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Blended RPO Can Yield up to 25% Cost Savings Over Standard Recruitment Outsourcing Arrangements, Reports Everest Group

Hudson RPO named as one of few providers capable of delivering blended RPO solution

CHICAGO (October 4, 2011) – Global business advisor Everest Group has published a new report titled "Rise of Blended RPO: Addressing the Total Talent Acquisition Need." Blended RPO is the process of combining temporary staffing and permanent hiring into a single integrated program that, according to the report, can yield cost savings of nearly 25 percent over typical independent Managed Service Provider (MSP) and Recruitment Process Outsourcing (RPO) arrangements.

"While outsourcing has emerged as an efficient and effective way to manage both contingent and permanent hiring requirements, organizations have largely followed a 'silo' approach to these core talent categories," said Rajesh Ranjan, Research Director of Everest Group. "Often there is non-existent collaboration and visibility across these two arrangements and, as a result, they fail to realize the synergies that can be gained from central oversight."

"Hudson RPO has been an early leader in providing the benefits of a blended RPO solution, as the Everest Group report outlines," said Kimberley Hubble, global leader of Hudson’s RPO business. "Our blended RPO clients realize a variety of business benefits beyond cost savings such as increased access to talent, reduced time to fill open vacancies, greater workforce flexibility, effective re-use of skilled temps and contractors, and smoother conversion of these workers to permanent employees."

The Everest Group's research addresses the drivers underpinning the adoption of blended RPO, which include:

  • Growth in the contingent workforce: The temporary labor force has grown 33 percent since 2009, according to the American Staffing Association.
  • Demographic shifts: Some Generation X and Y employees prefer temporary work assignments to achieve greater work/life balance. Also, knowledge workers tend to shift between contract and permanent positions, creating an overlap in permanent and temporary talent pools.
  • Economic forces: Firms continue to require flexibility to scale up or down given the volatile nature of the economy.
  • Technology: Continued technological advances make it possible to do high-value activities from remote locations.
  • Globalization: Companies continue to require the flexibility to access talent from different geographies.

"Buyers need to evaluate their own unique situation and considerations, and invest time and effort to design the solution that best suits their needs," added Ranjan. "Buyers who successfully implement a blended RPO solution will be able to better leverage this total talent acquisition strategy as a source of competitive advantage, as well as derive substantial financial, business and strategic benefits."

"Globally we're seeing an interest spike in the blended RPO model as firms seek to standardize their recruitment process and leverage the benefits of a single provider across contingent and permanent recruiting," added Hubble.

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