, thanks to the increased pool size and the economies of recruiters working from home. Further, the recruiting process also becomes more efficient because a recruiter in India can work during his/her business hours in Asia when it's night time in the Western Hemisphere.
Staffing firms are also not dependent on any one set of recruiters, including internal ones. Increased competition ensures that the poor-performing recruiter is weeded out, leaving only those that perform. Further, recruiters that are already well-established and are functioning well in a given industry are kept on their toes.
Outsourcing recruiting enables a staffing firm to provide cost and efficiency savings, reduce overheard and gain operational control. All of these benefits are then passed on to you, the end user of contingent labor.